Firm history

2. Firm history • Services over 600 independent broker dealers and RIAs • Focuses on preserving and growing capital through a robust active management approach combined with risk management • Provides strategic diversification withina single client account at a low account minimum • Early pioneers of active investment management and founding member of NAAIM National Association of Active Investment Managers • Sets investor expectations with OnTarget Investing then manages and monitors those expectations

4. Are you being a proactive advisor?

5. How do you set client expectations? • I complete my firm’s suitability survey and file it • I show clients an extensive research report of how the strategy I’m suggesting has done versus the S&P 500 • I utilize the FPI suitability questionnaire and OnTarget process to establish the client’s targeted goals

6. Accenture key findings Setting client expectations • The financial services marketplace is more demanding—and less forgiving—than ever before. Customers are savvier, oversight is tighter and competition is intensifying • Educate to set expectations • Clients are most at risk when they believe their specific expectations are not met • It is important to establish clear goals with your clients • Develop and retain profitable customer relationships by creating differentiated customer experiences • Offer something the competition doesn’t • Flexible Plan Investments provides you with the tools you need to set client expectations and to manage your relationship Source: Accenture Consumer

9. When to use: • During an annual review meeting • When the market has a substantial downturn • To discuss options for a dissatisfied client • When clients want to change their risk-return profile Utilizing the Suitability Questionnaire Defines the client’s time horizon and risk tolerance

10. OnTarget Proposal Our proprietary software Generates a solution consistent with the information provided by the client under your guidance and consultation.

11. OnTarget Proposal Setting the Investment Profile Rating • Discusses the client’s answers to the suitability questionnaire • Uses their responses to characterize the risk level indicated by their answers • Details the type of investments appropriate to that risk level

12. OnTarget Proposal Roles and responsibilities • Clearly defines our role as Portfolio Manager • Establishes the individual responsibilities of the investor and their financial advisor

13. Account Setup Client agreement Matches the client’s investment profile to the strategy choices to meet the client’s investment expectations.

14. Continuous Assessment Our active management process is designed to keep accounts OnTarget. The individual strategies are measured against their investment goals weekly.

15. Quarterly Report OnTarget Investing

21. Client communication Communication findings • At least 80% of advisors communicate with their clients quarterly • The more channels the advisor uses to communicate with the client, the greater the level of client satisfaction • Clients prefer and find the most satisfaction from telephone and in-person meetings, while cutting back on less-personal methods like email • For e-mail, two-thirds (62%) of clients consider it an acceptable mainstream method of communication • Financial advisors modified their behavior after the 2008 crisis in an effort to reassure clients and answer questions Source: http://www.advisorone.com/2010/02/01/the-affluentialist-trends-in-client-communication; http://www.aicpa.org/Publications/Newsletters/WealthInsider/2010/oct21/Pages/EightTrendsinAffluent-ClientCommunications.aspx

22. Communication = Client Satisfaction Client communication "Largely due to these rates of dissatisfaction, nearly half of investors have given recent consideration to changing their primary financial advisors. Specifically, 43% of investors responded that they had recently considered a change…Excellent client service appears to begin with a high level of client contact.” - Tiburon Strategic Advisors’ Research Nearly 9 out of 10 advisers (89.7%) earning at least $100,000 say that maintaining client communications is a significant concern to them…less than half of the advisers who are earning less than $100,000 think client communications is important.” - CEG Worldwide Study of Affluent Investors “Of those who had three or more annual contacts, 66 percent planned on giving their primary advisor more assets to manage, and 64 percent said they would give that same advisor referrals. Of those who had two or fewer contacts from their advisor, the numbers were 1.4 percent and 0 percent, respectively.” - Registered Rep Magazine “The most satisfied [affluent clients] averaged 28 contacts (in person, by telephone, by mail and by email) with their advisors in a one-year period. Very dissatisfied affluent investors, on the other hand, averaged only 17 contacts over the same period” - CEG Worldwide Study of Affluent Investors Client contact determines how much business clients do with their advisor, how loyal they remain, and how many referrals they give to their advisor.

