Womens and multi cultural markets bsmg event

Welcome to BSMG’s Spring Kick-Off EventHow to Address the Women’s and

Multicultural Markets to Grow your Practice

500 South Main Street | Providence, RI 02903 | 800.343.7772

April 30, 2015

Welcome!

Change

New Opportunities

New Mindset

New Strategies

Increased Success

Have an Open Mind, Think Big

• Women control more wealth. Today, women control over 51% of the personal wealth in the U.S. That percentage is estimated to rise to 67% by 2020.

• Women outlive men. Women, on average, are outliving men by five to six years. That means that, for all of your married clients, chances are you will someday have a single individual as a client: the wife.

• Women outnumber men as graduates. Women account for 57% of bachelor’s, 60% of master’s, and 52% of doctoral degrees today

• Women are growing as breadwinners. Between 2007 and 2010, the number of women earning over $100,000 grew by nearly 17%, compared with just 2.3% growth for men. And nearly four out of 10 working women outearned their husbands in 2009

• Women lead household purchases. Women make approximately 80% of family household buying decisions, including — importantly for you — whom to hire for financial advising services.

• Women don’t have a preference for working with a male or female advisor

*Fidelity Investments: “Maximizing a Major Opportunity: Engaging Female Clients”, 2012

The Women’s Market

Suly Salazar-Layton

Responsible for the strategic direction,

workshop development and implementation

of the Practice Management program.

Thousands of producers have learned tools

and strategies that have helped them take

their businesses to the next level and

increase their profitability. Native of

Colombia and the co-lead for the Genworth

Hispanic Forum, Suly believes passionately

in helping advance the Hispanic community

at Genworth and in Richmond. She is a

graduate of Yale University.

Director of Practice Management

http://www.youtube.com/watch?v=oTqiVOpu5KQ

Connecting with Women & Couples

Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY

http://www.youtube.com/watch?v=oTqiVOpu5KQ

Company Confidential ©2011 Genworth Financial, Inc. All rights reserved.

Connecting with Women and CouplesGrow Your Business With Your Most Profitable Clients

FOR PRODUCER/AGENT USE ONLY. NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC.163700 04/28/15

10

Important Information

This workshop is for informational purposes only and is meant to illustrate some of the best

practices that may make building your business more effective These practices are based on

Genworth research and the real life experience of the individuals interviewed. The use of

these practices or tools is strictly voluntary and is not required by the Genworth companies.

The information provided is for your own practice management purposes.

Always follow your company’s guidelines, policies and procedures. Also follow any policies

and procedures regarding review and use of third-party templates, social media, creation and

distribution of client and prospect materials, hosting of client and prospect events, offering

giveaways or prizes, and your firm's employment process.


Today we’ll help you focus on …

Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY 11

- Helping you expand outside of your comfort zone - Finding prospects and creating interest - Executing change in your practice

Women’s Economic Power


Earning more money Inheriting more money Controlling more money

The opportunity

Connecting With Women And Couples FOR BROKER/AGENT USE ONLY

1. U.S. Census, Educational Attainment, 2014; 2. LIMRA, U.S. Consumers Today: Women and Men, 2014; 3. Growing Under the Radar, American Express, 2012; 4. Catalyst, Knowledge Center, Buying Power, 3/2013

51% of Bachelor’s degrees 1

56% of Master’s degrees 1

40% of working wives out earn husbands 2

57% of couples are dual earners 2

84% control or share in decisions 3

65% of global consumer spending 4

The value of advice

1. U.S. Consumers Today: Women and Men, LIMRA, 2014

Women are 30% less likely to have relationships with financial professionals1


But recognize the value of professional advice

Over half feel that their need for professional advice has increased

30%

> ½

Veto power


The Future of Retirement Income Study, Genworth, 3/2015

94%of women said that it was important for a financial

professional to get to know them as a person, to understand my needs, values and goals

Importance of relationships


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From The Expert - Stereotyping

Couple Single, Widowed, DivorcedExisting or new client

Thoughtful approach to a new audience


A Different Buying Process


More deliberate decision making process

Questions

Criteria Influencers

Communication Styles

22

Her Big Picture Is Not His Big Picture

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Marti Barletta Author of Marketing to Women, and of PrimeTime Women

www.trendsight.com

Don’t solve their problem before they have articulated it

Best practice: Let the client talk 80% of the time

W.A.I.T.

