It can’t be stressed enough: the sooner you start to save, the less you will have to put away. Look at how opening an IRA today can help you secure a comfortable retirement.
If the idea of paying off your debt seems overwhelming, consider debt stacking. They say you can eat an elephant – one bite at a time. Well, the same concept works with paying off your debt! By taking into account the interest rate and amount of debt, debt stacking identifies an ideal order for you to pay off your debts. You begin by making consistent payments on all of your debts. When you pay off your first debt account, you roll that payment into the payment that you were making on the next account. These extra dollars help you reduce the effect of compound interest working against you. As each debt is paid off, you apply the amount you were paying to that debt to the payment that you were making on the next account.
Points to Cover: Over the next few years, more than 76 million baby boomers will be entering retirement. Are you one of them?
Cd opp meeting 2
The Financial Services Company For the 21st Century Founded in 1977 with 85 people 6 million clients in the United States, Canada and Puerto Rico Largest financial services marketing organization in North AmericaAll of this without any national TV or radio advertising! Listed on NYSE (PRI)
Ask Yourself Three Questions As We Go Through The Presentation 1. Is there a need for what we do? 2. Are these financial concepts helpful for you? 3. If your family and friends implemented these concepts, would they be better off? Our Mission:To help families become properly protected, debt free and financially independent
How Do Most People Make Their Money? No Control of TIME. Control of TIME. No Control of MONEY. Control of MONEY. Employee Business Owner Has a job. Owns a system. Income based on position, not the Has others working for him/her. Unlimited person. income potential via manufacturing, marketing, etc. Self-Employed Investor Owns a job. Has money working for them. Dentist, doctor, lawyer, hair stylist, Enjoys complete freedom and lives the real estate agent, salesperson. dream. Limited control of Control of TIME. TIME. Control of MONEY. Limited control of MONEY. The Cash Flow Quadrant, CASH FLOW Technologies, used with permission. The Cash Flow Quadrant and ESBI are trademarks of CASH FLOW Technologies Inc. For information purposes only. Not for any product solicitation.
What Do People Want? When people talk about freedom, they’re really talking about…5 Quality of Life
What Is Quality of Life? More … Time More … Money6
What determines your quality of life? How You How You MAKE MANAGE Your Your MONEY MONEY7
We Believe with Faith,Work,& Dreams It is All Possible James 2:17 says… Faith without works is dead Without Work - there is no reason to Dream; Without Dreams - there is no reason to Work. So is it Possible with Primerica, Lets see8
What’s your Odds of Making it Big Here? If You Google “What company has the most people making over $100,000” and $1,000,000 a Year? You Will find it is Primerica for Both9
Primerica Listed on the New York Stock Exchange as (PRI) Qualify to get your share of the 3 million more shares over the next 3yearsThis is not an offer or advice to purchase any stock with Primerica or any other company. This is not a guarantee that you will receive stock as thecompany changes the stock gifting program from time to time. You will not receive any stock until you are a Regional Vice President and at that10time you will qualify based on your rank and or your volume in different areas of the business. Refer to Primerica Online for all details andqualifications.
Primerica New company with 35-year proven track record -2 million investment clients – $35 billion in assets – 4 million insured All that with… – $0 Debt and 4 Billion in Cash. *A.M. Best ratings range in order from the highest ratings as follows: A++, A+, A, A-, B++, B+, B, B-, C++, C+, C, C-, D, E, F. Primerica’s term life insurance is underwritten by National Benefit Life Insurance Company, Home Office: Long Island City, NY, in New York State, Primerica11 Life Insurance Company, Home Office: Duluth, GA, in all other U. S. jurisdictions; and Primerica Life Insurance Company of Canada, Home Office: Mississauga, Ontario, in Canada. Investments offered by: PFS Investments Inc., 3120 Breckinridge Blvd., Duluth, GA, 30099, 770-381-1000.
