2012 Quarterly Meeting - PowerPoint Presentation

2012 Quarterly MeetingFPA of the Philadelphia Tri-State Area November 15, 2012West Conshohocken, PA ross@accredited.com

ImplementingtheWealth Management Index ross @accredited.com Ross Levin, CFP Accredited Investors Inc. ® TM

Operational Principles of a Practice ross@ accredited.com How you act: Telos of the Practice A living or a life? Our mission: Improving the individual and collective lives of all that we serve Footprint: Community, Profession, Person

Operational Principles of a Practice ross@ accredited.com How you act: Responsibility (Practical Consequences) Comprehensive planning is expensive to deliver Great people may not be great employees Great people may not be great clients

Operational Principles of a Practice ross@ accredited.com How you act: Ultimate Ends (Higher Purpose) Practice that outlives me Clients that pay it forward A profession that is honest with itself

Operational Principles of a Practice ross@ accredited.com What doesn’t change: The Way It Is Mission Values Succession planning

Operational Principles of a Practice ross@ accredited.com What are you not willing to do: Slippery Slopes Trade errors ($1 v $1000) Client compromises Business owners

Wealth Management Principles ross@ accredited.com Guiding Principals Wealth management involves maximizing your wealth. We define this as integrating all of your resources: Financial Emotional Physical Spiritual

Wealth Management Principles ross@ accredited.com Guiding Principals Our planning expertise will help you strike a healthy balance between these resources. The in-depth level of communication between us will determine our level of success. Wealth management is personal, so we often ask that you share with us some of the many things that you don’t share with anyone but your family.

Wealth Management Principles ross@ accredited.com Guiding Principals We believe in integrating the five key areas of wealth management: Asset Protection Disability and Income Planning Debt Management Investment Planning Estate Planning

Wealth Management Principles ross@ accredited.com Guiding Principals We also believe in spending your life wisely. We believe that life decisions cannot be made solely based on their financial impact. We believe that a competent and fulfilled staff is critical to develop and execute the goals of our clients. We treat out staff with respect and ask that our clients do as well.

Wealth Management Principles ross@ accredited.com Guiding Principals We believe that we should enjoy the process and trust each other. If that stops happening, we believe our relationship needs to be reevaluated. We believe in the value of synergy. A healthy communications and exchange of ideas between all related advisors is essential to achieving your desired success.

Wealth Management Principles ross@ accredited.com Our Commitment to Clients We are committed to independence as a fee-only wealth management firm. We will seek to remove any and all conflicts of interest from our relationship. We are committed to acting as your fiduciary. We will treat your assets, personal information, and values with the same care we would demand of ourselves.

Wealth Management Principles ross@ accredited.com Our Commitment to Clients We are committed to protecting your privacy. Your personal information will be held in strict confidence and will never be shared with third parties without your prior consent. We are committed to integrity. With that, we are committed to our company values, which will never be compromised.

Wealth Management Principles ross@ accredited.com Our Commitment to Clients We are committed to being non-judgmental. We will respect your dreams and values and tailor our advice and services to reflect them. We are committed to providing you with supreme service. Our staff will respond to your emails and phone calls as soon as possible. We are committed to earning your complete trust in us.

Wealth Management Principles ross@ accredited.com Client Commitment to Us We expect you, our clients, to be honest about your goals, personal information, and financial history. We expect you to be open to the challenge of exploring deeper meaning in money and your lives.

Wealth Management Principles ross@ accredited.com Client Commitment to Us We expect you to notify us if you do not completely understand or feel discomfort with any recommendations, strategy, or direction. We expect you, our clients, to treat our staff with respect. Should a conflict arise, however, we would like to know. Please express and discuss your concerns with principals.

Wealth Management Principles ross@ accredited.com Our Community and Employee Commitment We strive to provide a fun and fulfilling work environment for our employees. We are committed to supporting the professional development of all of our staff members. We are committed to giving back to our profession through the sharing of ideas and resources. Many of our staff members are active in industry organizations.

Wealth Management Principles ross@ accredited.com Community and Employee Commitment We believe in giving back to the communities that have provided so much for us. As part of this commitment, our office closes once or twice a year for a day of service. Our staff is also given five paid personal days each year with which to volunteer for any non-profit organization.

Wealth Management Principles ross@ accredited.com Integration: Complex, adaptive systems Effects of a house move Nietzsche

Wealth Management Principles ross@ accredited.com Uncertainty: Flexibility Circumstances change Margins of safety Clients leave

Wealth Management Principles ross@ accredited.com Uncertainty: Step, don’t leap Occam’s razor

Wealth Management Principles ross@ accredited.com “The meaning of our life will be found precisely in our capacity to achieve as much of it as possible beyond those bounds fear would set for us.” - James Hollis

Wealth Management Principles ross@ accredited.com Individual: Different people, different hopes, different histories How we explain things is dependent upon how client receive them

Wealth Management Principles ross@ accredited.com Impermanence: Lives are always changing Mean reversion We are masquerading as immortals; the dual reality or being alive and having to die.

