The June 2023 Mastermind Collegium, or MMC, has come and gone, marked by a talented group of speakers and guests that descended upon Cleveland, Ohio. The venue was the gorgeous Hilton Cleveland Downtown that showcased views of C2P’s home city to all the financial advisors and their teams who attended. Here is just some of the excitement from the three-day adventure.

A Woman’s Clarity Mixer Sponsored by Allianz

They came, they sipped, they celebrated. Advisors and their teams toasted to A Woman’s Clarity, C2P’s newest podcast created by Kirsten Schlumbohm, Vice President of Insurance & Sales, that focuses on the unique financial needs of women clients and how to better serve them.

There were signature cocktails on hand as Schlumbohm and special guest Natasha Schulze, Sr. External Wholesaler at Allianz Life, spoke about how financial services professionals can and should support female clients.

Welcome to Cleveland!

The first evening, the foyer was packed with the financial industry’s top talent networking and catching up since C2P’s last big event. There were delicious snacks and drinks, live music, and Jim Morris, former youth coach and MLB pitcher behind Disney’s “The Rookie,” signed autographs and chatted up attendees.

Morris then kicked off the following day’s events with a presentation where he delivered some poignant lessons on finding your mentors, harnessing your purpose, and following your dreams.

Updates & Innovations from C2P’s Heroes

Three main leaders at C2P teamed up clad in superhero costumes to outline what advisors can expect on the horizon from the organization responsible for the Mastermind Collegium. Jason L Smith, CEP^®, BPC, Founder and CEO; Dave Alison, CFP^®, EA, BPC, President and Founding Partner; and Matt Seitz, Chief Marketing Officer and Partner, each spoke to what’s new and next at C2P, including that Alison was recently named to the 40 Under 40 list by InvestmentNews.

Let Go & Lead with Gina Pellegrini

Owner of Strategic Coach as well as Pellegrini Consulting, Gina Pellegrini shared her expert process and logic behind fine-tuning one’s management style to foster a better work environment. Her methods outlined the importance of empowering employees, boosting accountability, and ensuring positive communication and cooperation within a financial advisor’s firm.

Team & Client Service Track Sessions

These breakouts were invaluable to helping team members learn from each other to stay organized and on track to further their success.

Led by Jennifer Mackert, Chief Operating Officer and Partner at C2P, Gina Pellegrini, Matt Seitz, and others, these activities and lessons included:

• The importance of having a process for qualifying leads and converting them to prospects
• Project planning tools to increase efficiency, organization, and streamline one’s offices
• Guidance on successful calling practices to secure more business
• Communication best practices, including weekly reports and a meeting structure format
• Marketing strategy Q & A that covered everything from social media to artificial intelligence (AI)

Mastermind Groups

Guests were able to create a mastermind group with others in similar roles that can help them meet their goals. Advisors and paraplanners teamed up with others in one session, and client service representatives and other team members gathered in another session — all exchanged ideas and created a plan to follow and check-in with each other. These mastermind groups offer a unique opportunity for top financial industry talent to support each other’s development.

Tax Management, The Bucket Plan®, and Beyond: Special Topics

Guests took advantage of grab-and-go drinks on their way to hear from a powerhouse of speakers, each covering a unique point of view. These included:

• 3 Step Annual Review — Tim Clairmont CFP®, MSFS™, President and CEO of Clear Financial Partners.
• Lead with Tax Management to Turn High-Net-Worth Prospects into Clients — Glen Pier, CFF, President of Infinity Wealth Management.
• The Bucket Plan® 2.0 Innovations — Joe Bilello CFF, CHFC®, CEP®, of Avanti Wealth & Tax Management.
• Top Advisor Showcase of Joe Salerno — how he has maintained success at Salerno Financial Group and the core values that inform his work.

A Night Out in “The Land”

After a long day, attendees were able to unwind and rub elbows on the water at  Lindey’s Lake House in Cleveland’s Flats East Bank entertainment district. Advisors and the C2P crew alike took part in dressing up to support the local charity Superheroes to Kids in Ohio. While a DJ played in the background, guests ate and sipped along the Cuyahoga River until dark.

Values-Based Financial Planning with Bill Bachrach, CSP, CPAE

The final day of the MMC, lead advisors and paraplanners participated in a specialized training with Bill Bachrach, author and creator of AdvisorRoadmap. Bachrach spotlighted the role of character, competence, values, and trust when it comes to being a better financial advisor. He also detailed a step-by-step process when walking clients through the Bucket Plan® that includes when and how to get paid for one’s services.

SuperAdvisor Panel

Top industry performers assembled onstage as Jason L Smith highlighted their successes from the past year. John Del Greco, President/Owner of Del Greco Group Tax & Wealth Management topped the list, followed by Dave Alison, leader of Alison Wealth Management; Bryan Bibbo, AIF®, of JL Smith Wealth & Tax Management; and Jeannette Bajalia, President and Founder of Woman’s Worth®. Each advisor shared their insights and individual strategies on how they sustained growth.

Marketing Closes the Mastermind Collegium

To finish out the MMC, Matt Seitz took guests through a marketing roundup, first with a presentation that homed in on why it’s critical as an advisor to integrate sales into the marketing process. Seitz explained how doing so ensures quality leads never fall through the cracks so an advisor can fully capitalize on all marketing channels.

Then, Seitz sat down with a panel of C2P’s “marketing superheroes,” or advisors harnessing the power of marketing and seeing concrete results. Whether it’s a host of solid leads, new business in their practices, higher rankings on Google’s search results, and more, these advisors were recognized because they’re embracing and implementing marketing best practices. The panel consisted of:

• Gary Pelfrey, Director of Business Development for JL Smith
• Glen Pier, CFF, Infinity Wealth Management
• Greg Hammer, CEO/President, Hammer Financial Group

Another Groundbreaking MMC Down — Until Next Year

The 2023 Mastermind Collegium in Cleveland was the highest attended C2P MMC to date, and the first to include advisors’ trusted staff. C2P consistently evolves to better serve financial advisors by building our offerings, infrastructure, and capacity. With our help, advisors can thrive and focus on what matters — being there for their clients. Plus, we make sure it’s not all work and no play with fun events like the MMC.

