Ast Visit with Family - KTP. Part One - Preframe (The Three R's) 1. Rapport Building Use TrustRespecCustomize form. This isthe time for you to get to know the family and find out as much as possible bout what is impartant to them and their “hot buttons.” Make this about THEM. Do not hijack the conversation by talking about yourself too much, Don't gril them, but ask questions to get them to talk about what is important to them; family, ‘occupation, recreation/children, TQ: What did (Trainee) tell you about our time together todayitonight? S: Let me shed some light on what today is about and how you can help (trainee) as he/she continues to build his/her ‘career With our firm, There are two reasons we are here today. 2. Reinforce: 1. Training & Support for trainee- (Spend time edifying the trainee) 'S: He/She is new to our organization and we are excited to have him/her as par ofthe team. (Trainee) brings (insert qualties here that are unique to the trainee). Those are the types of people that do well in our company. | am in charge of his/her taining and development so today is important for a few reasons. He/She is currently going through extensive classroom training, preparing for his/her licensing exam, and going out in the fied with a trainer ‘on field training appointments just lke we are doing here today/tonight. We feel the field training appointments are the most important part of trainee) taining (Q: Wouldn't you say that 1 hour in the field in a hands on, live environment is more effective than 10 hours in the classroom? Yes 'S: We agree. That itis why we are very grateful for your help here today/tonight! Your role is to engage in our discussion and ask questions so (trainee) can learn. Our goal isto prepare (trainee) so helshe can sit with families like you and help them achieve their financial goals. 2. Personal Value - (Discuss the value af what we do with the prospect) Ss: Although we are here o train (trainee), | want to make sure this is a valuable experience for you. As we go through this information, there may be questions you have that can help you personaly, and if that is the case | ‘encourage you to ask. The information and services we provide most everyone needs in one way ot another. So, please dont hesitate to make this a valuable experience for you as well In fact, | encourage you to take this ‘opportunity to reflect upon your personal financial situation, : How often do we get a chance to take a look at if we are on track financially? (Rhetorical question) : Do you have a financial adviser that you sit down with annually to stay on tack? A: (if Yes) S: Great! That means you will have a good understanding of some of what | am covering today. ‘A: (No) S: Perfect! Today will be a very valuable experience for you 'S: One of the great things about our company is that we take a very low key, educational approach in helping people, We are NOT salesmen and we are not training (trainee) o be in sales. We are here to share the story of ‘our great company and give information to help encourage families to make better financial decisions. We never do business on the fist visit, unlike the rest of our industy. We believe a family deserves the opportunity to process the information as its extremely important. These are decisions that shape our future. Ifyou see the value in what we do and you want to discuss some of these principles further we can set up a second visit where we discuss your family’s goals and dreams, fair enough? ‘TS: Last but not least, | really want you to have a clear understanding of who we are and what makes us unique so that when the opportunity presents itself you will feel comfortable referring others to our company. 3. Referrals ‘S: Our company recently took out an add in Forbes magazine to support our cause in helping 100k families in 100 days. ‘There are two ways we help families. First, as a cient. We help people improve their financial situation and help them achieve their goals and dreams in the process. Second, we provide an amazing business opportunity. Our company is ‘experiencing rapid expansion and we can help people eam additional income. There are really three types of referrals we are looking for. One. People who could benefit ram out setvice. Two, people who may be a ft for our expansion. And three, professional partnerships; referral relationships with Realtors, mortgage experts, CPA's, estate planners, other insurance experts, business owners, etc. Gif you find value in what we do, is there any reason why you wouldn* feel comfortable providing (trainee) with S-10 referrals? ‘A: | can do that (or something similar) 'S: Great! Thank you! Transition As | mentioned before, | want to tailor this presentation to you so wouldt be okay if| asked a few questions throughout our visit? A:Yes Q On a scale of 1-10 where would you rate yourself in terms of your understanding of financial services, how money works? A (Answer will vary) S; Great! (If they answer 5 or above) Then you understand