2016 mdrt annual meeting e handout material title: high net … eho.pdf · 2016. 6. 7. · 2016...
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© 2016 Million Dollar Round Table Million Dollar Round Table 325 West Touhy Ave. Park Ridge, IL 60068 USA
2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth Clients Speaker: Rao K. Garuda, CLU, ChFC Presentation Date: Tuesday, June 14, 2016 Presentation Time: 2:00 ‐ 3:00 p.m. The Million Dollar Round Table® (MDRT) does not guarantee the accuracy of tax and legal matters and is not liable for errors and omissions. You are urged to check with tax and legal professionals in your state, province or country. MDRT also suggests you consult local insurance and security regulations and your company’s compliance department pertaining to the use of any new sales materials with your clients. The information contained in this handout is unedited; errors, omissions and misspellings may exist. Content may be altered during the delivery of this presentation.
Slide 1
Rao K. Garuda, CLU, ChFCEngaging and Motivating High-Net-Worth
Clients
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Slide 2
17
3
30
Three Important Numbers
seconds is the average attention spam
minutes to impress prospect
minutes needed in first appointment
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Slide 3 Begin with the end in mind…
Significantly reduce taxes
Create tax-free income for
retirement
Protect money from stock market
losses and lawsuits
Leaving your footprints on the society aka “Success to Significance”
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Slide 4 If you want to be world class…
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Slide 5 Passion
Michelangelo
PASSION is the number one driving force behind any
success
What is yours?
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Slide 6 PersistenceMalcolm Gladwell pointed
out, in his book Outliers, that it takes the average expert 10
years or 10,000 hours to achieve world-class status
What is your IQ?
IQ ≠ Intelligence Quotient
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Slide 7 Practice
Knowledge is of no value unless you put it into
PERFECT PRACTICE
Vince Lombardi - American football player, coach, and executive
“Control the controllable” – John Wooden
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Slide 8 Patterns
What are they?
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Slide 9
$0
$2,000,000,000,000
$4,000,000,000,000
$6,000,000,000,000
$8,000,000,000,000
$10,000,000,000,000
$12,000,000,000,000
$14,000,000,000,000
$16,000,000,000,000
History of America's Spending Habits Plus Debt Outstanding - 1944-2012
Receipts Outlays Debt Outstanding
http://www.whitehouse.gov/omb/budget/historicals
Sources: http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm;
$18,000,000,000,000
Who will pay off the debt?
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Slide 10
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Slide 11 The Growth of a Dollar as it Doubles Annually
“CASHECTOMY”
Year Value
Tax
assumed
40%
Net ValueDouble
growth
Actual
value
Expected
Value
info (A) (B) = 40% * (A) (A) – (B) (C) = (A) * 2 (C) – (B)
1 $1.00 $0.40 $0.60 $2.00 $1.60 $2.00
2 $1.60 $0.64 $0.96 $3.20 $2.56 $4.00
3 $2.56 $1.02 $1.54 $5.12 $4.10 $8.00
4 $4.10 $1.64 $2.46 $8.20 $6.56 $16.00
5 $6.56 $2.62 $3.94 $13.12 $10.5 $32.00
…. …. …. …. …. …. ….
20 $7,566.88 $3,026.75 $4,540.13 $15,133.76 $12,107.01 $1,048,576.00
You should be having $1,048,576… instead you only have $12,107 !!!!
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Slide 12
2 most important days in your life !
Will your dreams die when you die?
How do you make sure your dreams are fulfilled?
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Slide 13
VS
What is the difference?
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Slide 14 High Net Worth Client Strategies
1. New Insurance Products with Living benefits (critical and chronic illness coverage)
2. Create tax free income
3. Power of zero estate tax
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Slide 15
DO YOU LOVE YOUR CHILDREN?
Can you show me a document to prove it?
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Slide 16 T
H
E
I
R
S
AXES
Would you like to see how to do
this???
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Slide 17 What do you do …
…. If you live too long?
…. If you die too soon?
…. If you get sick and need long term care?
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Slide 18 Benefits of life insurance
Tax free growth
Upside potential
Asset protection
Tax-free death benefit
Tax-free withdrawals
No downside risk
Liquidity
Living benefits
Tax-free transfer
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Slide 19 Asset allocation and diversification
Stocks
Guaranteed Income
Foundation
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Slide 20
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Slide 21
Point of Maximum Financial Opportunity
The Cycle of Market Emotions
OPTIMISM
ANXIETY
FEAR
DESPERATION
PANIC
EXCITEMENT
RELIEF
HOPE
DEPRESSION
OPTIMISM
DESPONDENCY
“WOW, am I
Smart!”
THRILL
“Temporary set back – I’m a long term investor.”DENIAL
“How could I have been so
wrong?”
CAPITULATION
Point of Maximum Financial Risk
EUPHORIA
Fear and Greed: 2 Things
You Shouldn’t Invest InWall Street Journal 5/20/09 P. D2
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Slide 22 DALBAR Study for 2014In 2014, for a 12 month period, the average equity mutual fund investor
underperformed the S&P 500 by a wide margin of 8.19%
(13.69% S&P vs. 5.50% average equity mutual fund investor)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
S&P 500
AverageEquity FundInvestor
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Slide 23 DALBAR Study for 2014
In 2014, the 20-year annualized S&P return was 9.85% while the 20-year
annualized return for the average equity mutual fund investor was only 5.19%, a
gap of 4.66%
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Slide 24
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Slide 25 How fast can you drive if you don’t have any side rails?
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Slide 26 What is the greatest gift that a parent can give to a child?
Would you like to ensure education for them?
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Slide 27 Believe in a CAUSE
My personal favorite:
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Slide 28
Thank you for your attention!
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