* If My Dentist Ran My Financial Services Practice

Ed Howat, Jr., CLU, ChFC, LUTCF, RCCAddie Woods Consulting Co.ed@ addiewoods.com

651.405.6644

This is for financial professional use only. Not for use with the general public. This material may not be reproduced in any form where it is accessible to the general public.

*What if your Systems, Processes and Procedures were as efficient as a dental office?

*Modeling A Dentist

*Net income per dentist: $192,680 for a general practitioner

*Gross billings per dentist: $727,630

* full-time dental hygienists $34.70 per hour; average number of patients seen per day is nine

*Full-time chairside dental assistants were reported to earn $18.00 an hour.

*Among 186,084 professionally active dentists in 2009, 22.2% (41,309) were female.

*Average number of employees per dental office: 6

*Estimated number of dental patients seen per day: 32 (14 (dentists), 9 (hygienists)

*Dental Statistics

*Average number of new patients per month: 20

*50.8 minutes - average length of a patient appointment for general practitioners

*3.6 times - average number of annual visits per patient for general practitioners

*47.7 weeks - average number of weeks in office per year for general practitioners

*35.8 hours - average number of hours per week in the dental practice for general practitioners

*32.6 hours - average number of hours per week treating patients for general practitioners

*3.2 hours - average number of hours per week managing the dental practice for general practitioners

*Number of patients per dentist: 1800.

*Dental Statistics

Keep the Chairs Full; An Empty Chair is Lost Revenue - Never To Be Replaced.

*The Dentist is not the Hygienist

*The Dentist does not schedule appointments.

*The Dentist knows when it's time to work and when it's

time to play.

*The Dentist has REGULAR business hours.

*The Job Duties are well defined.

*Appointment follow up is very deliberate;

*Appointments are booked ahead six months.

*Continuing Education creates State of the Art

*Modeling A Dentist

ClientAssets Under Management

Annual Recurring Revenue

Non-Recurring Revenue

Primary Revenue Source(s)(Insurance, Managed Money, Mutual

Funds etc.)

1        

2        

3        

4        

5        

6        

7        

8        

9        

10        

11        

13        

14        

15        

16        

17        

18        

19        

20        

21        

22        

23        

24        

25        

Total        

*Revenue and Sources from Top

25 Clients

*Real Service Model

Sample Service Model Matrix

Calendar Year Quarter One Quarter Two Quarter Three Quarter Four Activity Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Non-sales Activities

Birthday Card X X X X X X X X X X X X

Birthday Calls (B) X X X X X X X X X X X X

Birthday Lunches (A) X X X X X X X X X X X X

Anniversary Cards X X X X X X X X X X X X

Thanksgiving Cards X

Christmas Cards X

Newsletters X X X X X X X X X X X X

Marketing Letters X X X X

Tax Package X

Sales related

Monthly Calls (A) X X X X X X X X X X X X

Quarterly Calls (B) X X X X

Annual Calls (C) x

Semi-Annual Calls (C) X X

Annual Reviews (A&B) X X X X

Annual Calls (Staff to C) X

Meeting with A Client, CPA, ATTNY

X X

Special Events

Client Events X X

*TGoA Workshops

Surveys X X

*Activity Ten

Client Advisor Agreement As my client, you are entitled to:

1. Professional, prompt and courteous service at all times from me, my team and my company.

2. Integrity and always doing what is in your best interest.

3. Continuous improvement in my knowledge and education so that I am up to date on the latest trends, current investments, and tax laws.

4. Confidentiality.

5. Accessibility. Just give us a call if you need to schedule an appointment, or discuss an issue.

6. An ability to listen to your needs and make recommendations that will help you get where you want to go.

7. Responsive. My team and I will always return a call within the hour and will try to solve any problem that might arise within 24 hours.

I will work for you seven days a week, twenty-four hours a day, 365 days a year to do my best to help you achieve your financial goals and objectives.

As your Advisor, I expect you to:

1. , please pick up the telephone when I call you. If you can’t come to the phone, please return my call. Never avoid me, please. When I call, I will have an idea relating to the creation and preservation of your wealth. I will always have your best interest at heart.

2. Give me a yes or no answer about a solution. A maybe delays progress and gives me less time to serve all my clients. A “no: does not mean we will not talk about the idea again in the future. It simply means at the present time you are not willing to proceed. I will always do my best to present you with ideas that I feel are in your best interest and if I were in your situation, I would apply the idea to myself.

3. Refer me to others. Referrals are the most sincere compliment I could ever receive. If you feel that I have done exemplary work for you and to your satisfaction, then I would appreciate and expect to be introduced to some of the people you know and care about; people whom you feel could benefit from my services. I respect our relationship and will never embarrass you. My reputation is all I have to build and service my clients. It is my livelihood and I want you to feel comfortable working with me this way.

4. Provide me with feedback, both positive and negative. Please feel free to tell me if something is not working for you. I need to do my best for you; your direct comments, will help me to do that

By signing this document we each realize that if either party fails to live up to what we’ve just agreed to, then we each have the ability to fiend the relationship.

