7 STEPS

1. Debt Reduction 7 STEPS

2. Are you 100% sure you’re going to have a great retirement, or do you have some doubt? What if I could show you how to get out of debt in 9 years or less, including your mortgage, without spending any additional money than you are spending right now?

3. Average household debt: $250,000 Savings 3% Savings 15% Lifestyle 23% Interest 22% Interest 34% Lifestyle 33% Taxes 30% Average American Household Our Approach

4. STEP 1: Knowledge Knowledge becomes power only when you put it to use.

5. What if we could teach you how to… • Reduce the volume of interest you are paying to lenders. • Get out of debt in 9 years or less. • Improve your cash flow. • Decrease taxes. • Save for college. • Retire with tax-favored income.

7. Average American Household Total Assets at age 65 $2,000,000 - Lifetime income This isn’t the American Dream $60,000 - Funds at Retirement

8. STEP 2: Cash Flow When you track your money, You Control it.

9. Quick Start Budget Look for ways to save money and be more efficient.

10. Plan for the Unexpected & the Expected Long-Term 80% The 80/20 Rule Emergency & Emotional 20%

11. How Banks Leverage Cash Flow 1% $ You 7x 23% 19% 5% 18% 24% 12% 8% 2% 10% $1=$7 You

12. STEP 3: Debt Minimize debt to create additional wealth.

13. Let’s Look at a Typical American Family .…John and Mary

14. Financial Worksheet • Main Areas of Interest: • Increased retirement income • Reduce debt • Get spending under control • Reduce taxes • Increase savings • College planning • Conversion alternative • Organize finances • Better understand tax law • Wills and Trust • When to start social security • Name: John and Mary • Age: 37 • Spouse Age: 35 • Desired Retirement Age: 65 • Address: • Phone: • Number of Children: 3 • Ages: 3, 4, 8 • College Savings: None • Monthly Income: $3,960 • Monthly Income: $3,125 • Desired Monthly Retirement Income: $5,000 • A plan for this? Not yet • IRA/401k: Less than $100,000 $100k-$250k • $250k-$500k $500k+ • Net Worth: Less than $750k $750k-$1.5

15. Financial Worksheet N N N N N Y Y Y Y Y

16. Outstanding Debts:

17. John & Mary Debt • Interest Paid: $199,959 • Years of Debt Payments: 30 $180,198

18. $36,500 Current Retirement Savings • $300 Monthly Contributions • 5% Annual Interest Rate • 25% Income Tax Bracket • Retirement Account at the End of Saving period: (30 years) • $408,890 Before Taxes • $306,668 After Taxes Current Retirement Plan

19. Let’s take a look at what John and Mary were able to accomplish with our strategies

20. What did we Accomplish? • Savings in 30 years $1,004,387 • Freed up $2,177/mo. for retirement 4 3 • Saved Interest $122,739 • Free from lenders in 7.8 years 2 1

21. Current Plan: $306,668 After Taxes for Retirement Our Plan: $1,004,387 Tax-Favored for Retirement!

22. $1,004,387 in Retirement $122,739 in Interest Saved Total: $820,458 What is the Cost Not to do Our Debt Reduction Plan?

23. STEP 4: Taxes The less you pay, the more you keep.

24. Future Tax Rates What do you think? Lower Higher Stay the Same

25. If we think taxes are going to be Higher…. Is postponing taxes really a good idea? When should we start tax planning?

26. I have a business proposal for you… • You front all the money. • You take all the risk. • You manage the business on a day to day basis. • 30 years from now, I’ll tell you how much you owe me. Would you want to go into business with me?

27. $5,000 IRA Contribution 25% Tax Bracket • Rule of 72 • $40,000 X 25% • Tax = $10,000 Where is the Tax Savings?

28. Take a Closer Look Comparison of Taxed / Tax-deferred / Tax-Free • $10,000 Investment • 28 Years • 7% Interest • 25% Tax Rate

29. STEP 5: Risk Don’t lose a lifetime of work.

30. Taxes • Market • Inflation • Emergencies • Disability • Lawsuit • Fraud • Outliving your money • Death What are your potential risks?

31. STEP 6: The Big Picture Know where you are going, and how to get there.

32. Three Phases of Retirement • Maximization • Accumulation • Distribution

33. Argue less about money. • Find wasted money. • Improve Cash flow. • Dramatically increase your savings. • Get out of debt faster than you ever thought possible. • Learn how to prioritize your accounts. • Retire with tax-favored income. The Big Picture Plan Benefits

34. John and Mary Debt • Interest Paid: $199,959 • Years of Debt Payments: 30

35. What did we Accomplish? • Savings in 30 years $1,004,387 • Freed up $2,177/mo. for retirement 4 3 • Saved Interest $122,739 • Free from lenders in 7.8 years 2 1

36. Now most people see this & immediately make a decision to be like John and Mary? Would that include you?

37. Gather info for your data sheet • Analyze your data and run reports with your numbers. • Schedule your Big Picture report meeting Let’s Review

38. STEP 7: Your Decision A Goal without a plan is just a wish.

39. Argue less about money. • Find wasted money. • Improve Cash flow. • Dramatically increase your savings. • Get out of debt faster than you ever thought possible. • Learn how to prioritize your accounts. • Retire with tax-favored income. Next Step

40. THANK YOU!!!! 7 STEPS