Circle of Wealth Online Study Group Manual Session 1 · Online Study Group Manual Session 1 ... Strategies of the Game: Tic Tac Toe Screen 8: Clubs ... Give the prospect the questionnaire

The Circle of Wealth® Sales System

Online Study Group Manual

Session 1

© 2014 MoneyTrax, Inc. All Rights Reserved.

Online Study Group Workbook – Session 1 Page 2

Step 1: Open Ended Questions

Step 2: Circle Talk

Step 3: CQ & CCP

Step 4: Explain how you get paid

Step 5: Referrals & Prospecting

Step 6: Review Questionnaires:

CCP & CQ

Step 7:

Find the Money

Step 8: Picking the Clubs

Step 9:

Life Insurance &

Other Products

Step 10:

The Close

2nd

Interview (Steps 6-10)

1st

Interview (Steps 1-5)

Circle of Wealth®

System 10-Step Sales Process

Personal Economic Model®



STEP 1: 10 Open Ended Questions (10 to 15 minutes)

The purpose of these questions is for you to find out if you want to work with this prospect and exactly what you will

have to do to help them.

1. How did you hear about us and what do you know about our company?

2. What are you currently doing in preparation for your financial future?

3. What do you like most about what you are doing?

4. What don’t you like about your current financial position?

5. What would you like to see enhanced or improved?

6. Describe the ideal financial professional/financial strategy?

7. What has been your past experience with preparing for your financial future?

8. What would you “ideally” like to accomplish with your financial strategy?

9. Tell me about your decision making process.

10. What keeps you up at night?

I would like to take the next few minutes and share with you what I do so that you can see if what I do is what you are

looking for. How would that be? (Open Circle Talk)


(10 Open-ended Questions & What Keeps You Up At Night are available in the COW Launcher, type “docs”

into the search window.)


STEP 2: Circle Talk 1 – Accumulators (20-30 minutes)

Screen 1: Your money is finite

Screen 2: Ways your Circle of Wealth can grow

Screen 3: Accumulated $, 1-10, illustrate the shortfall

Retirement: Ready or Not: illustrate current position

Rate of Return: focus of most advisors

Save More: save for screen 13

Work Longer: no one is interested in this option

Spend Less: show maximum amount available

Lifestyle $

Transferred $ (Unknowingly and Unnecessarily)

Screen 4: Opportunity Cost (core economic principal)

Screen 5: Major Wealth transfers: illustrate only one or two

Screen 6: Capital is Critical (be your own bank)

Screen 7: Strategies of the Game: Tic Tac Toe

Screen 8: Clubs vs. Swing

Screen 9: Product vs. Process

Screen 10: Risk

Screen 11: Transferred Money

Impact of finding transferred money

Screen 12: Bucket story

Screen 13: Financial Prescription (How much should you be saving?)

If I can find the money will you save it?

On a scale of 1-10 how does what I do…

Circle Talk 2 - Seniors and Retirees: This presentation is very similar to Circle Talk One

except that it is designed for those who are near or currently retired.


STEP 3: Client Communication Profile and Confidential Questionnaire (two minutes)

Client Communication Profile (CCP): is a tool to gain insight into how to best communicate with your clients

effectively. The CCP is an online assessment that will take your client about ten minutes to complete.

The information provided in the profile will provide you the opportunity to better serve your client by knowing

exactly how they process information. It will perhaps allow spouses to understand one another's differences in

this area and for the first time communicate on a higher level with one another in the area of their finances.

See the CCP Gateway in your software for more information and to order codes. (Available in the COW

Launcher, type “ccp” into the search window)

Confidential Questionnaire (CQ): Two-Page Hard Copy or eCQ (Available in the COW Launcher, type

“docs” into the search window)

Give the prospect the questionnaire and ask them to complete it before your next meeting. This should not take

them more than ten minutes to complete. You are just looking for an overview of their finances and will request

the documents you will need at a later time.

Do not fill this out for your client. You do not get paid to fill out this questionnaire. You get paid to sell.

Schedule 2nd

appointment

STEP 4: Two Ways I get Paid (two minutes)

1. First: Club Selection* (*Fee based advisors would replace the first way you get paid with their fee

structure.)

Manufacturer

You will never pay me directly

2. Second: Referrals

Life Blood of any business

If I can …


STEP 5: Referrals & Prospecting (five minutes)

Referral Criteria (who you want referred to you):

Friendly

Responsible

Married

Happily Married

Children

Serious about their money

Referrals & Prospecting:

What are you doing now?

Are you really about the “swing” or just the “clubs”?

You have more to say than you can say in person

You should touch every client on a regular basis (8-10)

You must constantly build your prospect database pool.

Review the MoneyTrax Marketing Handbook to see all available tools, tips and suggestions. The

most popular tools are listed below, each are discussed in the handbook. To download & print:

www.moneytrax.com/marketingtools.

