1 / 30

Driving Profit From Debt – The Tides are Turning in 2007

Driving Profit From Debt – The Tides are Turning in 2007. Are you advising your clients’ on their biggest asset? Someone is! Steve Crawford MLC Alliances - Victoria. The Great Aussie Dream – What Happened in 2006?. Driving Profit From Debt The Tides are Turning in 2007.

nevada-johnson
Download Presentation

Driving Profit From Debt – The Tides are Turning in 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Driving Profit From Debt – The Tides are Turning in 2007 Are you advising your clients’ on their biggest asset? Someone is! Steve Crawford MLC Alliances - Victoria

  2. The Great Aussie Dream – What Happened in 2006?

  3. Driving Profit From DebtThe Tides are Turning in 2007 The Tides Are Turning – By 2008…….. Opportunities in 2007 – Strategies for the Pre Retiree Opportunities in 2007 – Strategies for the Accumulator

  4. Driving Profit From DebtThe Tides are Turning in 2007 The Tides Are Turning – By 2008…….. Opportunities in 2007 – Strategies for the Pre Retiree Opportunities in 2007 – Strategies for the Accumulator

  5. The Tides Are Turning - By 2008……

  6. The Tides Are Turning - By 2008…… $mil per week Referrals per week ?

  7. The Tides Are Turning - By 2008…… ?

  8. The Tides Are Turning - By 2008…… Market Share growth of Brokers Concentration of Broker Aggregators

  9. Driving Profit From DebtThe Tides are Turning in 2007 The Tides Are Turning – By 2008…….. Opportunities in 2007 – Strategies for the Pre Retiree Opportunities in 2007 – Strategies for the Accumulator

  10. Strategies for 2007 – Pre Retirees Accelerate your salary sacrifice strategy by converting your loan into an interest only facility.

  11. Strategies for 2007 – Pre Retirees Accelerate your salary sacrifice strategy by converting your loan into an interest only facility. • Unit trust and super invested in Australian shares • Investment return is 8.5% p.a. (split 3% income and 5.5% growth) • Franking level on income is 75% • Interest on instalment margin loan is 8.25% p.a. • 10 year comparison

  12. Strategies for 2007 – Pre Retirees $54,335 $37,396 $37,251 $35,643

  13. Strategies for 2007 – Pre Retirees $50,113 $48,949 $35,643 $54,335 $37,396 $37,251 $35,643

  14. Strategies for 2007 – Pre Retirees $186,061

  15. Driving Profit From DebtThe Tides are Turning in 2007 The Tides Are Turning – By 2008…….. Opportunities in 2007 – Strategies for the Pre Retiree Opportunities in 2007 – Strategies for the Accumulator

  16. Strategies for 2007 – Accumulators Maximise your future investment and cash-flow options by better structuring your owner occupied home loan.

  17. Strategies for 2007 – Accumulators Year 1 Home Loan

  18. Strategies for 2007 – Accumulators Year 8 Home Loan Actual loan is reduced

  19. Strategies for 2007 – Accumulators Year 8 Home Loan Actual loan is reduced Redrawn for purchase

  20. Strategies for 2007 – Accumulators Year 8 Investment Loan Actual loan is reduced Redrawn for purchase Only partially deductible

  21. Strategies for 2007 – Accumulators Year 1 Home Loan

  22. Strategies for 2007 – Accumulators Year 8 Home Loan Actual loan is not reduced

  23. Strategies for 2007 – Accumulators Year 8 Investment Loan Actual loan is not reduced Purchase done with cash

  24. Strategies for 2007 – Accumulators Year 8 Investment Loan Actual loan is not reduced Purchase done with cash Original loan fully deductible

  25. Solution – NAB / MLC Customised Solutions Take advantage the transitional cap by investing the sale of your property sooner. • NAB Business Bank • Adviser Business Lending • Portfolio Package • MLC Mortgage Solutions • Tailored Solutions • Credit Approved • Short Term Finance • Working with Financial Planners

  26. Strategies for 2007 – Accumulators – Debt Protection Provide a simple, non-underwritten insurance cover designed specifically to cover your customers home loan responsibilities. Introducing MLC EasyCover

  27. Under-Insurance – A significant problem • Generation X’ers make up a large portion of the “At Risk Population” • 70% of 33 – 44 year olds with a household income greater than $100K have a Home Loan, but only 29% have life insurance*1 • 60% of Australian families with dependants will run out of money within 12 months if the main breadwinner dies*2 *1 – Roy Morgan Research, FAMIS database Dec 05 *2 – IFSA Research by Rice Walker Actuaries & TNS Australia 2005 *4 - IFSA report Cost of Under-insurance 2005

  28. MLC Easy Cover – Solution to Debt Protection  Death*  Illness* / Accidental Injury*  Involuntary Unemployment*  Critical Illness*  Automatic Acceptance*

  29. Client Retention – Keeping Them on the Books Meeting more customer needs reduces the probability of customer defection. 50% Probability % 10% 5.5% 1% Financial services held Source: National Customer Convergence in Retail Financial Services (Insurance Study)

  30. Conclusion – Will Your Business Expand in 2007…..? • The Tides are Turning in 2007 – Will you be affected? • Opportunities Do Exist – Take advantage of this in 2007 • Practical Implementation – Effective Solutions • The Portfolio Package • The NAB Business Bank • MLC Mortgage Solutions • Easy Cover

More Related