Primerica is the largest independent financial services marketing organization in North America, serving over 2 million clients and insuring over 4.3 million lives. Their mission is to help families become properly protected, debt free, and financially independent through teaching money management skills and providing financial needs analyses and products/services. Many Americans lack adequate savings, protection, and retirement plans. Primerica offers solutions like term life insurance and debt repayment programs to help clients achieve financial security.
Primerica is the largest independent financial services marketing organization in North America with over 100,000 licensed representatives serving more than 2 million clients and insuring over 4.3 million lives. Primerica's mission is to help families become properly protected, debt free, and financially independent through teaching money management skills and providing various financial products and services. Primerica offers a Financial Needs Analysis to assess a client's situation and provide customized solutions and programs.
Vindicated kitchen table show with jon lavinKent Fischer
- The document is from a financial services organization that has been in business since 1977 and is the largest independent financial services marketing organization in North America.
- It discusses the need for financial planning and protection based on statistics about Americans living paycheck to paycheck, having credit card and other debt, and lacking emergency savings and retirement funds.
- It promotes the organization's financial needs analysis and customized programs to help clients achieve financial goals like becoming debt free, properly protected, and financially independent through strategies like paying yourself first, using life insurance properly, and having a financial plan.
$150
Actual Cost: $0
4. Start Building Your Business
Total Start Up Cost: $274
Actual Cost: $6,500 - $7,000
Primerica Pays For Your Licensing and Training!
This document summarizes Primerica, a financial services company that serves over 6 million clients. It discusses Primerica's mission to help families become debt-free and financially independent. The document also outlines Primerica's track record of success, paying over $622 million to its sales force in 2008. It describes the opportunities available to become a representative and earn income through sales, bonuses, and building a business network.
The document provides information on investing and financial planning. It discusses the importance of starting to save and invest early due to the power of compound interest over time. It also explains the concept of rate of return and shows how even a small difference in return can significantly impact the growth of investments. The document emphasizes the need to have specific, written financial goals and a plan to achieve them.
Creating a budget is Part 2 of the 6-part Money Matters class, created by the Athens-Clarke County Library. Money Matters is part of Smart investing @ your library®, and is brought to you by a joint grant from the American Library Association and FINRA, the Financial Regulatory Authority Foundation.
The document discusses banking strategies and solutions for financial freedom, security, and retirement. It presents the Money Merge Account program as an alternative to traditional banking that can help eliminate debt faster through interest cancellation and optimize cash flow. The program aims to help users become their own bank by utilizing whole life insurance and other banking concepts to gain tax advantages and guaranteed returns over traditional investments.
This document provides information about Primerica, a financial services company:
1. Primerica was founded in 1977 and now has 6 million clients in the US, Canada, and Puerto Rico, making it the largest financial services marketing organization in North America.
2. It lists major investors in Primerica and notes that its life insurance companies are rated A+ by A.M. Best.
3. The document emphasizes the importance of financial planning concepts like knowing your financial independence number, understanding the rule of 72, and paying yourself first to start saving and investing early.
Primerica is the largest independent financial services marketing organization in North America with over 100,000 licensed representatives serving more than 2 million clients and insuring over 4.3 million lives. Primerica's mission is to help families become properly protected, debt free, and financially independent through teaching money management skills and providing various financial products and services. Primerica offers a Financial Needs Analysis to assess a client's situation and provide customized solutions and programs.
Vindicated kitchen table show with jon lavinKent Fischer
- The document is from a financial services organization that has been in business since 1977 and is the largest independent financial services marketing organization in North America.
- It discusses the need for financial planning and protection based on statistics about Americans living paycheck to paycheck, having credit card and other debt, and lacking emergency savings and retirement funds.
- It promotes the organization's financial needs analysis and customized programs to help clients achieve financial goals like becoming debt free, properly protected, and financially independent through strategies like paying yourself first, using life insurance properly, and having a financial plan.
$150
Actual Cost: $0
4. Start Building Your Business
Total Start Up Cost: $274
Actual Cost: $6,500 - $7,000
Primerica Pays For Your Licensing and Training!
This document summarizes Primerica, a financial services company that serves over 6 million clients. It discusses Primerica's mission to help families become debt-free and financially independent. The document also outlines Primerica's track record of success, paying over $622 million to its sales force in 2008. It describes the opportunities available to become a representative and earn income through sales, bonuses, and building a business network.
The document provides information on investing and financial planning. It discusses the importance of starting to save and invest early due to the power of compound interest over time. It also explains the concept of rate of return and shows how even a small difference in return can significantly impact the growth of investments. The document emphasizes the need to have specific, written financial goals and a plan to achieve them.
Creating a budget is Part 2 of the 6-part Money Matters class, created by the Athens-Clarke County Library. Money Matters is part of Smart investing @ your library®, and is brought to you by a joint grant from the American Library Association and FINRA, the Financial Regulatory Authority Foundation.
