1. AfterWorks AGF’s Lifestyle Planning Program Advisor Seminar Presented by: Tom Laube

2. WHAT BUSINESS ARE WE IN? Money management? Financial planning? Financial advice? Investment management? Mutual funds?

3. “We’re not in the burger business, we’re in the PEOPLE business. They just happen to eat hamburgers!” — McDonald’s CEO

4. There’s a Trend in the Market From Product to Process “The trend that will govern our future is the fundamental shift from product to process.” Source: Lewis J. Walker, CFP, A Look at the Financial Services Revolution, Investment Advisor magazine, 2002

5. Personal Service is Becoming the Strategy of Choice “The financial advice business is about to get very personal. Your relevance to your clients will be measured in terms of what you provide to help them live their lives rather than providing them with products and services to which they have little or no emotional attachment.” Source: Mitch Anthony, Your Clients for Life, 2002

6. Lifestyle Planning Puts the Client First “The first task in lifestyle planning is helping clients figure out not what they want to do with their money, but rather what they hope to do with their lives.” Source: Life, article in Wealth Magazine, July/August 2002

7. Benefits of Using Lifestyle Planning With Your Clients Earn more income than advisors who focus on investment-related activities. Differentiate yourself from your competition. Build life-long client relationships. Increase your network and obtain quality referrals.

8. FACTORS YOU CAN’T CONTROL Volatile markets Poor performance and rates of return Lacklustre client statements Political events Corporate scandals Media / news events (negative angles)

9. FACTORS YOU CAN CONTROL Depth of relationships — put your clients first and their money second Strength of client relationships Quality of customer experience Clients’ expectations Frequency and quality of contact Clients’ perceptions of how much you care Appropriateness of investment plan to long term needs

10. Advisor Business Activity Indicates an Investment-Centred Focus Source: CEG Worldwide Study, 2001

11. Activities Make the Difference Talking to current clients15.8%92.9% Analyzing the market69.1%14.3% Reassuring clients20.8%97.6% Working on balancing portfolios47.1%7.1% Meeting with clients19.8%88.1% Analyzing client investment positions53.4%10.7% Asking clients for referrals7.3%78.6% Talking to their peers76.7%36.9% ISSUE INVESTMENT-CENTRED ADVISORS WHO SAID VERY IMPORTANT CLIENT-CENTRED ADVISORS WHO SAID VERY IMPORTANT Source: CEG Worldwide Study, 2001

12. Being Client-Centred is More Profitable Source: CEG Worldwide Study, 2001 New clients1.36.8 Average assets per new client$51,000$269,000 Clients providing additional assets0.87.3 Average assets from current clients$13,000$64,000 Total new assets over first six months$76,000$2,296,400 ADVISOR RESULTS OVER FIRST SIX MONTHS OF 2001 INVESTMENT-CENTRED ADVISORS CLIENT-CENTRED ADVISORS

13. Differentiate Yourself From Your Competition

14. Investment-Centred Advisors Describe Their Products “I specialize in Retirement Income Funds.”

15. Client-Centred Advisors Describe What Really Matters “I help retired corporate executives finance their dreams and goals by designing portfolios that provide them with the income they need.”

16. Investment-Centred Advisors Description of Services Source: Retirement Education Centre TAXESTATEINVESTMENTBUSINESS Revenue Deferral Income Splitting Tax Sheltering Life Insurance Wills Trusts Heirs Planned Giving/Charity Asset Management RSP Pension Plan Non- Registered Real Estate RESPs Savings Accounts Mortgages Loans Income and Protection Business Investment Succession Planning Disability FAMILY

17. CCRAESTATEINVESTMENTFAMILY Client-Centred Advisors Description of Services Source: Retirement Education Centre Protect Loved Ones Pass on Assets Gift Loved Ones Give to Charity Don’t Give to CCRA Protect Savings Look After Retirement Lifestyle Money Make Money Grow Assist Children Assist Parents Family Home Lifestyle Money Money to Finance Dream Pass on Assets Protect Family BUSINESS Tax Refunds RSP Contribution Pay Less Tax

18. 6-STEP FINANCIAL PLANNING PROCESS Gather client data Evaluate your client’s status Develop and present financial plan Implement financial plan Monitor and assess plan Define client/advisor relationship 1 2 3 4 5 6

19. 1 2 3 4 5 6 6 STEPS TO SUCCESS Know the important stuff Study lifestyle goals Create lifestyle and financial plans Put lifestyle and financial plans in place Re-assess plan Redefine relationships

20. You’ll Keep Your Clients For Life

21. Increase Your Network and Obtain Quality Referrals

22. President of local Rotary Club Director of Overseas Development Program You access existing client with experience Increase Your Network and Obtain Quality Referrals Your Client: Teacher who wants to teach overseas Former overseas teacher

23. Use AfterWorks, AGF’s Lifestyle Planning Program Provides the basis for a different conversation between you and your clients. Helps your clients clarify their life goals and identify what they really love to do. Enables you to customize a financial plan to help them afford it.

24. Canadians Are Not Behaving Like Traditional Retirees Almost half of Canadians who retire are back in the workforce within two years. Source: Statistics Canada, 2002

25. Reasons Why This is Occurring Need the money Boredom Need more challenge Miss the social aspect Need to feel useful Need to feel a sense of purpose My spouse made me do it

26. AfterWorks: The Process is Simple What do you love about your work? What do you love to do after work? Determine activities most important to you Identify next steps Where are you in your life currently?

27. Effective Techniques Be an empathetic and active listener Encourage client communication Be curious and ask open-ended questions Focus on facilitation, not advice Source: Money, Meaning and Choices Institute, 2002

28. GROUP A: NOT PREPARING FOR RETIREMENT “More than one-quarter of baby boomers say they have given only a little thought, or none at all, to their retirement years.” Source: AARP Research, 2001.

29. SCHMIDT HAPPENS