Fee Income Through Wealth Management Barry L. Dayley, CFP®, RFC® Executive Vice President Money Concepts International, Inc. West Virginia Bankers Association July 18, 2011 Fee Income Through Wealth Management

Now, more than ever your customers are in need of Real Wealth Management services!  They are looking to your bank for direction and answers for long-term planning through the challenging financial times we are in.  Are you ready?  Do you have the answers they need? 

Money Concepts can help your bank deliver these services through our Turn-Key Wealth Management program.  Set yourself apart by offering what your customers need ... real advice and direction; provided in the way they think ... solutions, not product features and benefits; giving them what they want ... a path to financial security and freedom.  In return, your bank will cement customer relationships, obtain greater wallet share, and develop an important new profit center for the bank.
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It’s Getting Tougher to Be a Banker Rapid Industry Consolidation New Rules & Regulations Fee Caps Increased Compliance & Insurance Overhead Asset Valuation Challenges Higher Lending Standards

What Are Your Customers Needs?

What Are Your Customer’s Fears?

Psychographic Changes   Young Adult Families With Children Retired Pre Post High Need Loans Checking Insurance Info/Advice Investments Medium Low  Info/Advice

The Launching of an Industry The Sigmoid Curve 2030 A 2005 1980 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.

Forces Driving Fee-Based Pricing Bank adoption of fee-based pricing Pursuing more affluent clients Establishing deeper client relationships Benefits of recurring revenues Preferable way to conduct business Demand for advice/guidance/aggregation drives more advisors to intermediary channels Intermediary channels often hold accounts in omnibus fashion, which prohibits fund co’s from contacting, tracking, retaining clients Proliferation of product has caused a commoditization of asset management As asset managers becomes less unique and lose their ability to retain and draw clients independent of intermediaries, they lose leverage to distributors Source: Cerulli Associates

Assets Under Management

Business Growth Illustration Year Assets Client Count Income 1 $ 5,400,000 36 $81,000 2 $11,232,000 65 $174,150 3 $17,530,560 94 $279,882 4 $24,333,005 122 $391,913 5 $31,679,645 151 $510,746 8 $57,437,789 178 $859,722 10 $78,227,437 197 $1,137,569 $150000 Assets / client, 2% fee

Holistic Wealth Management What Is The Answer For Customers? Holistic Wealth Management

What Is What is Wealth Management? WEALTH MANAGEMENT? Wealth Management is a specialty of financial planning. 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.

What Is What is Wealth Management? Retirement Planning Retirement Income Planning Estate Planning Wealth Transfer Investment Management Asset Protection Senior Care Tax Planning Family Issues Charitable Concerns

THE TRADITIONAL INDUSTRY PARADIGM BANKING

PARADIGM THE WEALTH COACH “YOUR BANK” Banking

PARADIGM

The Gonzalez Family

The Gonzalez Family CASE 1 Gonzalez Original Amount Year 1 Year 2 Total Disability Income Insurance $45 / MO $540 $54 $756 Life Insurance $100/ MO $648 $108 $1,080 Systematic Investment $50 / MO $18 $72 $1,206 $180 $1,908

The Jones Family

The Jones Family CASE 2 Jones Original Amount Year 1 Year 2 Year 3 Total Enterprise 360 Fee $500 $3,000 Lump Sum Investment $37,000 $592 $639 $691 $746 $805 $3,473 Life Insurance $1,100 $660 $110 Systematic Investment $300 / MO $144 $720 $1,896 $1,943 $1,245 $1,500 $1,559 $8,293

The Wells Family

The Wells Family CASE 3 Wells Original Amount Year 1 Year 2 Year 3 Total Enterprise 360 Fee $2,000 $1,000 $7,000 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 $22,500 Long Term Care $6,000 $3,300 $600 $5,700 $31,550 $14,900 $14,514 $15,447 $16,455 $93,866

Providers of Financial Services Since 1979 THANK YOU Thank You! Money Concepts International. Inc. 11440 N. Jog Road Palm Beach Gardens, FL 33418 www.moneyconcepts.com Barry Dayley, CFP®, RFC® Executive Vice President Tel: (561) 472.2000 Ext: 5050 Barry@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