Don’t miss out on the dynamic support, training, turnkey processes, and more we can provide you as an advisor.

If you’re curious about our future MMCs, contact us today or schedule a 20-minute complimentary consultation with one of our talented team members to learn more about working with C2P!

 

CLEVELAND, Ohio — We are proud to share that our own Dave Alison, President and Co-founder of C2P, was named one of the financial industry’s top up-and-comers under the age of 40 by InvestmentNews. Based on his remarkable accomplishments, contributions, leadership, and promise in financial services — the four criteria to making the list — Dave was selected to be part of this prestigious group of experts. This recognition continues to prove his commitment to clients and industry innovation as a whole, and C2P is thrilled to have him at the helm helping drive the success of our advisors.

Read the press release below to hear Dave’s thoughts on being among the few young professionals chosen by InvestmentNews!

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CONTACT  

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C2P Enterprises’ President and Founding Partner, Dave Alison, Named to 2023 InvestmentNews 40 Under 40 List

Recognized For His Accomplishments as a Mentor, Thought Leader and Educator, Alison’s Mission is to Simplify Financial Planning for Families

Cleveland – June 7, 2023 – C2P, a company dedicated to simplifying financial planning for advisors and the clients they serve, is pleased to announce that Dave Alison, CFP^®, EA, BPC, President and Founding Partner of C2P, has been named to InvestmentNews’ 2023 40 Under 40 list. The annual awards program celebrates 40 remarkable young professionals in the financial advice industry for their leadership and accomplishments, placing them among an elite class of role models and rising stars.

“Receiving this accolade alongside so many esteemed industry colleagues is both a tremendous honor and a humbling experience,” said Alison. “I have dedicated my career to developing innovative solutions that empower financial professionals to better serve their clients, and our work within the industry is far from over. C2P is committed to driving positive change in the industry, and I’m grateful for this opportunity as we work to educate, train, grow, and support holistic financial advisors so that families can achieve prosperity.”

 Alison is a highly accomplished mentor, thought leader and advisor with a passion for taking complex issues and developing simplified solutions to make holistic financial planning more accessible. As a dynamic educator and articulate speaker, he trains thousands of financial professionals each year on the turnkey financial planning and practice management processes he’s helped create, test and package. His most recent innovations include The Tax Management Journey®, a client process and advisor training program combining his expertise as both an Enrolled Agent and CERTIRED FINANCIAL PLANNER^TM to close the gap between tax planning and financial advice. When he’s not training or teaching advisors, Alison is still “in the trenches,” working as an advisor at Alison Wealth Management, his own holistic wealth management firm that he founded in 2018. Alison Wealth works with about two dozen families and manages $100 million in assets, but those families have another $100 million+ in other assets, particularly company stock.

“This recognition is a testament to Dave’s exceptional leadership and contributions to the financial services industry,” said Jason L Smith, founder and CEO of C2P. “The innovations he has brought to our company have had a profound impact that have not only helped more Americans access quality, holistic plans but have also helped thousands of financial advisors become more successful business owners. We are honored to have Dave on our team, and we are confident that his expertise and vision will continue to shape the future of financial planning,”

For more information about C2P, visit C2P Enterprises’s website.

 

About InvestmentNews 40 Under 40
The InvestmentNews 40 Under 40 program recognizes and celebrates up-and-comers in the financial advice industry. Each year, the outlet’s editorial team reviews more than 1,000 nominations to create a list of 40 outstanding financial advisers, or industry professionals supporting advisers, who are 39 or younger. Honorees are judged on their accomplishments, contribution to the industry, leadership and promise.

 About C2P: C2P is an organization designed to simplify financial planning for advisors and the clients they serve.  United by the vision to provide planning and financial products in the best interest of the client, C2P offers education, training, resources and tools to meet a client’s unique financial situation, along with access to an array of investment and insurance vehicles to help accomplish their goals. C2P is committed to fiduciary best interest practices and training industry standards for a higher qualify of holistic financial planning services to families nationwide and worldwide.

Investment advisory services are provided by C2P Capital Advisory Group, LLC d/b/a Prosperity Capital Advisors, LLC (“PCA”) an investment adviser federally registered with the Securities and Exchange Commission (SEC). 

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Phil M Jones has spoken in nearly 60 countries and worked with over 800 organizations. His podcast, Words with Friends, is in its fourth season, and he’s the bestselling author of Exactly What to Say and Exactly How to Sell, with over 1 million books sold.

Phil has crafted a fool-proof list of questions that convert by getting to the root of a prospect’s needs and gently prodding to reveal as much relevant information as possible so you can close more sales.

Listen as C2P’s Founder & CEO, Jason L Smith, sits down with Phil for an exclusive Rainmaker Multiplier On-Demand Podcast to share vital insights and specific questions advisors can use to close more sales.

Everyone’s looking for a witty one-liner, magic words, or an infallible script, but Phil is on a lifelong mission to help people close more sales with the words they choose when talking to clients.

Phil focuses his work on three categories revolving around growth—acquiring new clients, attracting clients to return more often, and convincing clients to spend more money.

Being a holistic financial planner isn’t about closing more sales in a traditional sense.

Instead, it’s about uncovering obstacles, empathizing with their needs, and making customized recommendations to relieve their pain points.

Close More Sales with Questions that Convert

Closing more sales often relies on knowing what to say and how to make it count. It’s being intentional with your word choices as well as the tone and timing of your delivery.

Preface simple questions with, “Help me understand…,” instead of, “Tell me about…,” and suddenly, you’re not the one doing the selling; they’re talking themselves into hiring you.

There’s no easier way to close more sales than that!