Wealth Management Principles ross@ accredited.com Comprehensive: Everything matters, but not to the same degree Checklist for issues, follow up, follow through

Five Key Areas of Wealth Management ross@ accredited.com Asset Protection (Preservation) 25% Disability & Income Protection (Protection) 20% Debt Management (Leverage) 10% Investment Planning (Accumulation) 25% Estate Planning (Distribution) 20%

Wealth Management Principles ross@ accredited.com Comprehensive: 14 Questions for Objectives /Priority Setting 62 Analytical Pieces for Solutions

Disability and Income Protection 20% ross@ accredited.com What are the income and lifestyle needs and wants of your family currently and prospectively? 35 percent 211 Review current cash flow and budget needs – 30 percent (2.1 percent) 212 Determine the amount of income that you wish to replace if you were to become disabled – 20 percent (1.4 percent) 213 Determine purpose and costs of one-time large expenditures including education, vacation homes, or assistance for family members – 10 percent (0.7 percent) 214 Establish you financial independence goals and the price to be paid to achieve them – 30 percent (2.1 percent) 215 Review your annual charitable giving objectives and how they should be funded – 10 percent (0.7 percent)

Implementation ross@ accredited.com Database: How we list the goalAP Main topics Goals are broken down into the five core disciplines of WMI

Implementation ross@ accredited.com Database: How we describe the goal work

ross @accredited.com Not Discussed/Not Defined 0 Opened Discussion 2 Redefine or Revisit Goal 3 Goal Established 4 Research & Modeling Completed 5 Analysis & Recommendation Completed 6 Presentation & Approval 7 Implementation in Progress 8 Goal Strategy Implemented 10 Achieved (Goal no longer applies) 1 WMI Status Updates for Goals

Database: How the goal work rolls into client letters

How to go from a Client Engagement to an Engaged Client ross@ accredited.com Questions: What brought you here? If we were to do a really good job for you, what would you have experienced? What do you see as your most pressing issues?

How to go from a Client Engagement to an Engaged Client ross@ accredited.com Questions: Who are your advisors? What have you liked and disliked in working with them? What are the financial choices you have made about which you feel really good? What was your process for making those decisions?

How to go from a Client Engagement to an Engaged Client ross@ accredited.com Questions: What has stood in the way of your planning? What where the money messages that you received growing up? Will you be interviewing anyone else?

How to go from a Client Engagement to an Engaged Client ross@ accredited.com Client Personality Phenotypes: Relationship Fear Curiosity Greed

How to go from a Client Engagement to an Engaged Client ross@ accredited.com Work plan establishes which area we will tackle first: Meeting 1: Confirmation of data, paperwork, etc. Meeting 2: Begin Wealth Management Index (WMI) Process

How to go from a Client Engagement to an Engaged Client ross@ accredited.com Outcomes – Keep goals in front, keep asking why Track and report success!

Investment Performance Reporting One-page portfolio summary: Short and long-term performance, asset allocation, and commentary

Prior Year & Year-to-Date Performance Review Returns are presented both in total and by asset class, both in comparison to a benchmark index fund.

Year-to-Date Performance Graphic The portfolio is broken down by asset class, in comparison to the performance for each benchmark.

Since-Inception Portfolio Performance Review Performance for the portfolio is presented by in dollar terms (including both managed and unmanaged assets) and in percentage terms (including only managed assets) in comparison to, for reference, inflation and to the S&P 500.

Current Asset Allocation & Portfolio Weightings The current asset allocation, as well as a display of the current tactical positioning of the portfolio, are presented along with market and portfolio commentary.

Implementation ross@ accredited.comMetaphors Staff In House Expertise Each Wealth Manager is responsible for specific areas External Study groups Allied professionals

Wealth Management Services at Accredited Investors Inc. Internal Operations Team Joan, PHR® Jill Lorenz Marty Principals Ross, CFP® Wil, CFP®, CLU, ChFC, CSA Kathy, CFP®, CAP® Investment Management Team Connie Jenna Nancy, RP® Sean Jacob, CFA Wealth Management Team Sarah, CFP®, M.S. Josh Tyler, CFP® Steve, CFP® Todd, CFP®, MBA Jeremy, CFP ®, AFC, M.S. Kara Brandon, CFP® Ann, CFP®, MBA Becky, CFP®, CPA Brian, CFP ®, M.S. Cynthia, CFP®, CPA Brian, CFP® Tom Megan , M.S. Sam, CFP®, CLU, ChFC, MBA Ryan , CFP® Eric Alan , CFP®, CPA/PFS Client Services Team Loraine Julie Suzy Administrative Assistants Technology Office Administration Investment Planning Services Ross Wil Kathy Financial Planning Services Client Lead Client Lead Client Support Client Support CLIENT Principals Administrative Assistants Technology Office Administration Investment Management Services Ross Wil Kathy Wealth Management Services Investment Manager Wealth Manager Client Support CLIENT Lead Wealth Manager Principals

Index Itself ross@ accredited.comAreas overlap Largest percent relates to cash flow Never know when something is going to be important

Questions? ross@accredited.com