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Womens and multi cultural markets bsmg event

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Press Release April 30th Event:
On Thursday April 30th Brokers’ Service Marketing Group partnered with Transamerica and Genworth to build awareness around two very underserved life insurance markets: the Women’s and Foreign Nationals Markets. The purpose of this seminar was to provide an overview of the issues that revolve around approaching and serving these two distinct markets.
Neither of these groups gets the attention that they deserve and yet they are two of the fastest growing audiences for financial advisors. BSMG knows that successfully advising these segments requires an understanding of unique biases, preferences and challenges that each group has. When leveraging the skills covered by the expert speakers at this event advisors can be knowledgeable and effective when communicating with clients in these groups and begin the process of providing sound advice. “BSMG continually strives to bring valuable content to life insurance producers and financial advisors through new and different mediums”- Corrie Freudenstein BSMG Marketing Director.
BSMG invited two speakers who are both immersed within these markets. Suly Salazar-Layton is the director of Practice Management for Genworth. She is responsible for the strategic direction, workshop development and implementation of Genworth’s Practice Management Program. As a native of Colombia and the co-lead for the Genworth Hispanic Forum, Suly believes passionately in helping advance the Hispanic community at Genworth.
Mike Thaxton is the Vice President of Transamerica Global Link Solutions. More than 100 times a year, Mike speaks to financial services professionals across the U.S. on topics related to planning for foreign nationals, estate planning, and business planning. He is a Certified World Class Speaking CoachTM and teaches financial services and other sales professionals how to develop and deliver powerhouse presentations that generate sales.
Women’s Market: The Biggest Opportunity You’ve Never Looked at…
Women’s Top Financial Concerns:
• 83% - Running our of money in retirement
• 65% - Having to rely on family
• 63% - Maintaining a standard of living for themselves or their spouse
Multicultural Markets:
• Asian American: 45% have no individual life insurance, 83% seek retirement at 65 and need insured income.
• Hispanic: Fast growing group, ½ as likely to have a financial advisor and only 25% have life insurance.
• African American: A younger market demographically, many own small businesses, trust is paramount.
• LGBT: 85% say life insurance is important to have, yet 56% say they don’t have enough.

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Womens and multi cultural markets bsmg event

  1. 1. Welcome to BSMG’s Spring Kick-Off Event How to Address the Women’s and Multicultural Markets to Grow your Practice 500 South Main Street | Providence, RI 02903 | 800.343.7772 April 30, 2015
  2. 2. Welcome!
  3. 3. Change New Opportunities New Mindset New Strategies Increased Success Have an Open Mind, Think Big
  4. 4. • Women control more wealth. Today, women control over 51% of the personal wealth in the U.S. That percentage is estimated to rise to 67% by 2020. • Women outlive men. Women, on average, are outliving men by five to six years. That means that, for all of your married clients, chances are you will someday have a single individual as a client: the wife. • Women outnumber men as graduates. Women account for 57% of bachelor’s, 60% of master’s, and 52% of doctoral degrees today • Women are growing as breadwinners. Between 2007 and 2010, the number of women earning over $100,000 grew by nearly 17%, compared with just 2.3% growth for men. And nearly four out of 10 working women outearned their husbands in 2009 • Women lead household purchases. Women make approximately 80% of family household buying decisions, including — importantly for you — whom to hire for financial advising services. • Women don’t have a preference for working with a male or female advisor *Fidelity Investments: “Maximizing a Major Opportunity: Engaging Female Clients”, 2012 The Women’s Market
  5. 5. Suly Salazar-Layton Responsible for the strategic direction, workshop development and implementation of the Practice Management program. Thousands of producers have learned tools and strategies that have helped them take their businesses to the next level and increase their profitability. Native of Colombia and the co-lead for the Genworth Hispanic Forum, Suly believes passionately in helping advance the Hispanic community at Genworth and in Richmond. She is a graduate of Yale University. Director of Practice Management
  6. 6. http://www.youtube.com/watch?v=oTqiVOpu5KQ Connecting with Women & Couples Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  7. 7. Company Confidential ©2011 Genworth Financial, Inc. All rights reserved. Connecting with Women and Couples Grow Your Business With Your Most Profitable Clients FOR PRODUCER/AGENT USE ONLY. NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC.163700 04/28/15