The document discusses banking strategies and solutions for financial freedom, security, and retirement. It presents the Money Merge Account program as an alternative to traditional banking that can help eliminate debt faster through interest cancellation and optimize cash flow. The program aims to help users become their own bank by utilizing whole life insurance and other banking concepts to gain tax advantages and guaranteed returns over traditional investments.
This document provides information about Primerica, a financial services company:
1. Primerica was founded in 1977 and now has 6 million clients in the US, Canada, and Puerto Rico, making it the largest financial services marketing organization in North America.
2. It lists major investors in Primerica and notes that its life insurance companies are rated A+ by A.M. Best.
3. The document emphasizes the importance of financial planning concepts like knowing your financial independence number, understanding the rule of 72, and paying yourself first to start saving and investing early.
The document discusses Primerica, a financial services company, and how it offers consumers various financial products and services. It notes that Primerica has over 100,000 representatives and markets products to middle-income consumers. The document also discusses the importance of debt elimination and having adequate life insurance and retirement savings.
Using Credit is part 4 of the 6-part Money Matters class, created by the Athens-Clarke County Library. Money Matters is part of Smart investing @ your library®, and is brought to you by a joint grant from the American Library Association and FINRA, the Financial Regulatory Authority Foundation.
Church seminar in charitable estate planningRussell James
Charitable estate planning allows Christians to be good stewards of their resources and care for others according to biblical principles. Without a will or estate plan, the government determines how one's assets are distributed, which may not align with one's values or wishes. Estate planning provides options to leave instructions, avoid taxes and expenses, and support churches and charities in a way that benefits both heirs and organizations. Christians are encouraged to thoughtfully plan their estate to reflect their faith and priorities.
The document discusses life settlements, which involve the sale of existing life insurance policies for seniors aged 65 and above on the secondary market. It summarizes that life settlements on average yield 8 times more than the cash surrender value offered by insurance companies. The document provides examples of life settlement transactions, including cases where policyholders received payments that were significantly higher than the cash surrender value and used the funds for various purposes like education.
This document provides an overview of the first class in a series of 6 classes on personal finance called "MONEY MATTERS". The class covers calculating monthly income, determining deductions, and preparing a budget. Key points include listing sources of income, applying rules to calculate monthly amounts, identifying required and voluntary deductions on a pay stub, and using income and expense information to create a budget and financial plan. The class aims to help participants better understand and take control of their financial situation.
The document discusses various banking and financial products like checking and savings accounts, loans, and money transfer services. It provides information on opening and managing accounts, balancing a checkbook, avoiding fees, and choosing the right accounts based on individual needs and balances. Safety tips are also included about insured accounts and limits for different types of accounts.
This document contains a cash flow statement, net worth statement, ratios analysis, and debt summary for a couple named Brooke and Jacob Taylor. It notes their incomes, expenses, assets, liabilities, and various financial ratios. Their basic liquidity ratio is low at 0.62, suggesting insufficient emergency savings. Their asset-to-debt ratio is high at 9.62, meaning ample assets compared to debts. The document prioritizes paying down their debts from highest to lowest interest rates and discusses options for improving their financial situation like reducing expenses and saving more before making large purchases.
Mini Case Study The Bakers Part I & IIAmanda Smith
The document provides a financial summary and counseling plan for Dean and Amy Baker. It finds that while the Bakers have adequate assets, their liquid assets, debt ratios, and spending habits need improvement. The counseling plan aims to build trust, identify overspending issues, review their financial statements, and implement a strict budget. Selling recreational vehicles and reducing gifts and clothing spending could generate $37,000+ to eliminate credit card debt and boost savings. The goal is to help the Bakers achieve their financial goals through open communication and accountability.
The document summarizes 7 challenges facing Americans in retirement: 1) Americans are retiring earlier and living longer, 2) the decline of pensions means fewer retirees have guaranteed retirement income, and 3) Social Security faces a shortfall as fewer workers support more retirees. Healthcare costs are rising dramatically and threaten to consume retirees' savings. Inflation erodes purchasing power over time. Many investors underperform markets by frequently buying and selling at the wrong times. Overall, Americans are underprepared for the rising costs and longer lifespans of retirement.
Women have unique financial issues and needs. This presentation discusses 15 of the most common misconceptions women have about general financial strategies, retirement and estate planning, insurance, as well as money and relationships. It provides guidance on strategies to help women manage their finances.
Common Sense for Your Dollars and Cents | SC Association of CPAs Financial Li...emallen4
This document provides an overview of financial literacy and the state of personal finances in America. It discusses that the average American family spends more than they earn and many struggle with debt. It then covers various aspects of personal finance like budgeting, savings, debt management, taxes, and risk management. The goal is to educate people on basic financial concepts and help them achieve their financial goals through prudent financial decisions.
