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Karl Bareither, CLU Wealth Transfer Specialist

Building a Fee-Based Wealth Transfer Practice Getting compensated for the value you add. Karl Bareither, CLU Wealth Transfer Specialist. Objectives You will be able to:

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Karl Bareither, CLU Wealth Transfer Specialist

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  1. Building a Fee-Based Wealth Transfer Practice Getting compensated for the value you add Karl Bareither, CLU Wealth Transfer Specialist

  2. Objectives • You will be able to: • Identify all the services you currently provide (or could begin providing) and determine if you are being fairly compensated for them. • Identify the benefits to you and your clients of charging fees as a Wealth Transfer Specialist. • Use the FBR Model as a guide to effectively present wealth transfer fees to a prospective client. • Identify the essential components of the FBR System fee agreement. • Embrace the principle of charging fees for value added services.

  3. Activity: Client Services What services do you currently offer your clients? Check the box next to the services you typically provide. Then check the box indicating how you are compensated for that service. Check “No Comp” if you do not receive compensation for this service. Com- Client Service miss- No Service Fees ion Comp Sell financial products Manage/invest money Draft documents Crunch numbers, prepare financial reports, etc. Provide legal or technical advice Counsel clients and family members Create financial plans Meet with other trusted advisors Intermediate in family disputes Other What business are you in? Activity: Page 3 Check all the boxes that identify services you currently offer clients and indicate how (or if) you are compensated for that service.

  4. What business are you in? Activity: Page 3 • Are you providing all the services you can or should provide? • Are you being fairly compensated for all your services? • Is there opportunity for you to increase your services and revenue?

  5. A Typical Transaction Model 40% Close 30% Presentation 20% Understand Needs 10% Develop Relationship Supports Advisor’s Objectives

  6. Close 10% Presentation 20% Understand Needs 30% Develop Relationships 40% Process Model Supports Clients’ Objectives Build relationships with all family members

  7. Benefits and Challenges • Activity: Page 4 • Client benefits • Objective advice • Fees are deductible • Risk-free

  8. Benefits and Challenges • Activity: Page 4 • Client challenges • Cost of fees

  9. Benefits and Challenges • Activity: Page 4 • Advisor benefits • Additional revenue source • Enhance client base • Expand client services • Enhance product sales • Distinguishes you from competition

  10. Benefits and Challenges • Activity: Page 4 • Advisor challenges • Requires change in the way you conduct your practice • May result in lost commissions • Requires more time per case

  11. The FBR System Planning Fee Agreement Phase I: Examining the Present Plan Phase II: Developing the FBR Plan Phase III: Presenting and Implementing the New Plan

  12. Presenting the Planning Fee Agreement Determine the size of the fee: • Number of family members • Complexity of business and estate • Value of business and estate • Scope of planning process • Business only • Business and individual plans • Lifestyle of family members

  13. Presenting the Planning Fee Agreement Determine when to discuss the fee: • After evaluation of the case • Before or after interviewing family members? • Use your intuition

  14. Presenting the Planning Fee Agreement Plan your presentation: • Use FBR Model and agreement form to structure the presentation • Recall the client benefits • Remember both clientand specialist must agree • Your only competition is yourself Now you try it!

  15. Why change and begin charging planning fees? • It’s fair to both advisor and client • It’s risk-free to the client • It positions you as a professional • It adds objectivity to your relationship • You can feel good about changing • It creates a new revenue source and enhances product sales

  16. Overview: The Wealth Transfer Process Three Phases, Nine Steps Karl Bareither, CLU Wealth Transfer Specialist

  17. Objectives • You will be able to: • Identify the three phases in the Wealth Transfer Process. • Identify the nine steps in the Wealth Transfer Process. • Use the FBR Model as a guide to effectively present the Wealth Transfer Process to a prospective client.

  18. FBR Model Phase I Examine Current Plan Phase III Present & Implement Plan Phase II Develop New Plan

  19. Questions or comments?

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