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Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
Basic Finacial Concepts Presentation
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Basic Finacial Concepts Presentation

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  • 1. Frank Codina , NSD, OSJ, CPN Regional Vice President Registered Representative
  • 2. THERE IS A STORM BREWING ON THE HORIZON Retirement Rollovers Mortgages Life Insurance Long Term Care Debt Crisis
  • 3. There is a Debt & Savings Crisis in our Country Debt Goes Up Average credit card debt per U.S. household: Savings Go Down Personal saving as a percentage of disposable personal income: 7% -1.1% $9,312 $2,966 8% 4% ‘ 90 ‘ 95 ‘ 00 ‘ 05
  • 4. There is Also a Retirement Crisis on the Horizon Almost half of all workers think they’ll still be working at age 65 or older! 1 2. USA Today, March 30, 2005 Almost one-third of workers said they determined how much they would need for retirement by guessing. 2 Now more than ever, people are worried about their retirement as Social Security issues are on TV and radio on a daily basis. 1. Money, February 2005
  • 5. There is Currently a Protection Crisis in America Experts recommend coverage of 8 - 12 times your annual income. 1 2. National Underwriter, September 20, 2004 3. National Underwriter, April 25, 2005 Without adequate life insurance, many families will experience financial devastation upon the death of a loved one. 1. Kiplinger’s, January 2005 59% of households have no individual life insurance at all. 44% of households believe they need more life insurance. 3 59% of households have no individual life insurance at all. 2
  • 6. The Wall Street Journal, February 17, 2005 Why is this happening? “… more and more agents prefer to focus on the affluent market than on the middle market…” “ The ‘need’ in the middle-income markets, however, greatly exceeds the industry’s capacity to adequately serve these markets.” The Middle Income Market Is Being Ignored!
  • 7.
    • Married
    • 1 Child
    • Homeowners
    • Both 35 years old
    Example: The Martin family
  • 8. Example: The Martin family - $10,000 401K to IRA Rollover $300,000 $150,000 $50,000 12% 3% Age: 45 Age: 55 Age: 65 $10,000 Rate of Return $359,496 $108,925 $33,003 $24,568 $18,207 $13,493 Age: 35
  • 9. Example: The Martin family – Life insurance protection Before: After: 3 times the coverage for $99 LESS per month! Husband $150,000 Premium $200/month Wife $150,000 Husband $500,000 Premium $101/month Wife $400,000
  • 10. Example: The Martin family – Investing the $99 in a ROTH-IRA $300,000 $50,000 12% Age: 45 Age: 55 Age: 65 Rate of Return $708,957 $207,841 $56,005 Age: 35 $10,000 plus $99 per month!
  • 11. Promote Education Plans
  • 12.  
  • 13. Example: The Martin family – Debt elimination solution Like most families, they had gotten in over their heads with debt and didn’t know when they were going to be DEBT FREE. With a new loan repackaging, we helped the Martin family:
    • Pay off all their debt (credit cards & mortgage) in 20 years!
    • And helped them accumulate over $386,000! . . . HOW?
  • 14. Example: The Martin family – Debt elimination solution By enrolling in our Biweekly Equity Builder Program ($655 every two weeks) this family would pay off the loan in 20 years instead of 25. By teaching them how to invest $500 each month (automatically) into an emergency account that would grow to over $386,000 over those same 20 years. With this SOLUTION, by age 55 this family would be totally debt-free and have accumulated over $386,000!!!
  • 15. Example: The Martin family – Building their Financial House $708,000 in retirement savings & $386,000 in emergency fund Total liquid net worth: $1,094,000 by age 65 Before After Life Insurance Coverage: $150,000 cash value policy on him $150,000 cash value policy on her Total coverage: $300,000 Cost per month: $200 Life Insurance Coverage: $500,000 term policy on him $400,000 term policy on her Total coverage: $900,000 Cost per month: $101 Debt Situation: Monthly debt payments : $2,199 On debt of: $32,157 (credit cards) and a $145,000 mortgage Term remaining to pay off: 25 years Emergency account: CREDIT CARDS Debt Solution: Loan payment : $1,309 On debt of: $180,000 Monthly debt savings: $890! Completely debt-free: 20 years Emergency account: $500/month Savings Style: Total savings: $10,000 Monthly savings: $0 (no financial direction) Savings Strategy: Roll-over $10,000 + add $99 to a ROTH-IRA account + $75 a month for an Education Savings Account
  • 16. We help people where they need help most
    • Become debt free (helping them pay off their homes years sooner and getting rid of credit card debt)
    • Invest for the future (by setting them up with IRA accounts and Education Savings Accounts)
    • Protect their income (with enough life insurance protection)
    We help families:
  • 17. Products and services that people need and want Legal Insurance Mortgage Refinance and 2 nd Mortgages Long-Term Care Insurance Personal Loans 401K Programs New Home Loans Life Insurance Variable Annuities Mutual Funds, IRAs & Education Savings Accounts

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