INTERVENTION POINT

CASE STUDIES

CASESTUDY

01

A wealth manager recently met with a client for whom his firm manages $150,000 of the client’s assets.

 

For years this client has relied on the wealth manager for his market-based AUM.

 

Since the client is approaching the age of 75 they discussed and engaged Intervention Point to create a trust for the client to securely pass his assets to his children and grandchildren:

 

  • During this process, the wealth manager discovered that the client’s total assets amounted to over $1.5 million.

  • They decided together to immediately shift over an additional $500,000 of the client’s current assets to the firm for management.

 

ROI:  Wealth Manager Immediately earned an additional AUM of $500,000, the extension of the new $650,000 AUM for 25 years, plus an additional $1 million in liquidated real estate and insurance proceeds to be managed in the trust after the client’s passing:

 

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Immediate fee increase of $5,000 per year (at 1% of AUM), $50,000 overall (assuming 10 more years of life)

  • Upon the client’s death the fees earned by the firm as the Trust Investment Advisor for the 25+ year life of the trust will be $412,000

  • Total fees increased $462,000

 

Assumptions above: 1% AUM fees, 10 years of existing asset management before the next generation kicks in.

 

A wealth manager planned to turn his wealth management business over to his son, but the average age of his clients is 75 and in the past when clients die the firm loses the account!

 

He discovered that a revocable living trust could name his firm as the Trust Investment Advisor and manage their clients’ assets for another 25 years, as well as accumulate more assets under management from the client estate’s liquidated real estate and life insurance proceeds upon death!

 

The wealth management firm targeted the 50% of their clients whose current average AUM was $200,000.

 

ROI – The early average AUM impact of the clients who bought a trust has been:

 

  • An additional $100,000 in immediate AUM as accounts were discovered outside the firm’s management that could efficiently be consolidated into their firm’s management – an annual fee increase of $1,000 (@1% annual fee)

  • Not only was the current AUM with the above increase secured for an additional 25 years, but additional AUM were included from the liquidated real estate and life insurance proceeds for a total average estate under their Trust Investment Advisor management of $2,000,000

  • Total fees extended for when his son takes control over the firm was $500,000 per client

  • Total future AUM is now secured for 25 years with only 10% of current clients creating a generational trust

 

CASESTUDY

02

CASESTUDY

03

An elderly couple (80s) needed a restatement of a trust they had done in 2008 for $10,000.

 

We restated their revocable living trust on our platform for under $2,500!

 

A trust will extend the AUM into the next generation and the advisor is appointed the Trust Investment Advisor on the liquidated estate including real estate and insurance.

 

ROI – AUM of $3.5 million, extended to next generation for 25 years, Cost of trust: $2,500, Fees to increase: $ 875,000

 

Assumptions above: 1% AUM fees on 25 years extension

 

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15400 Pearl Road, Suite 200 | Strongsville, OH 44136 | 888-544-2619

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