Listening to understand


Consider asking …

Changing the questions


Instead of …

Here’s what I want to accomplish today.

What do you want to get out of this meeting?

How are things going for you? If there’s one thing you could change about your life, what would it be?

What are your financial goals? What does being financially OK look like to (each of) you? What do you NOT want to happen?

Do you have any other questions? •Do you have any questions I haven’t fully answered?•What information do you need to feel comfortable taking the next step?

Women are financial decision makers

Make them part of the conversation

Be aware of a woman’s veto power

Consider communication differences

Fact

Action


Putting It Into Practice

Women make referrals 3 times more than men

Research

Loyalty

Referral

Decision

http://www.investmentnews.com/article/20130716/FREE/130719934; viewed 9/2013

Loyal Referral Sources


http://www.investmentnews.com/article/20130716/FREE/130719934

Give her something to talk about

Ask three questions designed to open up opportunities

Help your clients develop the confidence to spot your ideal client

Conduct appreciation events and educational seminars

4 Best practices to help find new clients


In what ways do you go above and beyond for your clients? Where have you made an extra effort?What services have you provided that were unexpected?

Sorry for the loss of yourbest friend


https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=https://academicjobsonline.org/ajo/Yale/Physics,%20Particle%20Theory%20Group&ei=0fg3VazpHqXHsQSRxYHQAQ&bvm=bv.91071109,d.cWc&psig=AFQjCNErlRjWQQ-MwNt24SyJNb4orPkN9Q&ust=1429817938087570

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://mumbrella.com.au/mccann-melbourne-picks-up-university-of-melbourne-creative-duties-from-ajf-286716&ei=MPk3VcqaFJD4yQTIyoC4Bw&bvm=bv.91071109,d.cWc&psig=AFQjCNE8W-XL__3TF6JoR2MXNTe3zTouqA&ust=1429818025944930

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:University_of_Melbourne_logo.png&ei=Qvk3VfGjCZa1yAT5xYDYDw&bvm=bv.91071109,d.cWc&psig=AFQjCNE8W-XL__3TF6JoR2MXNTe3zTouqA&ust=1429818025944930

Three questions to generate introductions

1 If there is one thing I could change about how we work together that would improve our relationship, what would it be?

2

3

What do you like best about working together?

When you speak with friends who have a financial concern or challenge, would you feel comfortable helping them by introducing me to them?

Help current clients spot ideal clients

Define your target clients Identify how you serve this group especially wellHelp them understand your process

Women recommend

Exceed her expectations


Define your referral request

Consider timing of request



Fact

Action

Holistic approach How does product help her life?Answer her questions Help her feel knowledgeable

Creating interest


Running out of money in retirement1

1. U.S. Today’s Consumer: Women and Men, LIMRA, 2014; 2. Genworth Beyond Dollars, 3/2013

83%

Women’s top financial concerns


Maintaining standard of living1

63%

Having to rely on family2 65%

Guaranteed income for lifeCannot outlive your money

All guarantees are based on the claims-paying ability of the issuing insurance company.