Referral & Prospecting Business Cards – For more info:

www.moneytrax.com/moneytraxbusinesscards

Prospecting DVD Web Page, Web Hosted Videos and/or Prospecting Videos available on

DVD: 10 Available Titles - To watch videos and learn more go to www.moneytraxdvds.com

Video Vignette Marketing System

MoneyLink e-Newsletter – supplied quarterly in a digital version for all current COW

licensees to use.

Prospecting & Client Postcards

Planning Guide Tri-fold Brochure & Interest Survey Insert

End of First Interview

http://www.moneytrax.com/marketingtools

http://www.moneytrax.com/moneytraxbusinesscards

http://www.moneytraxdvds.com/


Second Interview (Allow One to Two Hours)

You will probably not need the full two hours but you want to make sure that your prospect does not have to get

up and leave in the middle of your presentation on how to find the money. Take your time and make sure they

understand every point you are trying to make.

Step 6: Review Questionnaires: CCP & CQ

Review the Client Communication Profile (CCP) and review of the Confidential Questionnaire (CQ) using the

“Discovery Questionnaire” (DQ). The Discovery Questionnaire will give you additional open ended questions

to ask in the review of the information in the two page questionnaire. You need to know, not only the numbers,

but how they got to their current financial position.

(CQ and DQ available in the COW Launcher, type “docs” into the search window.)

STEP 7: Finding the Money

Always start at the place where the client is transferring away the most money and the area that will have the

biggest impact. In addition, you want to consider the money that will be easiest to get.

A) Mortgage: (Mortgage Master Module) Mortgage Master will help you find money when you see where

your prospect.

Can cash out to pay off non-deductible debt

Is prepaying principal payments

Is considering putting more than minimum down

Currently has less than a 30-year mortgage

Has a current loan rate higher than refinance rate

Is interested in saving taxes

Could lower their payment by refinancing

Can eliminate PMI (private mortgage insurance)

Has equity from appreciation (rules apply)

Note: Mortgage Master is concerned with cash flow not cash out.

B) Taxable Accounts: (Tax Master Module) Tax Master uncovers money being lost from compounding

interest in taxable accounts.

1) CIT Presentation: Compound Interest Tutorial

This presentation allows you to illustrate the lump sum necessary to cover an increasing tax

stream from a taxable asset. It helps you convert taxable assets to tax favored accounts like

annuities and life insurance.

2) IFR Presentation: Three ways to pay tax - Increase, Flatten, Reduce

You can illustrate:

Moving all the money

Moving earnings only

Moving principal and interest

Paying taxes out of Lifestyle

Subtracting taxes from withdrawal


C) Qualified Plan contributions above the company match (Qualified Plan Module)

You must be able to illustrate:

The fundamentals of Qualified Plans

Qualified Plans defer the tax and the tax calculation

The potential return on Qualified Plan accounts

The value of the company match

The impact of a one dollar contribution to a Qualified Plan

D) College Funding: (College Planning Module)

You must be able to illustrate:

The client is not alone. The vast majority of a family’s savings for college are either

underfunded or non-existent. It’s not too late

Successful college funding requires proper planning and strategies. Without proper education

and planning expertise, you may wind up solving one problem and causing another.

There may be components of cost that I hadn’t considered and I may have assumed

something to be true about college expenses that may not be so.

Starting now, it would probably be a good idea to project the anticipated cost of college. The

cost is a complex combination of several expense factors as well as elements of financial aid

and time to graduate.

What I thought to be true about college funding, may not be true!

This is far greater of an expense that I’d originally thought and I am ill-prepared.

Perhaps we should consider the impact that paying for college has on our retirement AND

determine what available planning alternatives there might be.

What I thought I was going to do, is exactly the wrong thing to do…so where do I go from

here? Can you help me?

This sounds like a perfectly logical approach, but there are details of borrowing that I’m sure

I’m unaware of. I should probably consider adding a college financing professional to my

team.

There’s probably a great deal of risk/reward of which I am currently unaware. In light of the

tremendous expense and opportunity cost at retirement that paying for college will have, I

may be wise to seek or engage a professional for proper college planning.

This is a major undertaking and the consequences could be severe.

This is a process. There are things I should do before I simply start paying the college

invoices.

Each investment vehicle provides a different set of benefits.

Review plan-benefit matrix.


E) Expenses: (Circle Talk and Toolbox Calculators)

Helping your client eliminate all non-deductible debt should be a major focus of your planning process.

You should be able to illustrate the:

Cost to finance cars

Cost of credit cards

Opportunity cost on term insurance

Opportunity value of increasing ones auto deductible

Opportunity value of increasing home deductible

Necessity of owning an umbrella policy

Necessity of having current Wills and Trusts

Necessity of owning all the disability insurance you can get

Lifestyle: (Final option)

F) Lifestyle Money

Last alternative is for your client to reduce lifestyle. While it is our desire to find the money in the above

places without it dramatically affecting the client’s lifestyle this is not possible with every prospect.

Unfortunately, many will not be able to make it financially if you do not address this area.

STEP 8: Picking the Clubs - Where would you like to put the money?

