AfterWorks AGF’s Lifestyle Planning Program

1. AfterWorksAGF’s Lifestyle Planning Program Advisor SeminarPresented by: Tom Laube

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

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 MarketFrom 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 theStrategy 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 PlanningWith 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 ISSUE INVESTMENT-CENTRED ADVISORS WHO SAID VERY IMPORTANT CLIENT-CENTRED ADVISORS WHO SAID VERY IMPORTANT Talking to current clients 15.8% 92.9% Analyzing the market 69.1% 14.3% Reassuring clients 20.8% 97.6% Working on balancing portfolios 47.1% 7.1% Meeting with clients 19.8% 88.1% Analyzing client investment positions 53.4% 10.7% Asking clients for referrals 7.3% 78.6% Talking to their peers 76.7% 36.9% Source: CEG Worldwide Study, 2001

12. Being Client-Centred is More Profitable ADVISOR RESULTS OVER FIRST SIX MONTHS OF 2001 INVESTMENT-CENTRED ADVISORS CLIENT-CENTRED ADVISORS New clients 1.3 6.8 Average assets per new client $51,000 $269,000 Clients providing additional assets 0.8 7.3 Average assets from current clients $13,000 $64,000 Total new assets over first six months $76,000 $2,296,400 Source: CEG Worldwide Study, 2001

13. Differentiate Yourself From Your Competition

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

15. Client-Centred AdvisorsDescribe 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 AdvisorsDescription of Services TAX ESTATE INVESTMENT FAMILY BUSINESS Revenue Deferral Life Insurance Asset Management Business Investment RESPs Income Splitting RSP Pension Plan Succession Planning Savings Accounts Wills Tax Sheltering Non-Registered Trusts Mortgages Disability Heirs Real Estate Loans Planned Giving/Charity Income and Protection Source: Retirement Education Centre

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

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

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

20. You’ll Keep Your Clients For Life

21. Increase Your Network andObtain Quality Referrals

22. Increase Your Network and Obtain Quality Referrals Your Client: Teacher who wants to teach overseas You access existing client with experience President of local Rotary Club Director of Overseas Development Program 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 BehavingLike Traditional Retirees Almost half of Canadians who retire areback 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 Where are you in your life currently? What do you love about your work? What do you love to do after work? Determine activities most important to you Identify next steps

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