This document provides an overview of financial literacy and the state of personal finances in America. It discusses that the average American family spends more than it earns and many struggle with debt. It then covers various aspects of personal finance like budgeting, savings, debt management, credit reports, taxes, and risk management. The goal is to educate people on basic financial concepts and help them achieve their financial goals through prudent financial decisions.
The document is a slide presentation by Russell James on taxes including income tax, capital gains tax, estate tax, gift tax, and generation skipping tax. It provides examples to simply illustrate tax rates and how deductions affect taxable income. For income tax, it shows marginal tax rates and calculates taxes owed at different income levels. For capital gains, it distinguishes long and short-term gains tax rates. Estate and gift taxes are explained along with lifetime gift/estate tax exemptions. Generation skipping tax is described as applying to large gifts to grandchildren. Overall, the presentation aims to introduce several major US tax types in a straightforward manner using examples.
This document provides five steps to becoming debt-free: 1) Learn your current financial situation by reviewing credit reports and understanding your credit score. 2) Create a realistic budget that allocates at least 10% of income to debt payments. 3) Talk to lenders about lowering interest rates or refinancing loans. 4) Look for ways to reduce discretionary spending through small lifestyle changes. 5) Prioritize paying off debts from most to least valuable assets, focusing on high-interest debts first. The overall goal is to eliminate debt payments and interest expenses to free up cash flow.
Tax-Advantaged Real Estate Investing When You've Maxed Out Your Self-Directed...Tom Rutkowski
This document discusses using permanent life insurance as a tax-advantaged way to invest and access funds for real estate investing. It outlines how life insurance provides stable, high returns that can be borrowed against at low rates, allowing investments to earn returns in two places at once. This "micro-banking" strategy improves returns without additional risk compared to traditional real estate investing. The document uses an example of a real estate investor to demonstrate how this strategy provides higher returns, asset protection, a death benefit, and income in case of critical illness.
This document summarizes key considerations for donating retirement assets to charity. It discusses the different life stages of retirement accounts and tax implications of donations from each stage. Donating before age 59.5 can create taxable income and penalties, while donations from 59.5-70.5 are taxable but penalty-free. Qualified charitable distributions after 70.5 avoid taxes. The document also compares tax outcomes of leaving retirement assets to heirs versus charities. Naming charities as beneficiaries can avoid estate taxes and provide tax deductions.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to less time for compound growth. It also explains the "Rule of 72" for estimating how long it takes investments to double at a given interest rate.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to losing years of compound growth. It also explains the "Rule of 72" for how long it takes investments to double at different interest rates.
This document summarizes a marketing presentation for a financial services company called HBW. It promotes HBW's products like life insurance, annuities, and trusts which help build wealth. It highlights the growth opportunity in the industry given an aging population. Representatives can earn income from commissions on sales and build a business part or full-time with competitive products and support.
The document discusses Primerica, a financial services company, and how it offers consumers various financial products and services. It notes that Primerica has over 100,000 representatives and markets products to middle-income consumers. The document also discusses the importance of debt elimination and having adequate life insurance and retirement savings.
Using Credit is part 4 of the 6-part Money Matters class, created by the Athens-Clarke County Library. Money Matters is part of Smart investing @ your library®, and is brought to you by a joint grant from the American Library Association and FINRA, the Financial Regulatory Authority Foundation.
Church seminar in charitable estate planningRussell James
Charitable estate planning allows Christians to be good stewards of their resources and care for others according to biblical principles. Without a will or estate plan, the government determines how one's assets are distributed, which may not align with one's values or wishes. Estate planning provides options to leave instructions, avoid taxes and expenses, and support churches and charities in a way that benefits both heirs and organizations. Christians are encouraged to thoughtfully plan their estate to reflect their faith and priorities.
The document discusses life settlements, which involve the sale of existing life insurance policies for seniors aged 65 and above on the secondary market. It summarizes that life settlements on average yield 8 times more than the cash surrender value offered by insurance companies. The document provides examples of life settlement transactions, including cases where policyholders received payments that were significantly higher than the cash surrender value and used the funds for various purposes like education.
This document provides an overview of the first class in a series of 6 classes on personal finance called "MONEY MATTERS". The class covers calculating monthly income, determining deductions, and preparing a budget. Key points include listing sources of income, applying rules to calculate monthly amounts, identifying required and voluntary deductions on a pay stub, and using income and expense information to create a budget and financial plan. The class aims to help participants better understand and take control of their financial situation.
The document discusses various banking and financial products like checking and savings accounts, loans, and money transfer services. It provides information on opening and managing accounts, balancing a checkbook, avoiding fees, and choosing the right accounts based on individual needs and balances. Safety tips are also included about insured accounts and limits for different types of accounts.