  8. 8. 1 Important Information This workshop is for informational purposes only and is meant to illustrate some of the best practices that may make building your business more effective These practices are based on Genworth research and the real life experience of the individuals interviewed. The use of these practices or tools is strictly voluntary and is not required by the Genworth companies. The information provided is for your own practice management purposes. Always follow your company’s guidelines, policies and procedures. Also follow any policies and procedures regarding review and use of third-party templates, social media, creation and distribution of client and prospect materials, hosting of client and prospect events, offering giveaways or prizes, and your firm's employment process. Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  9. 9. Today we’ll help you focus on … Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY 11 - Helping you expand outside of your comfort zone - Finding prospects and creating interest - Executing change in your practice
  10. 10. Women’s Economic Power Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY Earning more money Inheriting more money Controlling more money
  11. 11. The opportunity Connecting With Women And Couples 1. U.S. Census, Educational Attainment, 2014; 2. LIMRA, U.S. Consumers Today: Women and Men, 2014; 3. Growing Under the Radar, American Express, 2012; 4. Catalyst, Knowledge Center, Buying Power, 3/2013 51% of Bachelor’s degrees 1 56% of Master’s degrees1 40% of working wives out earn husbands 2 57% of couples are dual earners2 84% control or share in decisions3 65% of global consumer spending 4   
  12. 12. The value of advice 1. U.S. Consumers Today: Women and Men, LIMRA, 2014 Women are 30% less likely to have relationships with financial professionals1 Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY But recognize the value of professional advice Over half feel that their need for professional advice has increased 30% > ½
  13. 13. Veto power Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  14. 14. The Future of Retirement Income Study, Genworth, 3/2015 94% of women said that it was important for a financial professional to get to know them as a person, to understand my needs, values and goals Importance of relationships Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  15. 15. QuickTime™ and a YUV420 codec decompressor are needed to see this picture. Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY From The Expert - Stereotyping
  16. 16. Couple Single, Widowed, Divorced Existing or new client Thoughtful approach to a new audience Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  17. 17. A Different Buying Process Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY More deliberate decision making process Questions CriteriaInfluencers
  18. 18. Communication Styles 22 Her Big Picture Is Not His Big Picture QuickTime™ and a YUV420 codec decompressor are needed to see this picture. Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY Marti Barletta Author of Marketing to Women, and of PrimeTime Women www.trendsight.com
  19. 19. Don’t solve their problem before they have articulated it Best practice: Let the client talk 80% of the time W.A.I.T. Listening to understand Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  20. 20. Consider asking … Changing the questions Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY Instead of … Here’s what I want to accomplish today. ‫‏‬What do you want to get out of this meeting? How are things going for you? If there’s one thing you could change about your life, what would it be? What are your financial goals? What does being financially OK look like to (each of) you? What do you NOT want to happen? Do you have any other questions? •Do you have any questions I haven’t fully answered? •What information do you need to feel comfortable taking the next step?
  21. 21. Women are financial decision makers Make them part of the conversation Be aware of a woman’s veto power Consider communication differences Fact Action Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY Putting It Into Practice
  22. 22. Women make referrals 3 times more than men Research Loyalty Referral Decision http://www.investmentnews.com/article/20130716/FREE/130719934; viewed 9/2013 Loyal Referral Sources Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  23. 23. Give her something to talk about Ask three questions designed to open up opportunities Help your clients develop the confidence to spot your ideal client Conduct appreciation events and educational seminars 4 Best practices to help find new clients
  24. 24. Give her something to talk about In what ways do you go above and beyond for your clients? Where have you made an extra effort? What services have you provided that were unexpected?
  25. 25. Sorry for the loss of your best friend Give her something to talk about
  26. 26. Three questions to generate introductions 1 If there is one thing I could change about how we work together that would improve our relationship, what would it be? 2 3 What do you like best about working together? When you speak with friends who have a financial concern or challenge, would you feel comfortable helping them by introducing me to them?