Help me understand why you believe that it might be a good fit for us to work together.

Questions like, “What is your experience…,” allow you to garner a lot of information quickly—asking, “…and what else?” allows the client to work out their greatest fears in real time.

…Further proving their need for a financial planner.

Emotions, especially when you’re talking about love and legacy planning, are key to triggering conversions and closing more sales.

It’s important that you make the prospect aware of the financial and emotional cost of not working with you. They should understand that this price can be far greater than your planning and service fees.

The results of not having an inheritance plan structured the right way could be catastrophic for their loved ones. Failing to manage taxes year-to-year can result in a major increase in lifetime taxes.

Everyone sees themselves as open-minded, so give them the opportunity to opt-in.

The following line of questioning is more likely to get to a yes than asking in a more direct way.

• How open-minded would you be…
  • to get together and talk this through properly?
  • to jump on a 20-minute call to see if this is a good fit?
  • to having a meaningful Discovery Call so we can get some real numbers and insights?
  • to me being your financial planner?

“Maybe” is the enemy of decision.

At this point in the sales process, you want to start nudging them toward a decision, one way or the other. Asking if there is any reason you are not a good fit allows you to discover if there are any lingering doubts.

Following up with, “Would it help if…,” enables you to address those doubts.

• Could you see any reason why I wouldn’t be a good fit at this stage?
• Would it help if…
  • we got together again to go deeper on this and see what a plan would look like?
  • I put this in a plan, so we have something well documented?
  • you had the benefit of being able to connect with us periodically so we can measure progress?
  • you had one fixed monthly payment?
  • somebody else took care of this for you?
  • you knew that you had my support long term as well as being able to figure this stuff out on your own?

At this stage in the journey, they either don’t think they need a financial planner or are unsure if you’re the right one for the job. This is where you will say something like:

You guys need to amongst yourselves to make sure that you’re on the same page and feel confident about our services, and I doubt you want me in the room for that.

If you’d like to sleep on it, we can schedule our next meeting, or I can pop out and give you a few minutes while I return some calls.

This way, even if they don’t decide today, you have a date set for a decision to be made. To learn more about how C2P can help you close more sales, click here to schedule a free 20-minute consultation.
 

Financial Professional Use Only

• The information provided in this presentation is not intended as investment advice or legal advice.
• The information provided is for informational and training purposes only.
• The information in this presentation was accurate as of the time of the material was created.

Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

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CONTACT

AdvisorPR^®

(702) 685-7450

C2P Enterprises Launches ‘A Woman’s Clarity’ Program, Invites Advisors to Special International Women’s Day Event

New program helps financial professionals engage female advisors, clients, and prospects through ongoing thought leadership and networking and a newly launched podcast series.

Cleveland – March 2, 2023 – C2P Enterprises, a holding company comprised of four distinct brands, each designed to simplify financial planning for advisors and their clients, announces the launch of their latest innovative program for financial advisors, A Woman’s Clarity. Dedicated to helping financial professionals increase their footprint and successfully engage with more female advisors, clients, and prospects, program participants will gain knowledge through ongoing thought leadership and networking, including a newly launched podcast series, live events, blogs, and more. Subscribe to the A Woman’s Clarity podcast!

To coincide with the program launch, the first special event for A Woman’s Clarity will be held on International Women’s Day, Wednesday, March 8, at 11:00 a.m. EST. The 45-minute session will feature an open discussion format with free-flowing dialogue among panelists and Q&A from the audience. Guests include Carol Ochoa, President of Your Secure Retirement, Deb Cundiff from Hammer Financial Group, and Julie Manning, RICP®, from Keystone Financial Planning. Registration is free and open to anyone in the finance industry.

“With this supportive, empowering, and educational exchange of ideas, we are working to close the loop and help ease the transition into retirement so that more women have the financial confidence and clarity they deserve in every stage of life,” said Kirsten Schlumbohm Vice President of Insurance Sales at C2P and program host of A Woman’s Clarity. “Although this is a female-focused endeavor, A Woman’s Clarity is not exclusive to women. You can expect topics that are specific to the unique needs and pain points women face, but we encourage as much support and input from our positive male allies as possible.”

A Woman’s Clarity aims to help both women and men in the financial services industry reach their full potential by interacting with like-minded, strong, and motivated holistic advisors. Contributors to the program include female leaders from C2P’s network of partners and advisor base who have a shared passion for bringing expertise, tips, and advice to other leaders, professionals, and practitioners in the finance industry. The program’s ultimate mission is to empower women to take charge of their own economic future and educate other financial professionals about the unique challenges facing female clientele. In the podcast’s inaugural episode, Mary Sterk, CFP®, Sterk Financial Services, and Karin Alvarado, CFS, CPFA, New Aspect Financial Services, join Schlumbohm to discuss their professional journeys, including mentorship and building a business in a male-dominated industry.

ABOUT KIRSTEN SCHLUMBOHM

Kirsten Schlumbohm is the Vice President of Insurance Sales at C2P Enterprises. She has over 15 years of industry experience, in which she has served as an insurance and annuity wholesaler, sales trainer and leader, and financial advisor. In addition to her life and health insurance licenses, she holds her Series 66 and a degree from Iowa State University. Kirsten is committed to empowering people and helping them reach the retirement finish line. She believes in optimizing processes to build strategies out of silos and encourage tighter collaboration.

ABOUT C2P ENTERPRISES
C2P Enterprises, a holding company comprised of four distinct brands, each in their respective capacity, is designed to simplify financial planning for advisors and the clients they serve. United by the vision to provide planning and financial products and solutions in the best interest of the client, each company offers education, training, resources and tools to meet a client’s unique financial situation, along with access to an array of investment and insurance vehicles to help accomplish their goals. Each organization is committed to fiduciary best interest practices and raising industry standards for a higher quality of holistic financial planning services to families nation and worldwide.

