2018 Bermuda International Life & Annuity Conference

Thriving in a Changing

World

External Drivers of Change

•Technology•Regulations•Demographics

TechnologyThe 6 D’s of Exponentials•Digitized•Deceptive•Disruptive •Dematerialized•Demonetized•Democratized

Wall Street Journal

“I very frequently get the question: ‘What’s going to

www.asset-map.comAsset-Map, LLC © 2018 All Rights Reserved.

change in the next 10 years?’ … I almost never get the

question ‘What’s not going to change in the next 10 years?’ And I submit to you that the second question is actually

the more important of the two – because you can build a

business strategy around the things that are stable in

time…” -Jeff BezosFounder and CEO

Amazon.com

http://www.asset-map.com/

When decisions are complex or there is a high cost of being

wrong, people want another

human’s insight for confidence.

The Financial Services Business...

Source: Duran, Joe. “Clash of the titans: Bionic advisers vs. Robo-advisers”, InvestmentNews.com. 4 Dec 2014. Web 12 Aug 2015.www.asset-map.com

Asset-Map, LLC © 2018 All Rights Reserved.

http://www.asset-map.com/

www.asset-map.comAsset-Map, LLC © 2018 All Rights Reserved.

http://www.asset-map.com/

2017 Noble Prize Winner for Economics

People don’t think rationally when making financial

decisions.

Mitch Anthony

Financial Advisor magazine, May 2018

Emotion-Driven Planning Will Accelerate SoonPeople want their money managed in ways that improve their lives.

Old Premise

Do you have enough money?

New Premise

Are you managing your money in a way that improves your life?

DOL Rule•DOL Fiduciary Standard•Robo-Advisors, RIA•Commoditization of transactions without adviceLEADING TO NEW DIFFERENTIATED COMPETITION•Low Cost Advisors•Alternative Channels•Comprehensive Solutions

Commissions Under Pressure

Commissions banned fee for service

Norway Finland United Kingdom Netherlands

Australia

Maximizing the Social Returns of a Career in FinanceApril 12, 2015

Now in Five Languages

PURPOSELiving a Life

of Significance

Wheel of Fulfillment

INSPIRED

Critics of Capitalism“Acclaimed as one of the

most influential books of the decade”

THESISCapitalism only benefits the rich

“Firms that subscribe to a PURPOSE for being, that is

different from and goes beyond making money.”

Defined

By Raj Sisodia

10/01/98 – 9/30/13

S&P+5.32%

Firms of Endearment

+21.17%

Why Stories Work

• Builds trust relationships• Stories are memorable and co-creative• The more emotional the more impactful• Stories begat stories• Create a biochemical bond

Wheel of Fulfillment

PURPOSELiving a Life

of Significance

COMMITMENT

INSPIRED

Face Your Fears

How would you like to know everything you need to know about

capital markets?

Consider Ownership vs. “Loanership”Stocks Have Historically Outperformed Cash and Bonds

Average Annual Returns 01/01/1928 through 12/31/2017

3.06% 3.43%

4.93%

11.37%Stocks, Bonds, Bills & Inflation

01/01/1928 through 12/31/2016

Consider Ownership vs. “Loanership”Stocks Have Historically Outperformed Cash and Bonds

Average Annual Returns 01/01/1928 through 12/31/2017

3.06% 3.43%

4.93%

11.37%

0.38%1.88%

8.32%

• Inflation Erodes Return - Cost of living goes up…Purchasing Power goes down.

• Longer Life Expectancies may require higher “real returns”

-70.

-35.

0.

35.

70.

105.

� 28 Down Years

Past performance is no guarantee of future resultsSource: Historical data from Dow Jones and Company, Inc..

Dow Jones Industrial AverageAnnual Percentage Change (1/1/1929 through 12/31/2011)

� 56 Up Years

•Nobody knows when the market direction will turn

•Understand the difference between “Risk” and “Volatility”

Stock Market Goes Up and Down

Chart1

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

Series1

0

-17.17

-33.76

-52.67

-23.11

66.78

4.1

38.56

24.84

-32.8

28.04

-2.97

-12.72

-15.33

7.57

13.82

12.07

26.66

-8.14

2.26

-2.15

12.86

17.64

14.36

8.43

-3.77

43.97

20.77

2.27

-12.77

33.97

16.4

-9.35

18.7

-10.81

17.01

14.56

10.89

-18.94

15.2

4.28

-15.19

4.81

6.12

14.58

-16.58

-27.58

38.33

17.87

-17.27

-3.15

4.19

14.94

-9.23

19.6

20.27

-3.73

27.66

22.58

2.26

11.85

26.96

-4.34

20.32

4.18

13.72

2.14

33.45

26.01

22.64

16.1

25.22

-6.17

-7.1

-16.76

25.32

3.15

-0.61

16.29

6.43

-33.8

18.8

9.4

5.6

Sheet1

123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384

Series10-17.17-33.76-52.67-23.1166.784.138.5624.84-32.828.04-2.97-12.72-15.337.5713.8212.0726.66-8.142.26-2.1512.8617.6414.368.43-3.7743.9720.772.27-12.7733.9716.4-9.3518.7-10.8117.0114.5610.89-18.9415.24.28-15.194.816.1214.58-16.58-27.5838.3317.87-17.27-3.154.1914.94-9.2319.620.27-3.7327.6622.582.2611.8526.96-4.3420.324.1813.722.1433.4526.0122.6416.125.22-6.17-7.1-16.7625.323.15-0.6116.296.43-33.818.89.45.6

