4 Steps to Successful Selling And Other Neat Stuff

Agenda 4 Steps Math Fun A Simple Business Plan

4 steps - # 1 Use Comparison Selling Speak to your customer in terms they are familiar with. Your client does not speak “financial” so use terms they are comfortable with.

Step 1: Comparison Selling “Your annuity grows tax deferred just like the money in your IRA.” “Your Fixed Index Annuity combines many of the features of a Fixed Annuity and a Variable Annuity – A minimum guaranteed rate and the opportunity to follow the markets” “You annuity will pay you a monthly guaranteed income just like Social Security does”

Step 1: Comparison Selling Make sure that when you compare – you also contrast. “An FIA is like a Fixed Annuity in that it provides a minimum guaranteed rate, but it is different in that the interest credited will vary in respect to the index it follows.”

4 Steps - #2 Emphasize the Key Advantages FIAs offer many benefits to a prospect – Tax deferral, minimum guaranteed rates, the opportunity to follow a market index, without really being in the market, the ability to receive an income the client cannot outlive etc. The key is to understand your client’s needs and make sure they understand how those benefits meet their needs.

Step 2: Key Advantages “Based on your conservative savings style, a Fixed Index Annuity might be a very good alternative for you, your interest earnings will be calculated following a market index, but even if the index loses money, you will not.”* * If the contract is surrendered and a surrender charge is applied, the surrender charge may result in the client receiving less than the original purchase payment.

4 Steps- #3 Handle Objections Before You Get Them You know your client will have some questions or objections. Don’t put yourself on the defensive. Address them before your client brings them up.

Step 3 – Handle Objections “Even though annuities have a 10% pre-59 ½ penalty for early withdrawals, since this annuity is for your retirement, you won’t be accessing it until after age 59 ½, so that penalty should not be an issue. If an emergency were to arise, there are some ways we can access some money and still potentially avoid the penalty.”

4 Steps- #4 Ask for the Order! Don’t be afraid to ask your client to buy. They know why you are there meeting with them. Sometimes asking for that sale can be unnerving, so ask in a subtle way.

Step 4: ASK! “Who would you like your beneficiary to be?” “Shall we add the Long Term Care Rider?” “Do you want your income based on 1 life or 2 lives?”

4 Steps Use Comparison Selling Emphasize the Key Advantages Handle the Objections before you get them Ask for the Order!

Fun Math

Fun Math Rule of 72 Rule of 108 Rule of 115 The 4% Rule Rule of 25

6% 72 12 YEARS The Rule of 72 Rate of Return: 6% Take your rate of return and divide it into 72, and you will find how long it will take you to double your money. 6% 72 Rate of Return: 6% 12 YEARS

6% 108 18 YEARS The Rule of 108 Rate of Return: 6% The Rule of 108 is also a doubling concept but assumes a 33% tax bracket. Take your rate of return and divide it into 108, and you will find how long it will take you to double your money in a 33% tax bracket environment. Rate of Return: 6% 6% 108 18 YEARS

6% 115 19.17 YEARS Rule 115 Rate of Return: 6% Take your rate of return and divide it into 115, and you will find how long it will take you to triple your money. 6% 115 Rate of Return: 6% 19.17 YEARS

The 4% Rule Safe Withdrawal Rate: This rule suggests that if retirees withdraw 4% of their portfolio in their first year of retirement, and adjust that initial amount for inflation in subsequent years, they'll have a low risk of depleting their portfolio in 30 years. Take the account balance and multiply it by 4% to get the withdrawal amount. $1 Million 4% $40,000

The Rule of 25 The Rule of 25 is the reverse of the 4% Rule. This rule states that if you have an income stream in mind, multiply that number by 25 and assuming a 4% withdrawal rate, it will tell you what account balance you will need. Annual Income Amount Needed: $40,000 $40,000 25 $1 Million

Book of Business Recurring Revenue Add New Clients From Your Best Markets – Where does your business come from? New Markets Client Segmentation A,B,C How many touches should your client get each year? Book of Business Recurring Revenue AUM, Renewals, Additional Deposits