Japanese Living in US: Tax and Wealth Management Strategy 2020/2021
Explore the comprehensive strategy for Japanese individuals living in the US focusing on tax optimization and wealth management. The plan includes insights on market size estimation, revenue generation, and reaching out to the broader US market. Key points cover new tax revenues, Japanese population statistics, and the CDH system of revenue generation. Take advantage of the opportunities presented by this strategy for successful financial growth and market reach.
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Presentation Transcript
2020/2021 Strategy Japanese living in the US tax(1) and wealth mgt(2) KOH FUJIMOTO
New Tax Revenue Generated at $1.685 million YTD New Net Revenues for CDHW at $130,000 CDH Newsletter Subscriber 60,000 at 9/30/2021 LinkedIn contacts at 30,000 (10,250 at 9/30/20) YouTube subscriber at 10,000 Milestones at 9/30/2021 This Year should be the 1st full year as a National, Independent and Full-scale Practice Well known to the whole US market in this segment
The Japanese Population in the US 460,000 106.00% 450,000 105.00% 440,000 104.00% 430,000 420,000 103.00% 410,000 102.00% 400,000 101.00% 390,000 380,000 100.00% 370,000 99.00% 360,000 2019 350,000 98.00% H22 H23 H24 H25 H26 H27 H28 H29 H30 3
Total Market Size Estimation Number of Green Card Holders: 210,245 (per Japan foreign ministry) Number of visa holders except Expats: 70,000 (est. out from 236,680 of long term stay population (Japan foreign ministry) Total of the Two: 280,245 Estimate of Non-registered Japanese in the US: 250,000 Estimated Number of persons per household: 2.5 Estimated Households: 212,098 (TV Japan ads go to 60,000 households in US and Canada) Estimated Ave Expenditure for the tax/wealth mgt work: $500 Estimated Total Market Size: $106,000,000
CDH system of revenue generation Performance Measure C YouT ube Amaz on Newsl etter Proposal 1. 2. 3. 4. Annuity IRA Life Insurance Advisory Semin ars/o nline, live Win Ratio $ Revenues & GP Wealth Mgt potential Reach out to CDH Performance Measure D Advantage of our Knowledge of Japan wealth mgt and Japan tax Identify Opportu nities Up US Mkt Reach Proposal 1. 2. 3. 1040 prep Delinquent Prep Covered Expat Plan Exit Planning/Consul Win Ratio & Revenues & GP Info on system 4. Tax FB/In stagra m Linke dIn Prior Yr. Tax returns KEY POINTS of THIS STRATEGY: 1. Mkt reach=cover the entire US 2. All information are tracked in a system (CRM?) 3. Measure key performance measures from A to D on a regular basis 4. By reviewing prior tax returns, identify opportunity and move the que to wealth mgt or tax dept. Performance Measure A Performance Measure B Num. of Returns for Reviews & the same / A Num. of Subscribers
CDH system of revenue generation Performance Measure C YouT ube Amaz on Newsl etter Proposal 1. 2. 3. 4. Annuity IRA Life Insurance Advisory Semin ars/o nline, live 40 Wins(50%) Wealth Mgt potential 80 Opp. (1.6%) 2000 Inquiries (40 inquiries/wk) Performance Measure D Identify Opportu nities Up US Mkt Reach Proposal 1,600 Opp. (53%) 60,000 Households 1. 2. 3. 1040 prep Delinquent Prep Covered Expat Plan Exit Planning/Consul 820 Wins(51%) 1,000 Returns (19 returns/week) 4. Tax FB/In stagra m Linke dIn Prior Yr. Tax returns Uploaded to our Website We need to constantly monitory KPIs (all figures in black rectangular) using the dashboard. Performance Measure A Performance Measure B 60,000 Subscribers (28% of the entire mkt) 3,000 Returns or Inquiries/5% Response Rates
CDH system of revenue generation YouT ube Amaz on Newsl etter WIN Proposal 1. 2. 3. 4. Annuity IRA Life Insurance Advisory Semin ars/o nline, live Wealth Mgt potential Reach out to CDH LOSE WIN Advantage of our Knowledge of Japan wealth mgt and Japan tax Identify Opportu nities Up US Mkt Reach Proposal 1. 2. 3. 1040 prep Delinquent Prep Covered Expat Plan Exit Planning/Consul Info on system 4. Tax LOSE FB/In stagra m Linke dIn Prior Yr. Tax returns We should aim to develop an AI based system in (1) identifying opportunities, (2) suggesting proposal pricing and (3) predicting win % of the proposals. We do not have to invent this. We can use other program (pretrained one from an open source field) and add our specific niched strength such as our cross-border knowledge base.
Remaining questions Should we charge for an initial meeting? Should we only target high net worth individuals or target at least large segments (at least top 50% of the market)? How do we convince people that a professional such as CDH must do tax and wealth mgt? How much data do we need to be able to analyze the data? How can we obtain the date without any pains on prospects side? We should develop monthly budget based on this, and estimate the workload Where do we find the best pre-trained network? Is data we are getting from the market large enough? How can we herd people from the entire market to come to CDH? Establish a national brand of CDH online how can we have clients come back to us? -get outsourced help in YouTube-budget? Value Creation and Value Capture? find a way to create more interactions? Should we partner with a third party?- making the progress a lot faster. Think of sample selection bias and sample size disparity ---what is the ignored samples
1040 500 $500,000 ($1000/return) Streamlined Submission Compliance Procedures-20 $100,000($5,000/proc.) Delinquent submission procedures 25 $25,000 ($1,000/proc) 1040 NR-Dual Status with 8854 100 $300,000 ($3,000/returns) Tax consulting 75 $250,000 ($3,333 per consul) Others (706, 706 NA, 707) 100 $500,000 ($5,000/return) Online Salon Membership fee $10,000 Other digital revenues, including book royalty Unknown $1,685,000 (820 wins) New Tax Revenue breakdown
Annuity $50,000 (10 sales) AUM Fee $50,000 (20 New Accounts at Ave of $250,000) Others $30,000 (10 new clients) New WealthManagement Revenue Breakdown
2020/2021 Action Points marketing/BD Increase our newsletter/other media reach to 60,000 Obtain 5000 new tax returns uploaded for review Build a system where our opportunity identification process goes smoothly Get as many wins as possible with ample profitability (Increase the conversion rates) Identify wealth mgt service persons or team Build a system where we can easily accumulate and analyze the data
CDH newsletter reaches 9500 subscribers Obtained 10,000 LinkedIn Started a YouTube Channel Increased CDHW revenues on a steady pace Learning CDHW knowledge steadily Reached the combined new revenues of about a half million Completed Harvard Business Analytics 2019/2020 Successes
Not getting enough subscribers in YouTube New client onboarding created unsatisfied clients due to our service level or different expectation (email frequency, organizer, and timing) Invoice timing not matched with the completion of work Prohibited use of Japanese language in CDHW Outside business activities limitation imposed by Cambridge Slow in generating new revenues in Chicagoland not able to raise a local presence At time, used significant energy to obtain a new client only to find that he walked away before sending us the information Not using Tableau Prep, SQL, Python, R Studio Failed to get more involved and find new team members wealth mgt and specialty tax consulting Obstacles in 2019/2020
Lessons Learned in 2019/2020 How to reach to different Prospects Segments-cyber, manual, community based Need to establish an expectation with a new client Inform about the final billing procedure to a new client Must be more selective in client acceptance to minimize exceptions and disruptions in the operations PPP webinar series were good choice to obtain recognition in the entire nation-meeting the very needs is critical Need to get others involved, set up expectations to partners Need to build supporters in each area