Left Brain – Right Brain

Investment Principles

Principles1) Faith2) Patience3) Discipline

Behaviors

1) Asset Allocation

© 2008 Nick Murray All rights reserved. Used with permission. From Nick Murray's book Behavioral Investment Counseling

www.nickmurray.com

Asset Allocation

Investment Principles

Principles1) Faith2) Patience3) Discipline

Behaviors

1) Asset Allocation

2) Diversification

3) Rebalancing

© 2008 Nick Murray All rights reserved. Used with permission. From Nick Murray's book Behavioral Investment Counseling

www.nickmurray.comAsset allocation does not ensure a profit or protect against a loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit orprotect against a loss.

What is the defining Issue of the 21stCentury?

•Terrorism?•Global Warming?•Energy?

DISCOVEROctober, 2012

The Aging Population of the World

© 2012 Kalmbach publishing

“It seems likelythat the future

will favor women

entrepreneurs”

Many people greatly underestimate the time they will spend in retirement

The Risks

85 92

88 94

9792

65

65

65 At least one person has a chance of living beyond:

Male

Female

Couple

50% chance of living beyond

25% chance of living beyond

Popularretirement

age

Source: Society of Actuaries, RP-2014 Mortality Tables Report

Bloomberg BusinessWeek July 28, 2003 © 2003-2010 The McGraw-Hill Companies Inc.

Everyone Wants to Retire(Preferably before they die)

“We need to move back in

with your parents”

Wall Street Journal, April 23, 2003

Mother-in-Law

Caregiving Ramifications are a Particular Issue for Women

America Is Running Out of Family Caregivers, Just When It Needs Them Most

Smaller, more far-flung families mean fewer unpaid helpers

Wall Street JournalJuly 22, 2018

Robyn Lewis-Oglesby

New Challenges

Turn assets into income

Manage risk not just money

Make the most of what you got

Consumer Change of Focus

Return onInvestment

Reliabilityof Income

Accumulation Phase

Distribution Phase

Purchasing Power Risk/ Inflation

1988Postage stamps cost about $0.25

2018Postage stamps cost about $0.50

Year 5 Year 10 Year 15 Year 20 Year 25 Year 30Income $115,927 $134,392 $155,797 $180,612 $209,378 $242,726

How $100,000 income must grow to keep up with 3% CPI

Chart1

Year 5

Year 10

Year 15

Year 20

Year 25

Year 30

Income

115927

134392

155797

180612

209378

242726

Sheet1

Income

Year 5$115,927

Year 10$134,392

Year 15$155,797

Year 20$180,612

Year 25$209,378

Year 30$242,726

1988

S&P 500

272.21

(8/1/1988)

$.25 cost

2018

S&P 5002,813.36

(8/1/2018)

$.50 cost

Photo © Joseph Jordan

MDRT Excerpt

Video by MDRT

Life of Significance

Photo Public Domain; published before 1923 and public domain in the U.S.

Chief Seattle

Photo © Joseph Jordan

Slide Number 1External Drivers of ChangeTechnologySlide Number 4“I very frequently get the question: ‘What’s going toThe Financial Services Business...Slide Number 72017 Noble Prize Winner for Economics�Slide Number 9DOL RuleCommissions Under PressureSlide Number 12Slide Number 13Wheel of FulfillmentSlide Number 15Slide Number 16Slide Number 17Why Stories WorkWheel of FulfillmentFace Your FearsSlide Number 21Slide Number 22Slide Number 23Slide Number 24Stock Market Goes Up and DownLeft Brain – Right BrainInvestment PrinciplesAsset AllocationInvestment PrinciplesWhat is the defining Issue of the 21st Century?The Aging Population of the WorldSlide Number 32The RisksEveryone Wants to Retire�(Preferably before they die)Slide Number 35Mother-in-LawCaregiving Ramifications are a Particular Issue for WomenAmerica Is Running Out of Family Caregivers, Just When It Needs Them MostSlide Number 39Robyn Lewis-Oglesby New ChallengesConsumer Change of FocusPurchasing Power Risk/ InflationHow $100,000 income must grow to keep up with 3% CPI19882018Slide Number 47Slide Number 48Slide Number 49Slide Number 50Life of SignificanceSlide Number 52