Investment advisory services are provided by C2P Capital Advisory Group, LLC d/b/a Prosperity Capital Advisors, LLC (“PCA”) an investment adviser federally registered with the Securities and Exchange Commission (SEC). 

What is Strategic Asset Allocation?

The bucketing approach to strategic asset allocation began with a Harry Markowitz paper in the Journal of Finance in 1952. It outlined how investors could allocate assets for the highest return with a given level of risk. This would later earn Markowitz a Nobel Memorial Prize in Economic Sciences and redefine how financial advisors optimized investments for their clients.

We’ve come a long way since Markowitz’s early work. Strategic asset allocation has proven to be more valuable than ever. There are plenty of sophisticated measures to craft strategic asset allocation plans, you can illustrate how the client should dispense uncorrelated assets into three segments: liquid funds, conservative investments, and growth assets. Or as we like to call them—the Now, Soon, and Later Buckets.

Many financial advisors rely on complex charts, graphs, and statistical analyses, making it challenging for clients to understand their investment strategy. One of the most effective ways to simplify asset allocation for clients is through The Bucket Plan. 

The end goal is for the client to fully understand the process and feel confident as they move forward with your recommendations.

Get your copy of the Bucket Plan book

Strategic Asset Allocation with The Bucket Plan®

The bucketing approach to retirement investing started to work its way into the financial lexicon in the 1980s. Financial planner, Harold Evensky, developed this strategy to combat the challenge of low-interest rates. The resulting investments didn’t provide enough income for retirees, forcing them to delay retirement, reduce their standard of living, or take too many risks with their capital.

The bucketing concept gained momentum during the 1990s and picked up steam with the dawn of the information age. By the time the recession hit in 2008, the Later Bucket had become a haven for investments to ride out the ups and downs of the market without affecting the immediate income that was being withdrawn from the Now Bucket and reloaded from the Soon Bucket.

Having long-term goals for the Later Bucket helps protect retirees from making rash decisions during market fluctuations and taking deductions on their investments by cashing in during a downturn.

Over time, we have adapted The Bucket Plan® to facilitate:

• Retirement income planning
• Provide a viable strategic asset allocation plan for clients in any demographic
• Provide peace of mind for your clients

Financial planning is a complex process, but The Bucket Plan Philosophy provides a simple, effective way for you to explain, and more importantly, for your clients to understand, the plan you developed for them.

The key to strategic asset allocation is positioning and protecting a mutually agreed-upon portion of your client’s assets to buy a time horizon that allows them to invest the remainder for long-term growth. This structure will provide a reliable income source throughout their retirement.

Breakdown of the Now, Soon, and Later Buckets

Now Bucket

A fully funded Now Bucket will give your client a sense of security. This prevents them from having to cash in investments when they need money, which leaves them vulnerable to losses when the market is down, unforeseen taxes, and unexpected penalties. Although there will be little return on these funds, it’s a small price to pay for your client’s peace of mind.

The Now Bucket is safe and liquid money the client can access whenever needed. The amount varies by individual. All parties involved should agree on the amount that makes them feel comfortable. There should be enough for everyday needs and emergencies, but not so much that they miss out on growth opportunities.

Soon Bucket

The Soon Bucket is for conservative investments or income for the first phase of retirement. It is set up for growth to offset inflation but invested conservatively to negate the effects of a major market correction.

It also serves as an inflationary hedge, giving your client an extra cushion as the cost of goods and services rises. For clients with a longer time horizon before retirement, it might serve as their opportunity bucket. If a good investment opportunity arises, but the stock market is down, they will still have the funds available.

There are three primary ways of structuring income from the Soon Bucket:

1.      The Bridge Approach

You fund reliable income for a specific period using the minimal assets required to construct the bridge.

• An example might be a 10-year bond or CD ladder
• A period-certain annuity
• An indexed annuity with penalty-free withdrawal provisions
• A conservative investment portfolio in which you will be consuming both principal and interest.

2.      Lifetime Income

You fund an annuity to provide lifetime guaranteed income. This can be done through a SPIA, DIA, FIA, or variable annuity.

If the annuity payment is going to begin within ten years, we would consider that a Soon Bucket asset. If deferral will be 10+ years, we would generally place that asset in the Later Bucket.

3.      Portfolio Yield

Some high net-worth clients are fortunate enough never to tap into principal for supplemental retirement income and can live off the dividends, interest, or yield produced by their investment portfolio.

Don’t miss! The Bucket Plan®: Protecting and Growing Your Assets for a Worry-Free Retirement – Audiobook

Later Bucket

The Later Bucket is dedicated to long-term investments and legacy planning, helping clients build wealth while ensuring financial security for their heirs. This bucket allows funds to remain invested longer, increasing the chances of higher returns over time.

Legacy planning is not just about leaving money to the children; it protects the surviving spouse. When one spouse dies, the household income usually goes down, while many expenses stay the same, and taxes often increase.

[Related Reading: How Asset-Based long-Term Care Helps Protect Dependents]

Implementing The Bucket Plan® in Your Financial Planning Strategy

The strategic asset allocation approach of The Bucket Plan® empowers financial professionals to create holistic financial plans that provide stability and growth opportunities for their clients.

By structuring assets into the Now, Soon, and Later Buckets, advisors can ensure clients have a reliable income stream throughout their retirement while optimizing their portfolio’s performance.

Contact C2P Enterprises

Want to integrate The Bucket Plan® into your wealth management strategy? Get in touch and we’ll guide you on how this approach can enhance your holistic financial planning process.

Schedule a Free Call

Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

The Cash Flow Analysis is a bottom-up budgeting methodology that cuts through the clutter associated with the traditional budgeting process and gets to the critical numbers you need to get started.

Nobody enjoys sitting down to put together an entire budget; they are often inaccurate and time-consuming, providing little value to the consumer.

Nevertheless, you must be familiar with your client’s cash flow as you assemble their retirement plan. The Cash Flow Analysis will allow you to obtain vital information without an extensive budgeting exercise.