Annuities speak to her concerns


Protect against the cost of a long term health eventIn-home care as well as nursing home careShe won’t be a burden to her children

Long Term Care Insurance benefits


Help maintain family’s standard of livingPortability of individual policy Estate planning to benefit heirs


Life insurance to address her concerns



Women want to understand how her

concerns are addressed

Use a holistic approach

Think in terms of her concerns

Avoid technical language and jargon

Fact

Action


Take Aways

3 Things you can do with your clients …

or at home …

1. Listen to her stories

2. Practice “The power of the pause”

3. Increase communication touch points


Action Items To Consider

1. Review top 10 client list and create an action plan

to strengthen your relationship with her

2. Identify 5 key female clients who are influencers

and can be your advocates

3. Define your personal elevator speech so that your

clients know what to say about you

43

Important Information

This workshop is for informational purposes only and is meant to illustrate some of the best

practices that may make building your business more effective These practices are based on

Genworth research and the real life experience of the individuals interviewed. The use of

these practices or tools is strictly voluntary and is not required by the Genworth companies.

The information provided is for your own practice management purposes.

Always follow your company’s guidelines, policies and procedures. Also follow any policies

and procedures regarding review and use of third-party templates, social media, creation and

distribution of client and prospect materials, hosting of client and prospect events, offering

giveaways or prizes, and your firm's employment process.


• Growing Demographics• Rapid, Systemic Change• Huge Opportunity for advisors to pursue an

underserved, growing market

The Multicultural Market

ex-KGB operative Igor Panarin in 1998 forecast the future fragmenting of the United States circa 2010 into four Divided States

Mike ThaxtonWith more than two decades of experience closing large, complex life insurance cases, Mike has substantial expertise with advanced case design/presentation strategies and effective premium financing options. More than 100 times a year, Mike speaks to financial services professionals across the U.S. on topics related to planning for foreign nationals, estate planning, and business planning. He is a Certified World Class Speaking Coach and teaches financial services and other sales professionals how to develop and deliver powerhouse presentations that generate sales. Prior to joining Transamerica, Mike was a successful independent life insurance broker and a leading individual life sales producer with three different brokerage organizations. Mike has worked extensively with small-business owners, high-income professionals, and high-net-worth individuals in the U.S. and abroad. He earned a Bachelor of Business Administration degree in accounting from Texas Tech University.

Vice President Global Link Solutions

500 South Main Street | Providence, RI 0290 | 800.343.7772

Planning for Foreign NationalsA World of Opportunity

Michael Thaxton, Vice PresidentTransamerica Global Link Solutions

Non-Residents Purchasing U.S. Real Estate

Where are Foreign Nationals?

New York

West Palm

Beach

Washington DC

Seattle

Los Angeles

Sacramento

Las Vegas

Phoenix

Dallas/Fort Worth

Boston

Colorado Springs

Denver

Minneapolis

Houston

Detroit

Sarasota

TampaOrlando

Miami

Atlanta

Philadelphia

• 11% of native born Americans have at least 1 foreign born parent1

• 12.9% of U.S. population born in another country2

• 90 Fortune 500 companies had at least one immigrant founder3

• More than 40% of the 2010 Fortune 500 companies founded by immigrants (18%) or their children (23%)3

• 24% of all engineering and technology start-ups have at least one immigrant founder serving in a key role4

1Nation’s Foreign-Born Population Nears 37 Million. United States Census Bureau. http://www.census.gov/newsroom/releases/archives/foreignborn_population/cb10-159.html2 US Census, 2010. https://www.census.gov/newsroom/pdf/cspan_fb_slides.pdf 3 The “New American” Fortune 500. June 2011. http://www.renewoureconomy.org/sites/all/themes/pnae/img/new-american-fortune-500-june-2011.pdf4One quarter of U.S. tech start-ups founded by an immigrant: study http://www.reuters.com/article/2012/10/02/us-immi-grants-startups-study-idUSBRE8910I020121002

Changing U.S. Demographics

• 187,380 Ultra-high net worth individuals ($30+ million net worth) control $25.8 trillion of wealth1

• 65,579 HNWI live in North America2

• 54,170 HNWI live in Europe2

• 43,726 HNWI live in Asia2

• 15,230 HNWI live in Latin America2

• 3,373 HNWI live in Mexico2

• As of EOY 2012 $2.7 trillion of foreign direct investment in the U.S.3

Scope of Opportunity

1The States With the Most Ultra Rich Americans. Business Insider. http://www.businessinsider.com/states-with-the-most-wealthy-people-2012-92 The Wealth Report 2013 . Knight Frank. http://www.knightfrank.be/library/PDF/Wealth%20Report%202013.pdf 3 Foreign Direct Investment in the United States. http://selectusa.commerce.gov/sites/selectusa.commerce.gov/files/documents/2014/january/2013-12- 31_selectusa_report_-_fdi_in_the_united_states.pdf

Why Consider the Foreign National Market?