Signed this day of , 2009.

Financial Advisor Client Name

Ed Howat, Jr., CLU, ChFC, LUTCF, RCC ● Addie Woods Consulting Co ● ed@addiewoods.com ● 651.405.6644

...General Patton

*“My Problem isn’t the Enemy...

It’s the Supply Lines!”

* The Virtual Family Office Team

11

Estate Planning/Elder Law

Attorney

Personal Banker

Mortgage Loan Officer

CPA/Accountant

Multiple Line Insurance Agent

Disability Insurance Agent

Life Insurance Agent

Mutual Fund WholesalerAnnuity

Wholesaler

Alternative Investment Wholesaler

Real Estate Agent

Financial Advisory Team

Benefit Plans Consultant/ Wholesaler

Retirement Plans Consultant/ Wholesaler

Trust Officer

* The Virtual Family Office Team

Long-Term Care AgentClient

Relationships

Advisor/Agent Relationships

Life Insurance Wholesaler

Ed Howat, Jr., CLU, ChFC, LUTCF, RCC ● Addie Woods Consulting Co. ● ed@addiewoods.com ● 651.405.6644

12

Parents

Cousins Siblings

Friends

Parents

School Parent

s

Current

Former

Clubs

CoachesTeams

Attorney

CPA

Charity

Church

CivicAlumni

Recreation

ClientAND

Spouse

Children

workplaces

Community

Hobbies Pastime

s

Advisors

Friends

Parents

School Parent

s

Current

Former

*Car Wash

*Automated Car Wash

*Car Detailing

*River and the Lake

Men view money like it is a river. It is about Cash Flow.

Women view money like it is a lake. Will they be enough to last a lifetime?

*Female Friendly

*Financial Balance

19

* The Blueprint

M I N DP

E

A

C

E

LiquidityCash Assets

Social SecurityGov’t Programs

Qualified PlansIRA 401(k)

Titling of Assets Individual/Joint

Assets

DistributionPlanning

Life Insurance Protection

Fixed / EquityInvestments

Special NeedsPlanning

Charitable Giving -Gifting to Children

Income Protection - Cash Flows -

Debt Management

Employee BenefitsDeferred CompStock Options

Longevity PlanningLife Events

“Bucket List”

Future Inherited Assets

Risk Management Liability Issues

AnnuitiesFixed /Variable

Legacy PlanningEthical Wills

Private Banking

Tax Planning

Estate PlanningWills/Trusts

TheBeneficiary Book

Business Succession

Planning

This list is not intended to be exhaustive or complete. None of the products, resources or services mentioned above are provided by Addie Woods. Projects requiring legal, tax, or financial advice, or other services not provided by Addie Woods or its representatives will be referred to the appropriate professional (s). Peace of mind is about the pursuit of a mental state of calmness, serenity and comfort. There is no guarantee that it will be achieved.

*Facts Figures

21

* Cash Flow Summary

Annual Family Gross Income $0 $0

Ten Percent - Savings Program (See Footnote 1 Below) $0 Over/Under Actual Allocation

Account Balance Annualized Amount Savings Accounts (Passbook, CDs, Bonds) $0 $0 Permanent Life Insurance $0 $0 Salary Savings Plans $0 $0 Retirement Plans - Contributory (IRAs, 401(k) etc.) $0 $0 Other $0 $0

Total $0 $0 $0 $0 0%

$0

Total Owed/Owned Monthly Payment Auto Loans $0 $0 Boat Loans $0 $0Home Equity Lines of Credit $0 $0 Second Home Mortgage $0 $0 Credit Cards $0 $0 Consumer Loans - Credit Card $0 $0 Mutual Funds $0 $0 Annuities $0 $0 Other Debt $0 $0 Other Investments $0

Total (See Footnote 3 Below) $0 $0 0%

$0

Monthly Amount Food $0 Clothing (Business, Shoes, Coats/Jackets, Cleaning) $0 House Mortgage or Rent Payment $0 Taxes (FICA, Income and Property) $0 Home Repairs and Maintenance Items (Yard, Painting, Furnishings) $0 Utilities (Gas, Water, Electric, Cable, Phones) $0 Insurance (Home, Auto, Medical, Renters, Term, LTC and Disability) $0 Entertainment (Movies, Theater, Books, Videos, Meals out, Vacations) $0 Dues and Associations (Health Clubs, Golf Clubs, Civic Organizations) $0 Subscriptions (Newspapers, Magazines, Online Services) $0 Car Expenses (Gas, Oil, Repairs) $0 Charities (Church, United Way, Colleges, Political, Community) $0 Medical (Out-of Pocket Medical, Dental, Vision) $0 Educational Expenses (Personal Development, College, Private Schools) $0 Child Care (Sitters, Domestic Help) $0 Pets and Veterinarian Expanses $0 Other (Alimony, Allowances, Gifts, Family Support) $0Total (See Footnote 4) $0 $0 0%