Life Insurance Managed Accounts1,4 Annuities1,3 Auto & Home Insurance Referral Program 401(k) Plans1,3 Quotes from such companies as: Travelers Safeco Progressive Mutual Funds3,5 Debt Solutions Primerica DebtWatchers™ Offered by Primerica Client Services, Inc. through contractual agreement with Long Term Care See endnotes pages for important disclosure.12
The Headlines Tell The StorySix in 10 workers say that they are living paycheck to paycheck. CareerBuilder.com Survey, April 12, 2011“Average credit card debt among households with balances on their cards:$15,788.” AARP Bulletin, July-August 2010More than half of Americans have no emergency savings. Time.com, August 11, 2011Bankruptcies topped 1.5 million in 2010. CNNMoney.com, January 3, 201168 million Americans have no life insurance. LifeHealthPro.com, June 14, 2010More than half of all workers have less than $25,000 in savings andinvestments for retirement. Employee Benefit Research Institute 2011 Retirement Confidence Survey How real and serious are these problems?
How do most people manage their money? They Don’t!14
We Believe in Bypass the Middleman Traditional Financial Institutions Banks, Credit Unions, Insurance Companies = Historically Low Rates of Return CDs and savings accounts are generally FDIC insured up to $250,000. Cash value life insurance offers life insurance components in addition to the investment component.15
The “Time Value” of Money Investor A Investor B Age Annual End of Year Age Annual End of Year Individual A: Payment Accumulation Payment Accumulation Started 22 $5,000 $5,470 22 0 0 contributing 23 5,000 11,450 23 0 0 24 5,000 17,990 24 0 0 At Age 22 25 5,000 25,150 25 0 0 26 5,000 32,980 26 0 0When is 27 5,000 41,540 27 0 0 Individual A: 28 5,000 50,910 28 0 0 Stopped 29 5,000 61,150 29 0 0 Individual B: contributing$40,000 30 0 66,890 30 $5,000 $5,470 Started At Age 29 31 0 73,160 31 5,000 11,450 contributing 32 0 80,030 32 5,000 17,990 33 0 87,530 33 5,000 25,150 At Age 30more than 34 35 36 0 0 0 95,750 104,730 114,550 34 35 36 5,000 5,000 5,000 32,980 41,540 50,910$190,000? 37 0 125,300 37 5,000 61,150 38 0 137,050 38 5,000 72,360 39 0 149,910 39 5,000 84,620 40 0 163,970 40 5,000 98,020 41 0 179,350 41 5,000 112,690 42 0 196,180 42 5,000 128,730The hypothetical 9% nominal rate of 43 0 214,580 43 5,000 146,270 44 0 234,710 44 5,000 165,460return, compounded monthly, and tax- 45 0 256,730 45 5,000 186,450deferred accumulation shown for both IRA 46 0 280,810 46 5,000 209,410accounts are not guaranteed or intended to 47 0 307,150 47 5,000 234,520demonstrate the performance of any actual 48 0 335,960 48 5,000 261,990investment. Unlike actual investments, the 49 0 367,480 49 5,000 292,040accounts show a constant rate of return 50 0 401,950 50 5,000 324,900 51 0 439,660 51 5,000 360,850without any fees or charges. Any tax- 52 0 480,900 52 5,000 400,170deductible contributions are taxed and tax- 53 0 526,010 53 5,000 443,180deferred growth may be taxed upon 54 0 575,350 54 5,000 490,220withdrawal. Withdrawals prior to age 59 55 0 629,330 55 5,000 541,6701/2 may be subject to a 10% penalty tax. 56 0 688,360 56 5,000 597,960 57 0 752,930 57 5,000 659,520Assumes payments are made at the 58 0 823,560 58 5,000 726,850beginning of each year. Investing entails 59 0 900,820 59 5,000 800,510risk, including loss of principal. Shares, 60 0 985,320 60 5,000 881,070when redeemed, may be worth more or 61 0 1,077,750 61 5,000 969,190less than their original value. 62 0 1,178,860 62 5,000 1,065,570 63 0 1,289,440 63 5,000 1,171,000 Individual B: 64 0 1,410,400 64 5,000 1,286,320 Stopped 65 0 1,542,700 65 5,000 1,412,450 contributing 66 0 1,687,420 66 5,000 1,550,420 67 0 1,845,710 67 5,000 1,701,330 At Age 67 Total Contributions $40,000 $190,000 Total Contributions $1,845,710 $1,701,330 Total Accumulation At Age 67
The Rule of 72 # Years for $ Double%) 72interest rate
