RESOURCES The key k ey to winning in Primerica is always plugging into the right r ight resources. You can get really good at this business fast IF you'll invest time mastering and working the business. Here are a list of resources for learning our business: YouTube Video Video Suggestions: Suggestions: 1.
Art Williams (The Founder of Primerica) All his videos are great.
2.
Team Freedom Systems: Kitchen Table Appointment, Whole Life vs. Buy Term & Invest the difference, Universal Life vs. Buy Term & Invest the Difference.
3.
BuildingLeaderscom Channel
4.
Primerica Channel
5.
Weidel Academy (Watch All Videos, but start with 4 point game plan!!!)
Book Suggestions Sugge stions:: 1.
A.L. Williams Way: Way: By Art Williams Williams
2. 3. 4.
Coach: By Art Williams Think and Grow Rich: By Napoleon Hill Secrets of The Millionaire Mind: T. Harv Ecker
5. 6. 7. 8.
177 Mental Toughness Secrets of The World Class: Steve Siebold Fight for your money: David Bach All you can do is All you can do: By Art Williams Williams Common Sense: By Art Williams
Websites: (for info & Audio) 1.
www.primericaonline.com
2.
www.digitalpfs.com
3.
www.dubbelldreamteam.com User Name: dubbell Password: dreamteam
4.
www.neilteamfreedom.com
STEPS TO THE SYSTEM 1. Prospecting: Get a name & number Your warm market New recruits warm market Referrals O ut & about
2. Set an Interview OR a Kitchen Table appointment IF qualified i.e. Married, kids, home. Set the kitchen table appointment. IF NOT qualified- Recruit them on the spot OR invite them to the opportunity meeting
3. Kitchen table appointment Client survey page (follow the instructions on the page) Presentation Front side Back side before & After example Compensation Families Families need & want our help. Keys to success What if anything would keep you from getting started right now? IF they say nothing you do their turbo IBA IF not ask: on a scale of 1-10 what is your desire transition to FNA
4. Financial Needs Analysis questionnaire Follow instructions on questionnaire word for word. Overcome Objections if any
5. Fast Start- (If you recruited them, you d o this after their FNA is complete) comp lete) Paint the picture Ask: on a scale of 1-10 how bad do you yo u want these thes e things to happen? How many days/ nights a week can you give to Primerica? Who have you been thinking you'd like to share this with? Set appointments with new recruit Go over fast start manual Leave them with new associate CD/ Fast start DVD etc..
PROSPECTING PROSPECTING OUT & ABOUT ( While While prospecting look for wedding rings) Can I ask you a question? Sure Are you from aroun aroundd here? Yes The reason I ask is I own a business in the area, and I'm always looking for great people. You seem like a sharp person what do you do for work? WFA ______ Do you plan on doing that t hat for the rest of your life, or if the money and position were right, right, do y ou keep your options open? Yes Great I don't have a lot of time now, what was y our name? (Introduce yourself) ______, ______, I don't have my schedule with me, where's w here's a number I can call you in 20min or so and set up a time to see if we w e have a number) mutual interest? (Look down at your phone and assume he/she is giving you their number)
After Getting the Number you Say: It was great to meet you _____. I'll call you as soon as I get in front of my schedule. When we meet I'll go over with you exactly what we do, and the money involved okay? WFA Okay.
SETTING THE APPOINTMENT PROSPECTING OUT & ABOUT (When calling them to set up the Appointment if they are a 4-5 pointer the goal is to set a Kitchen table Appointment. If they are not qualified just set an interview during the day. (or if they are n ot qualified invite them to the opportu nity meeting as t he last option)
Setting the Kitchen Table Appointment: Hey _________ this is ________ we met at _________ do you remember me? WFA Yes I just wanted to touch base with you to set a time we can get together and show you exactly what we do , and the money involved; I have ________ or would _________ be better? Would days or evenings be better? Great what time ______ or ______ ? What area of town do you live in? WFA. Perfect, what's your address?