This document contains a cash flow statement, net worth statement, ratios analysis, and debt summary for a couple named Brooke and Jacob Taylor. It notes their incomes, expenses, assets, liabilities, and various financial ratios. Their basic liquidity ratio is low at 0.62, suggesting insufficient emergency savings. Their asset-to-debt ratio is high at 9.62, meaning ample assets compared to debts. The document prioritizes paying down their debts from highest to lowest interest rates and discusses options for improving their financial situation like reducing expenses and saving more before making large purchases.
Mini Case Study The Bakers Part I & IIAmanda Smith
The document provides a financial summary and counseling plan for Dean and Amy Baker. It finds that while the Bakers have adequate assets, their liquid assets, debt ratios, and spending habits need improvement. The counseling plan aims to build trust, identify overspending issues, review their financial statements, and implement a strict budget. Selling recreational vehicles and reducing gifts and clothing spending could generate $37,000+ to eliminate credit card debt and boost savings. The goal is to help the Bakers achieve their financial goals through open communication and accountability.
The document summarizes 7 challenges facing Americans in retirement: 1) Americans are retiring earlier and living longer, 2) the decline of pensions means fewer retirees have guaranteed retirement income, and 3) Social Security faces a shortfall as fewer workers support more retirees. Healthcare costs are rising dramatically and threaten to consume retirees' savings. Inflation erodes purchasing power over time. Many investors underperform markets by frequently buying and selling at the wrong times. Overall, Americans are underprepared for the rising costs and longer lifespans of retirement.
Women have unique financial issues and needs. This presentation discusses 15 of the most common misconceptions women have about general financial strategies, retirement and estate planning, insurance, as well as money and relationships. It provides guidance on strategies to help women manage their finances.
Common Sense for Your Dollars and Cents | SC Association of CPAs Financial Li...emallen4
This document provides an overview of financial literacy and the state of personal finances in America. It discusses that the average American family spends more than they earn and many struggle with debt. It then covers various aspects of personal finance like budgeting, savings, debt management, taxes, and risk management. The goal is to educate people on basic financial concepts and help them achieve their financial goals through prudent financial decisions.
This document provides an overview of financial literacy and the state of personal finances in America. It discusses that the average American family spends more than it earns and many struggle with debt. It then covers various aspects of personal finance like budgeting, savings, debt management, credit reports, taxes, and risk management. The goal is to educate people on basic financial concepts and help them achieve their financial goals through prudent financial decisions.
The document is a slide presentation by Russell James on taxes including income tax, capital gains tax, estate tax, gift tax, and generation skipping tax. It provides examples to simply illustrate tax rates and how deductions affect taxable income. For income tax, it shows marginal tax rates and calculates taxes owed at different income levels. For capital gains, it distinguishes long and short-term gains tax rates. Estate and gift taxes are explained along with lifetime gift/estate tax exemptions. Generation skipping tax is described as applying to large gifts to grandchildren. Overall, the presentation aims to introduce several major US tax types in a straightforward manner using examples.
This document provides five steps to becoming debt-free: 1) Learn your current financial situation by reviewing credit reports and understanding your credit score. 2) Create a realistic budget that allocates at least 10% of income to debt payments. 3) Talk to lenders about lowering interest rates or refinancing loans. 4) Look for ways to reduce discretionary spending through small lifestyle changes. 5) Prioritize paying off debts from most to least valuable assets, focusing on high-interest debts first. The overall goal is to eliminate debt payments and interest expenses to free up cash flow.
Tax-Advantaged Real Estate Investing When You've Maxed Out Your Self-Directed...Tom Rutkowski
This document discusses using permanent life insurance as a tax-advantaged way to invest and access funds for real estate investing. It outlines how life insurance provides stable, high returns that can be borrowed against at low rates, allowing investments to earn returns in two places at once. This "micro-banking" strategy improves returns without additional risk compared to traditional real estate investing. The document uses an example of a real estate investor to demonstrate how this strategy provides higher returns, asset protection, a death benefit, and income in case of critical illness.
This document summarizes key considerations for donating retirement assets to charity. It discusses the different life stages of retirement accounts and tax implications of donations from each stage. Donating before age 59.5 can create taxable income and penalties, while donations from 59.5-70.5 are taxable but penalty-free. Qualified charitable distributions after 70.5 avoid taxes. The document also compares tax outcomes of leaving retirement assets to heirs versus charities. Naming charities as beneficiaries can avoid estate taxes and provide tax deductions.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to less time for compound growth. It also explains the "Rule of 72" for estimating how long it takes investments to double at a given interest rate.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to losing years of compound growth. It also explains the "Rule of 72" for how long it takes investments to double at different interest rates.
This document summarizes a marketing presentation for a financial services company called HBW. It promotes HBW's products like life insurance, annuities, and trusts which help build wealth. It highlights the growth opportunity in the industry given an aging population. Representatives can earn income from commissions on sales and build a business part or full-time with competitive products and support.