“This tool was built through years of going through budgeting exercises. I had a lot of pushback from clients. I mean that. They just hated it. They dragged their feet, canceled appointments, rescheduled… I remember the one woman saying, ‘That was the worst thing I’ve ever had to do.’ She literally said those words to me. Everyone hates a budget.”

–Dave Alison, CFP®, EA, BPC

The process is simple, start with what the client is living off now:

• How much are they spending?
• How much is in their bank account?

And the key here is net, net after tax, after all the deductions, everything. As it evolves, you can add a section for new retirement sources to offset the client’s current income.

Then either decrease expenses or document increased costs to discern a net number, they’ll need to draw off liquid investible assets.

The Cash Flow Analysis is invaluable whether you’re helping them through the accumulation years, determining what type of disposable savings they have, or preparing them for distribution to decide how much money they’ll need to draw from their liquid investible assets.

There are two levels of Cash Flow Analysis: The Income Gap Assessment for pre-retirees and retirees and the Budgeter for younger clients who may need more data analysis around their income and expenses.

Cash Flow Analysis: The Income Gap Assessment

What if there was a quick and easy way of assessing whether your clients have an income gap or excess funds?

With the cash flow analysis, you can discuss the overall financial plan with your clients and determine ways to guarantee their income in retirement.

C2P Enterprises created the Income Gap Assessment to help you cut down on your time spent with each client.

This single resource will allow you to skip the long, drawn-out budgeting process in your meetings and get right to the important stuff, saving you an immeasurable amount of time.

The Income Gap Assessment aims to discern the gap between the net income the client is currently living on and the fixed income sources they will have after they retire.

It is based on a consumption methodology of budgeting and will provide an accurate amount that they will need to draw off of their liquid investible assets once they retire.

This is especially valuable for clients less than a decade from retirement.

There are four simple sections to complete to determine their income gap.

Net Income After Taxes

The first section is where you log the client’s net income after taxes. This is the current amount deposited into checking from salary, wages, and other sources of income pre-retirement.

You want to determine the difference between their annual bring-home salary and their yearly living expenses. It is important to base this number on the net income deposited into the client’s checking account, not their gross pay.

Net pay already factors out tax withholding, retirement contributions, and any employee benefits, such as health insurance, that would be paid through withholdings.

You are looking for the net amount that the client has available to spend on an annual basis.

After you calculate the annual net income, ask the client to choose which of the following scenarios most closely applies to them:

1. Breaking even, consuming all their net income
2. Saving some money, consuming less than their net income
3. Losing money, going into debt

If the answer is #1 or #2, the Income Gap Assessment can determine what the client should expect in retirement.

Simply ask the client:

“If you could replace the same net income you are spending now when you retire, would that meet your retirement goals?”

This will serve as a basis for the total income they will need in retirement.

If they chose #3 and are losing money every month, you may need to pivot to a detailed budget to determine if they are the right fit for your firm.

Fixed Income in Retirement

The second section focuses on the client’s income after retirement.

Between Social Security and pensions, what will their fixed income look like when they aren’t earning a paycheck?

For Social Security optimization, clients may delay one or both of their benefits.

This will leave a larger income gap for a short period of time.

When this occurs, consider conducting multiple Income Gap Assessments for different periods to get an accurate picture of their cash flow analysis throughout retirement.

Another option is to do one Income Gap Assessment as if all fixed income sources are activated, then ascertain how much you should set aside to cover the delayed income.

Adjustments

You should list anything that might impact retirement income here. If the client expects to pay off their mortgage, that would decrease their expenses.

Ask the client about potential increases from things like income taxes, health insurance premiums, travel expenses, medical needs, etc.

The client may have to allow for additional income taxes in retirement, which can be identified by creating a tax proforma of their withdrawal strategy.

With these three figures, you can derive the income gap that you need to take from liquid investable assets in retirement.

Once you complete the Income Gap Assessment, you will be able to determine the client’s retirement income gap or surplus using the following formula:

Net Income Received in Retirement – Fixed Income + or – Adjustments = Total Income Gap

Income Gap or Surplus

Once you have this final number, you’ll know if the client has an annual surplus or deficit for their retirement.

If there is an income surplus, they can expect excess cash when they retire.

Knowing this will allow you to help them get even more strategic with their plans, perhaps with additional life insurance, asset-based long-term care, or tax-efficient managed accounts.

The Income Gap Assessment is a viable tool to determine what kind of situation your client may find themselves in once they retire.

This will serve as a basis for their total income needed in retirement and create an educational opportunity for you to show them the various ways you can guarantee their income once they retire.

If you expect the client to have an income gap, you should ask them the following question:

“How much of this income gap do you want guaranteed in your financial plan?”

The Cash Flow Analysis Budgeter

The Budgeter is designed for younger clients who are more than a decade away from retiring and still in the accumulation phase of the money cycle, or retirees that need more detailed budgeting information in their cash flow analysis.

The result will give the client an idea of their monthly cash flow analysis.

Should they expect a surplus or deficit during their working years? This will help you determine approximately how much they have available to invest.

For a retiree, it shows the same monthly surplus or deficit the client will have based on their income needs and fixed income sources.

The Budgeter also has four sections:

1. Income

This portion of the cash flow analysis lists everything that the client is bringing home net after tax. This includes salaries, bonuses, commissions, Social Security, and pensions.

You then add in the pay frequency to annualize the income number.

2. Tax Adjustments

You should list any necessary tax adjustments here. You can base these on the client’s tax returns from previous years or current projections.

List refunds as a positive value on the sheet, and enter taxes owed as negative.

3. Expenses

The Budgeter looks at the client’s monthly expenses. While not a full budgeting exercise, this portion of the cash flow analysis tracks some expenses, like mortgage or rent, property tax, childcare, or auto payments.

This will help you get a more accurate portrayal of how the client is spending their money and help them alter their financial behaviors if needed.

