1 FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE …...1 for institutional investor use only -...
Transcript of 1 FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE …...1 for institutional investor use only -...
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Priceless | Trends in providing worth
Many people today areasking the same question…
“Are my service providers worth it?”
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Clients today are asking, “Are you worth it?”
Our response is…“YES!!”
You are worth every penny.
Priceless | Trends in providing worth
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OUR CHALLENGE:
To become priceless to ourclients by demonstratingthat we are worth it
Priceless | Trends in providing worth
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TODAY’S GOAL:
To create your “WORTH IT”story by answering the3 cries of today’s clients… becoming priceless
Priceless | Trends in providing worth
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&Invesco Consulting
Helping advisors get,keep and grow business
Over 25 programs seenby over 40,000 advisors each year*
Helping advisors have better conversationswith investors
Maslansky + Partners
Leaders in uncovering emotional responsesto language
Political consultantsand word specialists
Research in 21 countries and 16 languages
Priceless | Methodology
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*as of 12/17“Priceless" is based on our work with Maslansky + Partners and “The Question Guys” (Bret Nicholaus and Paul Lowrie). Invesco Distributors, Inc. is affiliated with
neither Maslansky + Partners nor “The Question Guys.” Founded in 1998, I·C has helped more than 644,000 financial advisors, high-net-worth teams, variable annuity producers, retirement specialists and home office managers get, keep and grow business through our speaking engagements from December 2001-December 2017.
Priceless | Methodology
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National survey
Validate findings
In-depth interviews
Get conventional language
Dial-sessions
Instantaneous, anonymous & simultaneous
1. 2. 3.
100
90
80
70
60
50
40
30
20
10
0
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Priceless | Methodology
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National survey
Validate findings
In-depth interviews
Get conventional language
Dial-sessions
Instantaneous, anonymous & simultaneous
3.
Words matter…
It’s not what you say,
it’s what they hear.®
Priceless
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 28“It’s not what you say, it’s what they hear.” is a registered trademark of Maslansky + Partners. Used with permission.
Priceless
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Word cards
“Words to use”facing up
“Words to lose”facing down
Word card images shown are for illustrative purposes only.
What arethey saying?
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Priceless | What investors are crying for
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Priceless | What investors are crying for
CRY 2
Help me with more thanmy money.
CRY 1
Be smartwith mymoney.
CRY 3
Showme my
progress.
For illustrative purposes only
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Priceless | What investors are crying for
For illustrative purposes only
CRY 2
Help me with more thanmy money.
CRY 1
Be smartwith mymoney.
CRY 3
Showme my
progress.
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Image shown is for illustrative purposes only
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Image shown is for illustrative purposes only
Priceless | Investors choose “smart”
Which is more compelling?
Smart technology
State-of-the-art technology
Cutting-edge technology
Tax-smart investing
Tax-managed investing
Tax-aware investing
59%
22%
19%
40%
20%
14%
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Priceless | What investors mean by “smart”
Which of the following is most important to you?That my investments are… (top 2)
Cost-efficient
High-value
Low-cost
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36%
83%
80%
Word card images shown are for illustrative purposes only.
Priceless | What investors mean by “smart”
Which does a better job explaining what ETFs are?
ETFs are a low-cost, liquid investment that use the market capitalization of an index and can be traded intraday
ETFs are cost-efficient index investments that trade like stocks on the major exchanges
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30%
70%
Priceless | What investors mean by “smart”
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Low-cost-efficient
+ high-value
= Smart withmoney
For illustrative purposes only
Priceless | What investors mean by “smart”
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Needed:
The 30-second smart statement
= Smart withmoney
For illustrative purposes only
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Jim,
Thanks for asking about our costs. First, let me say
that it’s important that we’re smart with your
money. What you pay matters to us. We feel that it
is important for you to know exactly what you pay
so there are no unexpected or unexplained costs.
As a client of ours, you should know that our
ultimate goal is to make sure you achieve your
financial goals. With that in mind, we are always
looking to design long-term diversified investment
strategies built within a planning process and are
always looking for the most cost-efficient, high-
value ways to manage your money.