• Growing market today• Foreign Nationals face unique U.S.

planning challenges• Significant need for information on

strategies and planning

What they don’t know…

A survey of immigrants to the U.S. with a net worth of $10 million or more found:

Survey Question Asked% Who

Answered Yes

Before emigrating to the U.S. those who sought advice as to the consequences of acquiring a U.S. residency for U.S. gift and estate taxes

34.5%

Obtained advice for making gifts of non-U.S. property prior to coming to the U.S.

10.9%

After emigrating to the U.S., those who sought tax advice 49.6%

Of the above group, those who sought advice on U.S. estate planning that could minimize estate taxes

6.8%

Source: “Clueless,” Trusts and Estates, December 2003

Understanding Needs

Foreign Nationals fall into two categories:• Resident Aliens• Non-Resident Aliens

Resident Aliens

• Foreign National with permanent U.S. home

• Worldwide assets subject to U.S. estate and gift tax

• Denied certain tax advantages available to U.S. citizens

Married Couple with Foreign National

No unlimited marital estate deduction

The Issue

Foreign NationalU.S. Citizen

The Issue


Unlimited Marital Deduction

The Issue


The Issue


No Deduction

Alternative 1: QDOT

MarkU.S. Citizen

AnnaPhilippine Citizen

Resident Alien

$ $ $ $ $ $ $ $

QDOT

• No immediate estate taxation• Assets “stuck” in U.S.• Distributions limited to income and

hardship OR immediate estate taxation• Need U.S. trustee, may require bond

Alternative 2: Life Insurance

MarkU.S. Citizen

AnnaPhilippine Citizen

Resident Alien

$ $ $ $ $$ $ $

Non-Resident Aliens

• Foreign National with permanent home in another country

• Only U.S. assets subject to U.S. estate and gift tax

U.S. Estate Tax Comparison

Resident Alien (RA)

Non-Resident Alien (NRA)

Lifetime estatetax exemption $5,430,000 $60,000

Estate tax rate 40% top tax rateMinimum 25% -

Maximum 40% top tax rate

Unlimitedmarital deduction

Only if inherited assets are transferred

to QDOT*

Only if inherited assets are transferred

to QDOT*

Assets subjectto U.S. estate taxes All worldwide assets

U.S. properties,including most

intangible properties**

*Only if inherited assets are transferred to a U.S. citizen spouse or to a QDOT.**Intangible property includes stock in a U.S. corporation and interest in a U.S. partnership

Non-resident AliensU.S. Gift and Estate Situs Rules

Type of property transferred

Subject to U.S. Gift

tax

Subject toU.S. Estate

tax

Real property located in U.S. Yes Yes

U.S. tangible personal property (i.e., cash, jewelry, paintings, automobiles)

Yes Yes

U.S. intangible personal property (i.e., stocks in U.S. corp., interest in U.S. partnership)

No Yes

Ownership interest in a U.S. life insurance policy on oneself No* No

*A gift of a life insurance policy on oneself may be subject to the IRC §2035 look back rule, and therefore may be subject to estate taxes if included within the decedent’s estate.