  27. 27. Help current clients spot ideal clients Define your target clients Identify how you serve this group especially well Help them understand your process
  28. 28. Women recommend Exceed her expectations Give her something to talk about Define your referral request Consider timing of request Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY Putting It Into Practice Fact Action
  29. 29. Holistic approach How does product help her life? Answer her questions Help her feel knowledgeable Creating interest Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  30. 30. Running out of money in retirement1 1. U.S. Today’s Consumer: Women and Men, LIMRA, 2014; 2. Genworth Beyond Dollars, 3/2013 83% Women’s top financial concerns Connecting With Women And Couples FOR BROKER/AGENT USE ONLY Maintaining standard of living1 63% Having to rely on family2 65%
  31. 31. Guaranteed income for life Cannot outlive your money All guarantees are based on the claims-paying ability of the issuing insurance company. Annuities speak to her concerns Connecting With Women And Couples FOR BROKER/AGENT USE ONLY
  32. 32. Protect against the cost of a long term health event In-home care as well as nursing home care She won’t be a burden to her children Long Term Care Insurance benefits Connecting With Women And Couples FOR BROKER/AGENT USE ONLY
  33. 33. Help maintain family’s standard of living Portability of individual policy Estate planning to benefit heirs Connecting With Women And Couples FOR BROKER/AGENT USE ONLY Life insurance to address her concerns
  34. 34. Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY Putting It Into Practice Women want to understand how her concerns are addressed Use a holistic approach Think in terms of her concerns Avoid technical language and jargon Fact Action
  35. 35. Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY Take Aways 3 Things you can do with your clients … or at home … 1. Listen to her stories 2. Practice “The power of the pause” 3. Increase communication touch points
  36. 36. Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY Action Items To Consider 1. Review top 10 client list and create an action plan to strengthen your relationship with her 2. Identify 5 key female clients who are influencers and can be your advocates 3. Define your personal elevator speech so that your clients know what to say about you
  37. 37. 4 Important Information This workshop is for informational purposes only and is meant to illustrate some of the best practices that may make building your business more effective These practices are based on Genworth research and the real life experience of the individuals interviewed. The use of these practices or tools is strictly voluntary and is not required by the Genworth companies. The information provided is for your own practice management purposes. Always follow your company’s guidelines, policies and procedures. Also follow any policies and procedures regarding review and use of third-party templates, social media, creation and distribution of client and prospect materials, hosting of client and prospect events, offering giveaways or prizes, and your firm's employment process. Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
  38. 38. • Growing Demographics • Rapid, Systemic Change • Huge Opportunity for advisors to pursue an underserved, growing market The Multicultural Market
  39. 39. ex-KGB operative Igor Panarin in 1998 forecast the future fragmenting of the United States circa 2010 into four Divided States
  40. 40. Mike Thaxton With more than two decades of experience closing large, complex life insurance cases, Mike has substantial expertise with advanced case design/presentation strategies and effective premium financing options. More than 100 times a year, Mike speaks to financial services professionals across the U.S. on topics related to planning for foreign nationals, estate planning, and business planning. He is a Certified World Class Speaking Coach and teaches financial services and other sales professionals how to develop and deliver powerhouse presentations that generate sales. Prior to joining Transamerica, Mike was a successful independent life insurance broker and a leading individual life sales producer with three different brokerage organizations. Mike has worked extensively with small-business owners, high-income professionals, and high-net-worth individuals in the U.S. and abroad. He earned a Bachelor of Business Administration degree in accounting from Texas Tech University. Vice President Global Link Solutions
  41. 41. 500 South Main Street | Providence, RI 0290 | 800.343.7772 Planning for Foreign Nationals A World of Opportunity Michael Thaxton, Vice President Transamerica Global Link Solutions
  42. 42. Non-Residents Purchasing U.S. Real Estate
  43. 43. Where are Foreign Nationals? New York West Palm Beach Washington DC Seattle Los Angeles Sacramento Las Vegas Phoenix Dallas/Fort Worth Boston Colorado Springs Denver Minneapolis Houston Detroit Sarasota Tampa Orlando Miami Atlanta Philadelphia