With that said, the costs are as follows…Straightforward
descriptionon costs
State your value
Acknowledge respect for costs
Diversification does not guarantee a profit or eliminate the risk of loss. For illustrative purposes only
30-second smart statement
PHOTONOTES
important for you to know exactly what you pay
no unexpected or unexplained costs.
make sure you achieve your
financial goals.
long-term diversified
strategies planning process
cost-efficient,high-
value
costs
we’re smart with your
money. What you pay matters
Priceless | What investors are crying for
Not prepared with your smart statement? Advisor conversation: part 1
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Priceless | What investors are crying forNot prepared with your smart statement? Advisor conversation: part 1
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 44For illustrative purposes only
Priceless | What investors are crying for
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CRY 1
Be smartwith mymoney.
Our response:
Be prepared withyour 30-secondsmart statement.
For illustrative purposes only
Priceless | What investors are crying for
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Price matters most–
in the absence of value.
Price matters least–
in the abundance of value.
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Priceless | What investors are crying for
For illustrative purposes only
CRY 2
Help me with more thanmy money.
CRY 1
Be smartwith mymoney.
CRY 3
Showme my
progress.
Priceless
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It’s not about less;
it’s about more…
More matters.
Priceless | Investors want more
A good financial advisor does more than just execute trades
Strongly agree /agree
Neither
Strongly disagree /disagree
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95%
4%
1%
Priceless | How to talk about a financial plan
Which financial advisor/firm would you mostlike to work with? An advisor/firm that is…
Full-value
Full-service
Premium-service
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61%
24%
15%
Word card images shown are for illustrative purposes only.
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What they want
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Priceless | What investors want
The top 10 services in order of importance (6-10)
6. Estate plan
7. Online and mobile access
8. Insurance products
9. Coordination of financial care with attorneys and accountants
10. Active cash management
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8%
9%
20%
11%
10%
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Priceless | What investors want
The top 5 services in order of importance (1-5)
1. A financial plan that fits yourlife goals
2. Finding the right investments
3. Construction of a portfolio with complementary investments
4. Personal attention withregular communication
5. Minimization of taxeson your investments
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39%
38%
35%
67%
64%“A financial plan withthe right investments that
fits your life goals”
Priceless | How to talk about a financial plan
Which of the following is most important?That my advisor uses ___________ strategies
Current
Modern
Progressive
Leading
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15%
14%
44%
27%
Word card images shown are for illustrative purposes only.
Priceless | How to talk about a financial plan
Your financial advisor wants to explain his/herfirm’s business principles. Which interests you most?
Our approach
Our mission
Our values
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20%
49%
31%
Word card images shown are for illustrative purposes only.
Priceless | How to talk about a financial plan
Which is the best label for an account where the advisor is authorized to make investment decisions and transactions on your behalf?
Discretionary account
Advisor-managed account
Advisor-authorized account
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11%
58%
31%
Word card images shown are for illustrative purposes only.
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What do clients likeabout this “financial planning” statement?
Priceless
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Priceless | How to talk about a financial plan
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Priceless | How to talk about a financial plan
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 59For illustrative purposes only
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Ask
Ask theright questions.
Agree
Agree on realistic goals.
Adjust
Adjust to meet your goals.
PHOTONOTES
Describing the financial planning process
For illustrative purposes only
Priceless | What investors are crying for
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CRY 2
Help mewith more than my money.
Our response:
Be proactive in talking to clients about your financial planning capabilities.
For illustrative purposes only
Priceless | What investors are crying for
Advisor conversation: part 2
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Priceless | What investors are crying for
Advisor conversation: part 2
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 63For illustrative purposes only
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Priceless | What investors are crying for
For illustrative purposes only
CRY 2
Help me with more thanmy money.
CRY 1
Be smartwith mymoney.
CRY 3
Showme my
progress.
Priceless | Make us feel confident we’re on the right track
Which financial plan is best?
Determines which investments are in
your best interests
Helps you set goals for the future
Lays out—and keeps you on—a path to achieve your goals
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25%
16%
59%
Priceless | What investors are crying for
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Renew theclient review.
Priceless | Make us feel confident we’re on the right track
Clients unsure if they areon-track
Over 2/3 unsure ofthe value they were getting
6x more likely to look elsewhere
Clients who feel they are on-track
??? ???
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 67IOOF Australia survey of 312 financial planning clients, 2014. Used with permission.