4. Totaling

Once you total all these categories, you’ll have a better understanding of the client’s monthly and yearly cash flow analysis.

Surplus

If the client has a surplus, there’s an opportunity to create a systematic savings plan for retirement, which could lead to more sales opportunities.

Deficit

If the client has a deficit and spends more than they make, you may need to put a budget in place to get them on track to meet their goals.

You accomplish several things by sitting down with clients and going through these exercises:

• They have peace of mind knowing they don’t have to change their lifestyle in retirement.
• You can quickly get to the number the client will need to draw from their liquid investable assets to meet their retirement needs.
• You uncover opportunities for additional client education and sales.

There will always be cases where you need to do a complete budget breakdown of the cash flow analysis.

However, utilizing these tools is a simple way to arrive at a net consumable, spendable income, followed by an accurate net amount that they will need to draw from their assets in retirement.

Knowing these numbers will assist you in designing a suitable plan for your client, who will sleep better at night knowing that you are working to help them achieve their retirement goals.

Schedule a complimentary call with our Concierge Support Team to learn more about simplifying your clients’ budgeting and holistic financial planning processes.

 

Financial Professional Use Only

• The information provided in this presentation is not intended as investment advice or legal advice.
• The information provided is for informational and training purposes only.
• The information in this presentation was accurate as of the time of the material was created.

Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Are you on target to meet your business objectives in 2023? Have you even set those goals yet? Our clients often report a steady influx of prospects but claim they struggle to convert more leads into their sales pipeline.

Is this starting to sound familiar?

You have held several meetings with the prospect to gather financial and personal information, establish their ambitions, and develop a retirement plan that’s right for them. Now it’s time to deliver. Will they be open to your suggestions? What can you do to make your pitches more successful and convert more leads?

Curious about what other wealth managers are doing to increase their lead conversion rates?

We asked some of our top advisors to share their best advice on lead conversion strategy. Here is how they convert more leads.

How do you convert more leads in the financial services industry?

Think of it like building a house. You’re the architect, and the clients are the homeowners.

You and your team have drafted up a blueprint, and now, it’s time to go through it with them. At the end of this meeting, they might decide this is their perfect dream home, and you move forward, or they may ask for an additional bathroom or more storage. That’s okay too! Today is all about presenting the plan, ensuring everyone is on the same page about the outcome, and making adjustments as needed.

Before the meeting, make sure that all your documents are prepped and ready to go. This includes the Family Estate Organizer, investment audits, Social Security analysis, and the holistic financial plan.

When you sit down with a potential client, don’t just lay the plan out in front of them. Go through the bucket plan process, including all the concepts and tools you used to build it; explain your decisions, including how and why you made them.

Encourage them to ask questions and take notes but reassure them that you’re not here to make decisions. They should go home to think it over first. Taking the pressure off at the top of the meeting will help them be more relaxed, engaged, and focused on your presentation.

Use positive, reassuring language and communication tools throughout the conversation. Try to frame your discussion around the future so the prospect can envision what it will be like after converting to a client. For example:

“We will continue identifying tax law changes and how we can save you money in the near and distant future.”

“We will meet this time next year to review your plan and proactively ensure that we meet your needs for the next 12 months.”

Convert More Leads with Concepts & Tools

Ensure they understand key concepts like the Money Cycle, Pyramid of Risk, Order of Money, and Sequence of Returns.

Refer to the Concerns and Priorities Worksheet to show them specific items you have included in their plan to eliminate their fears and optimize their goals. To understand where they want their finances to go in the future, you must first help them see where they stand now.

Use reporting to show where their investments are currently and inquire about which asset classes perform best over time. Since the previous 10 years have been an outlier in terms of historical performance, extend that time to 20 years. This will help you determine how their accounts would have performed in different market cycles. Document the maximum drawdown of their portfolio to illustrate how this can affect their retirement plan if they pull systematic income withdrawals from their investment portfolio.

Consult their Social Security analysis to highlight the dollar value you are creating for them by optimizing Social Security benefits. Refer to the Asset Transition Sheet, a simple roadmap that illustrates where the prospect’s money is, compared to how it will be allocated under the new plan.

The Income Gap Assessment is a viable tool to define your client’s situation once they retire. Will they have an income surplus with excess cash flow, or will they run a deficit? If needed, share their retirement projection to see how their income and account balances will look at key milestones like 5 and 10 years out.

Know When to Walk Away & Clients Will Come Running

Take care not to bombard them with too much information too fast. Suppose details like long-term care planning, life insurance, or Roth conversions were not listed as a primary concern or priority by the prospect. In that case, you may want to save those for a future meeting, even though they are invaluable to the overall financial plan.

After providing the prospective client with the plan deliverables, you may need to ease the tension in the room. Pay close attention to their behavior and non-verbal cues. Are they absorbing the information, or do they seem confused? Either way, reassure them that you don’t expect them to make any decisions today.

The data and information you just covered can often be overwhelming. Toward the end of the meeting, find time to excuse yourself from the room. Say you need to step out for a glass of water, offer to get them something, and walk out.

Leaving the room for a few minutes allows them to think and talk things over without you standing there staring them down. Give them a moment alone before you come back to answer any additional questions, discuss next steps, and hopefully, close the sale to convert more leads.

Learn how C2P Enterprises can help you convert more leads into satisfied clients who will provide referrals for their friends, family members, colleagues, and more! Schedule a complimentary consultation with one of our business development representatives today.

Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time of the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

How do you manage taxes during accumulation and distribution?

There is an order to how your clients should amass wealth and withdrawal funds upon retirement to increase net after-tax cash flow. It’s essential to differentiate how you approach tax management, just as you diversify an asset portfolio.

As Dave Alison, CFP®, EA, BPC, shared during our Win Business Through Tax Management Seminar Series:

“One of the biggest mistakes I see people make is not understanding the Order of Money. When we’re accumulating and building wealth, there’s an order to how we should save that money between different account types. And when we retire, there’s a certain order to how we should take distributions.”

