Financial Services

1. FinancialServices

2. The Need Exists… With little or no education on financial matters, most consumers need guidance to help them make informed choices to meet today’s environment… 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.

3. The Need Exists… MASSIVE DEBT In 2005, people were spending beyond their means: • Consumer Debt = More than $2 trillion • Household Debt = 116% of disposable income (record high)

4. The Need Exists… WEAK SAVINGS HABITS Savings as a share of disposable income: • 1980s = 10 % • 1990s = 5% • 2000s = 1%

5. The Need Exists… HIGH COST OF EDUCATION • College costs have more than doubled from 1990 to 2005. • Average Annual College Tuition over 4 years: Public: $42,640 Private: $124,204

6. The Need Exists… RETIREMENT & THE RISING COST OF LIVING • Things have changed for the average two-earner American family in the last 25 years: • They have $1,702 less annually to save for retirement after paying for basics such as clothing, food and utilities.

7. The Need Exists… UNEXPECTED LOSS • If you should die unexpectedly, without proper protection, your family could be facing serious financial concerns. • Average Single Insurance Death Claim = $11,421

8. OPPORTUNITY P and C Homeowners Insurance Umbrella Policies Insurance Services Term-ROP Term Universal Life Equity Indexed Life Wealth Accumulation Products Mortgage Service Refinance Purchase ELOC Primary Residence Investment Property Overview Future products

10. Household Expenses Mortgage $2,000 Food/Bills $1,000 Car + Insurance $ 500 Credit Cards $ 500 Misc. $ 500 TOTAL BILLS $4,500 INCOME $4,500 DISCRETIONARY INCOME :-0- The Problem

11. 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? The Problem Household Expenses Mortgage $2,000 Food/Bills $1,000 Car + Insurance $ 500 Credit Cards $ 500 Misc. $ 500 TOTAL BILLS $4,500 INCOME $4,500 DISCRETIONARY INCOME :-0-

12. Solution Household Expenses Mortgage $2,000 Food/Bills $1,000 Car $ 0 Credit Cards $ 0 Misc. $ 500 TOTAL BILLS $3,500 INCOME $4,500 New Cash Flow + $1,000 Without Cutting Back Lifestyle

13. What is it REALLY worth? • Save $500 per month for Emergency Fund • $6,000 saved for emergency use after 1 year • Invest $500 per month for 25 years Growth @ 6% Growth @ 8.5% $346,000$516,000 • Could YOU use an extra Half Million Dollarsat Retirement?

14. Asset Accumulation • What interest rate do you earn on equity? • Is Equity liquid? • Is Equity Safe from market Risk?

15. Asset Accumulation • If you could earn a rate of return on Equity would you want the extra money? • Can you afford to waste the potential income?

16. Loan Amount $300k $300k Solution #1 $2,000 Level Interest OnlyMortgage $1,500 The difference is $500 If we invest $500 per monthover 30 years @ 8.5% =$825,000 Then pay off loan -($300,000) The client has $525,000 OR

17. Loan Amount $300k $300k Solution #2 $2,000 Level Interest OnlyMortgage $1,500 However, not everyone lives in their home for 30 years. Assuming we live in our home for 7 years. We invest $500 per month over 7 years @ 8.5% : $ 57,122 After 7 years, the home may appreciate to $400,000 The client owes: -($300,000) Profit on sale of home is: $100,000 Client nets: $157,122

18. Equity is Great

19. Cash Is KING!

20. Compensation • Life License: • 25% - 75% Commission

21. Compensation • You can BE the advisor • You can TRAIN with an advisor • You can REFER to an advisor

22. Refinance $400,000 Loan Amount x 2% (points) $8,000 x 60% Commission $4,800: x 3 Clients Equity Indexed Life $ 500 per month x12 $ 6,000 x70% $4,200: x 3 Clients Compensation $14,400 Mortgage Income $12,600 Financial Services Income $27,000 Monthly Income $324,000 / Year potential

23. Referring agent Compensation $ 500 per month x12 $ 6,000 x70% $4,200: x 3 Clients 25/75 Split with advisor Initiate and introduce Advisor manages the relationship/process $1050. per client (example) Compensation $14,400 Mortgage Income $4200 Financial Services Income $18,600 Monthly Income $223,000 / Year potential

24. Participating Agent $ 500 per month x12 $ 6,000 x70% $4,200: x 3 Clients 50/50 Split with advisor Attending Client meetings Managing the relationship $2100. per client (example) Compensation $14,400 Mortgage Income $6,300 Financial Services Income $20,700 Monthly Income $248,000 / Year potential

25. Producing/ Sr. Agent $ 500 per month x12 $ 6,000 x70% $4,200: x 3 Clients Compensation $14,400 Mortgage Income $12,600 Financial Services Income $27,000 Monthly Income $324,000 / Year potential

26. Compensation • We are looking for Leaders/Managers • As a Managing Advisor you supervise 10 Advisors • $15,000 Business • x 10 Advisors • $150,000 Total • x 20% (Avg-Management Override) • $30,000 Monthly Income Potential • This does NOT include renewal or trail commissions • This does NOT include any IRA/401k Rollover business

27. Take the Next Step Four major reasons to expand into Financial Services • A tremendous need in marketplace exists for solid financial advice • Excellent earning potential as an Advisor or Manager. • Opportunity to help others while helping yourself and your family • Powerful recruiting tool for Loan Advisors and Leaders

28. Take the Next Step • Now the time has come to… • Register for the Life Insurance class today. • Begin to Identify and prepare your best prospects • A Great Opportunity is only Great IF YOU ACT ON IT

29. Pre-Registration For Class • Tentative dates for prep classes • October 9th through the 13 and the 17th • October 23 through the 27th and the 30th • Class will start promptly at 1:00 pm