1. Steve Larsen CPA, CFP® PRESIDENT
If you’re a radio host and someone asks you to speak publicly, chances are they are going to expect you are pretty good at it. So let’s keep in mind for the next half hour or so, that I am not a radio host.
I am a CPA, and typically prefer to hide in the back corner of these events with my computer.
Thanks to First Annuity for having me give a presentation a mile above where I normally live, where I can hardly breathe.
Steve Larsen
CPA, CFP®
PRESIDENT

2. Steve Larsen, CPA, CFP® Started as a Financial Advisor in 2002
Opened first Registered Investment Adviser (Larsen Financial) in 2005
Currently serves as a FINRA Arbitrator
I started my career as a financial advisor with Edward Jones in Anyone know what Edward Jones requires of it’s reps for prospecting?
Believe it or not, I am 37 years old. When I started knocking on doors for Edward Jones, I was 23. This is what I look like now, imagine what I looked like when I was 23.
Now, imagine me in a suite and tie standing on your front porch.
Let’s just say people didn’t think I was their to convert their 401k
Owner and CCO: I have been and owner and CCO of independent RIAs since 2005
Behind the scenes: This is the organization that settles disputes between customers and advisors, and it has given me a behind the scenes look at what what actually will get advisors in trouble

3. Evolution of Business
2005 – 2013, traditional financial advisor model: investments, planning, life Insurance (plus taxes)
Began 2014 with 14mm AUM
Currently at 27mm in retail AUM
- Traditional business models, plus tax
- After I went independent I tried a few different business models, but basically had a traditional financial advisory practice of financial planning, investments, and life insurance
I also prepared taxes for 6 years, which is a special kind of torture I don’t wish on anyone
I started 2014 with 14mm in assets under management
I am currently at 27mm in assets under management
So what changed?

4. Safe Money - Always
Partnered with Pacific Northwest Radio Host Shon Peil
Learned that marketing actually works
Niche Marketing
Close more business by providing a total solution
76% of advisors said they increased their referrals after implementing a niche strategy (horsemouth.com)
Shon looking for advisor; what has this done for your annuity business?
Many of your know Shon Peil, about halfway through 2014 we started working together because he was looking for an advisor to help him move the assets he was leaving on the table.
Shon, my assets doubled in about two years, what did you see happen to your annuity business when we started working together?
Annuity marketing works
As an investment guy, I was always told that seminars, radio shows, and lead programs were a waste of time. As silly as I feel, most investment advisors still think this way, which is a huge advantage for everyone in this room.
Total solution: We were closing more business because we were providing a total solution to the client, not just offering one line of products.
Safe money niche: But what it really was, is we had stumbled into a niche. Our niche was safe money, that is all we talked about. Whether it was annuities, life insurance, or investments, we always brought it back to safety.
Bigger annuity cases: Value isn’t just being added from AUM, annuity cases are getting bigger as well.

5. RIA Built for Safe Money
35+ Third-Party Money Managers
Proposal System that incorporates Fixed Index Annuities
Build a business that is scalable
You can’t show up for a meeting and say you are a safe money expert, and then show up a week later and tell a prospect you can also pick stocks.
Your story is that you have access to the leading money managers from all over the globe who have demonstrated an ability to lower the risk on your portfolio. My job is to analyze and monitor those managers to make sure they are always doing what we hired them to do.
Annuities and investments can work very well together, if you let them. We have a proposal system that allows you to present on the whole portfolio and show how these solutions work together to meet their goals.
Scalable sounds like a business school word that is somewhat useless, kind of like Price Point. Why not just say price? Client needs a $10k check?

6. Create Equity for Your Business
How much is a realtor’s business worth?
Average transaction based financial practice sells for .75x of 12 month revenue
Average fee based financial practice sells for 2.5x of 12 month revenue
Transaction business, buying iPhone: How much would you pay to buy the business of a realtor? What would you really be buying, their iPhone?
Includes trails: Pricing on a transaction based practice would include trails. Let’s be honest, we don’t have lot of agents in this room who are electing trails on their business.
Turn-key: The more turn-key the business, the more valuable it is

7. Projected Recurring Revenue
- I have found the typical annuity agent who starts closing AUM can gather about half of their annuity production in assets. For example, a 5mm annuity producer should bring in around 2.5mm a year in AUM.
Year
Annuity Production
Total AUM
Monthly Revenue 1
5mm
2.5 mm
$2,083 2
5 mm
$4,167 3
7.5 mm
$6,250 4
10 mm
$8,333 5
12.5 mm
$10,417

8. Total Advisor Quickstart Program
Discounted study materials and study calendar
Assistance submitting required documentation to FINRA and exam scheduling
Regular training calls on investment strategies and AUM operational issues
Case support to get business in the door immediately after licensing
Amazing presentation, Mark Williams DOL
Steve, between your amazing presentation, and Mark Williams scaring the living crap out of me, I’m sold. How do I get licensed?

9. Potential Business Models
- Get licensed yourself
- Shon and I
Share expenses
- Vanguard guy and Merrill Lynch guy
Investment Advisor Rep
Partner with an IAR
Partner Remotely
Obtain your Series 65 license and affiliate with Total Advisor Network for all compliance, operation, investment and technology support.
Find trusted relative or friend to obtain a Series 65 license and serve as the trusted investment expert for your firm.
Work with Total Advisor Network home office to provide investment management and financial planning solutions to your clients.

10. Questions?

11. Do You Have a Series 6 or Series 7 License?
Have you stopped to ask yourself why?
Broker / Dealer
Continuing Ed
Insurance
Production Requirements
Must have a broker/dealer
No broker/dealer
Series 6 / Series 7
Series 65 (Fee Only)
Annual training and exam at on-site testing center…..at registered reps expense
No continuing education requirement
Broker/Dealer has right to disallow any life insurance or annuity products
Insurance products processed independent of investment firm, complete freedom of carriers and products
Broker/Dealers typically require a minimum amount of production to avoid FINRA “parking” rules
No minimum production or asset requirements
TheTotalAdvisor.com