1. The True Value of Advice Dean Lombardo

2. Disclaimer
This document is for financial adviser use only – it is not to be distributed to clients or any 3rd party
This document has been prepared by IOOF Investment Management Limited (IIML) ABN , AFS Licence No as Trustee of the IOOF Portfolio Service Superannuation Fund ABN and as Service Operator of the Pursuit Select Investment Services. IIML is a company within the IOOF Group of companies, consisting of IOOF Holdings Limited ABN and its related bodies corporate. The information in this document has been given in good faith and has been prepared based on information that is believed to be accurate and reliable at the time of publication.
This document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent.

3. What we will cover today ?1 2 3
The changing financial planning landscape
Latest research: The TRUE value of an ongoing advice relationship
A blueprint for success

4. Challenges and Opportunities

5. How industry’s evolve & the consumer’s journey
Value Driven Business Models
Price Driven Business Models
Stage 1
Product
Centric
Demand > Supply
None/very low
Very limited
Stage 2
Sales
Centric
Equilibrium
Some (direct/indirect)
Moderate
Stage 3
Client
Centric
Supply > Demand
High (direct/indirect)
High (multiple sources)
Supply/Demand
Experience with product/service
Information available

6. A Value Driven Business Model – All parts must connect!
Personal Vision
Business Vision
Advice Philosophies
Implementation System/Process
A Value Driven Business Model – All parts must connect!
Target Market
Acquisition Plan
Engagement Process
Ongoing Coaching Offer
Ongoing Coaching Process
HR & Capacity Plan
Pricing Model

7. How we disconnect with our client’s desired outcomes
What defines a successful financial planning experience?

8. “The True Value of Advice”
Compared to those who don’t receive professional ongoing advice, does an ongoing financial planning relationship:
Deliver better personal & social outcomes?
Deliver real peace of mind?
Improve an individual’s overall enjoyment of life?
Increase overall personal happiness?

9. Financial planning and health
How financial concerns can impact on health ? 3X
11X
65%
MORE LIKELY
MORE LIKELY
MORE LIKELY
To have digestive problems
To suffer from headaches and migraines
To suffer from back pain and tension
Associated Press & AOL Poll
1IN 7
ADULTS
Can’t sleep because of financial difficulties
StepChange

10. Financial planning and health
Consumers who DON’T receive professional ongoing advice
MORE LIKELY
15%
MORE LIKELY
22%
MORE LIKELY
17%
To feel stress and anxiety regarding money matters
To have their sleep disrupted through money concerns
To feel that money issues have impacted on their health

11. Financial planning and personal relationships
Personal and social
Arguing about money is the top predictor of divorce
GFC and the associated financial concerns lead to nearly 5000 additional suicides in 2009 as compared to the norm
Kansas State University
British Medical Journal

12. Financial planning and personal relationships
Ongoing financial planning clients
LESS LIKELY
19%
LESS LIKELY
21%
LESS LIKELY
22%
To argue with loved ones about money issues
To have friendships impacted by money concerns
To feel they are missing out on living their ideal life due to concerns surrounding money

13. Financial planning and daily life
Ongoing financial planning clients
MORE LIKELY
17%
21%
13%
To feel confident they will achieve core financial goals and objectives
More peace of mind
GREATER LEVELS OF OVERALL PERSONAL HAPPINESS!!

14. = True Peace of Mind + + TRUE peace of mind relationship/brand
(believing that what is promised will be delivered) = +
measurable progress
(proof that it is working ) +
knowledge/empowerment
(understanding what is happening and why)

15. Definition of financial planning success
The achievement of core goals and objectives linked to a purpose, delivering positive emotional and personal outcomes.

16. A three point blueprint1
Deliver an advice proposition that clearly aligns to clients’ lifestyle goals.
The future is a value driven model.
Continual coaching toward the clients desired objectives.
Businesses need an objective method of benchmarking how clients are progressing towards their desired goals.

17. Deliver an advice proposition that clearly aligns to clients’ lifestyle goals
What is the purpose of providing ongoing financial planning to your clients?
(Why provide an annual planning meeting/ongoing service? How does ongoing advice benefit each stakeholder in your business)
Each component of your CVP MUST lead to your belief of the “purpose”
AND
Each part of the process MUST have a purpose itself

18. Deliver an advice proposition that clearly aligns to clients’ lifestyle goals

19. Deliver an advice proposition that clearly aligns to clients’ lifestyle goals

20. Deliver an advice proposition that clearly aligns to clients’ lifestyle goals

21. A three point blueprint2
Incorporate the wellbeing benefits of advice into your value proposition.
A guiding principle for all aspects of a business.
Articulate what your business stands for and how it benefits others.
Embrace and incorporate the intangible emotional and personal benefits of advice into the value proposition.

22. A three point blueprint3
Deliver on clients desire for family wellbeing.
Family wellbeing is clearly the number one and most important area to personal happiness.
Family referrals delivers on client needs whilst retaining and growing your business.
Introduce a family advice model/fee.

23. The Next Step – Decide where you want to be!
Reflect on your practice today vs the “Blueprint”
Believe in the value of advice and deliver it!