  44. 44. • 11% of native born Americans have at least 1 foreign born parent1 • 12.9% of U.S. population born in another country2 • 90 Fortune 500 companies had at least one immigrant founder3 • More than 40% of the 2010 Fortune 500 companies founded by immigrants (18%) or their children (23%)3 • 24% of all engineering and technology start-ups have at least one immigrant founder serving in a key role4 1Nation’s Foreign-Born Population Nears 37 Million. United States Census Bureau. http://www.census.gov/newsroom/releases/archives/foreignborn_popula tion/cb10-159.html 2 US Census, 2010. https://www.census.gov/newsroom/pdf/cspan_fb_slides.pdf 3 The “New American” Fortune 500. June 2011. http://www.renewoureconomy.org/sites/all/themes/pnae/img/new-american-fortune-500-june-2011.pdf 4One quarter of U.S. tech start-ups founded by an immigrant: study http://www.reuters.com/article/2012/10/02/us-immigrants-startups-study-idUSBRE8910I 020121002 Changing U.S. Demographics
  45. 45. • 187,380 Ultra-high net worth individuals ($30+ million net worth) control $25.8 trillion of wealth1 • 65,579 HNWI live in North America2 • 54,170 HNWI live in Europe2 • 43,726 HNWI live in Asia2 • 15,230 HNWI live in Latin America2 • 3,373 HNWI live in Mexico2 • As of EOY 2012 $2.7 trillion of foreign direct investment in the U.S.3 Scope of Opportunity 1The States With the Most Ultra Rich Americans. Business Insider. http://www.businessinsider.com/states-with-the-most-wealthy-people-2012-9 2 The Wealth Report 2013 . Knight Frank. http://www.knightfrank.be/library/PDF/Wealth%20Report%202013.pdf 3 Foreign Direct Investment in the United States. http://selectusa.commerce.gov/sites/selectusa.commerce.gov/files/documents/2014/january/2013-12- 31_selectusa_report_-_fdi_in_the_united_states.pdf
  46. 46. Why Consider the Foreign National Market? • Growing market today • Foreign Nationals face unique U.S. planning challenges • Significant need for information on strategies and planning
  47. 47. What they don’t know… A survey of immigrants to the U.S. with a net worth of $10 million or more found: Survey Question Asked % Who Answered Yes Before emigrating to the U.S. those who sought advice as to the consequences of acquiring a U.S. residency for U.S. gift and estate taxes 34.5% Obtained advice for making gifts of non-U.S. property prior to coming to the U.S. 10.9% After emigrating to the U.S., those who sought tax advice 49.6% Of the above group, those who sought advice on U.S. estate planning that could minimize estate taxes 6.8% Source: “Clueless,” Trusts and Estates, December 2003
  48. 48. Understanding Needs Foreign Nationals fall into two categories: • Resident Aliens • Non-Resident Aliens
  49. 49. Resident Aliens • Foreign National with permanent U.S. home • Worldwide assets subject to U.S. estate and gift tax • Denied certain tax advantages available to U.S. citizens
  50. 50. Married Couple with Foreign National No unlimited marital estate deduction
  51. 51. The Issue Foreign NationalU.S. Citizen
  52. 52. The Issue Foreign NationalU.S. Citizen Unlimited Marital Deduction
  53. 53. The Issue Foreign NationalU.S. Citizen
  54. 54. The Issue Foreign NationalU.S. Citizen No Deduction
  55. 55. Alternative 1: QDOT Mark U.S. Citizen Anna Philippine Citizen Resident Alien $ $ $ $ $ $ $ $
  56. 56. QDOT • No immediate estate taxation • Assets “stuck” in U.S. • Distributions limited to income and hardship OR immediate estate taxation • Need U.S. trustee, may require bond
  57. 57. Alternative 2: Life Insurance Mark U.S. Citizen Anna Philippine Citizen Resident Alien $ $ $ $ $$ $ $
  58. 58. Non-Resident Aliens • Foreign National with permanent home in another country • Only U.S. assets subject to U.S. estate and gift tax
  59. 59. U.S. Estate Tax Comparison Resident Alien (RA) Non-Resident Alien (NRA) Lifetime estate tax exemption $5,430,000 $60,000 Estate tax rate 40% top tax rate Minimum 25% - Maximum 40% top tax rate Unlimited marital deduction Only if inherited assets are transferred to QDOT* Only if inherited assets are transferred to QDOT* Assets subject to U.S. estate taxes All worldwide assets U.S. properties, including most intangible properties** *Only if inherited assets are transferred to a U.S. citizen spouse or to a QDOT. **Intangible property includes stock in a U.S. corporation and interest in a U.S. partnership
  60. 60. Non-resident Aliens U.S. Gift and Estate Situs Rules Type of property transferred Subject to U.S. Gift tax Subject to U.S. Estate tax Real property located in U.S. Yes Yes U.S. tangible personal property (i.e., cash, jewelry, paintings, automobiles) Yes Yes U.S. intangible personal property (i.e., stocks in U.S. corp., interest in U.S. partnership) No Yes Ownership interest in a U.S. life insurance policy on oneself No* No *A gift of a life insurance policy on oneself may be subject to the IRC §2035 look back rule, and therefore may be subject to estate taxes if included within the decedent’s estate.
