For Advisor Use Only — Not for Public Distribution 1

Karl N. HuishChief Retirement Strategist

© 2010 LWI Financial Inc. All rights reserved. The material in this communication is provided solely as background information for registered investment advisors and is not intended for public use. Unauthorized copying, reproducing, duplicating, or transmitting of this material is prohibited. LWI Financial Inc. (“Loring Ward”) is an investment advisor registered with the Securities and Exchange Commission. Securities offered

through Loring Ward Securities Inc., an affiliate, member FINRA/SIPC. # 11-054 (02/11)

To your

For Advisor Use Only — Not for Public Distribution 2

Impatient Isabel

Impatient Isabel is new to plans, working on COI relationships.

Isabel does not view the on-demand training.

Isabel uses online database. She scheduled an initial discovery visit.

Plan sponsor tells Isabel that they have already made a decision to move their plan to different record keeper.

Isabel is persistent on requesting a proposal from LWTR.

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When a plan sponsor says no, use the most powerful word in your vocabulary – NEXT! Don’t waste efforts with prospects that have no interest.

Be careful about online databases. Best to focus on your own clients and other “Low Hanging Fruit”.

Lessons from Impatient Isabel

If a COI is not willing to commit to referrals, move on to the NEXT referral source.

An “introduction” is much better than a “referral.” What is the difference?

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Relationship Roger

Relationship Roger has industry but not 401k experience. He has viewed LWTR on-demand training.

Client approached Roger about 401k plan.

Roger utilized LWTR resources to answer plan sponsor questions regarding optimizing plan design and participant education.

By asking good questions, Roger discovered that the company had an existing $5MM DB plan. The Plan Sponsor told Roger that the 401(k) provider will also receive the DB plan.

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Clients are your best referral source.

Take advantage of LWTR’s resources, knowledge, and due diligence. Roger was able to receive the additional $5MM plan because he utilized LWTR’s resources.

Lessons from Relationship Roger

Look for existing DB plans.

Minimum plan size is $500,000. Startups are permitted in three circumstances:(a) Advisors own plan;(b) At least 25 participants; or(c) Strategic referral relationship, approved by LWTR.

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Elephant Ernie

Elephant Ernie has very limited plan and advisory experience. He wants to hunt elephants!

Ernie’s acquaintance is the CFO of a 401(k) Plan with $20MM.

LWTR’s proposed fees were less than the current provider.

Ernie was unable to clearly communicate LWTR’s competitive advantage.

Result: The business owner did not want to convert their plan because he felt LWTR did not offer any additional benefit and they did not want to endure the conversion “hassle”.

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Ernie had a weak relationship with one person at the Company. That wasn’t enough.

Lessons from Elephant Ernie

Ernie wasn’t experienced enough to ask good questions.

Successful advisors ask the right questions and know how to provide the right solutions using the “5 Retirement Plan Essentials.”

Determine upfront whether the sponsor is interested in moving the plan. If not, you move on.

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Listener Larry

Larry is an experienced advisor yet carefully reviewed the on-demand training.

Larry’s existing client referred a business owner to him.

Larry reviewed the 5 Retirement Plan Essentials with the business owner. He also listened to the concerns of the business owner and asked the proper questions based on what he had learned from the on-demand training.

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Larry was teachable. He learned the key questions to ask and message to deliver.

Business owner’s concerns were resolved.

Because Larry was able to educate his new client on Loring Ward’s Structured Investment philosophy, he was able to obtain his personal assets as well. Big bonus.

Lessons from Listener Larry

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Promising Peter

Peter didn’t want any training or advice.

Peter used an online database to find and schedule a discovery meeting with a prospect.

During the discovery meeting, Peter promised the plan sponsor lower fees.

Uh Oh! LWTR’s proposal and comparison did not show lower fees than their current plan.

Peter was not comfortable presenting a proposal with higher fees. LWTR coached him to use all 5 Retirement Plan Essentials but he never presented the proposal.

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NEVER promise lower fees to a prospect. Instead, focus on a better overall plan.

Peter should have taken the time to become educated on LWTR’s philosophy and total solution.

Peter should have educated the prospect on The 5 Retirement Plan Essentials, and not “sold” the lowest fee.

Lessons from Promising Peter

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Convert Carlos

Carlos is new to 401k plans. He became educated and trained.

Carlos approached his client about the $5MM 401(k) plan. Carlos asked the proper questions during the discovery meeting. Then, he addressed their issues by reviewing The 5 Retirement Plan Essentials.

Carlos worked closely with his LWTR Retirement Plan Specialist and learned about the client’s current plan and was able to convey the LWTR principles to him.

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Carlos was trained to provide education and ask the right questions during the discovery meeting.

By positioning himself as a knowledgeable advisor, Carlos gained the confidence and respect from his client and became the advisor on the $5MM plan.

Lessons from Carlos Convert

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Lazy Lisa

Lisa thought having her own 401k was sufficient “training”.

During the proposal process, LWTR found discrepancies between the plan document and the information listed on the 5500 filings.

LWTR notified Lisa that the previous TPA must correct the issues before LWTR could accept the plan. LWTR coached the advisor on how to approach the issues with the plan sponsor.

Lisa was unwilling to tell the Sponsor that it had issues with the existing plan.

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Prior 401(k) experience is not a substitute for learning the LWTR’s process. Part of the on-demand training videos is how to effectively work with LWTR.

It is Lisa’s responsibility, as the advisor, to inform the plan sponsor, her client, of any issues on their plan.

LWTR cannot accept retirement plans that have legal issues and cannot correct old issues.

Lessons from Lazy Lisa

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“I did it my way” Frank

Frank is new to the retirement industry and never viewed the on-demand training.

Frank converted his first plan. However, he did not set proper expectations with the plan sponsor and participants. He felt that he would lose this prospect if he explained the plan setup and conversion process to them.

Frank opted not to use SmartPlan to educate participants. Also, he refused to utilizing the record keeping website to monitor the plan. He wanted to do it his way.

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Frank was unable to explain how the systems and tools would benefit the plan sponsor. This caused Frank frustration because he cannot answer day-to-day questions, and has difficulty maintaining the confidence of the plan sponsor and the participants.

By utilizing the tools and systems provided, it minimizes the problems and frustration when converting plans .

Lessons from “My Way” Frank

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Startup Sam

Sam has retirement plan experience but still viewed the on-demand training to learn about LWTR’s offering.

Sam’s client, a business owner, approached him about investing more money for his retirement.

While we normally want to avoid start-up plans, based on LWTR plan design review, we recommended a 401(k) plan with a cash balance feature.

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Sam utilized LWTR’s resources to optimize plan design. His client is now maximizing contributions and providing a retirement benefit for employees.

Though a startup plan, because of the guaranteed safe harbor contributions, profit sharing and additional cash balance feature, the plan assets will grow quickly.

Lessons from Startup Sam

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Some Key Lessons

With plan sponsors: Seek first to understand, then to be understood. The training really helps. Use it!

“Fast is slow. Slow is fast.” Discover questions How to convey “The 5 Retirement Plan Essentials”

Don’t promise lower fees. Don’t hunt elephants without (a) experience, and (b) a strong relationship. Existing clients are the best source of business. Database searches are generally not helpful. Introductions are better than referrals. Start-up plans are (usually) not profitable. If the plan sponsor isn’t interested in improving their plan, next! LWTR has a good turnkey solution to minimize wasted time and frustration,

and maximize satisfied clients.

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