Priceless | Make us feel confident we’re on the right track
Clients unsure if they areon-track
Over 2/3 unsure ofthe value they were getting
6x more likely to look elsewhere
Clients who feel they are on-track
2x more likely to feel they were getting value
3x more likely to refer someone to their advisor
??? ???
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 68IOOF Australia survey of 312 financial planning clients, 2014. Used with permission.
Priceless | The new review meeting conversation
Overall, how satisfied are you with the reviewmeetings you have with your financial advisor?
Satisfied withreview meetings
Neither
Dissatisfied withreview meetings
I do not have review meetings with my advisor
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3%
12%
79%
6%
Word card images shown are for illustrative purposes only.
Priceless | The new review meeting conversation
What would make the review meeting better?
Mutual preparation and getting documents in advance of my meeting
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Response: review meeting toolkit
Pre-meeting checklist
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Your pre-meeting checklist
Priceless | The new review meeting conversation
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What would make the review meeting better?
Mutual preparation and getting documents in advance of my meeting
Having a definitive goal andpurpose for the meeting
Response: review meeting toolkit
Pre-meeting checklist
The agenda andclient-centered opener
What do clients likeabout this “review meeting” opener?
Priceless
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Priceless | Having a definitive goal and purpose
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FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 75For illustrative purposes only
Priceless | Having a definitive goal and purpose
“First, I wouldlike to hearfrom you.”
“Second, I would like you
to feel confident about the
investments in your portfolio.”
“Finally, I would like you to
review your services…”
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Priceless | Having a definitive goal and purpose
For illustrative purposes only
Priceless | The new review meeting conversation
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The review meeting conversation guide
Hear from the client
Review holdings
Review their services
Flyer image shown is for illustrative purposes only.
Priceless | The new review meeting conversation
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What would make the review meeting better?
Mutual preparation and getting documents in advance of my meeting
Having a definitive goal andpurpose for the meeting
Receiving a follow-up email every time to summarize the conversation and planned trades
Response: review meeting toolkit
Pre-meeting checklist
The agenda andclient-centered opener
Client summary letter
Priceless | The new review meeting conversation
Does your advisor need to be nearby? My advisor’s location…
…matters a lot to me because I want to meet with him or herin-person
…does not matter a lot to me because we can meet with eachother online and by phone
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50%
50%
What do clients likeabout this “worth it”statement?
Priceless
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Priceless | What investors are crying for
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Priceless | What investors are crying for
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 82For illustrative purposes only
Priceless | Review
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 83For illustrative purposes only
CRY 1
“Be smart withmy money.”
CRY 3
“Show me myprogress.”
CRY 2
“Help me with morethan my money.
Our response
Be prepared with your 30-second smart statement on fees.
Our response
Resurrect and renewthe client review.
Our response
Be proactive in talking to clients about your financial planning capabilities.
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mattersPriceless
when you are worth it,
and we believe you are
Priceless | If you like what you heard today…
“Priceless” toolkit
“Priceless” catalog withthe keynote research findings
Client-centered opener
Pre-meeting checklist
FOR INSTITUTIONAL INVESTOR USE ONLY - NOT FOR USE WITH THE PUBLIC 85Images shown are for illustrative purposes only
“Priceless" is based on our work with Maslansky + Partners and “The Question Guys” (Bret Nicholaus and Paul Lowrie). InvescoDistributors, Inc. is affiliated with neither Maslansky + Partners nor “The Question Guys.”
This material is for illustrative, informational and educational purposes only. If the illustrations herein are used outside of the designated audience, it is the respective user's responsibility to ensure that such material complies with all applicable regulations and is filed with the appropriate regulatory bodies if so required. Words and phrases utilized should always be appropriate,applicable and provable. We make no guarantee that participation in this program or utilization of any of its content will result in increased business.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
Invesco does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. It is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer under US federal tax laws. Federal and state tax laws are complex and constantly changing. Investors should always consult their own legal or tax professionals for information concerning their individual situations.
Invesco Distributors, Inc. does not offer all of the products or services referenced herein.
The opinions expressed are those of the author and are subject to change without notice. These opinions may differ from those ofother Invesco investment professionals.
All data created by Invesco unless otherwise noted.
Founded in 1998, I·C has helped more than 644,000 financial advisors, high-net-worth teams, variable annuity producers, retirement specialists and home office managers get, keep and grow business through our speaking engagements from December 2001-December 2017.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLICNOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
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