PROPRIETARY & CONFIDENTIAL TO VESTWELL HOLDINGS / FOR INSTITUTIONAL USE ONLY

Uncharted Territories:Building Your Brand In Your Local 401(k)

Market

By: Ben Thomason, EVP, Revenue @ Vestwell

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1. Efficiency Blueprint

2. Sales & Marketing Tactics

3. Lab: Act Locally

4. Maximizing The Opportunity Beyond 401(k)

5. Q&A

AGENDA

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507k

SMB companies

with a plan

500k

SMB companies

with NO plan

$1.3T

Current SMB 401(k)

assets w/ less than $50M

$7.8B

Revenue opportunities for

SMB plans at 60BPS

70% - 90% of Plans are Advisor Sold

The opportunity is there

The basics: blueprint for efficiency in the 401(k) advisory practice

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Efficiency

Blueprint

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Sales & Marketing

Tactics

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Lab: Act Locally

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Maximizing the

Opportunity

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Provider and investment consolidation

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Avoiding key pitfalls:

Too many investment options →

a. Excessive monitoring

b. Unmanageable quarterly meeting prep 1

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Competing with recordkeepers →

a. Where does the wealth business go?

b. How important is participant data?

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Preparing for scale →

a. Streamlining processes and investments makes scale possible

b. 20% valuation increase if you have a book of business that can scale

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3

.

dada

Client service in the digital age

1. Reporting tools

2. Financial technology providers

3. Telecommunication

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MUST BE

Flexible

Modern

Scalable

Tactical sales & marketing initiatives for expanding market share

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Efficiency

Blueprint

Sales &

Marketing

Tactics

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Lab: Act Locally

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Maximizing the

Opportunity

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Tapping into the market

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• 40% of millennials have worked in at a start-up

• 66% of millennials have no retirement savings

• 82% of millennials say a retirement plan is a critical factor in deciding whether to take a job

• 83% of companies with 100+ workers offer a retirement plan → important to develop relationships

early

• 75% of individual investors are interested in sustainable investing; sustainably-minded investment

decisions are up almost 20% from 2015 to 2017

• Stacking your investment line-ups with products that matter to prospects can help influence

their decisions

• Only 53% of small- to mid-sized businesses, those with five to 250 employees, offer a retirement plan

• There are 30.2 million small businesses in the US

Corporate

Start-up

Not-for-profit/

403b

SMB

• Slow to convert

• Saturated

Tactical initiatives for expanding market share

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Leveraging Local Opportunities• Stay close to your local Chamber of Commerce

• What industries represent the largest employers?

• What companies are the largest employers?

• Do you have a client wish list?

• What products/services do you buy?

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Becoming an Industry Expert● Once you identify the largest industries/employers, commit to becoming an expert in

the nuances of that industry

○ We’re all experts in our own field, shouldn’t you know your prospect’s buz?

● Once you know the business, you can begin asking business partners for referrals

● Working with Asset Management partners - you can host events that are tailored to

their industry

● Attend industry conferences - offer to speak at those events on a related topic

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Adding Value• Once you have identified the companies you want to work with:

• Be prepared to offer complimentary work product

• Comparative cost/value

• Legislative/regulatory updates

• Provider news and concerns

• DIg deep to understand the committee’s needs

• Understand it takes time to win the engagement, so think through 12-18

months worth of materials

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Automating Polite Persistence• Now that you have a dialogue in place with the company, make sure you

understand the tactical administrative realities

• Map the entire committee, make sure you understand the political realities

• Make sure to map the committee’s meeting calendar

• TIme your follow up appropriately

• Look at your current clients and see if there are connections between them and

the engagements you are trying to win

Lab: tapping into a local example

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Efficiency

Blueprint

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Sales & Marketing

Tactics

Lab: Act

Locally

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Maximizing the

Opportunity

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Example

Client Profile

1. Austin Association for Financial Professionals

2. Austin Chamber of Commerce

https://www.austinchamber.com/economic-development/key-industries

1. National Instruments - Treva Rumbeck

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Taking Action Understand membership; position yourself;

reach out to Executive Committee

Understand membership; choose your

industries; pull down data on companies

Once you’ve located the companies: map the

committees - make the connections

Maximizing the opportunity: supporting clients across multiple lines

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Efficiency

Blueprint

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Sales & Marketing

Tactics

Lab: Act Locally Maximizing the

Opportunity

dadada

Maximizing the Opportunity Beyond 401(k)

Health & Benefits

• Convergence of health and

wealth

• Retirement rated 3rd most

important employee benefit

• HSA - 402(k)

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Wealth

• Retirement and tax benefits

• Retirement needs beyond

401(k) and social security

• IRA/brokerage

Payroll

• Partnerships

• Plan sponsor

consultation

Questions?For additional questions,contact sales@vestwell.com

Disclosures

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About Vestwell Holdings, Inc.

Vestwell Advisors, LLC, a 3(38) and 3(21) SEC registered investment advisory firm, is a wholly owned subsidiary of Vestwell Holdings, Inc., specializing in

401(k) and other defined contribution retirement investment management services. Vestwell assumes 3(38) and 3(16) fiduciary responsibility on the behalf of

advisors and firms. Learn more at Vestwell.com and on Twitter @Vestwell.

This is not an offer, solicitation, or advice to buy or sell securities in jurisdictions where Vestwell Advisors is not registered. An investor should consider

investment objectives, risks and expenses before investing. More information is available within Vestwell Advisors’ ADV. There are risks involved with

investing. Investors should consider all of their assets, income and investments. Portfolios are subject to change. All opinions and results included in this

publication constitute Vestwell Advisors’ judgment as of the date of this publication and are subject to change without notice.