1. Fee Income Through
Wealth Management
C. Michael Thompson
National Sales Director
Levi B. Dayley
Marketing Director
Money Concepts International, Inc.
June 9th, 2011
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2. It’s Getting Tougher to Run a
Credit Union
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3. What Are Your Member’s Needs?
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4. What Are Your Member’s Fears?
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5. Psychographic Changes
Families With Retired
Young Adult
Children Pre Post
High Loans Loans Info/Advice
Need Checking Insurance Investments
Info/Advice
Medium
Investments Checking Insurance
Need
Investments
Low Info/Advice Loans
Need Insurance Checking
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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.
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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 to
Source: Cerulli Associates
conduct business
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8. Balance Sheet vs. Off-Balance
Sheet Assets
Credit Unions control about 30% of the member’s
wallet, usually through Mortgages & CDs.
Overexposure to CDs hurts Member & Credit Union
The RELATIONSHIP is the most valuable asset of the
Credit Union
What’s the Answer for You and Your Members?
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9. Holistic Wealth Management
What Is The Answer For Credit Unions?
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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.
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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
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12. It’s All About Helping People Three Ways
Accumulate Transfer
Money More Money To
Efficiently Loved Ones
Produce Greater Income – Reduce Taxes
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13. Integrated Credit Union Platform
Traditional“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 +
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14. THE TRADITIONAL INDUSTRY PARADIGM
Lending &
Financial
Services
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15. PARADIGM
Credit
Union
THE WEALTH COACH
“YOUR Credit Union”
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16. PARADIGM
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17. Commissions Vs Fees
Assumptions
1st Year Commission ‐ 6%
Trail ‐ .25%
Annual Fee – 2%
Payout 75%
$1,000 Annual Enterprise Fee
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18. What do you have to do to
become the wealth
manager?
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19. Critical Considerations
• Products
• Marketing System
• Technology
• Compliance Support
• Training
• Turnkey System
• Flexibility
• Fee Income
• Management Support
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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
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21. Marketing Support
State-Of-The Art
Relationship Oriented
Marketing using...
• Marketing Campaigns
• Conceptual Presentation
• Educational Information
• State Of The Art Technology
• Wealth Management Approach
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22. Seminar & Workshop Topics
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23. Automated Solutions
•Integrated Trading Platform
•Document & Blotter
Automation
•Financial Planning Software
•Compliance Tracking
•Investment Research
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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
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25. Ongoing Education & Training
Complete
Curriculum
Seminars
Symposiums
Workshops
In Person &
Online
Modular Design
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26. The Gonzalez Family
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27. The Gonzalez Family
Original Year 1 Year 2 Year 3 Year 4 Year 5 Total
CASE 1 Amount
Gonzalez
Disability
Income
Insurance $45 / MO $540 $54 $54 $54 $54 $756
Life
Insurance
$100/ MO $648 $108 $108 $108 $108 $1,080
Systematic
Investment
$50 / MO $18 $18 $18 $18 $18 $72
Total
$1,206 $180 $180 $180 $180 $1,908
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28. The Jones Family
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29. The Jones Family
Original Year 1 Year 2 Year 3 Year 4 Year 5 Total
CASE 2 Amount
Jones
Lump Sum
Investment
$37,000 $592 $639 $691 $746 $805 $3,473
Life
Insurance
$1,100 $660 $110 $110 $110 $110 $1,100
Systematic
Investment
$300 / MO $144 $144 $144 $144 $144 $720
Total
$1,396 $1,443 $945 $1,000 $1,059 $5,293
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30. The Wells Family
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31. The Wells Family
Original Year 1 Year 2 Year 3 Year 4 Year 5 Total
CASE 3 Amount
Wells
Asset
Management
$1,250,000 $10,000 $10,800 $11,646 $12,594 $13,605 $58,666
Life
Insurance
$25,000 $16,250 $2,500 $1,250 $1,250 $1,250 $22,500
Long Term
Care
$6,000 $3,300 $600 $600 $600 $600 $5,700
Total
$29,550 $13,900 $13,514 $14,447 $15,455 $86,866
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32. Holistic Wealth Management:
Earn Fee Income for Your Credit Union
While Serving and Preparing Your
Members Better For Life.
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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 SEC
All Non Securities and Non Advisory Products through Money Concepts International, Inc.
Providers of Financial Services Since 1979
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