Primerica is the largest independent financial services marketing organization in North America. It was founded in 1977 and is listed on the New York Stock Exchange. Primerica offers a variety of financial products and services to help clients achieve their financial goals through a complimentary Financial Needs Analysis.
1) Sound financial management is a lifelong process that involves cash management, protection strategies, investing fundamentals, tax issues, and retirement planning. Each financial decision builds the foundation for one's future.
2) Budgeting is key to cash management - it involves tracking spending to identify areas for savings that can then be used to build an emergency fund and pay down high-interest debt.
3) Protection strategies like insurance help strengthen one's financial "safety net" against unforeseen life events through products like homeowners, auto, health, disability, and life insurance.
1) Sound financial management is a lifelong process that begins early and involves cash management, investing, protecting against risks, retirement planning, and estate planning.
2) Creating a budget allows you to track spending, identify areas to cut back, and save more for emergencies and goals. Maintaining an emergency fund can prevent debt in difficult times.
3) Carrying credit card debt is costly and can significantly delay achieving savings goals. Prioritizing paying off high-interest debt can save thousands in interest charges.
World Financial Group, Inc. is a financial services marketing company that offers various financial products and services through its affiliates. It has insurance agency affiliates in several states that offer insurance products. World Financial Group, Inc. and its insurance affiliates are affiliated companies headquartered in Johns Creek, Georgia.
World Financial Group, Inc. is a financial services marketing company that offers various financial products and services through its affiliates. It has insurance agency affiliates in several states that offer insurance products. World Financial Group, Inc. and its insurance affiliates are affiliated companies headquartered in Johns Creek, Georgia.
World Financial Group, Inc. is a financial services marketing company that offers various financial products and services through its affiliates. It has insurance agency affiliates in several states that offer insurance products. World Financial Group, Inc. and its insurance affiliates are affiliated companies headquartered in Johns Creek, Georgia.
World Financial Group, Inc. is a financial services marketing company that offers various financial products and services through its affiliates. It has insurance agency affiliates in several states that offer insurance products. World Financial Group, Inc. and its insurance affiliates are affiliated companies headquartered in Johns Creek, Georgia.
World Financial Group, Inc. is a financial services marketing company that offers various financial products and services through its affiliates. It has insurance agency affiliates in several states that offer insurance products. World Financial Group, Inc. and its insurance affiliates are affiliated companies headquartered in Johns Creek, Georgia.
For Those Who Want to Prosper & Thrive in Retirementfreddysaamy
http://ekinsurance.com/financial/retirement/
Our core capital should be designed to outlive us. In fact, it’s important for you to start thinking about your money in terms of it outliving you, not the other way around. You don’t want to outlive your money.
1. The document provides information on how to establish good credit, manage finances through budgeting, and tips for financial literacy. It discusses the importance of credit, how to build credit history, and maintaining a budget to avoid debt issues.
2. Statistics are presented on Americans' lack of financial knowledge and spending habits, including that the average American spends more than they earn and most live paycheck to paycheck without savings.
3. Information is also given on Alliance Credit Counseling, a nonprofit organization that provides financial counseling and education programs.
The document discusses strategies for building wealth through home equity. It presents the story of two brothers, Brother A who believes in paying off his mortgage quickly, and Brother B who takes a long-term mortgage and invests the difference. After 5, 15, and 30 years, Brother B has significantly more savings and wealth due to tax savings, equity growth, and investment returns on the money not spent on extra mortgage payments. The document advocates taking out a large mortgage and investing the equity rather than paying extra to pay off the loan early.
Exploring Your Options For A Quality Retirement RedoneRobert Blackburn
The document discusses strategies for planning a successful retirement. It identifies four key factors that can erode retirement savings: debt, inflation, taxes, and health issues. It emphasizes taking control of retirement planning early on through contributing to pre-tax and after-tax retirement accounts, maintaining a diversified portfolio, and constantly monitoring progress to adjust plans as needed. Individuals are ultimately responsible for their own retirement security, not employers or the government. Planning over a long time horizon is essential to maximizing net spendable income during retirement.
The document discusses the benefits of fixed annuities for retirement planning. It notes that Americans are living longer but face financial challenges in retirement. Fixed annuities offer guaranteed returns, tax deferral, and can provide lifetime income streams. Both immediate and deferred fixed annuities are described as options to help investors meet their retirement income needs through guaranteed and predictable payments.
The document discusses the benefits of fixed annuities for retirement planning. It notes that retirees face significant financial challenges, including rising healthcare and living costs. Fixed annuities offer guaranteed returns, provide a stream of income for life, and allow for tax-deferred growth. Immediate annuities provide guaranteed lifetime income, while deferred annuities allow for long-term accumulation of assets on a tax-deferred basis before receiving income.