Alternative 1 … Complicated

Tangible Property Intangible Property

Gift to Heirs

Alternative 2 … Simple

Life Insurance

What They Don’t Know

$60,000

Non-Resident AlienResident Alien

$5.43M

Why Planning Is Important

Eduardo• Mexican citizen and

resident of Monterrey• Purchased second home

in Texas with spouse

U.S. Estate Tax Exposure

home in Texas

estate tax liability in 2015$1.1M

$3M

Estate Erosion

Death in 2015

Tentative TaxLess Credit

($1,145,800) $13,000

Net Taxes ($1,132,800)

Net U.S. Assets $1,867,200

Estate Erosion = 38%

Life Insurance

• A simple solution• Internationally

competitive

Why Foreign Nationals Buy Life Insurance

• Pay estate taxes• Legacy Planning• Business Planning• Asset protection• Wealth transfer and estate equalization• Facilitate business planning• U.S. products are often considered superior to

those of other countries• U.S. products can be structured to offer

substantial tax advantages

You’d Better Be Careful …

• Income Tax Treaties• Estate Tax Treaties• Gift Tax Treaties• U.S. Legal Issues• U.S. Tax Issues• Home Country Legal Issues• Home Country Tax Issues

Ley Sobre El Contrato de SeguroMexico’s Insurance Contract Law

• Mexican citizens are legally permitted to own insurance contracts issued from other countries.

• Generally, MICL provides that amounts paid by insurance companies to insured or insured’s beneficiaries are exempt from Mexican income tax.

• January 2007 tax reform stated that the intention of Article 109 Section XVII of MICL is to only exempt from Mexican income tax amounts received from insurance institutions authorized to do business in Mexico.

• Insured should be physically out of Mexico when contracting for insurance products with institutions not authorized to do business in Mexico.

• Entity ownership advisable for significant transactions.

Foreign Account Taxation Compliance Act

• Part of HIRE Act passed March 18, 2010.• Implementation began July 1, 2014.• Original intent was to give IRS the ability to determine

the ownership of U.S. assets in foreign accounts.• 88 Model 1 Agreements and 13 Model 2 Agreements

have been signed or agreed to be signed.• Potentially impacts Americans who live abroad or have

business interests abroad.• Potentially impacts foreign nationals who have

financial accounts in the U.S.• Substantial penalties and prosecution possible for

violations.

Why Plan for Foreign Nationals?

• Large, growing demographic

• Special financial planning needs

• Resident Aliens– worldwide estate

• Non-resident Aliens– U.S. estate

• No unlimited marital estate deduction

Next Steps

• Review your book of business

• Reach out to contacts that match the client profile

• Strengthen and build your referral network

Look At Your Existing Business

• Immigrant clients?• Clients with immigrant

spouses?• Develop a champion

client

7 Sources In Your Neighborhood

1. Nearby colleges/universities?2. Nearby hospitals or military bases?3. Nearby multinational corporations?4. Talk to realty firms for leads5. Align with immigration and/or

international tax attorneys and CPAs6. Network with ethnic business associations7. Get referrals from existing Foreign National clients

Top 5 Reasons to Place with Transamerica

1. Access to Advanced Marketing experts• Attorneys and Certified Financial Planners providing

consultative support and case design

2. Dedicated international underwriting team• Established in 1998–deep understanding of landscape

3. Bilingual Marketing Materials• Spanish and Chinese language materials

4. Foreign Nationals Connection Website• Hub for information, sales ideas, and materials & forms • Viewable across mobile, tablet, laptop, and desktop• www.transamerica.com/foreignnationals

http://www.transamerica.com/foreignnationals

5. Depth & Breadth of Product

• No product limitations• Guaranteed products

available• Very competitive premiums• Close more business

• Best underwriting risk class generally available

Top 5 Reasons to Place with Transamerica

Transamerica’s Available Resources

Dedicated International Underwriting Team

Foreign National Connection web site

Contact Advanced Marketing

(877) 238-6758

[email protected]

Foreign Nationals Team

Marketing Tools Support

Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.

Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state or foreign laws and regulations or income or estate tax treaties between the U.S. and other countries upon clients and prospects. Clients should consult with and rely on their own legal and/or tax advisor to determine the consequences, if any, of owning or receiving proceeds from a Transamerica policy.

Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of February 2015.

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Womens and multi cultural markets bsmg event

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