A-Star week 2. A-star week 2 Part 1 : Post-mortem (scorecard & issues) Part 2 : My Essence of...

A-Starweek 2

A-star week 2

Part 1 : Post-mortem (scorecard & issues)

Part 2 : My Essence of Success Part 2Part 3 : Discuss FP articlesPart 4 : Sales Presentation Dialog &

Tools

Scorecard update

Goals without plansare

just wish lists !

Issues & Challenges

What happened ?Positive Negative

Role play

Let’s warm-up with role play

Honestly,how do you start your sales presentation ?Scenario 1 : EPF sales

Scenario 2 : DCA (RCA) for other financial plans

Sales Presentation Dialog & Tools

A fast start sales system… THE PFP sales system• To cultivate & guide professionalism approach• To provide effective personal financial planning

services• To operate in a systematic approach towards

supplying sound financial advice• Applies the 6 step financial planning approach

(EGADIM)


What is Financial Planning ? Generally, financial planning involves taking a

broad view of one’s financial affairs covering many areas of wealth management, and then going through a step-by-step process (EGADIM) to solve financial problems and achieve financial goals.


What is included in Financial Planning ? 1. Cashflow & liability management –

assess current financial networth, budgeting, eliminating debt & build savings

2. Investment Planning – savings into higher return

3. Insurance Planning – protecting assets & family

4. Tax Planning5. Retirement Planning6. Estate Planning


What is FP 6-steps process ? 1. Establish rapport & define relationship2. Gather information & set goals3. Analyze & evaluate information4. Develop action plan5. Implement plan6. Monitor & review performance

periodically


Single Plan or Comprehensive Plan ?Content of Comprehensive Financial Plan 1. Personal data2. Client’s goals & objectives3. Identification of issues & challenges4. Assumptions5. Net Worth Statement (Balance Sheet – assets &

liabilities)6. Cashflow Statement


Single Plan or Comprehensive Plan ?Content of Comprehensive Financial Plan 7. Income Tax Statement & analysis8. Risk Management analysis9. Investment portfolio Presentation10. Financial independence, retirement, education & other

special needs11. Estate planning12. Recommendation13. Implementation (prioritized list action)

The 7 step sales strategy

Step 1 the CONNECTION

Step 2 the INTERVIEW

Step 3 AGREEMENT on NEED

Step 4 promote the COMPANY

Step 5 promote the SOLUTION to fill NEED

Step 6A ACTION + COMMITMENTStep 6B CLOSING strategy

Step 7 pour CEMENT


Step 1 or Step 4 : Sell Yourself & Company

Thanks for the chance to meet up today. Allow me to share some information about myself,

the company I represent, as well as our financial services…

PMB was established since 1970s, a subsidiary of PBB…• largest privately-owned UT company in Malaysia with

size of RM28b & more than 1.8m investors• most awarded, more than 100 UT awards…

suggestions



Now would you like me to show you how UT works ?

suggestions



Investment in UT is part of Personal Financial Planning. It helps us plan for our future financial independence.

When we start work, we plan to own a house.

we save enough to start a family,then assumes responsibility to provide & protect income

for our family.As parents, we are concerned for our children’s education.

Before we retire, we want to increase our wealth so that we enjoy a comfortable retirement… Is that right En/Pn ?

suggestions



Here’s what a UTC like me do... We provide financial solutions, plans to help achieve your

financial goals.We also provide the investment vehicle, suitable to you.

We approach this by firstly, reviewing your current situationsecondly, we identify your risk/return profilethirdly, we analyze the data provided and

finally, we recommend solutions based on the information you shared with us.

Are you ok with this approach ?

suggestions


• Step 2: Fact Finding - general

Now let’s begin..Some of these questions may be a bit personal,

but I assure you that what you share will be held in P&C

suggestions


• Step 2: Fact Finding suggestions

Q1. What do you feel is your most important financial goal ?

Q2. How do you feel about saving money for your children’s education ?

Q3. Where do you stay presently ? Own or rented house ? (If rented) Do you plan to own a house and when ? Any challenges ?



Q4. In your opinion, what percentage of income should be set aside as savings ? Presently, where (and how much) do you save or invest ?

(talk about savings vs investment. Savings 10 – 30% income monthly)

Q5. When investing, would you tolerate more volatility for higher returns ?

(may need do risk profiling analysis/questionaire)



Q6. How do you feel about saving (investing) money for your retirement ? What do you expect the sources and challenges would be ? How much do you think would be your expected expenditure, when you retire ?

(talk about needing at least RM2m, talk about usually maintaning 70-80% of expenses/ lifestyle before retirement)



Q7. Have you utilized your EPF in buying a house, UT or annuity products ?

Q8. How long could you live on your assets if you are disabled yesterday ?

(talk about having at least 6 months expenditure for emergency funds)



Q9. What do you feel about life insurance in financial planning ?