how valuable the information | am about to present is, and you will be able to ask great questions for the benefit of (vainee). (i they answer 0 to 4) Then you will defintely get value from the information | present to you tonight,‘S: | would lke to begin by sharing with you who we are and what makes us unique. {Show the Strength in Selection chart) (There are two items to cover here. First, that we are nan captive, Second, that we don't charge) 5: One thing thal makes us unique is our abilly to be what is called "non-captive.” | am sure you have heard of many of these ‘companies (point out afew). These ave al great companies with great products and services. We are Transamerica; however We are a division of Transamerica which gives us the opportunity to customize the clients needs based on what is best for them. So, we can bring to you the best ofall hese companies and MANY more (tutn card over to show another several ‘companies and that we are full service). (Q¢If worked for Prudential, who's product would I say is the best for you? A: Prudentia's {QéIf | worked for ING who's product would I say is the best? AING 'S: When you buy a Honda, the salesman on the car lot doesn't tell you how great Hissan is. We have the opportunity to represent all companies inthe industry. As you can see there is real value in being non-captive. 'S: The second unique part of our company is that we don't charge for our service. When we sit down with families and offer them fll financial service, we are not charging them any fee's, We get paid by these great companies, They compensate us {or marketing their products and services to families. I's a win win situation! 5: Let's talk now about how our competitors do business, (Q: When was the last time Merrill Lynch or Morgan Stanley came to your door offering to sit down with you and at no cost? A: (Answer may vary, but will ypicaly be never) 'S: You are not alone, in fact, may | show you something? {Show the Meri Lynch email) 'S: Lam not sure haw you feel about ths, but i don' like my family being referred to as charity work. ‘Step 2 - Strength in Selection Con 'B | S: Unfortunately this is how the traditional industy does business. z (raw Box Below on Yow Pac) Q: In fact, if we were to take a random sample of 1,000 people from the community what percentage do you believe are geting accurate financial advice or service? A: (Answers will vary) 5: CloserActually ts about 1% 5. We already know where the 1 get their nancial advice ftom Q: Who do you think the other 990 or 99% get their financial advice from? A: (Answers will vary) Friends, family, co-workers, etc. ': Thats ight, epea ther ansiver) Q Is itsale to say we get our nancial advice rom people who are either inthe same or in potently a worse nancial Situation than we are? A: (Typically they will agree) Stslike the bind leading the bin Q: If you broke your arm one day who would you go see for adequate care? A: Doctor 3 |g. Right you woukint go rush tothe Dentist’ ofce? That’ sly right? & Ja Roh E J 5: vetits the same thing as listening to rends and family about how to handle our money. The result ofthis isthe 8936 keep ~ | making oor financial decisions then hopefully earning fiom their mistakes. That could take a fete. Meanwhile, the rch © | keep geting cher, because they lean fiom the money doctors; the financial experts, and not mistakes. Let me share ith & | you what the 196 are taught, he four Key principles of building wealth 5 1000 1% FT 4) f %-oupace ination 2) J isk. Protection 3) Texaton - Minimize 4) ProcrastinationPart 3 - The Box Continued 41) S: The first key principle the 196 know is where to put their money to get high rates of return to outpace inflation. They do this in any economy. ‘Q: Where do you think the 88% put their money atthe end of the month? A: The Bank (Q: What kind of returns are you getting in the bank? A (Answers will vary) 'S: Not even outpacing inflation of 3%, (Then why do you think people invest in the banks? A: Safety, comfort, all they know, FDIC (if they don't answer FDIC lead them tot) ‘ May I show you something about the FDIC? 'S: The FDIC stands for Federal Deposit Insurance Corporation. I'd like to drawy your attention to the word Corporation, Corporation implies itis a private company, 'S: So we should probably look at the solvency of this corporation, Here is what we found, (Show FDIC Solvency article) {Q: The other frustrating partis how ong the FDIC has to pay us back should our bank go bankrupt. Do you know how long thatis? A: (Answers will vary) '5: Believe itor not, tis as soon as possible (ASAP) (Q: How is that supposed to make us feel? (Rhetorical Question) 'S: Our bank goes under, the FDIC has 1 cent per every dollar insured AND we have an ASAP sign on our money. That is probably why people lke Ben Bernanke know better than to invest too much of his money in the banks. (Q: What if could show you where the Chairman of the Federal Reserve invests his money? (Show Ben Bernanke Financial Statement, if