Now that we have found the money where would you think would be a good place to consider parking it that

will give you everything you are looking for? First let’s talk about where you have been putting it.

Pay off your home (Mortgage Master)

Qualified Plans (Qualified Plans)

Mutual Funds (Tax Master)

Stock (Spending Game)

Real Estate (Spending Game)

CDs, Money Market (Tax Master, IFR Tutorial)

Bonds (Tax Master, IFR Tutorial)

You have the power now to be able to discuss the pros and cons of where would be the best place or places for

them to put their money. Simply go to the appropriate module to illustrate the truth about how their money

would perform in that arena.

Accumulation vs. Distribution

Accumulation (best to least valuable): This tool will allow you to get a picture of how your prospect

sees the financial world. There are no right or wrong answers.

Distribution (least valuable to most): This tool is designed to allow you to communicate the

importance of having a strategy of spending the assets they have accumulated. You have to know the

rules.

The distribution conversation is to be used when you are describing to your client how you see

liquidating their assets. This is usually done in Step 10 with the Spending Game.

Permanent Life Insurance comes with a bonus – Net Death Benefit.


STEP 9: Life Insurance & Other Products and the Private Reserve Strategy®

Private Reserve Strategy®

A strategy designed to help develop or improve one’s financial position by avoiding or minimizing

unnecessary wealth transfers where possible, and accumulate an increasing pool of capital providing

accessibility and control. A fundamental key to the Private Reserve account is that the money must be

accessible through collateralization.

(You will want to circle collateralization and explain what that means.)

Your Wealth and Income Potential Discussion

If you got all the money you were going to earn in a lifetime in one check, would you handle it

differently? Treat every check that way.

You must PUMP the cash flow into the investment and savings tanks.

What happens when you need to make a “major capital purchase” (something you cannot pay for

in full at the time of purchase)?

You need an account where you have access to your money with collateralization

Draining the tank; future effect of paying cash

Purchase without draining your tank: Collateral Position /loan from financial institution securing

the loan with your private reserve account

Amortizing vs. Compounding Interest

Needs vs. Wants Discussion (COW Tales, Vol. 4)

Difference between “needs analysis” and life insurance is about “wants”

Car, Home, Education Discussion

Life insurance is the only product that will guarantee that what you want to happen will happen.


How long will the proceeds last? This is what you have, is it what you want?

How much is enough? Let’s calculate how much insurance you would “need” to accomplish what you “want”.

How long will the proceeds last? Plug in the client’s new number to how much insurance they want and illustrate how long that

amount will last. What does this say to you? You cannot leave someone rich from insurance. If

you bought all they will issue it is not going to be enough because of inflation.

I have one question. How much do you want?

Client now wants all the insurance the company will issue but they still have one major concern--How much

will it cost?

10 Minute Lesson on Life Insurance (COW Tales, Vol. 5)

1. How much premium? Your prospect has a belief system about life insurance. The five minute lesson will

allow you to communicate the truth about the product. When they understand it they will want all they

can get and they will want to put in all they can.

2. MEC Policy: Maximum Efficient Contract

3. Benefits


Club vs. Swing - Building Your Personal Circle of Wealth® System (ToolBox/Insurance)

1. Club vs. Swing: ToolBox

Illustrate how a life insurance policy can be used to set up a system to accomplish ones financial goals and

desires. Process not Product. The Swing not the Clubs.

2. Garage Story (COW Tales Vol. 13 - Insurance as a garage)

Other Products

Protection Products Long Term Care

Major Medical

Disability

Term Life

Property and Casualty

Wills and Trusts

Investment Products Qualified Accounts

Savings Accounts (MM, CDs)

Securities (Stocks, Mutual Funds)

Annuities

Real Estate

Collectibles


STEP 10: The Close

The Conceptual Close: System modules

Fill out the paperwork

Get the Check

Ask for the referrals

Annual Review: Repeat the sales process

The Validation Close: Spending Game

The Validation Close involves the Spending Game which is an advanced tool and beyond the scope of

the basic training school. We will introduce this tool to you in the basic training class but this will be

only a brief introduction. The Spending Game allows you to:

Look at your client’s assets all on one page

Develop a plan for accumulation and distribution

Illustrate diversification strategy

Illustrate your asset allocation model

Annual Review: Repeat the sales process

You have more than enough ammunition to last a lifetime with any client. You do not need to feel that you have

to show them everything at once. Get the savings process started and come back to some of their less pressing

problems at another time.

As your client becomes more and more educated about the areas of their finances that can cause wealth transfers

they will come back to you to help them with their swing. The Circle of Wealth® system is designed to help

you communicate more effectively with your clients. It is a system written for the client. The wisdom you

shared, learned and communicated through the Circle of Wealth® system will profit you and your clients.

Always remember: Wisdom without compassion is arrogance. Be kind and compassionate with the wisdom you

impart.

Documents

Circle of Wealth Online Study Group Manual Session 1 · Online Study Group Manual Session 1 ... Strategies of the Game: Tic Tac Toe Screen 8: Clubs ... Give the prospect the questionnaire