The Rule of 72Number 2% 6% 10%of Years • How do you win a 0 $10,000 $10,000 game if you don’t know the rules? 7 * $10,000 $20,000 • Do banks or insurance 12 companies have any 14* $20,000 $40,000 incentive to teach us 18 this rule? 21* $80,000 • Shouldn’t we have learned this rule in 24 school? 28* $40,000 $160,000 36 $20,000 $320,000 The table serves as a demonstration of how the Rule of 72 works and is only an approximation of $80,000 accumulations. It is not intended to represent any Works for You When You’re Saving specific investment, which will fluctuate. * 10/72 is 7.2 years. So the actual is 7.2 years, 14.4 years, Works Against You When You Owe 21.6 years, 28.8 years, and 36years. Without Introducing us to Family and Friends, how would they learn this Rule?
The First Step to Financial Success is Pay Yourself When you don’t, there’s a high cost of waiting. $100 Monthly Savings @ 9% for 40 Years (Age 27-67) 27 $471,640Wait 1 year 28 $430,040 (-$41,600)($1,200)Wait 5 years 32 $296,380 (-$175,260)($6,000)Wait 15 years 42 $112,950 (-$358,690)($18,000) Who are people hurting if they wait? Rates of return are constant and nominal rates, compounded monthly. Contributions are assumed to be made at the beginning of the month. The chart above is not indicative of any particular investment or savings vehicle where rates of return fluctuate. It does not take into consideration taxes or other applicable deductions, which would lower results.
Are You Giving the Government a Tax-Free Loan?Average 2010 tax refund was $3,129 = $260/mo Rather than Overpaying, Invested it for 35 years at…If you make: 3% interest $192,807 6% interest $370,425 10% interest $995,351The hypothetical interest rates are for illustrative purposes only and not indicative of a guaranteed rate of return on any investment. Illustrative rates of returnare nominal, compounded monthly. Rates of return are constant unlike actual investments which will fluctuate in value. It does not include fees or taxes whichwould lower results. *CNNMoney.com, March 4, 2011
Solution: Debt Stacking Age 35 As each debt is paid off, you Retail Card 1 $220 $220 + $220 apply the amount you were paying to that debt to the payment that you were making Credit Card 2 $353 $573 $353 + $573 on the next target account. Car Loan $551 $551 $1,124 + $1,124 $551 Credit Card 1 $303 $303 $303 $1,427 + $1,427 $303 Mortgage $1,293 $1,293 $1,293 $1,293 $2,720 $1,293 Total $2,720 $2,720 $2,720 $2,720 $2,720 Paid off in 8 years, Age 43 ( 15 years sooner) Interest saved $130,643 (Age 44) Once debts are paid off, invest $2,720 each month at 10% @ Retirement … Age 62 = $1.2 million Do Financial Companies Want You To Know This?The above example is for illustrative purposes only. The Debt Stacking concept assumes that: (1) you make consistent payments on all of your debts, (2) when youpay off the first debt in your plan, you add the payment you were making toward that debt to your existing payment on the next debt in your plan (therefore youmake the same total monthly payment each month toward your debts) (3) you continue this process until you have eliminated all of the debts in your plan. In theexample above, when the retail card is paid off, the $220 is applied to credit card 2, accelerating its payment to $573. After credit card 2 is paid off, the $573 isapplied to the ca r loan for a total payment of $1,124. The process is then continued until all debts are paid off. Note that the total payment per month remainsconstant. It is unlikely an investment would grow 10% on a consistent basis, given current market conditions. The hypothetical assumes a constant nominal 10%rate of return compounded monthly, unlike actual investments, which will fluctuate in value, and does not include taxes or fees, which would reduce returns.Investing begins once debts have been paid off (at age 44). It is unlikely an investment would grow 10% on a consistent basis, given current market conditions.