$0

$0 0%

Cash Flow Summary

Total Life Insurance on Both Spouses (See Footnote 2 Below)

Twenty Percent - Debt Reduction and Savings Programs (See Footnote 3 Below)

Seventy Percent - Living Expenses

Total Unaccounted or Overage (See Footnote 5)

Annual Total Allocations

22

* Cash Flow Summary

1

2 Multiples of Income for Underwriting Purposes

Age Range Multiples of Income20-30 25-3031-40 20-2541-50 15-2051-60 10-1561-70 7-1071 and over Individual Consideratione.g. if the client is age 32 and earns $150,000, the maximum amount of insurance that can be purchased from all companies is $3,000,000 - $3,750,000 ( 20-25 time income)

AGE $30,000 $50,000 $70,000 $90,000 $125,000 ######

30 1,378,746 1,919,542 2,398,540 2,938,411 3,662,281 4,203,64835 1,198,974 1,614,433 1,985,860 2,398,889 2,959,242 3,378,31940 1,078,306 1,409,194 1,708,218 2,035,584 2,485,629 2,622,55845 960,314 1,212,962 1,443,201 1,692,085 2,038,224 2,297,09350 859,097 1,047,634 1,220,508 1,405,843 1,665,228 1,859,21755 774,251 909,761 1,034,350 1,166,885 1,353,848 1,493,67360 700,368 791,232 874,744 963,643 1,089,008 1,182,76665 650,634 711,444 767,354 826,829 910,730 973,477

3 Typically the maximum limit for debt service is about 20% of take-home pay. We are using 20% of gross because to the extent the debt service is not that heavy, the balance of the 20% can be investedThe total amount owed will allow you to estimate when the debt will be paid off thereby freeing up more cash flow for other purposes.

4

5 This number represents the amount of income that has not been accounted for in the Cash Flow Summary or if negative represents the amount of overspending. (On average in the United States 43% of families spend more that a 100% of their income each year. Monthly Total is automatically multiplied by 12 to arrive at the annual total.

Footnotes

Each spouse should be insured for 10-20 times income on average. The amount indicated in the column should reflect the coverage for both spouses.

Amounts listed in this section are regular monthly deposits or additions to the accounts.

Six Months income should be liquid at all times. As a general rule, one should save from their income and then invest from their savings. which creates a buffer between income and investments.

Below are the guideline maximum multiples of income for insurance coverage from a major insurer. Use the low end of the range for illustrative purposes.

The Monthly Total is automatically multiplied by 12 to arrive at the annual total.

Use last year's tax returns, current pay stub information and employee benefits summaries. Annualize amounts in this category.

9-11 Victim’s Compensation Fund Married, 2 Children

* Consumer Expenditure Survey 2013

24

* 2015 Checklist

*The FireProof FileBox

From $45-60.00 at most discount stores

25

*The Owner’s Manual

26

27

First Meeting – Getting Started

Review The Gift of Answers® Workshop and RoadMap

Review The Gift of Answers® WorkBook

Agree on tasks that need to be completed including follow-up with attorney

Assignment - purchase FireProof FileBox

Assignment - purchase The Beneficiary Book

Assignment - bring insurance policies to next meeting

Assignment - Section 1 of The Gift of Answers® Checklist

Second Meeting Cash Flow and Goals

Review Assignments from last meeting

Review cash flow and goals

Assignment - Section 2 of The Gift of Answers® Checklist

Third Meeting Financial Review

Review Assignments from last meeting

Review financial plan (Quarterly Review)

Review life insurance, disability and Long-term care program

Beneficiary review

Assignment – Section 3 & 4 of The Gift of Answers® Checklist

Assignment – Bring copy of last year’s tax return to next meeting

Fourth Meeting Employee Benefits Review

Review Assignments from last meeting

Review Employee Benefit Programs

Assignment – Complete rest of The Gift of Answers® Checklist

Assignment – Complete Section 1 of The Beneficiary Book

Fifth Meeting Tax Return Review

Review Assignments from last meeting

Review last year’s tax return

Assignment – Complete Section 2 of The Beneficiary Book

* RoadMap

*NOAH’S LAW: PREDICTING THE RAIN IS NOT AS IMPORTANT AS BUILDING THE BOAT.

*COMMITMENT: YOU JUMP OFF THE CLIFF AND THEN YOU BUILD YOUR WINGS ON THE WAY DOWN.

*GOETHE: THINGS THAT MATTER MOST MUST NEVER BE AT THE MERCY OF THINGS THAT MATTER LEAST

*OBSTACLES ARE THE THINGS YOU SEE WHEN YOU TAKE YOUR EYE OFF THE GOAL.

*EXPERIENCE IS WHAT YOU GET WHEN YOU DON’T GET WHAT YOU WANT.*WORDS OF

WISDOM

• Nothing works all the time and most things don’t even work most of the time.

• Knowing where the business is not is always the beginning of knowing where the business may be.

• You have to be prepared to give before you can get.

*Ed RulesOn Becoming a Great Wholesaler by Nick Murray