The document describes the Money Merge Account program, which uses mathematical principles to help people pay off debts faster and save on interest. It works by strategically moving money between accounts to take advantage of interest accumulation, float, and cancellation. Experts endorse the program for its ability to save tens of thousands in interest and help people become debt free and accumulate wealth years earlier than traditional repayment plans.
The document provides information on retirement planning and debt optimization strategies. It discusses developing a realistic picture of retirement income and expenses, estimating sources like Social Security and pensions and factoring in healthcare costs. It suggests living for 6 months on projected retirement income to determine if it's realistic. It also outlines strategies to pay off debt, like paying more than minimums, focusing on highest interest rates first, or consolidating with a lower rate loan. While the strategies make sense theoretically, it can be difficult to implement them fully in practice due to competing financial needs.
6. How Money Works Banks, Credit Unions, Insurance Companies = Historically Low Rates of Return Traditional Financial Institutions Your Money Global Economy 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.
7. The Power Of Compound Interest “ Compound interest is the most powerful force in the universe.” Albert Einstein, as quoted in Dow 40,000 by David Elias (1999) Rates of return are 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. It does not take into consideration taxes or other applicable deductions, which would lower performance. This example uses constant rates of return. Actual investments will fluctuate in value. $200 Monthly Savings for 35 Years (Age 30 - 65) $1.3 Million 12% interest 3% interest $148,680 6% interest $286,370
8. The Rule of 72 This simple calculation gives you the approximate number of years it will take to double your investment. 3% 12% 6% Based on the Rule of 72, a one-time contribution of $10,000 doubles six more times at 12% than at 3%. The table serves as a demonstration of how the Rule of 72 works and is only an approximation of accumulations. It is not intended to represent any specific investment, which will fluctuate in value. How many doubling periods do you have in your life? ? $20,000 $10,000 $10,000 $10,000 $20,000 $20,000 $40,000 $40,000 $80,000 $80,000 $160,000 $320,000 $640,000 $1,280,000 $2,560,000 $160,000 $40,000 0 6 12 18 24 30 36 42 48 Number of Years 3% 6% 12%
9. Buy Term and Invest the Difference Invest the Difference $175 monthly savings invested at 10% for 30 years = $398,882 at age 65. John $150,000 $300,000 Mary $150,000 $300,000 Children $0 $25,000 Total Protection $300,000 $625,000 Monthly Premium $298 $123 Death Benefit Before Primerica Changed to Primerica’s Term Monthly premium is an average of whole life policies from three major North American life insurance companies for male, age 35, standard risk and female, age 33, standard risk. Cash value life insurance can be universal life, whole life, etc., and may contain benefits in addition to a death benefit, such as dividends, interest, or cash value available for a loan or upon surrender of the policy. Whole life usually has a level premium for the life of the policy. 2. Primerica monthly premium for age 35, non-tobacco use for 35 year Custom Advantage policy (C535) and spouse age 33, non-tobacco use for 35 year Custom Advantage rider (C5SR), both with rates guaranteed for 20 years, plus a child rider of $25,000 each on two children, underwritten by Primerica Life Insurance Company, Executive Offices, Duluth, GA. Term insurance provides a death benefit only and its premiums increase at certain ages. The accumulation figure reflects continued investment at the same rate over 30 years at a 10% nominal rate of return compounded monthly and does not take into consideration taxes or other factors, which would lower results. This example uses a constant rate of return, unlike actual investments, which will fluctuate in value. This is hypothetical and does not represent an actual investment. More than double the coverage for $175 LESS per month! “ For most people, the right type of life insurance can be summed up in a single word: term.” www.SmartMoney.com, September 1, 2010 “ Term insurance is a better investment than whole life, as it offers more coverage for your premium …” CNNMoney.com, January 8, 2009 Difference = $175/month!
