In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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Give Your Self-Employed & Small Business Clients a
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Presentation: Art [email protected]
Dedicated Defined Benefit Services, LLC
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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Agenda Defined Benefit Plans in a Recession Economy:
– A path to rebuilding retirement wealth
Small Business Defined Benefit Plans– The ExpertPlan OnePersonPlus® Program
from Dedicated DB– Compared to other Retirement Plans
Identifying Ideal Clients – Who Qualifies?
Prospecting for $1MM Accounts– Cultivating CPAs and Attorneys as Centers of Influence
Closing the Sale
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
3
Dedicated Defined Benefit Services We’re DEDICATED to providing the best small business Defined
Benefit plan – it’s all we do!
DB plans offer an outstanding tax strategy for financial professionals to present to self-employed and small business clients
Working with ExpertPlan, we create a high-quality experience for financial professionals and their clients from pre-sale through administration
Minimize demand for technical expertise from financial professionals by providing expert plan consulting
Financial Professionals’ support – Expertise by phone – 1-877-677-6267 – Expertise online - www.onepersonplus-EP.com– [email protected]
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
Large, contributions for the next 5-10 years $1 Million to $2 Million in New Retirement Wealth
Contribution is a tax-deduction, saving client as much as $40,000-60,000 this year or more
Stable, low risk investments – you’re not promising high returns
Clients who might have shied away from commitment are now ready -- committed to rebuild
Defined Benefit Plans for Today
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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Retirement Plans for the “Micro-Market”
Closing a Gap in Your Product Line
SIMPLE
SEP
Single 401(k)
DB
DB + 401(k)
$19,900$21,350
$171,300
$134,600
$49,000
$54,500
Maximum Annual Contribution: Participant Age 52, Earning $245,000 Annually
Retiring in 10 Years
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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Product OverviewA Great Tax Strategy for Baby Boomers!
Identify Prospects Easily – Owner age 45+– Owner + 0 - 4 employees – Contribute at least 3
successive years
About New Plans– Avg. annual contributions:
$120,000– Avg. term: 9+ yrs– Prototype plan documents– Integrates with a solo 401(k)
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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1. Identify clients you can help most
2. Start the conversation – before they contribute to a SEP or 401(k) for ’09
3. Present a Proposal
4. Let Dedicated DB Help You Close the Sale
5. Collect up to 50% of Assets Before Year-End
A Recovery Plan to Implement Now!
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
8
Dr. Charles, Age 52Self-employed, Sole prop
No employeesWants Maximum Tax Deduction
Annual earnings: $400,000 Maximum DB+ 401(k) contribution for 2009: $171,300
– Contribution to DB Plan: $134,600 +– Contribution to 401(k): $36,700
Annual tax savings: $65,100 – Combined marginal tax rate of 38%
DB Accumulation at age 62: $2,364,000– 10 years, 5 - 7% rate of return
Annual DB Benefit: $195,000
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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John, Age 55 +2 EmployeesSmall Business Owner, C-Corp
Owner’s W-2 income: $400,000– Employee 1 age 28 earning $35,000– Employee 2 age 35 earning $45,000
2009 Maximum DB contribution for owner: $162,400– DB Contribution for Employee 1: $4,000– DB Contribution for Employee 2: $8,100– 93% of contribution for John
Annual income tax savings for John: $61,700* Retirement accumulation for John at 62: $1,655,000 Annual Benefit for John in retirement: $136,500
*Assumes 38% combined State/Federal marginal rate
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
10
Paul, Age 60, Mary, Age 58
Management Consultants, C-Corp Married Couple in Business Together
5 years from retirement W-2 Income: $490,000 ($245,000 each) Total annual DB contribution: $351,800
– $171,800 towards Paul’s Retirement– $180,000 towards Mary’s Retirement
Annual combined income tax savings: $133,700 Accumulation at retirement:
– Paul: $1,103,000– Mary: $1,156,000
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
11
Susan, Age 56, Professor at Biz School Wants to Secure Retirement with Side Income, Sole Prop
In addition to university salary, Susan has self-employment income from consulting & serving on 2 corporate boards
Annual self-employment earnings after paying self-employment tax: $150,000*
Maximum DB contribution for 2009: $150,000 Annual tax savings: $57,000
– combined marginal tax rate of 38%
DB Accumulation at age 62: $1,230,000– 6 years, 5 - 7% rate of return
Annual DB Benefit: $101,400
* High 3-year average, after payment of self-employment
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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Building Your Business in Today’s Economy What We Deliver
Ongoing Support Training for Financial Professionals Sales Presentations Quarterly e-newsletters Client & Advisor Communications
Sales Support & Plan Design
Advisor Website,Calculator &
Proposal System
Sales Support & Client Marketing Materials
www.OnePersonPlus-EP.com Ideal Clients Proposal Generator Advisor and Client Brochures Sales Kit
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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Building Your Business in Today’s Economy Cultivating the Right Centers of Influence
Deliver Training and Continuing Ed to CPAs, Attorneys
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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Prospecting for $1MM Accounts
Independent Consultants
Board of Directors– Board fees qualify as self-employment income– Income is not necessary to maintain life style
Self-Employed Spouses with “Second Incomes”– The CPA and Advisor typically forget that the self-employed
spouse’s second income can be sheltered Software programmer Therapist Sales rep Paralegal Technical writer
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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University Professors with Consulting Contracts– Business, Engineering, Medical Schools, Economics Dept– Bios on the university Web site
Physicians – Anesthesiologists– Dentists– Emergency Room doctors – Radiologists– Vets
Prospecting for $1MM Accounts
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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CPAs, a Great Referral Source– Create awareness, uncover qualified small business
clients– Help CPA identify high net worth clients who have a
problem to solve – consultants, doctors, dentists, etc– Present to groups of CPAs
Attorneys, another Great Referral Source– Estate planning attorneys – Patent attorneys– Attorneys who assist business owners to sell a
business
Prospecting for $1MM Accounts
In-43793 (4/08) AXA Advisors, LLCFor presentation to financial professionals only
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Closing Your Sale 1. Run a proposal online: www.OnePersonPlus-EP.com
2. Present to client
3. Request a customized proposal: 1-877-677-6267
4. Discuss with client’s CPA Dedicated DB on a conference call
5. Complete Set-Up Questionnaire/Send to Dedicated DB With Set-Up Fee ($1,250 for 1-person plan)
6. Receive Adoption Agreement for signature
7. Open investment account