(may hint about free insurance attached to certain PMB products or basic protection that PMB offers)

Q10. Can you share with me why did you invest in UT ? Or why UT Company X ?

(if already an investor)


• Step 2: Fact Finding

The most common reasons people invest in UT are :• for retirement (maintain standard of living)• for education (ensure higher education for children)• for better returns (industry 12%, PMB 12% - 25%pa)• maximize EPF returns• diversification investment (asset class – property, FD)• professional management & monitoring – full time fund managers equipped with research, latest information & market analysis• managed risk - lesser than direct stock market risk

suggestions


• Step 2: Fact Finding

What is your area of interest ?or

Which area would you like to start planning first ?

suggestions

Part of Step 2 & 3 : Unveil Needs

1. Identify problems or needs of customer

- uncover selling opportunities

- prepare questions in advance

2. Agenda close

- when prospect is too busy or unsure

- give them a list of questions


3. Self Image

- see yourself as consultant, a financial doctor (examine > diagnose > offer prescription – medicine or supplements & plans)


4. Often you hear

- “I’m not interested”

- “That’s all rights”

- “I can’t afford it”

- The ability to pay is not the same as willingness to pay. When the ability increases, the desire increases…



5. Questions to key success

- What ?

- How is that working for you ?

- What are your goals ?

- What are you trying to achieve ?

- What sort of problems do you have ?



6. Presentation Skill

- Plan and prepare (restate & agree)

- Explain appropriateness of your solution

- Explain benefits & value

- Match product to customer’s needs

- Ask questions (reflective) to clarify

- Get prospect involve (calculate, hand him something to read, turn pages)

- Be confident & enthusiastic



7. Show, Tell, Ask

- because of this…..(product feature)

- you can ….(product benefits)

- which means … (customer benefits)



Tool : Need Analysis – specific

3 areas you can start perform needs analysis :

1. Retirement (EPF)

2. Education

3. Accumulation (other purpose)

Can also explore :

1. Income protection

2. Disability & Major illness protection (individual & family)


Tool : Need Analysis – Retirement

Encik/Puan….. When we retire, it won’t matter how much you earned, what matters, is how much you’ve kept.

For most people, debt elimination is like trying to reduce weight. And savings is like a roller-coaster. We save some money, then spend them, this pattern goes on and on.

That’s why, many rely on their limited pension, their children support over a prolonged retirement age. We think our savings plus EPF is good enough but even the KWSP released data that….(some facts)


Tool : Need Analysis – Retirement Encik/Puan….. Let’s imaging this is a pool (draw). When we retire at age 55 or 58, we dive into the pool. There’s some water in it, that’s our EPF, pension & some savings, investment & perhaps insurance.

However, there will be 3 leakages from the pool, draining water from it.


Tool : Need Analysis – Retirement

Encik/Puan….. 3 leakages…. The first is inflation…(Rule 72 & impact)

Then the life expectancy (70 – 75 age). We spend one third of our lives working and one third in retirement. So generally, one needs RM….. to sufficiently live up to 75 (critical mass/ RM2m article)

Third, are new expenses, such as medical fees (growing) and healthcare (vitamins & supplements), hobbies, traveling and emergency fund.


Tool : Need Analysis – Retirement If you have a choice now, wouldn’t you want to make sure you have enough water in that pool ?(Proceed to do retirement need analysis, risk profiling and UT fund identification. Show how via lump sum of monthly. Also EPF to maximise retirement funds.)

A balance financial plan would include insurance planning. Would you agree ? If so… (to insurance part)


Tool : Need Analysis – Education Encik/Puan….. One of the most important responsibility as a parent is to provide for good education for our children.What are the possible sources of education funding ?Some say its scholarship, but can our children qualify in this very competitive arena ?

Some feel that their savings (epf a/c 2) should be sufficient. Do you feel you have enough ?

Some may even have to sacrifice their retirement funds (epf) or secure loans. But what about collateral ?

So why do we leave our children’s future to chance ?


Tool : Need Analysis – Education Encik/Puan….. Why should we begin planning children’s education as

soon as possible ?

Simple 3 reasons :Parents may die before children are ready for university

If we wait, we procrastinate, we loose time and have to save even more to make up for the lost in time (show)

If we have to borrow, interest element and possibly collateral issue in the future.


Tool : Need Analysis – Education Encik/Puan….. Now, if you agree with me, let’s analyse how much

junior requires…..

Local or overseas ?When (age of child) and how long (course tenor)How (lump sum, monthly or monthly step-up)

What do you think about insurance (upselling) to ensure funds available incase premature death or disability of the breadwinner…


Tool : Need Analysis – Accumulation for other

purposesSimilar approach :• How much• When need and for how long (drawdown lump sum or

annuity)• How to invest (lump sum, monthly or monthly step-up)• Choice of UT funds recommend

Thank you

Selamat menyambutRamadhan

A-Star week 2. A-star week 2 Part 1 : Post-mortem (scorecard & issues) Part 2 : My Essence of...

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