  61. 61. Alternative 1 … Complicated Tangible Property Intangible Property Gift to Heirs
  62. 62. Alternative 2 … Simple Life Insurance
  63. 63. What They Don’t Know $60,000 Non-Resident AlienResident Alien $5.43M
  64. 64. Why Planning Is Important Eduardo • Mexican citizen and resident of Monterrey • Purchased second home in Texas with spouse
  65. 65. U.S. Estate Tax Exposure home in Texas estate tax liability in 2015$1.1M $3M
  66. 66. Estate Erosion Death in 2015 Tentative Tax Less Credit ($1,145,800) $13,000 Net Taxes ($1,132,800) Net U.S. Assets $1,867,200 Estate Erosion = 38%
  67. 67. Life Insurance • A simple solution • Internationally competitive
  68. 68. Why Foreign Nationals Buy Life Insurance • Pay estate taxes • Legacy Planning • Business Planning • Asset protection • Wealth transfer and estate equalization • Facilitate business planning • U.S. products are often considered superior to those of other countries • U.S. products can be structured to offer substantial tax advantages
  69. 69. You’d Better Be Careful … • Income Tax Treaties • Estate Tax Treaties • Gift Tax Treaties • U.S. Legal Issues • U.S. Tax Issues • Home Country Legal Issues • Home Country Tax Issues
  70. 70. Ley Sobre El Contrato de Seguro Mexico’s Insurance Contract Law • Mexican citizens are legally permitted to own insurance contracts issued from other countries. • Generally, MICL provides that amounts paid by insurance companies to insured or insured’s beneficiaries are exempt from Mexican income tax. • January 2007 tax reform stated that the intention of Article 109 Section XVII of MICL is to only exempt from Mexican income tax amounts received from insurance institutions authorized to do business in Mexico. • Insured should be physically out of Mexico when contracting for insurance products with institutions not authorized to do business in Mexico. • Entity ownership advisable for significant transactions.
  71. 71. Foreign Account Taxation Compliance Act • Part of HIRE Act passed March 18, 2010. • Implementation began July 1, 2014. • Original intent was to give IRS the ability to determine the ownership of U.S. assets in foreign accounts. • 88 Model 1 Agreements and 13 Model 2 Agreements have been signed or agreed to be signed. • Potentially impacts Americans who live abroad or have business interests abroad. • Potentially impacts foreign nationals who have financial accounts in the U.S. • Substantial penalties and prosecution possible for violations.
  72. 72. Why Plan for Foreign Nationals? • Large, growing demographic • Special financial planning needs • Resident Aliens– worldwide estate • Non-resident Aliens– U.S. estate • No unlimited marital estate deduction
  73. 73. Next Steps • Review your book of business • Reach out to contacts that match the client profile • Strengthen and build your referral network
  74. 74. Look At Your Existing Business • Immigrant clients? • Clients with immigrant spouses? • Develop a champion client
  75. 75. 7 Sources In Your Neighborhood 1. Nearby colleges/universities? 2. Nearby hospitals or military bases? 3. Nearby multinational corporations? 4. Talk to realty firms for leads 5. Align with immigration and/or international tax attorneys and CPAs 6. Network with ethnic business associations 7. Get referrals from existing Foreign National clients
  76. 76. Top 5 Reasons to Place with Transamerica 1. Access to Advanced Marketing experts • Attorneys and Certified Financial Planners providing consultative support and case design 2. Dedicated international underwriting team • Established in 1998–deep understanding of landscape 3. Bilingual Marketing Materials • Spanish and Chinese language materials 4. Foreign Nationals Connection Website • Hub for information, sales ideas, and materials & forms • Viewable across mobile, tablet, laptop, and desktop • www.transamerica.com/foreignnationals
  77. 77. 5. Depth & Breadth of Product • No product limitations • Guaranteed products available • Very competitive premiums • Close more business • Best underwriting risk class generally available Top 5 Reasons to Place with Transamerica
  78. 78. Transamerica’s Available Resources Dedicated International Underwriting Team Foreign National Connection web site Contact Advanced Marketing (877) 238-6758 foreign.national@transamerica.com Foreign Nationals Team Marketing Tools Support
  79. 79. Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state or foreign laws and regulations or income or estate tax treaties between the U.S. and other countries upon clients and prospects. Clients should consult with and rely on their own legal and/or tax advisor to determine the consequences, if any, of owning or receiving proceeds from a Transamerica policy. Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of February 2015.
  80. 80. Thank You!
  81. 81. Thank You to our Sponsors
  82. 82. 10 Words or Less… Write Down One Important Take Away!

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