Unearthing Client Secrets

Shane Kirby – Regional Wealth PlannerUnited Financial, a division of CI Private Counsel LP

Jeffrey Smith – Regional Wealth PlannerUnited Financial, a division of CI Private Counsel LP

OverviewWhat do we mean by secret?

Information, either personal or financial, and issues in clients’lives that you don’t know about.

Agenda

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Who we areSecurian client research report findingsIndustry environmentClient disclosure and our experienceWhy the need for a proactive planning approachCollaboration and benefits to the wealth planning experience

Our role as regional wealth planners• In-field resource• On the ground in our territory we are part of a team including

– Wealth planner– Tax specialist– Estate planning specialist

• Typically first point of contact with advisors to discuss our WPplatform, help identify WP issues and determine whichprogram is most suitable

• Meet with qualifying clients to develop customized wealthplanning reports and present our recommendations

SECURIAN CLIENT STUDY

Securian Client Study

• Securian is a full range financial services firm in the U.S.• On-line study conducted in June 2013 polling 720 participants,with the majority being 40 years + and earning a combinedannual household income ranging between $50k - $149K

• Purpose of the study was to determine if clients withheld keyinformation from their financial professionals, and, if so why?

http://securian.newshq.businesswire.com/sites/securian.newshq.businesswire.com/files/research/file/ClientSecretsSum-F78685-2_eview.pdf

• 29% of participants indicated theywithheld information

– Health Issues– Investments elsewhere– Family Issues– Employment Changes– Loans to others– Debt

• When asked why the secrecy– No one’s business and wouldn’t have

significant impact in reachingfinancialgoals

– Feared consequence of others findingout

– Too personal to share

PROBLEM = These issues can seriouslyundermine a client’s financialplan

Securian Client Study Continued…..Results of Securian Study

http://securian.newshq.businesswire.com/sites/securian.newshq.businesswire.com/files/research/file/ClientSecretsSum-F78685-2_eview.pdf

INDUSTRY ENVIRONMENT

Client issues• What am I getting for mymoney?

• Where is the value add?• Am I getting value for my $$$?

Advisor issues• Finding opportunities• Higher client expectations• Fee pressure• Ability to differentiate

Client/advisor relationshipsChallenges are evolving significantly in a more transparentfinancial industry

Evolving external factors• Media coverage is continuously providing clients with moreinformation on services provided, fee charges and advice theyshould be receiving

• Greater focus on fees (disclosure requirements on the way)• Expectation for increased services, including planning• Advisor specialization

CLIENT DISCLOSUREAND

OUR EXPERIENCE

Disclosing of informationWhy do some clients refrain from disclosing information?• Lack of understanding• Privacy concerns• Needs-based approach• Reluctant to go through a WP process• Embarrassment (debt accumulation, poor investments,family issues)

Our experiences/revelations

During the WP process, we have experienced many instanceswhere clients disclose information• Lifestyle asset use

• Estate distribution intentions• Family succession• Late to the party• Embarrassment

PROACTIVE PLANNING

Whytheneedforproactiveplanningapproach?

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Getting ahead of the curve of fee transparencyDifferentiation (advisor and practice specialization)Beating your competition to the tableLiability protectionIdentifying opportunity in time for implementing solutionOpportunity to gather assetsInsurance positioningProviding the client with peace of mindCOI and referrals

Whytheneedforproactiveplanningapproach?

Client complexity– Cross border– Multiple marriages– Business planning– Farmers (succession planning or sale to unrelated 3rd party)– Estate intentions– Intergenerational risks and opportunities (problem child,child with special needs, child becoming client)

Specialization of advisors

With competition in financial advisory on the rise,financial advisors need to differentiate themselvesby specializing in some way, shape or form.

Differentiation attracts and retains clients, whichgrows your business!

Specialization – Aging Clients• 40% of aging clients do NOT have an estate plan in place

– 22% of clients have not considered an estate plan• 90% of business owners are relying on proceeds from selling

the company to finance retirement– 52% of business owners do not have a proper successionplan in place and only 10% of business owners have aformal exit agreement in place

• 60% of aging couples over 50 disagree on their outlooktowards retirement

Source: 2009, CEG Worldwide and Morgan Stanley Smith Barney of HNW clients (in Canada and the US)Source: RBC Wealth Management, HNW Inc, CIFP

COLLABORATION

Team collaboration

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Build a wealth planning element to your practiceBuilding a reliable teamClient segmentationProduct suitabilityVery diligent processDrawing on specialists (planners, lawyers, accountants)

Client segmentationReview top clients and build a WP profileIdentify clients:• Who have assets elsewhere• Who focus on fees• Who have had multiple marriages• Who are business owners• Who have insurance needs• Who are approaching retirement• Who have potential cross-border issues

ConclusionProactivity

+Wealth Planning

+Collaboration

=SUCCESS

Assante Wealth Management’s advisory services are offered through Assante Financial Management Ltd., Assante Capital Management Ltd. andAssante Estate and Insurance Services Inc. Assante Estate and Insurance Services Inc. is owned by Assante Financial Management Ltd. and AssanteWealth Management (Canada) Ltd. ®The Assante symbol and Assante Wealth Management are registered trademarks of CI Investments Inc., usedunder licence. This communication is published as a general source of information and is not intended to provide personal legal, accounting,investment or tax advice. Facts and data provided by Assante and other sources are believed to be reliable when posted; however, Assante cannotguarantee that they are accurate or complete or that they will be current at all times. Assante and its affiliates will not be responsible in any mannerfor direct, indirect, special or consequential damages howsoever caused, arising out of the use of this presentation.

Thank youFOR ADVISOR USE ONLY – NOT FOR DISTRIBUTION TO CLIENTS