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 eHandout Material Title: Engaging and Motivating HighNetWorth 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.

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Page 1: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

 © 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.    

   

 

Page 2: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 3: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 4: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 5: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 6: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 7: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 8: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 9: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 10: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

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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Page 11: 2016 MDRT Annual Meeting e Handout Material Title: High Net … eHO.pdf · 2016. 6. 7. · 2016 MDRT Annual Meeting e‐Handout Material Title: Engaging and Motivating High‐Net‐Worth

Slide 28

Thank you for your attention!

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