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Our mission, our company, our business

Our mission, our company, our business

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  • 1. For use by IAI Representatives only the affiliate investment advisory firm of
  • 2. Who We Are Mission Helping families grow and protect their wealth through active money management. Established IAI is an AEGON company. AEGON N.V. is one of the world’s leading life insurance and pension groups, and a provider of investment products. A team of independent associates dedicated to helping families achieve financial independence.
  • 3. Demographic Issues
    • There are more than 76 million Baby Boomers in the U.S. The first Baby Boomer turned 60 in 2006 and for the next 16 years, another Boomer will turn 60 every 7 seconds 1 . . . More than 10,000 a day. 2
      • Past generations usually retired with:
        • A pension from where they work
        • A Social Security check
        • Personal savings
    1 “Keeping the Baby Boomers Means Keeping Them Satisfied,” www.valueoptions.com , Summer 2006. 2 “Preparing for the Silver Tsunami”, www.agingresearch.org Alliance for Aging Research, Summer 2006.
  • 4. A Few of the Many Obstacles to Financial Independence
    • Education: Lack of knowledge about money and finance
    • Debt: Credit Cards / Home Equity Loans
    • Inflation: An insidious tax that forces good people to run up the down escalator
    • Taxes: Government deficit and debt State, Municipal, Property, Sales
    • The Solution Requires:
    Money Must Work Hard A Strategy
  • 5. From 1998 through 2004 . . .
        • Wealthy people age 70 or older - those who have a net worth of at least one million dollars – averaged 10.8% annual growth including any withdrawals taken out and the bear market we had from 2000 - 2002.
        • People the same age with less than one million dollars in net worth only accomplished annual growth of 3.7%.
    Source: Boston College Center on Wealth & Philanthropy
  • 6. From 1998 through 2004 . . . If that pace continues, at 10.8% $100,000 would double every 6.7 years , while at 3.7% it would take 19.5 years for the first double. $214,463 or $861,658? The Rule of 72 10.8% 3.7% All figures are for illustrative purposes only and do nor reflect an actual investment in any product. They do not reflect the performance risks, expenses or charges associated with any actual investment. Past performance is not an indication of future performance. The Rule of 72 is a mathematical concept that approximates the number of years it would take to double the principle at a constant rate of return. The performance of investments fluctuate over time, and as a result, the actual time it will take an investment to double in value cannot be predicted with any certainty. Additionally, there are no guarantees that any investment or savings program can outpace inflation. Please note that high risk has been historically associated with higher rates than return.
  • 7. File Cabinet “A”
    • Buy & Hold
      • Service:
        • Money Manager
          • Maintain initial course
        • Transactional Compensation
      • Up Market Effect:
        • Fully invested by prospectus
      • Down Market Effect:
        • Fully invested by prospectus
  • 8. File Cabinet “B”
    • Active Management
      • Service:
        • Active money manager routinely reviews data points
        • Trading platform allows course correction
        • Asset based compensation
    • Down Market Effect:
      • Defensive Strategy
        • Move to Sidelines?
        • Stop Losses?
        • Bonds?
        • Inverse Funds?
    • Up Market Effect:
      • Offensive Strategy
        • Global Markets?
        • Tax Management?
        • Currencies?
        • Commodities?
        • ETF’s?
  • 9. Why Aren’t More People Using File Cabinet “B” ? Asset Managers . . . Manage Assets - Full Time File Cabinet “B” File Cabinet “A”
  • 10.
    • Firms that require a minimum account size have increased their average minimum to almost $500,000. 5
    • 85.5% of U.S. Households have a net worth of less than $500,000. 4
    U.S. Household Wealth 4 The need for what we do has never been greater: 4. “St. Louis Metropolitan Area [and National Wealth Transfer] Estimates: 2001-2055,” John J. Havens and Paul G. Schervish, Center on Wealth and Philanthropy at Boston College, Nov. 2004. All dollar values are in 2003 dollars. 5. 2007 Rydex Advisory Benchmarking Research Study. Net Worth Number Percentage Negative or Zero 11,058,460 10.4% $1 to $199,999 60,884,675 57.2% $200,000 to $499,999 19,082,351 17.9% $500,000 to $999,999 8,777,203 8.2% $1,000,000 to $4,999,999 5,632,907 5.3% $5,000,000 to $9,999,999 682,707 0.60% $10,000,000,to $19,000,000 259,649 0.20% $20,000,000 or more 108,538 0.10%
  • 11. A Need for What We Do 6 6. Investment News, “Advisor head count fell in 2007, Cerulli study finds.” May 12, 2008. 7. Investment News, “Industry must address adviser shortage.” May 19, 2008. 8. Investment News, “The adviser shortage solution.” May 28, 2008. 7 8
  • 12.
      • License required for what we do – Series 65
      • Relationships with several education & training companies
        • Systematic study syllabus
        • 14-day program
      • GETTING STARTED
        • Become an associate of World Financial Group
        • Open a test window with FINRA
        • Study for exam
        • Register with IAI after passing exam
    IAI – Helping You Get Off to a Fast Start
  • 13.
      • Both asset gatherers and managers are paid as a percentage of assets under management
    Asset Gatherer . . . Make Introductions & Manage Client Relationships
    • All compensation projections based the following assumptions:
    • Three new accounts per month
    • $100,000 average account size
    • 8% rate of return
    • WFG bonus pool dollars and overrides included
    • 72% Marketing Director and Branch manager contract effective 1/1/07
    • Team cash flow is increased from 10% to 15% override once 600,000 total points (150,000 in one-time quarterly distributions) is reached.
    • IARs obtain Branch Manager designation at the beginning of the second year.
    • Many people have experienced different levels of success with World Financial Group and Investment Advisors International. However, individual member experiences may vary. This statement is not intended to, nor does it represent that any current member’s individual results are representative of what all participants achieve.
    Build An Asset . . . To Pay For A Liability Personal Assets $150,542 $818,128 $321,556
  • 14.
    • Build a business of collective assets . . .
    Leadership Compensation The value of a business is determined by what it will produce without you! $307,356 $1,670,345 $656,511 Many people have experienced different levels of success with World Financial Group and Investment Advisors International. However, individual member experiences may vary. This statement is not intended to, nor does it represent that any current member’s individual results are representative of what all participants achieve.
  • 15.
      • By acquiring additional education and licensing, you can better serve your clients and produce additional income.
      • With fast track, web-based study programs . . . you can be up and running in a few weeks.
      • With our Business Format System and coaching from an experienced leadership team you can:
        • Help people reach their financial goals
        • Help your family’s dreams come true.
    Diversification
  • 16. Successful business people look for trends and place themselves in front of them. The Transfer of Wealth Wave is Coming....
  • 17. Investment Advisors International, Inc. (IAI) is an SEC registered investment advisor. In Ohio, Texas and Alabama, services are provided under the assumed name of IAI Advisors International, Inc. Insurance products offered through World Financial Group Insurance Agency, Inc. (WFGIA) or its subsidiaries. World Financial Group, Inc. (WFG) is a financial services marketing company whose affiliates offer life insurance and a broad array of financial products and services. IAI, WFG and WFGIA are affiliated companies. Headquarters: 11315 Johns Creek Parkway, Duluth, GA 30097-1517 Phone: 770.453.9300 ©2009 Investment Advisors International, Inc. 2178m/1.09
  • 18. the affiliate investment advisory firm of