Primerica Helps Families Before Primerica With Primerica Life Insurance:2 Life Insurance:3 $100,000 cash value on Bob Bob $300,000 $100,000 cash value on Susan Susan $300,000 $0 on the children. Childern $15,000 on each Total monthly : $198* Total monthly cost: $90 “Cash value life insurance is one of the Over 3 Times the Coverage worst financial products available.” DaveRamsey.com, “The Truth About Life Insurance,” October 25, 2010 For Half the Cost “I strongly believe that term is the best insurance… and it literally costs a fraction of other forms of life insurance. The Road to Wealth: A Comprehensive Guide to Your Money, Suze Orman*Term insurance provides a death benefit and its premiums can increase at certain ages. Cash value life insurance can be universal life, whole life,etc., and may contain certain features in addition to death protection, such as dividends, interest, or cash value available for a loan or upon surrenderof the policy. Cash value insurance usually has level premiums for the life of the policy; term insurance premiums increase after initial premium
The Theory of Decreasing Responsibility How Life Works Today At Retirement 1. Young children 1. Grown children 2. High debt 2. Lower debt 3. House mortgage 3. Mortgage paid Loss of income would Retirement income be devastating needed What life insurance company do you know of that teaches25 people how to eliminate the need for life insurance?
Solution: Build Your Financial House Other Goals and Dreams College Savings Retirement Debt Elimination On a scale of 1-10, Budget - Emergency Fund - Will* 10 being the highest, how would you rate your Protect Your Income / Term Life desire to become properly protected, debt free and “A good rule of thumb is that you need financially independent? between eight to ten times your annual salary in life insurance coverage.” — The Wall Street Journal, April 12, 2006* Primerica Legal Protection program. Exclusions and limitations may apply. See plan for details.Primerica representatives do not provide legal, tax or estate planning advice.
Primerica Helps FamiliesBefore With PrimericaPrimerica SecureAuto & Home: Auto & Home:* Comparing 24 top NationalBob & Susan were paying Insurers at once.$243 per month for Saved: $65 per month andAuto & Home insurance. invested into a Roth IRA Savings at age 65 with a 10% return is $150,000 *Not available in Canada.
Investing at RetirementOver the next few years, more than 76 millionAmericans will be entering retirement.Are you one of them?
Primerica Helps FamiliesBefore Primerica With PrimericaRetirement: Retirement3Susan had $20,000 in an IRA Rolled over IRA intoat the bank earning 3%, mutual funds. Added savingswith $100 per month from Life and Autocontributions. increased it to $273.Accumulated savings at Accumulated savings at 10% at age 65 = $107,000 age 65 = $1,019,000 x 3% x 10%Income $3,021 a year Income $100,000 a year
Most people don’t plan to fail, they fail to plan.31
100 People After Working From Age 25 - Age 65 5% 4% 1% 100 people at age 65: 36% 54% dependent 36% working 5% deceased 4% OK ($1 million) 54% 1% wealthy ($5 million) Source: SmartMoney, 2001 Why do 95% fail when it comes to their finances? 1. No financial education 2. No financial game plan 3. No financial coach
How About Getting Paid to Train ? Primerica Will Pay You $1,000 All you need to do is… 4 Direct Recruits 4 Personal Life Sales (Possibly Yours + Theirs) Receive your $1,000 and Now You’re a District Trainer!To receive your 200, 300, and 400 bonuses you must have your life license and make a sale at which time the company will payyou all bonuses you have banked.