they do not know who Ben Bernanke is briefly explain who he is and what he does) 'S: Thatis what helps us outpace inflation, being in the proper investments, We will discuss that next time. 2) S: The second key principle the wealthy know is how to minimize their isk or how to protect their money. {Isnt itimportant to know how nat to lose your money? (Show the “Gains Below the Line" chart) 'S: The red line represents the S&P 500 from 2001 to 2011. In other words the top 500 companies in America. It also represents our friends and families 401k's, savings, goals and dreams. Between 2007 and 2008 the downturn in the SAP {500 resulted in a 40% loss. This represents the loss that many families experienced; the loss oftheir goals and dreams. ‘The blue line represents where investors and our clients are. They are staying above the volatlty of the market Q: Let me ask you. Where would you rather have your money, in the redline or the blue line? A: The blue line. SS: Perfect, I can show you how to do that, 3) S: The third key principle they understand is taxation; how to minimize it ‘In your opinion do you believe taxes will go down, stay the same, or go up? A: Go up. S: You're absolutely right. In fact let me show you why. (Show them the Tax Graph) S:l want you to look at the green line. This represents Income tax rates overtime since 1920 through 2011. You can see that taxes were low, then following the Great Depression they went up. This line is 9096. The government needed to raise {axes to stabilize the country. We were at or above 90% tax brackets for over 2 decades, (Q: Now, this is the highest tax bracket, but it the highest tax bracket was 90%, that means the lowestis stil too high, right? 5: As you know, we are currently ina recession. In fact, ithas been called the worst financial crisis since the Great Depression. Economists have even called ithe Great Recession, Do you think itis possible, with regards to taxation, that history can repeatitsel"? 'S: We show people how to protect themselves from a high tax environment and we will discuss itin more detail in our next visit 4) S:This brings us to the fourth key principle the wealthy understand. I can help you get high rates of return, minimize risk, and avoid heavy taxation, but | can't force someone to make the right decisions financially. Procrastination is the biggest enemy of building wealth and itis human nature to procrastinate. Here we are approaching January 1st. Q What do people typically do atthe beginning of every new year? A: Set New Year's resolutions. 'S: Youte right. There are two common resolutions people usually set. Obviously one is people want to save money. & The other one is...? Losing weight. (Explain the process of procrastination) 'S: John Maxwell a leadership expert said, “The longer you wait to do something you should do now, the greater the odds. that you will never actualy do it.” A lat of those people are making the same resolutions this year as they did last year. What wil be different for people this year than last year? A: (Answers will vary) 'S: People don't realize the high cost of procrastination until its too late QéIfthere was a company that, at no cost to you, could show you how to get higher rates of return on your money, protect it from risk and loss, minimize and avoid excess taxation, is that something that would be valuable to you and your family? A: (Answers will vary) 'S: That is what we do, We teach the 89% the principles the wealthy have known for decades.[Transition] S: Let's discuss the current situation of most of these families today, Part 4 - Current Situation (Show the Flip Chart) S: Here w have a husband and wife holding up all their responsibilities. JOB - Most people | sit down with have either been laid off, hours cut, or are in fear every day of getting that pink slip or email that they may lose their job. HOUSE - As you know many people are fighting to save their homes. CAR - This represents expenses and debt. Most people have car loans and credit card balances. Too many of Us are relying on credit cards as emergency funds and to cover basic expenses; “modern day slavery.” 401K - This represents our desire to retire one day. Q: Does your company offer any type of retirement?” A; (Answers will vary) S: Baby Boomers were taught they would retire from the 3-legged stool model; social security, pensions, and personal savings. Q: Have you looked at your S.S. statement? A; (Most likely no) S: It states that by year 2030 the fund will basically be exhausted if we don't make changes to the system. | am sure you have heard about pension reform, specifically in California, but pensions are underfunded in the United States and companies cant afford to offer them any more. : So, if we can't depend on the government, or our employer for our retirement funding, then what does that leave as our only option? A: Personal Savings S: Yes, Personal Savings, yet we are not the best savers in this country. We want to change that. CHILDREN - Obviously