10. How Life Works Today 1. Young children 2. High debt 3. House mortgage Loss of income would be devastating At Retirement 1. Grown children 2. Lower debt 3. Mortgage paid Retirement income needed
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13. Are you protected from identity theft? The number of identity fraud victims in the United States increased 12% to 11.1 million adults in 2009. Source: 2010 Identity Fraud Survey Report, Javelin Strategy & Research
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15. The Debt Stacking Path* $353 $551 $303 $1,293 $2,720 $551 $303 $1,293 $2,720 $1,293 $1,293 $2,720 $2,720 * 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 you pay 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 you make 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 the example 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 is applied to car 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 remains constant. Retail Card 1 Credit Card 2 Car Loan Credit Card 1 Mortgage Total $1,124 $1,427 $2,720 $220 $353 $551 $303 $1,293 $2,720 $573 $2,720 + $220 + $573 + $1,124 + $1,427
16. The Debt Stacking Path* *The hypothetical interest rate is for illustrative purposes only and not indicative of a guaranteed rate of return on any investment. Illustrated rates of return are nominal, compounded monthly. Without Debt Stacking With Debt Stacking March 2019 182 Months Sooner $130,643 Interest Paid $214,433 Monthly Payments $2,720 $83,789 $2,720 Once debts are paid off, invest $2,720 each month until age 67 – the total, given a 10% return, is $2.87 million.* Payoff Date May 2034 Interest Saved $0
17. The Smart Solution Path The above example is for illustrative purposes only. 1. The above monthly payment does not include taxes and insurance. 2. Based on the assumption that the present payment program continues on three open-end credit card accounts with balances of $7,570, $8,830, and $5,500 respectively, each with an APR of 18%, 16% and 14.9% respectively, and combined minimum monthly payments of $876 ($303 and $353 and $220 respectively) and one fixed installment car loan with a balance of $15,764, an APR of 6%, a monthly payment of $551, and an original term of 60 months. 3. The above monthly payment does not include taxes and insurance. The client is responsible for the escrow and the payment of taxes and insurance. The payment reflects an annual percentage rate of 5.86% and a note rate of 5.75%. The loan in this illustration includes points and applicable closing costs, which are financed from the loan proceeds. Your actual closing costs and APR may differ. 4. Assumes no additional debt is incurred. Makes available $1,367 a month 4 Refinanced $215,000 for 25 years at $1,353 per month 3 at age 35 Original Loan APR: 7.50% Original Term: 30 years Original Loan Amount: $184,955 Market Value of Home: $269,000 1st Mortgage $175,000 at $1,293 1 (for 25 more years) Personal Debt $37,664 at $1,427 2 Total monthly payments = $2,720
18. The Smart Solution Path 5. The hypothetical interest rate is for illustrative purposes only and not indicative of a guaranteed rate of return on any investment. Illustrated rates of return are nominal, compounded monthly. 6. This illustration is based on a 25 year mortgage with a biweekly principal and interest payment of $676 plus an additional $148 towards the principal balance with each payment. The monthly payment does not include taxes and insurance. The client is responsible for the escrow and the payment of taxes and insurance. The payment reflects an annual percentage rate of 5.86% and a note rate of 5.75%. The loan includes points and applicable closing costs, which are finances from the loan proceeds. Your actual closing costs and APR may differ. Illustration assumes biweekly payments and the additional principal payments are made on time for 15 years so that all of the principal has been paid. Results of actual debt acceleration programs depend solely on your commitment and adherence to the proposed accelerated payment schedule. Biweekly payments mean payments toward principal and interest and are paid every 14 days. The effect of paying biweekly is to make one extra monthly payment per year. Acceleration Bi-weekly payments plus paying additional principal may result in reducing total time and cost of your mortgage debt. (Reduces a family’s housing debt faster, possibly saves thousands of dollars in interest and may increase borrower cash flow.) $443,900 invested/home and all debt paid off in 15 years Invest $1,071 a month at 10% for 15 years = $443,900 5 Add $296 6 a month toward payment of principal The total, given a 10% return = $3.86 million 5 Take the $443,900 lump sum and invest with the $2,720 now available each month until age 67
19. What You Would Have Earned District Leader $50 $645 $696 $222 $1,613 RVP $110 $1,290 $1,323 $394 $3,117 RVP Override $60 $645 $627 $172 $1,504 These estimated earnings are based on the following assumptions: Life – Custom Advantage 35 policy for primary insured, totaling $300,000 (C535) at 35-year-old non-tobacco rates and spouse, totaling $300,000 (C535) at 33-year-old non-tobacco rates, plus a child rider of $25,000 each on two children. Loan — $215,000 $.M.A.R.T. Loan ® . Investment – 12 monthly savings of $1,071 and $175 monthly savings from the life insurance example into a mutual fund. Most representatives do not achieve these leadership levels and clients do not always buy every type of Primerica product. In order to become a District Leader and begin earning the level of commissions discussed above, you must become licensed to sell insurance as well as achieve certain sales levels. Reaching the other leadership levels is dependent on the size of the organization you build, the number of sales and override commissions you earn and the efforts of your downlines. RVP Override column reflects what an RVP would earn on sales by a District Leader. Primerica DebtWatchers Loan Insurance Investment Total The Key: Recruit & Develop People + + = +
