Kitchen Table Presentation PDF

Primerica…
Who Are We:
• The Largest Independent Financial Services
Marketing Organization in North America!
• Listed on the NEW YORK STOCK EXCHANGE
• Canada Pension Plan invested over $42 Million!
• In business since 1977
• More than 6.3 Million Clients
All of this WITHOUT ANY national TV or
radio advertising!
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100 people surveyed at age 65…
54% dependent
36% working
5% deceased
4% OK ($1 million)
1% Wealthy ($5 million)
Source:
SmartMoney 2011
Why do 90% of the people fail when it comes to their finances?
• No financial education
• No financial game plan
• No financial coach
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Today’s financial challenges…
Average CREDIT CARD DEBT among households with balances on their cards: $15,788.
-AARP Bulletin July – August 2010
600,000 Canadians will struggle to make their MORTGAGE PAYMENTS if their rates rise by just 1%.
-Advisor.ca November 9, 2011
21% of Canadians have NO LIFE INSURANCE.
-www.clhia.ca 2010 Edition
61% of Canadians do not make RRSP CONTRIBUTIONS THAT THEY ARE ELIGIBLE FOR.
-Advisor.ca March 4 2011
45% OF WORKERS feel “NOT CONFIDENT” that they will have ENOUGH MONEY TO LIVE
COMFORTABLY THROUGH RETIREMENT.
-www.clhia.ca 2010 Edition
6 in 10 Canadian workers report they live PAYCHEQUE TO PAYCHEQUE to make ends meet.
CANADIAN PAYCHEQUES ARE NOT KEEPING UP WITH INFLATION.
-Toronto Star September 8 2011
-Stats Canada Sept2012
How real and serious are these problems?
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Our mission…
To help families earn more income, become properly
protected, debt free and financially independent.
Problem:
Institutions are selling products,
they are not providing families
with solutions!
Solution: Financial Needs Analysis
Primerica provides families with an
Education based, financial blueprint
and a coach to help simplify their
situation.
• COMPLIMENTARY
• CONFIDENTIAL
• CUSTOMIZED
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FNA example…
Bob (35) & Susan (33) Smith, with two children
WITH PRIMERICA
BEFORE PRIMERICA
Debt:
Debt Solution:
$150,000 mortgage balance.
$24,250 on two credit cards and
one installment loan with total
monthly debt payments of
$2,278.
Consolidate debts at $178,000.
Makes available $1,061/month.
Accelerate mortgage payments
with $661 freed up monthly
dollars and $400 towards savings
goals.
Debt free in 21.7 years.
Debt Free in 10.4 years &
$65,000 Invested.
A
or
B
FNA example…
Bob (35) & Susan (33) Smith, with two children
BEFORE PRIMERICA
WITH PRIMERICA
Creditor Life Insurance:
Term Life Insurance:
$150,000 coverage on Bob
$150,000 coverage on Susan
No protection on the children
$300,000 coverage on Bob
$300,000 coverage on Susan
$25,000 on each of the children
Total monthly cost: $138
Total monthly cost: $83
Saving $55/month.
A
or
B
Eliminate the middleman…
Traditional Financial Institutions
Your Money
Global Economy
Traditional Institutions = Historically Low Rates of Return
The Rule of 72… sometimes called the banker’s rule
Divide your interest rate into 72 to find the approximate
number of years it takes for your money to double!
Number
of Years
4%
6%
12%
0
$20,000
$20,000
$20,000
$40,000
6
12
18
$40,000
$40,000
$160,000
$80,000
24
$320,000
$640,000
30
36
$80,000
$80,000
$160,000
$1,280,000
Without introducing us to family and friends, how would they learn
the “Rule of 72?”
Shouldn’t we have
learned this rule in
school?
How do you win a
game if you don’t
know the rules?
Do banks or insurance
companies have any
incentive to teach us
this rule?
Who would benefit
from learning this
rule?
Financial Independence number…
If you want to be financially free, you need to estimate of
how much you will need to accumulate – your personal
Financial Independence Number (FIN)! Knowing this
number is a critical first step.
You want to retire in 30 years,
with $30,000 a year…
30 years from now, after 3%
inflation… $73,000 spends like
$30,000 does today.
Your FIN is $1,079,000
To get there, invest $473 per month for 30 years at 10% = $1,079,000
How important is it to know your Financial Independence Number?
This hypothetical example assumes 20 years of retirement income needed, at a 6% post-retirement rate of return and 3% inflation. Hypothetical investment
rates assume a nominal 10% rate of return, compounded monthly, and is not indicative of any specific investment. Any actual investment may be subject to
taxes and f ees, which would lower performance. This example shows a constant rate of return, unlike actual investments, which may fluctuate in value.
FNA example…
Bob (35) & Susan (33) Smith, with two children
BEFORE PRIMERICA
WITH PRIMERICA
Retirement:
Financial Independence:
Bob and Susan had $20,800 in
retirement savings at the bank
earning 3% with contributions of
$125/month.
We helped Bob & Susan invest
$580/MONTH using $400 freed
up from debt and $55 freed up
from insurance costs plus $125
already contributing.
When Bob turns 65, the Smiths
will have $1,735,000.
When Bob turns 65, the Smiths
will have $123,944.
ON A SCALE OF 1-10, 10 BEING THE HIGHEST. HOW WOULD YOU RATE YOUR DESIRE TO
BECOME PROPERLY PROTECTED, DEBT FREE AND FINANCIALLY INDEPENDENT?
Compensation…
FNA
30-60-90 Days
5-10 Appointments
30-50 Referrals
$300 Bonus
$1000-$3000 Tax Savings
No Commitment
Financial Education
Investment: $20,000
x 2%
$400
Insurance:
$1,000
x 50%
$500
2-5 Hrs
$900
x2
$1,800
District Leader…
50% contract
$1,000 x 50% = $500 x 2 = $1,000
$1,000 x 25% = $250 x 6 = $1,500
YOU
Total = $2,500
x12 months
$30,000/year
25%
25%
25%
Could you use an extra $2,500/month
Regional Leader…
70% contract
YOU
DIST 50%
DIST 50%
$1,000 x 2 = $2,000 x 70% = $1,400
$1,000 x 16 = $16,000 x 20% = $3,200
DIST 50%
200
Total = $4,600
x12 months
$55,200/year
Replace your income, part time
Regional Vice President…
District
DIV
YOU
60%
110% contract
$1,000 x 2 = $2,000 x 110% = $2,200
$1,000 x 20 = $20,000 x 50% = $10,000
DIV
60%
Total = $12,200
x12 months
$146,400/year
Could you start achieving your
dreams with this kind of income?
Atlantic Canada Leadership Council
100 RVP’s
No territories
Average $110k per year
Overrides
Recognition
Trips
California, Puerto Rico
Hawaii, Florida
Bonuses
Residual Income
40+ Checks/
Month
Primerica
Stock
Ownership
Building a
Legacy