kids are expensive today. (Show average cost of raising a child today) S: Even with two working, healthy parents sustaining these responsibilities itis difficult. You add a loss of income, medical issue, premature death. Q:If this foundation is weak what will happen? A. Everything falls apart S: Unfortunately this is tearing families apart. Q: So you know what is the number one reason for divorce in this country? A: Money Transition S: We want to change that mentality and strengthen this foundation in these families lives. Let's discuss the solution. Part 5 - The Financial Foundation : Imagine you are building your dream home; who would you need to help you achieve this? A. Contactor, Architect, plumber, electricion, etc. SS: Imagine of those people never talked to each other about the finished product. That's what is happening with families, They have their mortgage officer, accountant, insurance guy, 401k support (usually H.R.), etc., and no one is talking to each other to support this financial dream house; which is financial independence. With us you have a team of analysts in your corner working together to help you achieve your goals. There are some very important building blocks to building that financial dream home. As | go through them please think about which areas are most important to you so we know what to focus on in our next visit PROTECTION S: Every home must be built on a solid foundation, right? The foundation of our financial house is protection. Various forms of insurance to protect your laved ones from financial burden and turmoil I's amazing; we have insurance on our cell phones, automobiles, but when it come to insuring and protecting the most important people in our life most people don't have adequate caverage. Q: Has anyone ever informed you on how life insurance workd? A; (Answers will vary) Q: Ona scale from 1 to 10, ten being the highest, how protected is your family from loss of income? A; (Answers will vary) DEBT‘Step 5 - The Financial Foundation (Continued) DEBT S: The Credit Card Act of 2009 passed by congress was a step in the right direction to protect the consumer. For example, it states a young adult under the age of 21 cannot have a credit card unless there is an authorized adult over 21 who can prove income history. That's certainly better than the day we turn 18 years old, we get credit cards in the mail like in my day. We want people out of credit card debt and we help them to do this in many ways. Q: Ona scale from 1 to 10 where do you rank in terms of your debt? ‘A: (Answers will vary) SHORT TERM SAVINGS. S: Short to mid-term savings goals, such as emergency funds, vacation funds, major purchases such as cars, here is where the bank serves a purpose for your immediate emergency needs. The goal here is liquicity. Q: Any idea how many months of your income should be put away in short term savings? Ac(Answers will vary) S: We recommend 3 to 6 months Q: Ona scale from 1 to 10 where do you rank towards this goal? LONG TERM SAVINGS S: Last but not least is long term savings: retirement, college education, anything 10+ years down the road you want to accomplish. What everyone has in common in this category is retirement, Q: Have you ever thought about retirement? ‘A: (Answers will vary) Q: At what age do you want to retire? Where will you live? Have you thought about an income goal at retiremtent? ‘A: (Answers will vary) S: What our goal is here is to identify the goal and create the strategy. Our focus here is making sure you get high rates of return, minimize your risk, and avoid excess taxation (if you haven't collected any information regarding their retirement earlier in the presentation, here is where you do it) Q: | am sure your company offers some sort of retirement plan, right? A. Yes or no Q: (Ifyes) Do they match? A; (Answer will vary, but most company’s match something) Q: Do they give you access to a financial expert to help you manage this account other than your Human Resources representative? ‘A; (Answers will vary, but most likely they don't) CLosing Q: Of these building blocks we discussed, what areas stand out as being important to you at this stage? A; (Answers will vary) Q: Great, at this point | would lke to gather some data, briefly discuss some of your goals and | will put together this dream map for you, and we can get back together in a few days so | can deliver it to you, fair enough? Ayes, absolutely! CLOSING QUESTION From what | am seeing from this rough glance there are many things we can do to imprave your situation and get you closer to achieving your goals. | am going to put in some work creating a plan that will be better for your family in many ways. Obviously you will be the final judge of that, but if you see that what we have created for you and your family makes sense and only improves your financial situation, is there any reason you would not be willing to allow us to service your financial needs moving forward? (Thank them and be grateful for their time)