Tax Strategies Before and After Retirement

Pre-retirement:

• Fund goals before age 59.5
• Eliminate 10% early withdrawal penalty
• Opportunity fund
• Eliminate marginal tax traps

Post-retirement:

• Early retirement (pre-55) without 72(t)/(q) complexity
• Blend out income to maximize income and minimize tax brackets
• Lower withdrawal rates because of tax-free or advantaged income
• Eliminate marginal tax brackets
• Legacy planning for surviving spouse
• RMD suppression
• Reduce taxation of Social Security benefits
• Decrease Medicare premiums
• Ease fear of government policy

Accumulation and Distribution: Phases of the Money Cycle

You know all about the order to how your clients should save their money. If not, here’s a quick refresher:

1. Accumulation

The first stage of the money cycle. This usually starts when the client is young, beginning with graduation gifts, summer job income, allowances, etc. Accumulation continues into adulthood and throughout the working years as they build their life savings. Since there is an expected lengthy time horizon before retirement, they can afford to take more risks with their capital during this stage.

2. Preservation

As the client moves toward retirement, they transition into the preservation stage. At this point, they’re financially stable and looking forward to winding down their career, effectively ending the accumulation phase on a significant portion of their income. There’s less time to make mistakes or experience major volatility because they will need funds sooner rather than later.

3. Distribution

The last phase in the money cycle. Distribution is when the client starts to withdraw from the wealth they have accumulated and preserved and starts taking an income from those savings and investments.

But did you know there is also an order to how they should withdraw their income in retirement?

Understanding the Order of Money for Early Retirement Tax Planning

Early retirement tax planning follows the same basic standard as a traditional retirement plan—minimize taxes and maximize capital.

Early retirees will have less time to amass wealth and a longer expected retirement than most. Their plan requires an accelerated scale and pace to make up for the lack of time, with a focus on tax management to maximize their retirement income and make the most out of the holistic financial plan.

Whether your clients are focused on tax planning for early retirement or a more traditional timeline, following the proper order of money for accumulation and distribution can have a major impact on the lifestyle they get to enjoy when they retire.

Accumulation and Distribution for a Tax-Efficient Retirement

The Order of Money divides your retirement income into four different categories.

The first type is tax-free income, the second is tax-favored income, the third is post-tax income, and the final type is pre-tax income.

You should consider all four categories when creating your own retirement income distribution plan.

1. Tax-Free

   • Company Match
   • Inheritance
   • Gifts

2. Tax-Favored

   • Roth
   • HSA
   • FSA
   • 529
   • Life Insurance

3. Post-Tax

   • Brokerage
   • Real Estate
   • Joint Accounts
   • Non-Qualified Plans

4. Pre-Tax

   • IRAs/401(k)
   • Qualified Plans

Recommended Order of Accumulation

1. Establish a 1-month emergency fund
2. Pay off high-interest debt
3. 401(k) up to match
4. Fund 3-month emergency fund
5. Max Health Savings Account (if applicable)
6. Max Roth IRA (or Back-Door Roth)
7. Max 401(k) or Roth 401(k) Depending on marginal bracket
8. 529 Contribution (if applicable)
9. Excess savings to permanent life insurance and taxable brokerage account

Note: HSAs are especially beneficial because they are triple tax-advantaged. The client gets an upfront deduction, they can defer as those funds grow, and if used for qualified medical expenses, they can take distributions tax-free in the future.

Order of Distributions for a Tax-Efficient Retirement

Zero-Tax Strategy

1. Social Security
2. Pre-tax retirement accounts up to the provisional income limits (tax on Social Security)
3. Roth IRA & permanent life insurance for remaining income

Low-Tax Strategy

1. Social Security Income
2. Pre-tax retirement accounts up to the 12% bracket
3. Long-term capital gains/dividends up to IRMAA limits
4. Roth IRA & Permanent life Insurance for remaining income

Help Your Clients Master Tax Management

To learn more about how C2P Enterprises can help you manage taxes for your clients. One of our business development representatives can provide you more information about the Tax Management Journey training course.

Book a Free Call

Financial Professional Use Only
The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time of the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

What are the 5 Types of Roth Conversion Strategies?

Did you know that the correct Roth conversion strategy can have a significant impact on how much your clients will pay in taxes over the course of their lifetime?

Taking advantage of the tax benefits provided by Roth conversion strategies can save your clients on taxes, putting more money back into their retirement.

Roth accounts offer tax-free income in retirement without required minimum distributions. When determining the taxation of Social Security benefits or if higher Medicare premiums apply, it isn’t included in the income calculations.

The 5 types of Roth conversion strategies are:

1. Bracket-Bumping Conversion
2. Market-Timing Roth Conversion
3. Back-Door Roth Conversion
4. Mega Back-Door Roth Conversion
5. SEP IRA to Roth Conversion

We expect taxes to be low through 2025, with higher taxes potentially soon after. Utilizing strategic Roth conversions over the next few years can create an opportunity to help reduce your clients’ lifetime taxes.

Want to go from forever taxed to never taxed?

Contributions to a Roth account are post-tax funds and continue to grow tax-free, so you can keep the government out of your clients’ retirement savings.

When working with clients, be mindful of the tax implications as a whole. It’s common to consider Roth conversion strategies at the end of the year when you have a full understanding of their annual income.

Learn how The Bucket Plan® can help financial advisors increase their profitable business lines.

1. Bracket-Bumping Conversion

A bracket-bumping Roth conversion strategy attempts to keep converted cash within the client’s current tax bracket, so a conversion doesn’t force any of their funds into a higher bracket.

You can lessen the tax blow and make it more manageable for your clients by spreading conversions across several years to decrease overall taxes.

2. Market-Timing Roth Conversion

The best time to take advantage of a Roth conversion strategy is when the market is down, causing the client’s traditional IRA to lose value.

