financial services

FinancialFinancialServicesServices

7 U.S. Federal Reserve, May 2005. 8 Baker,D. “Dangerous Trends: The Growth of Debt in the U.S. Economy.” Washington, D.C.: The Center of Economic and

Policy Research, Sept. 2004. 9 U.S. Census Bureau, “Facts for Features: Back to School.” August 2005. 10 Weller, Christian E. Ph.D. “Families Work Longer to Pay for Middle-Class Items than a Quarter-Century Ago,” Center for American

Progress, Oct. 2005. 11 American Council of Life Insurers, ACLI Life Insurers Fact Book, 2003.

The Need ExistsThe Need Exists……

With With little or no little or no educationeducation on financial on financial matters, most matters, most consumers need consumers need guidance to help them guidance to help them make informed make informed choices to meet choices to meet today’s environment…today’s environment…

In 2005, people were In 2005, people were spending beyond their spending beyond their means: means: • Consumer DebtConsumer Debt = =

More than $2 trillionMore than $2 trillion• Household DebtHousehold Debt = =

116% of disposable 116% of disposable income (record high)income (record high)

MASSIVE DEBTMASSIVE DEBTThe Need ExistsThe Need Exists……


Savings as a share of Savings as a share of disposable income: disposable income:

• 1980s = 10 % 1980s = 10 % • 1990s = 5% 1990s = 5% • 2000s = 1%2000s = 1%

WEAK SAVINGS HABITSWEAK SAVINGS HABITS


• College costs have College costs have more than doubled more than doubled from 1990 to 2005.from 1990 to 2005.

• Average Annual Average Annual College Tuition over College Tuition over 4 years: 4 years: Public: $42,640 Public: $42,640 Private: $124,204Private: $124,204

HIGH COST OFHIGH COST OFEDUCATIONEDUCATION


• Things have changed for Things have changed for the average two-earner the average two-earner American family in the American family in the last 25 years:last 25 years:• They have They have $1,702 less$1,702 less

annually to save for annually to save for retirement after paying retirement after paying for basics such as for basics such as clothing, food and clothing, food and utilities.utilities.

RETIREMENT & THERETIREMENT & THERISING COST OF LIVINGRISING COST OF LIVING


• If you should die If you should die unexpectedly, unexpectedly, without proper without proper protection, your protection, your family could be family could be facing serious facing serious financial concerns.financial concerns.

• Average Single Average Single Insurance Death Insurance Death Claim = Claim = $11,421$11,421

UNEXPECTED LOSSUNEXPECTED LOSS

OverviewOverview

Future productsMortgage ServiceRefinance

Purchase

ELOC

Primary Residence

Investment Property

OPPORTUNITY

P and CHomeowners

Insurance

Umbrella Policies

InsuranceServices

Term-ROP Term

Universal Life

Equity Indexed Life

Wealth Accumulation

Products

The The ProblemProblem

Household ExpensesHousehold Expenses

MortgageMortgage $2,000 $2,000Food/BillsFood/Bills $1,000 $1,000Car + InsuranceCar + Insurance $ 500$ 500Credit CardsCredit Cards $ 500$ 500Misc.Misc. $ 500$ 500TOTAL BILLSTOTAL BILLS $4,500$4,500INCOMEINCOME $4,500 $4,500DISCRETIONARY INCOMEDISCRETIONARY INCOME : : -0--0-


MortgageMortgage $2,000 $2,000Food/BillsFood/Bills $1,000 $1,000Car + InsuranceCar + Insurance $ 500$ 500Credit CardsCredit Cards $ 500$ 500Misc.Misc. $ 500$ 500TOTAL BILLSTOTAL BILLS $4,500$4,500INCOMEINCOME $4,500 $4,500DISCRETIONARY INCOMEDISCRETIONARY INCOME : : -0--0-

The The ProblemProblem

If we could show you a way to free up $700 to $1000 from your

family expenses, without changing your Lifestyle…

Would you save for your future?

SolutionSolution

New Cash Flow New Cash Flow + $1,000 + $1,000 Without Cutting Back LifestyleWithout Cutting Back Lifestyle


MortgageMortgage $2,000 $2,000Food/BillsFood/Bills $1,000 $1,000CarCar $ 0$ 0Credit CardsCredit Cards $ 0$ 0Misc.Misc. $ 500$ 500TOTAL BILLSTOTAL BILLS $3,500$3,500INCOMEINCOME $4,500 $4,500

What is it What is it REALLY REALLY worth?worth?

• Save $500 per month for Emergency FundSave $500 per month for Emergency Fund• $6,000 saved for emergency use after 1 year$6,000 saved for emergency use after 1 year

• Invest $500 per month for 25 years Invest $500 per month for 25 years

Growth @ 6% Growth @ 8.5%Growth @ 6% Growth @ 8.5% $346,000$346,000 $516,000$516,000

• Could YOU use an extra Could YOU use an extra Half Million DollarsHalf Million Dollarsat Retirement?at Retirement?

Asset AccumulationAsset Accumulation

• What interest rate do you earn on What interest rate do you earn on equity?equity?

• Is Equity liquid?Is Equity liquid?

• Is Equity Safe from market Risk?Is Equity Safe from market Risk?

Asset AccumulationAsset Accumulation

• If you could earn a rate of return on If you could earn a rate of return on Equity would you want the extra Equity would you want the extra money?money?

