TAKE CONTROL

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TAKE CONTROL !
Lifestyle Planning
Helping your clients

• And ensuring enhanced cash
• flows for you for years to come.

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Why?

• The market for traditional financial planning
  services is small - basically those with lumps of
  cash.
• The real market for financial planning services -
  those with cash flow - is huge and underserviced.
• To profit from this market you need to be
  properly equipped to deliver comprehensive
  services economically.
• There are many steps you can take towards this
  objective.
• The first is Money Manager.

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The new market

• Money Manager has been refined in the market for
  about six years. The first noticeable change was
  in the remuneration of those using it. As well as
  the traditional commission and trail income
  streams they found themselves earning substantial
  fees.
• Why did clients who previously would have been
  seen as unprofitable suddenly become so
  lucrative? Because Money Manager enabled the
  advisors to deliver what clients really needed
  all along - a plan that helped them see not only
  an accumulation of wealth, but achievement of the
  lifestyle goals that were the keys to their
  satisfaction. More than that, they suddenly had a
  road map that gave them regular feedback to
  help them see goals being realised.
• In short - they are paying for real added value!
• This formula is very powerful by itself, but when
  technology now available is coupled with it,
  clients are empowered in a way thats never been
  possible before.
• At the same time everyone in the value chain
  earns more and many of the more mundane tasks are
  outsourced to the client.

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A typical scenario
You probably aroused your client's interest with
examples of how this sort of plan has worked for
someone else...
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Overview

• Your client is asked to complete a data
  collection - via the Word document supplied with
  the software (easily customisable) or via your
  web site. The form includes signoff for the
  client to satisfy know your client rules.
• The completed data is entered into Money Manager
  and a plan constructed to satisfy your clients
  needs - with or without your client present
  depending on your preference.
• Money Managers reporting is extremely flexible
  so that it can be tailored to you and your
  client. The software addresses debt mangement,
  insurance needs, gearing, retirement planning and
  margin lending all in one smooth process.
• Priority is given to your clients goals.
• The resulting plan achieves those goals and pays
  for your recommendations (your fees are locked
  in).
• Your client takes home a plan that includes a
  road map that becomes their essential
  reference. Your web site (or our support web
  site) can even supply their means of tracking
  progress. The change in their life can be
  remarkable!
• Most importantly you have cemented this client as
  a source of future income.
• Advanced clients can take home a copy of
  MoneyMate customised with their plan and designed
  to help them track their progress and even to
  help them interact with your web page.

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What can Taking Controlachieve for you?

• The following slides walk through a typical
  scenario...

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The words above tell the story...
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But maybe this graph does it better !!

• The top graoh shows where this client is heading
  now - decent wealth growth but a bleak outlook
  six years out from retirement.
• After our recommendations - the lower graph
  speaks for itself.

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What did we do to achieve this outcome?
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The first step was to find out about our client.

• First fundamental client details
• Then - very important - details of goals and
  objectives.
• Financial details follow - in depth if this is
  the data entry that will lead to the plan - in
  outline form if were doing the broad strategy.

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Next we sum up what that means.

• For cash flow, this is quite a revelation for
  some!

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And graphically

• Then for assets (at the back), net wealth (in the
  middle) and debt (at the front and still existing
  when they want to retire!!).
• Looks quite encouraging soaring up to the magic
  million mark...

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Until we project forward into retirement...

• Indicates that something needs to be done.

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The Next Step

• Where the advisor follows a proven sequence that
  leads to goals being satisfied and needs met -
  and a very satisfied long term client.

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First lets tidy up your debt...

• With your cash flow theres no way you should
  still owe money on your current loan when you
  retire!
• However weve seen that your cash flow is a
  little lumpy through the year so lets get the
  flexibility you need through an equity loan (line
  of credit).
• Well see later how that will pan out but first
  lets look at risks...

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Risks are addressed through screens like this...

• Analysis of needs on death or trauma of either
  partner are discussed as well as the need for
  income replacement.

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Outcomes are summarisedDecisions made..

• The recommended amounts, drawn entirely from
  client input, are summarised alongside existing
  levels and the clients elected level of cover
  entered..

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Consequences...

• It doesnt hurt to illustrate the consequences of
  the chosen level of cover should the worst
  actually happen!
• The red line shows when the surviving partner
  runs out of money living at the desired level.

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Now planning the cash flow

• With our fees and Insurance premium increased
  already locked in, lets look at what this client
  can achieve.

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Borrowing for investment...

• A very useful screen shows that spare cash flow
  alone could support substantial borrowings for
  investment - even on a ten year PI basis.
• The client elects in this case to borrow 150,000
  to invest in a portfolio (earlier investigations
  have persuaded the client that its a good idea -
  lets see)

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• Borrowed money invested and superannuation topped
  up we move on..
• Note how the spare cash has been adjusted when we
  get to the super screen to allow for the
  investment just made.
• At this point the Retirement Needs calculator is
  also made accessible - could be topical!

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What your new cash flow achieves...

• What your new cash flow achieves, after all the
  changes we have made is summed up by the rapid
  progress in reducing debt.
• At the same time, your new investment portfolio
  is growing and you can sleep at night knowing
  your family is protected...

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How do I know its working ?

• Youve taken on a large new debt (part of it was
  set aside as PI - the projection here only shows
  the LOC part) - how do you know its working?
• The month by month cash flow shows what the
  outlook is - so you dont panic when your balance
  owed increases in two months. In fact you can
  look at the statement that month and know those
  projected goals are being achieved.
• If its off track a little in the first few
  months we refine it until it is on.

The Road Map
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The fruits of your labours...
Age 81 noted on the x axis is life expectancy
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And whats our advice been worth to you?
Tells the story graphically..
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Where do I sign?

• Thats the probable next question from your
  client.
• Of course every person is different so you need
  the flexible tool base that will enable you to
  handle all those peculiarities.
• ODonnell Software have spent many years and
  thousands of real life cases in refining the
  tools that back up the process.
• It has already been successfully implemented in
  Australia and in Malaysia.
• It can add real value (and profits) for you.

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ODonnell Software

• Contact David ODonnell on
• International access code followed by
• 614 1891 1565
• or at david_at_odsoft.com.au