Frank Codina, NSD, OSJ, CPN

Regional Vice PresidentRegistered Representative

Frank Codina, NSD, OSJ, CPN

Regional Vice PresidentRegistered Representative

THERE IS A STORM BREWING ON THE HORIZONTHERE IS A STORM BREWING ON THE HORIZON

Retirement RolloversRetirement RolloversMortgagesMortgages

Life InsuranceLife Insurance

Long Term CareLong Term Care

Debt CrisisDebt Crisis

There is a Debt & Savings Crisis in our Country

There is a Debt & Savings Crisis in our Country

8%

4%

‘90 ‘95 ‘00 ‘05

Debt Goes UpAverage credit card debt per U.S. household:

Debt Goes UpAverage credit card debt per U.S. household:

Savings Go DownPersonal saving as a percentage of disposable personal income:

Savings Go DownPersonal saving as a percentage of disposable personal income:

7%

-1.1%

$9,312

$2,966

There is Also a Retirement Crisis on the Horizon

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 2. USA Today, March 30, 2005

Almost one-third of workers said they determined how much they would need for retirement by guessing.2

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.

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 20051. Money, February 2005

59% of households have no individual life insurance at all.

There is Currently a Protection Crisis in America

There is Currently a Protection Crisis in America

Experts recommend coverage of 8 - 12 times your annual income.1Experts recommend coverage of 8 - 12 times your annual income.1

44% of households believe they need more life insurance.

3

59% of households have no individual life insurance at all.

2

2. National Underwriter, September 20, 2004 3. National Underwriter, April 25, 20052. 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.

Without adequate life insurance, many families will experience financial

devastation upon the death of a loved one.

1. Kiplinger’s, January 20051. Kiplinger’s, January 2005

The Wall Street Journal, February 17, 2005The Wall Street Journal, February 17, 2005

Why is this happening? 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!The Middle Income Market Is Being Ignored!

Married 1 Child Homeowners Both 35 years old

Married 1 Child Homeowners Both 35 years old

Example: The Martin familyExample: The Martin family

Example: The Martin family - $10,000 401K to IRA Rollover

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$10,000

Rate of Return

$359,496$359,496

$108,925

$108,925

$33,003$33,003

$24,568$24,568

$18,207$13,493

Age: 35

Before:Before: After:After:

3 times the coverage for

$99 LESS per month!

HusbandHusband

$150,000$150,000

PremiumPremium

$200/month$200/month

WifeWife

$150,000$150,000

HusbandHusband

$500,000$500,000

PremiumPremium

$101/month$101/month

WifeWife

$400,000$400,000

Example: The Martin family – Life insurance protection

Example: The Martin family – Life insurance protection

Example: The Martin family – Investing the $99 in a ROTH-IRA

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$708,957

$207,841

$207,841

$56,005

$56,005

Age: 35

$10,000 plus $99 per month!

Promote Education Plans

Example: The Martin family – Debt elimination solution

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?

Example: The Martin family – Debt elimination solution

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!!!

Example: The Martin family – Building their Financial House Example: The Martin family –

Building their Financial House

Life Insurance Coverage:$150,000 cash value policy on him$150,000 cash value policy on herTotal coverage: $300,000Cost per month: $200

Life Insurance Coverage:$500,000 term policy on him$400,000 term policy on herTotal coverage: $900,000Cost per month: $101

Debt Situation:Monthly debt payments : $2,199On debt of: $32,157 (credit cards) and a $145,000 mortgageTerm remaining to pay off: 25 years Emergency account: CREDIT CARDS

Debt Solution:Loan payment : $1,309On debt of: $180,000Monthly debt savings: $890!Completely debt-free: 20 yearsEmergency account: $500/month

Savings Style:Total savings: $10,000Monthly 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

$708,000 in retirement savings &

$386,000 in emergency fund

Total liquid net worth: $1,094,000 by age 65

Before After

We help people where they need help most

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:We help families:

Products and services that people need and want

Products and services that people need and want

Legal InsuranceMortgage Refinance

and 2nd Mortgages

Long-Term Care Insurance

Personal Loans

401K Programs

New Home Loans

Life Insurance

Variable Annuities

Mutual Funds, IRAs & Education Savings Accounts