Excellent Compensation Plan What You Would Have Earned — Based on the Bob & Susan “With Primerica” exampleDistrict Trainer: (Part Time)Help a New Recruit Get Their $1,000 and You Make $1,7501 Rollover for $50,000 $700Total cash for the month: $2,450
Excellent Compensation Plan What You Would Have Earned — Based on the Bob & Susan “With Primerica” exampleRegional Leader: (Part Time)Help a New Recruit Get Their $1,000 and You Make $2,450Override: 2 District Leaders Training 1 Recruit to Get Their $1,000 and Make $1,4001 Rollover for $50,000 $850Total cash for the month: $4,700
Excellent Compensation PlanWhat You Would Have Earned —Based on the Bob & Susan “With Primerica” exampleRegional Vice President: (Full Time)Override: 6 District Leaders Training 1 New Recruit that Get Their $1,000 and Make $14,500 Half of the Team Do $50k Rollover $6,000 Total cash for the month: $20,500 Annual Income $246,000
Senior Vice President Base Shop: 6 District Leaders Training 1 New Recruit to Get Their $1,000 and Make $14,500 Half of the Team Do $50k Rollover $6,000 Overriding 3 First Generation RVP’s Each with 4 District Leaders Training 1 New Recruit to Get Their $1,000 and Make $6,200 Half of the Team Do $50k Rollover $6,000 Bonuses on RVP’s $12,600 Total cash for the month: $40,000 Annual Income $480,000These figures represent 12-month rolling cash flow levels, including advances, which have been achieved by Primerica representatives, past and present, at some point during their affiliation with aPrimerica Company, beginning in 1977. The representatives are not necessarily achieving those levels at this time. The cash flow categories are not intended to demonstrate earnings of typicalrepresentatives. In the 12-month period ending in December 2010, Primerica paid a total of $503,115,928 in compensation to its sales force at an average of $5,296 per licensed representative. Mostrepresentatives do not reach the levels illustrated. Average RVP earnings are typically higher. Actual gross cash flow is, among other factors, dependent upon the size and scale of a representative’sorganization, the number of sales and the override spread on each sale, and the ability and efforts of you and your downlines. Having said this, Primerica provides a tremendous opportunity forindividuals who work hard and who desire to develop a business with strong income potential.
But you don’t know I have very little … 1. Time 2. Money40
The Primerica Business Opportunity Low upfront costs No inventory $99 . Plus $25/month . Financially solid Products people need We do what’s right – not what’s being hyped41
Cover your $25/mo cost of running your business with our cell phone discount If your average bill is $150/mo… Savings of $33/mo Savings of $40/mo Savings of $25/mo Savings of $18/mo Check under POL under technology support for the correct online discount. If you are already receiving a discount and our company42 has a higher percentage you my switch to it. This is not a guarantee so check with your carrier before recruiting in with Primerica.
But you might say .. I failed more than once in my Life Proverbs 24:16 A righteous man falls seven times but he rises again. Thomas Edsion : When trying to invent the light bulb : After 187 times he said ” I guess we found 187 ways it will not work”43
When should I do this?Ben Franklin said: “One today is worth two tomorrows."
How Fast Should I StartAbraham Lincoln said:“Things may come to those who wait,… but only the things left by those who hustle.”
What’s Next? Submit your Independent Business Application (IBA + $99 initial licensing fee, $25/mo. Business Building Support System).46
The 2nd thing I would suggest is to… Set up a time in the next 2-4 Days to sit down with the person who invited you to: • Coach you on getting off to a Fast Start • Look at the different products and see where we can possibly save you money47
Get Your Business and Your Income off to a Fast Start Learn how to earn your FAST START BONUSES of up to a $1,000 See Your Field Trainer For Details!48
The Five Reasons People Get Involved• They don’t like their current job and are looking for a career change & better income potential.• They love what they do… but earning extra part-time income each month would make a positive difference.• They want to get a financial education so they can learn how to win the money game.• They Can you see how most people would be love helping people andthese areas? making a interested in at least one of difference.• They dream of having their own business.
Compensation Payout Starting out 25% com 4 x 4= District 50% com 2-4 x 4 = Division 60% com 2-Divisions= Regional Leader 70% com 2-Regional Leaders= RVP 95% com