Working together to achieve business goals is an Authorised Representative of RI Advice Group Pty Ltd

is an Authorised Representative of RI Advice Group Pty Ltd Working together to achieve business goals

is an Authorised Representative of RI Advice Group Pty Ltd Working together to achieve business goals

is an Authorised Representative of RI Advice Group Pty Ltd My Name Financial Working together to achieve business goals

is an Authorised Representative of RI Advice Group Pty Ltd JV logo Working together to achieve business goals

5 Disclaimer Important Notice RI Advice Group Pty Ltd, ABN , holds Australian Financial Services Licence Number and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts. The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.

6 Overview Who are we? Working with clients and their professional advisers Challenges and opportunities for legal firms What do clients want? How we help clients [RI Office] services and strategy Working with [name of legal firm] The benefits to your practice Advantages of working with us Joint marketing opportunities Why alliances don’t work Next steps

7 RI Advice Group credentials Experienced We are licensed by RI Advice Group (formerly RetireInvest) - One of Australia’s most highly regarded financial advice groups with over 30 years’ experience. Our group has over 110 offices nationwide with more than 80,000 clients and $10 billion under advice. Professional personal financial planning advice. Backed by quality research and technical teams. We are highly trained and we have a policy that every adviser must commit to a program of continuing professional development.

8 background and corporate structure Proprietor 1 nameProprietor 2 name Proprietors/Advisers Adviser Adviser Names Client service CSO names RI Advice Group Technical Best Practice MarketingResearch Prof Standards Adviser Systems Risk Corporate

How we like to work with clients and their professional partners #1 - We place the interest of our clients first. We specialise in financial advice and collaborate with our clients and their professional partners. Our goal is to provide clients with good outcomes. Peace of mind Does your client have enough to meet their retirement and legacy goals? What happens if the client’s SMSF is non- compliant? How will your clients meet their living needs in the event of injury, illness or death? What is the risk to your business in getting this wrong? Thought partner Who can you talk to about technical queries relating to legislation, technical strategy and product solutions? Who can you talk to about the challenges your business faces and access practice management tools and processes? Growth partner Are we trying to be all things to all people? Can we focus on our core strengths and collaborate in a cross referral approach to provide clients with improved services, grow our business and protect against competitors? Can you leverage from an aligned specialist? Can you diversify your income source?

10 Challenges for legal firms How to provide solutions to your clients’ unmet financial advice and wealth management needs…before the competition? How to provide these financial services effectively? How to comply with FSR? How to promote these new financial services to grow your client base? How to obtain client referrals? How do you do this without losing focus on your core business?

11 Opportunities for legal firms More and more Australians are looking for financial advice. Solicitors are often the first point of enquiry. Don’t turn away business. It’s time to capitalise on this movement!

12 What do clients want? Strategic advice from a proven financial specialist Responsive and consistent professional service A range of financial services to meet their evolving needs Financial education and information Peace of mind

13 Wealth Debt Lifestyle -Private education -New car -Travel -Eating out -Holidays -Investment property Survival -Loss of income -Trauma -Disability -Tragedy -Caring for grandchildren - Death Lock in your lifestyle - Risk protection - Estate Planning $0 Your current situation Where you want to be Saving for your children’s education? Living in Retirement? Cash Income Growth Want to retire sooner? Concerned about managing debt? Leaving a legacy? How we help clients

14 [RI Office] services Retirement planning Investment selection Superannuation advice Retrenchment optimisation Debt management and lending services Aged care services Access to Government benefits Estate planning Personal and business risk insurance Helping clients create, grow, protect and enjoy their wealth wisely

Working with [Insert name of legal firm] Legal areaScenarioSeek financial advice Compensation  How to invest compensation payments to meet income requirements and any capital expenditure.  The impact on social security entitlements. √√√√ Divorce settlements  Investing settlements from a divorce.  Splitting of superannuation in the settlement.  Developing and reviewing financial plans to incorporate divorce and property settlement. √√√√√√ Superannuation  Splitting of super contributions with a spouse.  Building superannuation savings.  Generating retirement income from superannuation.  Ensuring withdrawals from superannuation or income streams are tax effective.  Choosing a superannuation investment vehicle.  Self Managed Super Fund considerations such as investment options, and investment strategy at different life stages. √√√√√√√√√√√√ 15