If impending changes to the tax laws will negatively impact taxes in the future, you can help your clients avoid paying more than necessary by making a conversion before the new regulations go into effect.

Sudden market declines may provide a brief conversion window. Time the market so your clients get the most out of their Roth conversion strategies.

Hint: Now is a fantastic time to help your clients take advantage of the market downturn.

3. Back-Door Roth Conversion

Back-door conversions should be reserved for your high-income earners. This allows clients to utilize a Roth IRA to save for retirement, even if their annual income exceeds the maximum allotted amount.

There are a number of factors to consider when looking at a back-door Roth conversion.

4. Mega Back-Door Roth Conversion

Mega-back door conversions should also be reserved for your highest-income earners.

This is where the client contributes after-tax dollars to a traditional 401(k) through their employer. Then, immediately roll it over to a Roth IRA from their 401(k).

There are a number of factors to consider when looking at a  mega back-door Roth conversion.

 

5. SEP IRA to Roth Conversion

A Simplified Employee Pension (SEP) is designated for your clients who are self-employed or small business owners.

You can convert this type of retirement account to a Roth IRA, the same as any other IRA: this conversion makes sense if the client expects to be in a higher tax bracket in retirement and wants to take tax-free withdrawals.

How to Use Roth Conversion Strategies to Manage Taxes

The Tax Management Journey® helps differentiate between tax planning, tax preparation, and tax management.

When you build a house, you first need a blueprint or a plan with everything laid out. This is similar to tax planning, whereas tax management is more like the contractors and builders who get the job done.

And the person who prepares annual tax returns is comparable to an inspector who comes in on a regular basis to make sure nothing is broken, and everything runs smoothly.

Dave Alison, CFP®, EA, BPC, the President and Founding Partner of C2P Enterprises, CEO of Alison Wealth Management, and creator of The Tax Management Journey®, hosted a recent seminar.

In it, he went through each Roth conversion strategy and discussed ways you can adjust your clients’ portfolios to grow their wealth and reduce their tax bill. Click here to watch it on-demand!

Are you optimizing your clients’ portfolios to ensure their taxes are adequately managed and selecting Roth conversion strategies that benefit them?

Book a FREE 20-minute consultation with one of our Business Development Representatives to learn how C2P Enterprises can help you get started—no tax background necessary!

 

Financial Professional Use Only

• The information provided in this presentation is not intended as investment advice or legal advice.
• The information provided is for informational and training purposes only.
• The information in this presentation was accurate as of the time of the material was created.

Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Executive Vice President of Marketing at C2P Enterprises, Matt Seitz, was recently quoted in an article by Barron’s regarding the new SEC marketing rule which went into full effect November 4^th, 2022.

Over 3/4 of compliance staff at registered investment advisor firms said the new SEC marketing rule is the hottest topic of the year.

Matt describes the collaborative process of working with Chief Compliance Officer Ryan Warner, CFP®, to identify which elements of the new SEC marketing rule to focus on, like updating the compliance training processes.

Before these new regulations, you could not utilize first-hand accounts from satisfied customers. But that has all changed! Now you can use testimonials to maximize your marketing efforts.

Barron’s quoted Matt, saying:

“We plan to incorporate testimonials and endorsements into our existing campaigns to help illustrate our value proposition and strengthen our brand. The powerful part of the new marketing rule is it allows us to let our clients and partners help tell our story. I also see third-party ratings coming in handy for recruiting new advisors and staff members to our team. People want to know they are joining a strong company with a loyal client base.”

Recently, Matt and Ryan co-hosted a seminar to share their knowledge with other advisors to prepare for the change.

Watch the replay to learn about:

• Disclosures needed for compliance
• Pros and cons of the new marketing rule
• Selecting and soliciting client recommendations
• What to consider when implementing testimonials in your marketing

ABOUT MATT SEITZ

Matt Seitz is the Executive VP of Marketing at C2P Enterprises; and CMO for JL Smith, an independent retirement planning and wealth management firm. In his role, Matt has spearheaded the digital growth of the company, reinforced branding, and implemented content marketing strategies to drive leads into the sales funnel.

Matt has over 15 years of marketing and sales experience in the professional services and financial services industries, as well as accounting, insurance, and construction. He has degrees in marketing, management, and human resources. His professional philosophy is grounded in relationship marketing—focusing on customer service and satisfaction through data-driven marketing plans with clear ROI.

Matt’s areas of expertise include strategic planning, digital marketing, lead generation, and content marketing, receiving industry recognition for content marketing, video marketing, and lead generation campaigns. He is an author and speaker on a variety of marketing and business development topics.

ABOUT RYAN WARNER

Ryan Warner, CFP®, is the Chief Compliance Officer for C2P Enterprises. He is responsible for handling supervision and compliance matters for the investment advisory business.

He has more than twenty years of industry experience. Before joining C2P Enterprises, he was a Senior Firm Compliance Consultant for MassMutual and MetLife Financial Services. Ryan also served as Agency Training Director and as a Financial Advisor with MetLife before entering his compliance role. He holds a bachelor’s degree in finance from the Carlson School of Management at the University of Minnesota.

ABOUT C2P ENTERPRISES

C2P Enterprises consists of four individual companies that share one vision: improving the lives of American families through holistic financial planning. Prosperity Capital Advisors is an SEC Registered Investment Adviser (RIA) that provides financial planning and holistic wealth management solutions to investment advisors and clients nationwide. Valor Capital Management is an SEC Registered Investment Adviser operating as a portfolio strategist and turnkey asset management program. Clarity Insurance Marketing is a best interest-focused insurance marketing organization that facilitates product screening, selection, and support for all lines of fixed insurance products. Clarity 2 Prosperity is a financial training, coaching, and IP development organization committed to simplifying financial planning for financial advisors while helping them understand best practices for integrating investment and insurance solutions in a single, holistic plan. Collectively, these organizations provide advisors the training, resources, products, and tools to successfully grow their independent advisory firm while serving in the best interest of each of their clients.

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