23. Client communication How to make 26 touches per year 2014 • Financial Updates • Quarterly review • Quarterly economic webcast • Educational • Tax changes • Year-end planning • Market outlook • Strategy webinars • Appreciation • Quarterly/annual event • Thank You cards • Birthday/anniversary • Special events/holiday

24. Client communication Monthly/quarterly newsletters Communication opportunity

26. When your client begins with FPI, what do you do? • Make a copy of the FPI welcome letter and file it. • Call the client and let them know “the money hit.” • Call the client and review what they can expect from FPI.

27. Welcome packet Communication opportunity

28. When FPI quarterly statements are sent to your clients, what do you do? • File them in the client’s file. • Scan them. • Call the client to set up a quarterly meeting to review them.

29. Using quarterly statements Quarterly statements Communication opportunity • Review the statement explanation • Discuss any potential strategy changes

30. Using quarterly statements Quarterly OnTarget Report (page 1) Communication opportunity • Show clients how their portfolio is diversified and actively managed • Review client profile and market commentary • Demonstrate how volatility is reduced versus the market on an unmanaged basis • Performance is plotted quarterly on the graph developed from the suitability questionnaire • The OnTarget Monitor is the client’s personal benchmark, not some arbitrary index

31. Using quarterly statements Quarterly OnTarget Report (page 2) Communication opportunity • Clients can • Visualize the diversification of the portfolio • See regular portfolio asset class allocations • Visually observe the “active management” • Understand the importance of staying invested through a full market cycle (60 to 84 months, on average)

32. How do you use the weekly Market Hotline? • I don’t have time to read it. • I scan it and then discard. • I review it for items concerning my clients’ strategies and follow up with them accordingly.

33. Taking advantage of Market Hotline Weekly Market Hotline Communication opportunity – talking points • Summarizes the previous week from a market prospective • Reviews the holdings and performance of some of our strategies • Market insights from Jerry Wagner, President of Flexible Plan Investments

34. How do you handle a dissatisfied client? • Agree with everything they say and get a new manager. • Argue with them and show them the error in their ways. • Listen to their concerns, review their account, and make appropriate suggestions.

35. Handling dissatisfied clients Model Performance Reports To help discuss actual performance • Make sure you both know what the real performance is: withdrawals and other miscalculations • Select returns for selected date range, or mutual-fund-type reporting available for a fixed range each month • Max loss and risk for time period indicated show the real difference of the strategy versus an index

36. What do you do if a strategy is underperforming? • I hope that it will turn around and that the client doesn’t notice. • I call the client and suggest a new manager. • I review the strategy and alternatives with my FPI representative and we create a plan.

37. Changing strategies Determine best investment approach Suitability-driven strategiesUtilize multiple investment techniques based on risk tolerance Strategically diversified portfoliosCombine actively-managed strategies across varied asset classes Ready-made: FUSION, FUSION Prime, Diversified Bonds, Diversified Tactical Equity, or Do-It-Yourself

38. Changing strategies What to do if your client needs a new investment strategy Complete a new Suitability Questionnaire Review options with your client – different risk profile, ready-made or do-it-yourself Strategically Diversified Portfolios Complete an online strategy request

39. Put this knowledge to use • Build ongoing communication outlets for clients • Offer a more customized approach to clients with an eye toward efficiency • Build a process to ensure that thefrequency of client contact is quantified and effective • Use OnTarget tools to explain the investment selection, risk, performance and establish client trust • Customize your client’s experience

40. Disclosures This presentation is provided for information purposes only and should not be used or construed as an indicator of future performance, an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Flexible Plan Investments, Ltd. cannot guarantee the suitability or potential value of any particular investment. Information and data set forth herein has been obtained from sources believed to be reliable, but that cannot be guaranteed. Before investing, please read and understand Flexible Plan Investments, Ltd. ADV Part 2A and Part 2A Appendix 1.  PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Inherent in any investment is the potential for loss as well as profit. A list of all recommendations made within the immediately preceding twelve months is available upon written request.