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Credit Union Fee Income Through Wealth Management Webinar Handouts | Money Concepts

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Credit Union Fee Income Through Wealth Management Webinar Handouts | Money Concepts

  1. 1. Fee Income ThroughWealth Management C. Michael Thompson National Sales Director Levi B. Dayley Marketing Director Money Concepts International, Inc. June 9th, 2011 1
  2. 2. It’s Getting Tougher to Run aCredit Union 2
  3. 3. What Are Your Member’s Needs? 3
  4. 4. What Are Your Member’s Fears? 4
  5. 5. Psychographic Changes Families With Retired Young Adult Children Pre PostHigh Loans Loans Info/AdviceNeed Checking Insurance Investments Info/AdviceMedium Investments Checking Insurance Need Investments Low Info/Advice LoansNeed Insurance Checking 5
  6. 6. The Launching of an Industry The Sigmoid Curve 2020 A 1980 2005 A B A Commoditization Stage B Innovation Stage Birth Stage “The Critical Epoch”Source: Financial Advisor Magazine, Thinking In 3‐D, by Monroe D. Diefendorf, Jr.  6
  7. 7. Forces Driving Fee-Based Pricing Benefits of recurring revenues Pursuing Advisor Establishing more affluent adoption of deeper client clients fee-based relationships pricing Preferable way toSource: Cerulli Associates conduct business 7
  8. 8. Balance Sheet vs. Off-Balance Sheet AssetsCredit Unions control about 30% of the member’swallet, usually through Mortgages & CDs.Overexposure to CDs hurts Member & Credit UnionThe RELATIONSHIP is the most valuable asset of theCredit UnionWhat’s the Answer for You and Your Members? 8
  9. 9. Holistic Wealth ManagementWhat Is The Answer For Credit Unions? 9
  10. 10. What is Wealth Management? Wealth Management is a specialty WEALTH MANAGEMENT? of financial planning. What Is As in the case with any professional financial planner, the wealth manager’s focus is the client. His efforts are devoted to helping clients achieve life goals through the proper management of their financial resources. The practice of the wealth manager is holistic and individually customized. 10
  11. 11. What is Wealth Management? • Retirement Planning WEALTH MANAGEMENT? • Retirement Income Planning What Is • Estate Planning • Wealth Transfer • Investment Management • Asset Protection • Senior Care • Tax Planning • Family Issues • Charitable Concerns 11
  12. 12. It’s All About Helping People Three Ways Accumulate Transfer Money More Money To Efficiently Loved Ones Produce Greater Income – Reduce Taxes 12
  13. 13. Integrated Credit Union PlatformTraditional“Member Centered” Approach Life Planning Lending Savings Insurance &  Investments Ages 0-20 Ages 21-30 Ages 31-40 Ages 41-50 Ages 51-60 Ages 61-70 Ages 71 + 13
  14. 14. THE TRADITIONAL INDUSTRY PARADIGM Lending & Financial Services 14
  15. 15. PARADIGMCreditUnion THE WEALTH COACH “YOUR Credit Union” 15
  16. 16. PARADIGM 16
  17. 17. Commissions Vs Fees Assumptions 1st Year Commission ‐ 6% Trail ‐ .25% Annual Fee – 2% Payout 75% $1,000 Annual Enterprise Fee 17
  18. 18. What do you have to do to become the wealth manager? 18
  19. 19. Critical Considerations • Products • Marketing System • Technology • Compliance Support • Training • Turnkey System • Flexibility • Fee Income • Management Support 19
  20. 20. Non-Proprietary Product Portfolio • Mutual Funds • Insurance Products • Stocks Life • Bonds Disability • Discount Long Term Care Brokerage Services • Variable Annuities • Real Estate • Asset Management Investment Trusts • Hard Assets 20
  21. 21. Marketing SupportState-Of-The ArtRelationship OrientedMarketing using...• Marketing Campaigns• Conceptual Presentation• Educational Information• State Of The Art Technology• Wealth Management Approach 21
  22. 22. Seminar & Workshop Topics 22
  23. 23. Automated Solutions•Integrated Trading Platform•Document & BlotterAutomation•Financial Planning Software•Compliance Tracking•Investment Research 23
  24. 24. Compliance• Interagency Statement on Retail Sales of Non-deposit Investment Products - February 1994• Gramm Leach Bliley Act• FINRA Rule 2350• Regulation R• Periodic Compliance Check-Ups• Written member Disclosure• Staff Training 24
  25. 25. Ongoing Education & Training Complete Curriculum Seminars Symposiums Workshops In Person & Online Modular Design 25
  26. 26. The Gonzalez Family 26
  27. 27. The Gonzalez Family Original Year 1 Year 2 Year 3 Year 4 Year 5 TotalCASE 1 AmountGonzalezDisabilityIncomeInsurance $45 / MO $540 $54 $54 $54 $54 $756LifeInsurance $100/ MO $648 $108 $108 $108 $108 $1,080SystematicInvestment $50 / MO $18 $18 $18 $18 $18 $72Total $1,206 $180 $180 $180 $180 $1,908 27
  28. 28. The Jones Family 28
  29. 29. The Jones Family Original Year 1 Year 2 Year 3 Year 4 Year 5 Total CASE 2 Amount JonesLump SumInvestment $37,000 $592 $639 $691 $746 $805 $3,473LifeInsurance $1,100 $660 $110 $110 $110 $110 $1,100SystematicInvestment $300 / MO $144 $144 $144 $144 $144 $720Total $1,396 $1,443 $945 $1,000 $1,059 $5,293 29
  30. 30. The Wells Family 30
  31. 31. The Wells Family Original Year 1 Year 2 Year 3 Year 4 Year 5 Total CASE 3 Amount WellsAssetManagement $1,250,000 $10,000 $10,800 $11,646 $12,594 $13,605 $58,666LifeInsurance $25,000 $16,250 $2,500 $1,250 $1,250 $1,250 $22,500Long TermCare $6,000 $3,300 $600 $600 $600 $600 $5,700Total $29,550 $13,900 $13,514 $14,447 $15,455 $86,866 31
  32. 32. Holistic Wealth Management: Earn Fee Income for Your Credit Union  While Serving and Preparing Your  Members Better For Life. 32 32
  33. 33. THANK YOU Thank You! Money Concepts International. Inc. 11440 N. Jog Road Palm Beach Gardens, FL 33418 www.NAFCU.org/MoneyConcepts Michael Thompson National Sales Director Tel: (561) 472.2000 Ext: 5070 MichaelT@moneyconcepts.com All Securities through Money Concepts Capital Corp. Member FINRA/SIPC Money Concepts Advisory Service is a Registered Investment Advisor with the SECAll Non Securities and Non Advisory Products through Money Concepts International, Inc. Providers of Financial Services Since 1979 33

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