© 2019 Million Dollar Round Table Million Dollar Round Table 325 West Touhy Ave. Park Ridge, IL 60068 USA

2019 MDRT Annual Meeting e-Handout Material Title: Blue Ocean Secrets for Practice Management Speaker: David C. Resseguie / Kim A. Siegers - Robinson,

BAccs, CPA / Lois R. Weinblatt / Moderator: Mark S. Gaunya, GBA

Presentation Date: Monday, June 10, 2019 Presentation Time: 3:30 – 5:00 p.m. Session Room: MBCC - Meeting Room 231 The Million Dollar Round Table® (MDRT) does not guarantee the accuracy of tax and legal matters and is not liable for errors and omissions. You are urged to check with tax and legal professionals in your state, province or country. MDRT also suggests you consult local insurance and security regulations and your company’s compliance department pertaining to the use of any new sales materials with your clients. The information contained in this handout is unedited; errors, omissions and misspellings may exist. Content may be altered during the delivery of this presentation.

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David C. Resseguie Kim A. Siegers-Robinson,

Baccs, CPA

Lois R. Weinblatt Mark S. Gaunya, GBA(Moderator)

Blue Ocean Secrets for Practice Management

David C. Resseguie Kim A. Siegers-Robinson,

Baccs, CPA

Lois R. Weinblatt Mark S. Gaunya, GBA(Moderator)

Blue Ocean Secrets for Practice Management

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Emergency transition readiness

4

1 “Continuity Planning for the Investment Professional." FP Transitions Research & Publications (2014):.2 "Protecting a Legacy: The Importance of Business Transition Plans.“ LIMRA (2016)

of financial advisors have a written

plan in the event they become ill,

disabled or die1

of clients believe their advisor is

prepared for an unexpected exit

from the business2

3% 99%

Emergency transition plan

A. Emergency transition team

B. Documentation

C. Running the business

D. Financial

Disability - service agreement

Interim period

(e.g., 30 days)

Mid term (requires more definition)

Long term (triggers sale)

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Emergency valuation

$$$

$

Average price

Scenario 1• High confusion

• Long chaos period

• Significant client impact

Scenario 2• Advanced planning

• Short chaos period

• Client trust expected to transfer

Risk drives

down value

Planning

stabilizes risk

“Fair market value is discounted by 10 to 40%” FP Transitions

business transitions

EMERGENCY PREPARATION CHECKLIST

Emergency team

My family, executor and power of attorney (POA) know my plan

Appointed an “advisor” to my executor and POA if they aren’t involved in the business

A willing and capable person who can fill in for me if I’m disabled (have right knowledge, experience to provide advice to top clients)

Identified buyer (or short list of buyers) in place if I die

Documentation

Update-to-date Will and POA document

Documentation to guide the sale of the business (on death or disability)

Checklist of key instructions for non-legal matters (use of insurance, manufacturer key contacts, key clients to contact first, etc.)

Service agreement which outlines service expectations and compensation for another advisor filling in if I’m disabled

Associate advisor agreements clearly outline death and disability conditions

Financial

Valuation and terms are clear in my agreements

I understand my manufacturer contract rules and impact on the business

Someone has access to run payroll, pay bills

Financing is in place for a buy out (death and disability)

Cases in process or split case treatment is outlined

Running the business

My team is aware of the plan and can step in to run the business

My client files and key client information is organized to quickly understand

My planning process is documented and easy to follow

The team knows what messages to deliver if something happens, what clients to proactively tell and how

99-11078 03/19