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21. Endnotes Arizona: Loans solicited by Limited Partners in Primerica Financial Services Home Mortgages Limited Partnership of Arizona (Primerica Financial Services Home Mortgages, Inc., General Partner). 3100 Breckinridge Blvd., Duluth, GA 30099. Mortgage Banker License No. BK 15594). Loans originated by Citicorp Trust Bank, fsb. California: Primerica Financial Services Home Mortgages, Inc. Loans arranged pursuant to a Department of Corporations, California Finance Lenders License. Colorado: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), License status: Exempt, 3100 Breckinridge Blvd., Duluth, GA 30099, (770) 381-1000. Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm. Connecticut: Primerica Financial Services Home Mortgages, Inc., MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER. Delaware: Primerica Financial Services Home Mortgages, Inc., (PFSHMI): A Delaware Licensed Mortgage Loan Broker. Florida: Licensed Florida Mortgage Broker/Representing: Primerica Financial Services Home Mortgages, Inc., Licensed Mortgage Brokerage Business. Georgia: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), 3100 Breckinridge Blvd., Duluth, GA 30099: A Georgia Residential Mortgage Licensee, License #6078. Illinois: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), 3100 Breckinridge Blvd., Duluth, GA 30099: Illinois Residential Mortgage Licensee. Citicorp Trust Bank, fsb, the lender, would provide the funds for these loans. Citicorp Trust Bank, fsb, not PFSHMI, is the entity which affects the availability of funds. Interest rates or charges for loans are in no way recommended, approved, set or established by the State of Illinois. Kansas: Kansas Licensed Mortgage Company. Primerica Financial Services Home Mortgages, Inc. 3100 Breckinridge Blvd., Duluth, GA 30099. License No. MC.0002382. Kentucky: Representing Primerica Financial Services Home Mortgages, Inc., 3100 Breckinridge Blvd, Duluth, Georgia 30099. EQUAL HOUSING OPPORTUNITY. Maine: Primerica Financial Services Home Mortgages, Inc., Loan Broker License #CSO07173. Massachusetts: Primerica Financial Services Home Mortgages, Inc., Massachusetts Mortgage Broker License Number MB 0056. Minnesota: Representing: Primerica Financial Services Home Mortgages, Inc., Minnesota Residential Mortgage Originator. Missouri: Primerica Financial Services Home Mortgages, Inc. (PFSHMI): A Residential Mortgage Licensee. Montana: Primerica Financial Services Home Mortgages, Inc., 3100 Breckinridge Blvd., Duluth, GA 30099, license number 000381. Nebraska: Primerica Financial Services Home Mortgages, Inc. (PFSHMI): Licensed as a Mortgage Banker. New Hampshire: Licensed by the New Hampshire banking department. New Jersey: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), 3100 Breckinridge Blvd., Duluth, GA 30099-0001, (770) 381-1000: Licensee, New Jersey Licensed Lenders Act, Licensed Mortgage Banker, Licensed by the New Jersey Department of Banking and Insurance (Certain Locations). PFSHMI does not make any mortgage loan commitments or fund any mortgage loans. PFSHMI arranges loans with 3 rd party providers. Citicorp Trust Bank, fsb, the lender, would provide the funds for these FIRST OR SECONDARY MORTGAGE LOANS. New York: Representing Primerica Financial Services Home Mortgages, Inc. – New York State Banking Department, 3 rd Party Mortgages arranged, Registered Mortgage Broker. North Carolina: Loans solicited by Representatives of Primerica Financial Services Home Mortgages, Inc. Ohio: Primerica Financial Services Home Mortgages, Inc., 3100 Breckinridge Blvd., Duluth, Georgia 30099-0001, License Number: MB.803986.000. Oregon: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), License Number: ML-131. Pennsylvania: PFSHMI - Licensed by the Pennsylvania Department of Banking as a Partially Exempt Mortgage Broker. Rhode Island: PFSHMI: A Rhode Island loan broker licensee. Texas: Primerica Financial Services Home Mortgages, Inc., Mortgage Company #71355, 3100 Breckinridge Blvd., Duluth, Georgia 30099-0001, 770-381-1000. Virginia: Primerica Financial Services Home Mortgages, Inc., Licensed as a Mortgage Broker by the Virginia State Corporation Commission, License #MC-368. Washington: Washington Mortgage Broker Practices Act Licensee. This document is not intended as an offer to extend credit nor a commitment to lend. The loan interest rates, fees, and terms presented herein are for illustrative purposes only and may not be currently available. This document has been prepared to assist real estate professionals in illustrating some of the financing options available to consumers. Lender and Primerica Financial Services Home Mortgages, Inc. are affiliated companies of Citigroup. $.M.A.R.T. Loan® is a registered trademark of Citicorp Trust Bank, fsb. Loans secured by residential real estate. EQUAL HOUSING OPPORTUNITY. NMLS Unique Identifier for Primerica Financial Services Home Mortgages, Inc. – 3073 NMLS Unique Identifier for Primerica Financial Services Home Mortgages Limited Partnership of Arizona – 151315 Primerica DebtWatchers™ is a registered trademark of Primerica, Inc. Product not available for purchase by residents of Washington, D.C. Life insurance is underwritten by the following affiliated companies in these respective jurisdictions: National Benefit Life Insurance Company, Home Office: Long Island City, NY, in New York; Primerica Life Insurance Company, Executive Offices: Duluth, GA, in all other U.S. jurisdictions; Primerica Life Insurance Company of Canada, in Canada. Securities offered by PFS Investments Inc.