Working with [Insert name of legal firm] Legal areaScenarioSeek financial advice Aged care  Funding living arrangements in aged care facilities.  Advice on social security implications of moving into an aged care facility. √√√√ Estate planning  Ensuring assets are structured in the most cost effective way for beneficiaries.  Advice on assets that fall outside the control of a Will such as superannuation and life insurance  Advice on death benefit options within superannuation.  The effect of an inheritance on social security entitlements. √√√√√√√√ Investments  Advice on different types of investments such as property, shares, fixed interest and cash.  Advice on the ownership structures for investments, for example individual ownership, tenants in common etc. √√√√ Life insurance  The appropriate amount of life cover whether death only, total and permanent disability, trauma and income protection.  How to fund the premiums for life insurance, for example within superannuation.  Advice on buy/sell arrangements for business owners. √√√√√√ Redundancy  Advice on redundancy payment options available and strategies to utilise this capital. √ 16

17 Case Study: Growing professional family Financial PlannerSolicitorAccountant Personal Risk Estate Planning Business Succession Planning Asset Protection Wealth management Structures Asset Protection Estate Planning Business Succession Establishment of Entities Business Valuation Tax Planning Personal Financials and returns Entity financials and returns SMSF Admin Simon (32) is married to Sarah (32). They have a 1 year old daughter Chloe and are planning to extend their family. Simon is a mortgage broker and is due to become a junior partner at the company where he works. You have just managed the property settlement for their new home.

18 Case Study: Divorced business owner Financial PlannerSolicitorAccountantFinance Broker Personal Risk Estate Planning Business Succession Planning Asset Protection Wealth management Tax Retirement Structures / ownership Asset Protection Estate Planning Business Succession Establishment of Entities Business Valuation Tax Planning Personal Financials and returns Entity financials and returns SMSF Admin Debt Solutions Mortgage / Finance Advice Mortgage Structures Debt consolidation Wealth Creation using debt Offset accounts Peter (56) an existing client of Grice and Grice is a sole director of a SME and is recently divorced. Now living in a de-facto relationship his new partner (Sue) is also a divorcee. Assets split in divorce – they need to rebuild wealth and plan for retirement. Both bring assets (including property) and adult children into the relationship.

‘But it won’t happen to me!’ – Are your clients aware of the risks? You have a more than 60% change of being disabled for more than 1 month during your working life Interim report of the feasibility committee. Institute of Actuaries of Australia 2000 By the time a male reaches age 85 there is a 1 in 2 chance they will have been diagnosed with cancer at some point (1 in 3 for females) Cancer in Australia, Australian Institute of Health and Welfare, December 2010 Between 1982 and 2007 there was a 200% increase in the number of new cancer cases diagnosed. Over the same period the population grew by 30%. Cancer in Australia, Australian Institute of Health and Welfare, December 2010 The prevalence of diabetes has trebled over the last 20 years. There are estimated to be over 800,000 diabetics in Australia. Diabetics are 5 x more likely to have a stroke and 10 x more likely to have a heart attack. Australia’s health Australian Institute of Health and Welfare

20 We are Fee for Service AdviceProduct/PlatformsOngoing Service Fixed dollar fee for service based on complexity of clients personal circumstances. Advice Fee range will generally vary between $X-$X The fee for this may be deducted from any product recommendations to assist with cash-flow or alternatively can be invoiced directly to the client. Broad approved product list. Given FFS nature of business the product/platform solution is based on best interest duty obligation (i.e. irrelevant between industry fund, SMSF, retail platform). Where clients existing product/platform is inappropriate, we will generally move towards wholesale platforms as a low cost client solution. Fixed fee for service based on a X level client service model. Advice Fee range for ongoing service will be: - Platinum > $X - Tailored > $X - Self Directed > $X Service level & ongoing feel will vary based on clients personal circumstances, complexity and needs. The client is provided with a transparent service level agreement. The fee for this may be deducted from any product recommendations to assist with cash-flow or alternatively can be invoiced directly to the client

21 The benefits to your practice Increase the appeal of your practice Attract new clients Satisfy client needs within your practice Retain existing clients Create alternative revenue stream Increase the profitability of your practice Increase the value of your practice Offering financial advice and wealth management services will generate many benefits

22 Advantages of working with us Widely recognised and well-respected company Depth and breadth of services and expertise Service driven, not product driven Well developed Alliance program Extensive marketing resources to facilitate take-up Our aim is to let you focus on your core business while we ensure that your clients’ financial planning needs are fully met and their experience meets your firm’s high standards

23 Joint marketing opportunities Newsletters and flyers New client seminars Client briefings Client functions

24 Perceived imbalance between the benefits derived from the parties within the relationship No clarity about how the arrangement will work in operation Perceived risks a centre of influence partner may have about the relationship Client ownership No incentives in place Lack of understanding The referees are not educated as to how to recognise the client’s needs Lack of a structured marketing plan Why Alliances Don’t Work

25 Next Steps Where synergies exist, it is important to get clarity around how the relationship can work in practice. As such we should consider: Alliance/Relationship Objectives Structure of the alliance/relationship Referral Process Launch program (communication strategy, marketing plan). Board of Review - Performance Management

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