• Can you afford to waste the Can you afford to waste the potential income?potential income?

Solution #1Solution #1

OR

$2,000

The difference is The difference is $500$500

If we invest $500 per monthIf we invest $500 per monthover 30 years @ 8.5% =$825,000over 30 years @ 8.5% =$825,000

Then pay off loanThen pay off loan --($300,000)($300,000)

The client has The client has $525,000 $525,000

LevelLevel

Interest OnlyInterest OnlyMortgageMortgage

$1,500$1,500

Loan AmountLoan Amount

$300k$300k

$300k$300k

Solution #2Solution #2

However, not everyone lives in their However, not everyone lives in their

home for 30 years. Assuming we home for 30 years. Assuming we

live in our home for 7 years.live in our home for 7 years.

We invest $500 per month over We invest $500 per month over

7 years @ 8.5% :7 years @ 8.5% : $ 57,122 $ 57,122

After 7 years, the home may After 7 years, the home may

appreciate to appreciate to $400,000 $400,000

The client owes:The client owes: -($300,000) -($300,000)

Profit on sale of home is: $100,000Profit on sale of home is: $100,000

Client nets:Client nets: $157,122$157,122

LevelLevel

Interest OnlyInterest OnlyMortgageMortgage

$1,500$1,500

$2,000

Loan AmountLoan Amount

$300k$300k

$300k$300k

Equity is GreatEquity is Great

Cash Is KING!Cash Is KING!

CompensationCompensation

• Life License:Life License:• 25% - 75% Commission25% - 75% Commission


• You can BE the advisorYou can BE the advisor

• You can TRAIN with an advisorYou can TRAIN with an advisor

• You can REFER to an advisorYou can REFER to an advisor


RefinanceRefinance

$400,000 Loan Amount$400,000 Loan Amount

x 2% x 2% (points)(points)

$8,000 $8,000

x 60% x 60% CommissionCommission

$4,800: x 3 Clients$4,800: x 3 Clients

Equity Indexed LifeEquity Indexed Life

$ 500 per month$ 500 per monthx12 x12 $ 6,000$ 6,000 x70% x70% $4,200: x 3 Clients$4,200: x 3 Clients

$14,400 Mortgage Income $14,400 Mortgage Income $12,600 Financial Services Income$12,600 Financial Services Income

$27,000 Monthly Income$27,000 Monthly Income

$324,000 / Year potential$324,000 / Year potential

CompensationCompensationReferring agent CompensationReferring agent Compensation


25/75 Split with advisor 25/75 Split with advisor Initiate and introduceInitiate and introduceAdvisor manages the relationship/processAdvisor manages the relationship/process

$1050. per client (example)$1050. per client (example)

$14,400 Mortgage Income $14,400 Mortgage Income $4200 Financial Services Income$4200 Financial Services Income




Participating AgentParticipating Agent


50/50 Split with advisor 50/50 Split with advisor Attending Client meetingsAttending Client meetingsManaging the relationshipManaging the relationship

$2100. per client (example)$2100. per client (example) $14,400 Mortgage Income $14,400 Mortgage Income $6,300 Financial Services Income$6,300 Financial Services Income




Producing/ Sr. AgentProducing/ Sr. Agent

$ 500 per month$ 500 per monthx12 x12 $ 6,000$ 6,000 x70% x70% $4,200$4,200: x 3 Clients: x 3 Clients

$14,400 Mortgage Income $14,400 Mortgage Income $12,600 Financial Services Income$12,600 Financial Services Income



CompensationCompensation• We are looking for Leaders/ManagersWe are looking for Leaders/Managers• As a Managing Advisor you supervise 10 As a Managing Advisor you supervise 10

Advisors Advisors

• $15,000$15,000 BusinessBusiness• x 10 x 10 AdvisorsAdvisors• $150,000$150,000 TotalTotal• x 20% (Avg-Management Override)x 20% (Avg-Management Override)

• $30,000$30,000 Monthly Income Potential Monthly Income Potential

• This does NOT include renewal or trail This does NOT include renewal or trail commissionscommissions

• This does NOT include any IRA/401k Rollover This does NOT include any IRA/401k Rollover businessbusiness

Take the Next StepTake the Next Step

Four major reasons to Four major reasons to expand into Financial expand into Financial ServicesServices• A tremendous need in A tremendous need in

marketplace exists for solid marketplace exists for solid financial advice financial advice

• Excellent earning potential Excellent earning potential as an Advisor or Manager.as an Advisor or Manager.

• Opportunity to help others Opportunity to help others while helping yourself and while helping yourself and your familyyour family

• Powerful recruiting tool for Powerful recruiting tool for Loan Advisors and LeadersLoan Advisors and Leaders

Take the Next StepTake the Next Step

• Now the time has come Now the time has come to…to…• Register for the Life Register for the Life

Insurance class today.Insurance class today.• Begin to Identify and Begin to Identify and

prepare your best prepare your best prospects prospects

• A Great Opportunity is A Great Opportunity is only Great IF YOU ACT only Great IF YOU ACT ON ITON IT

Pre-Registration For Pre-Registration For ClassClass

• Tentative dates for prep classesTentative dates for prep classes• October 9October 9thth through the 13 and the 17 through the 13 and the 17thth

• October 23 through the 27October 23 through the 27thth and the 30 and the 30thth

• Class will start promptly at 1:00 pmClass will start promptly at 1:00 pm

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