How can you truly help your potential clients see the value in working with you? The Circle of Wealth® system is a fantastic way to show prospects exactly what you do and establish yourself as an agent that provides incredibly valuable insight and guidance.
The overview below includes scripts and visuals that explain how our system can set you apart from other agents and show your prospects your unique value.
Introduction to the Circle of Wealth®
The purpose of the Circle of Wealth® is to share what it is you do with your prospect, and what it is that makes you unique. There are two ways you can help your clients:
- By finding better products that pay higher rates of returns
- By helping them be more efficient and avoiding the losses
Our core philosophy is that there is more opportunity to help your prospects by avoiding the losses than by picking the winners.
We start by asking 10 open-ended questions to guide the conversation, such as, “What are you currently doing in preparation for your financial future?” and “What would you like to see enhanced or improved?”
Once they have a chance to answer those 10 questions, you can transition into the Circle talk by saying, “We spent the last 10 minutes talking to you about what’s important to you. What I would like to do now is take the next 15 minutes and share what it is that I do and see if that’s what you’re looking for. How does that sound?”
Establishing the Client’s Circle of Wealth
This circle represents all the money you will ever have. Your circle of wealth is larger than some folks, some are larger than yours, but there is one thing in common we all have when it comes to our circle of wealth, and that’s what?
That’s right, you want it to grow.
There are many ways to grow your Circle of Wealth. What’s the first thing that comes to your mind in how you make your circle grow?
For most people feel it’s saving more, or maybe working longer, or getting better rates of return. Probably 95 percent of the people in the financial services industry would have a conversation with you something like this: “How much do you have, where’s it at? Oh, we can do a lot better if you move your money to us.”
While most advisors will want to spend time with you on that topic, I want to share with you what makes me unique.
The Three Types of Money
There are three types of money I would like to talk to you about today.
- The first, which gets the most focus, is your Accumulated money. This represents the amount of money you currently have invested and are currently saving.
- The second type of money is your Lifestyle money, which represents the dollars that you are spending to maintain your current standard of living: where you live, what you eat, where you vacation, etc. How much energy would you like to spend towards reducing your present standard of living so that you can save more money? We know we need to save more and want to do so but the only way we know to get the money is from our lifestyle.
- This brings us to the third type of money, which is Transferred money and is a problem for some. This focus is what makes me unique. Transferred money represents the money you may be transferring away unknowingly and unnecessarily, such as how you pay for your house (should you put a lot down or a little?), how much you pay in taxes today and in the future, how your fund your retirement accounts, non-deductible interest, and how you pay for major capital purchases like cars, college, other large expenses.
Now if in working together, I could help you find the money that you’re currently losing and bring that back to the table, would you agree that most of it should go into your accumulated assets so your financial future is more solid?
We’re realists too because some of this money we find needs to go into your lifestyle so that the journey along the way is a pleasant one. How does that sound with what you’re looking for?
Is opportunity cost a term you’re familiar with?
If you lose a dollar, so for instance if you paid a dollar in taxes that you did not have to pay, you not only lost a dollar, but you lost what that dollar could have earned for you had you been able to keep it. That’s called opportunity cost.
Here is a list of some of the major areas of wealth transfer:
You got to be in control of your money. You’re either going to be a customer of a bank or you’re going to learn to be the bank. Which one would you like?
Who won tic-tac-toe game the first time you played it as a child? It was the person that showed you. They said, “I’m the X. You’re the O, three in a row.” You and I lost this game regularly until we learned what? We learned the strategies. The same is true in the world of finance.
The financial institutions that you and I have to deal with on a daily basis, they have rules? Do they teach you the rules? No. You must learn as you play and, unfortunately, you can end up transferring hundreds of thousands of dollars away unknowingly and unnecessarily.
Now, should you decide to work with me, my job is not to play the game for you, but more to help you with a strategy so that you can play more efficiently.
Savings & Investments
Most people, what little time they spend on their money, spend their time on their savings and investments. Like you, they don’t want anybody touching their lifestyle but they do have areas where they’re transferring money unnecessarily.
Now we’ve already looked at this. If all the advisor does is focus on your savings and investments, for your circle of wealth to grow, you’re going to have to take on more risk.
What are your thoughts about more risk? Right, no one wants that.
Well, the golfer is there for this reason. Let’s assume that we’re going to send you to play in the Masters, golf’s most prestigious event. There are two things we have to give you. You get to pick one:
- You can have the clubs of any player that has ever played a round of golf
- Or you can have their ability
What would you choose?
Well, obviously you would choose the ability. The swing is much more valuable than the club.
Now what is it that financial institutions bring to the table? Well, they have products, which we’re going to call the club.
Now obviously you’ve got to have clubs to play golf. But what we’re saying is we think it’s imperative that we take our clients and prospects first to the practice tee to get the swing correct; by that we mean avoiding the losses before we ever take them over here and fit them for the clubs. Make sense?
Growing Your Circle of Wealth
Your circle of wealth is going to grow whether you work with us or not. Just time alone is going to make it grow. However, if you’re not working with someone who understands these issues, these problems can compound right along with the growth of your money, which is quite unfortunate.
Where to Begin?
So, where would you like to begin our initial focus in working together?
We could focus first on your accumulated money. Try to take what you’ve already got. Find better investments that pay higher rates of return and you will likely take more risk.
Second, we could focus on your lifestyle, reduce your present standard of living so you can save more.
Third, we could focus on finding money you could be transferring unknowingly and unnecessarily.
Which would you like?
Plugging the Financial Holes
There are two ways to fill up a bucket that has got holes in it. What are they?
- You could plug the holes – then the bucket will fill up even if the flow is a trickle
- You could pour more in
Now which one of those two strategies have the financial institutions had you employing in your present financial position? That’s right, pouring it in.
Well, while you may want to pour more in, it doesn’t make any sense to pour more in until what? You’ve plugged those holes.
If I were to write a generic prescription, which means good for everyone, I would say this: You probably need to be saving a minimum of about 20 percent of your gross income. With your debt service at zero, that’s everything but your mortgage, living off of 80 percent.
The Circle of Wealth® system can show prospects how much money they should be saving each year, and how much to increase it with inflation, so you can ask:
- When you see that number what is going on in your mind right now?
- If I could find that amount without it impacting your present lifestyle, would you save it?
- I know you don’t know how I’m going to do it yet, but assuming I can find that money, on a scale of 1 to 10, 10 being the highest, how does what I do meet with what you’re looking for?
As you can see, our Circle of Wealth® system provides a lot of value to you and your potential clients. In additional to helpful visual guides and scripts, which establish your unique value over many agents’ product-based approaches, our system will provide you with extensive training and vast resources so you can help your prospects as effectively as possible. Want to learn more? Visit our Circle of Wealth® page or contact us for details!
MoneyTrax, Inc. was founded in 1994 by Don Blanton and has gained national recognition for its unique financial planning approach, intuitive client presentation software, advanced training, and effective marketing tools. Since inception, MoneyTrax, Inc. has helped thousands of financial advisors nationally better serve their clients by providing the tools and training necessary to educate and increase their client’s financial Circle of Wealth®. The Circle of Wealth® system significantly expands the financial advice available to a family beyond the industry accepted approach used by most advisors today. Click here to learn more.