Set the appointment. Once the appointment is set you say: _________ who other than yourself would be involved in making a career decision? WFA. My spouse. Great, then I'm guessing you and your spouse are the kind of people that make decisions based on all the facts not partial facts would w ould I be right in assuming that? WFA Yes. Great, then t hen what I'd like to do is meet with the both of you, that t hat way I can get you all the facts and you can make an informed decision together fair enough? WFA. Fair enough. Ok, let your spouse know, make sure to put it in your calendar, calendar, and I'll I 'll see you ________ ________ night night at ______ ______..
Setting Setting an Interview: Hello this is __________ we met at _________ you remember me? WFA Yes I just wanted to touch base with you to set a time we can get together and show you exactly what we do, and the money involved; I have ________ or would _________ be better? WFA. Ok perfect, would Mornings M ornings or Afternoons be better? WFA . Great, do you have a pen & paper so you can write down the address to my Office?
After After its set s et say: Now look ________ I'm s uper busy, and I'm sure you are as well. I don't want to t o waste your time, and I definitely don't want to waste mine. I have to drive all the way across town to meet you. So if I put this in my schedule can you promise me you'll be there? WFA. Are you a man/woman of your word? WFA. Yes. Great then I'll see you on ______at ______. ______. I look forward f orward to meeting with you. Have a great day.
THE INTERVIEW INTERVIEW The goal when doing d oing an Interview: If they are married is to peak interest enough to set a Kitchen Table Appointment with both Husband & Wife or If they are not qualified To either recruit them on the spot or invite them to the opportunity meeting.
Here is the format of questions you as k as you start an interview: What is your current career? Are you locked lock ed in to y our current ca reer, or do you keep kee p your options opti ons open? ope n? Would you consider a career change if the money w ere right? What would you and your family do diff erently if time an d money were no issue? (hom e, cars, toys, vacations, charities, etc). etc). (The reason I'm asking is because if I'm going spend the next 2 years training you for a Broker position, I need to make sure you're a big dreamer, hard working, you're hungry & ambitious & I need to know wh at you really want etc.) When will your current occupation allow you to have & do all of those things? If they're unhappy w/ current occupation ask: Do you have an an exit strategy for getting out of of your current occupation? Y
N
If we can show you a better way to help you reach your goals that would give you m ore money, security and freedom than your current current career, would you be open to exploring exploring that option? Y N (Now show the 1 page presentation. If they are married be sure to stop at the keys to success and ask the question below. If they are not married recruit them on the spot or Invite them to the opportunity meeting.) Are you yo u the ty pe of person that likes lik es to have all the facts f acts before bef ore making makin g a decisi d ecision, on, or o r partial facts? facts ? Who other than yourself would be involved in making a career decision? I'm guessing you are the kind of people that make decisions based on all the facts, not partial facts would I be right in assuming that? Then I need to get with the both of you so I can get you all the facts, and you can make a n informed decision together fair enough? When is the best time to meet with t he both of you together, d ays or evenings? (Explain if necessary the reason we need to meet w/ both husband & wife- We believe in God-Family-Business, let them know that your not interested in even giving them a shot w/ out meeting their spouse first). (if they ask to know more about the company just say: "I'm not going to give you all the information yet, because I want to be sure both you and your spouse see it together so you can make a better decision."
CLOSING CLOSING QUESTIONS AFTER AFTER THE INTERVIEW NTERVIEW Getting a qualified interview to the Kitchen table appointment: Who other than yourself would be involved in making a career decision? WFA. My spouse. Great! I'm guessing you are the kind of people that make decisions based on all the facts, not partial facts would I be right in assuming that? WFA yes. Great! Then I need to get with the both of you so I can get you y ou all the facts, and you can make an informed decision together fair enough? WFA. Great, I have tonight or would tomorrow night be better? (Then set the Appointment.)
If they say I need to talk to my spouse first/ or check my spouse s schedule you say: That's fine lets set s et a tentative appointment when you are usually together, then if that doesn't work you can call me back with a time that does work okay?
Coaching them on what to say to their spouse after you set the appointment: I know a guy/ girl looking for a business partner. They are coming over ________ night to show us exactly what they're looking for, and what I'd be doing. I set it up for both of us to t o be there at ______pm on ____ _______ ____n _nig ight ht ok ay ?
KITCHEN TABLE APPOINTMENT Client Survey 3 Reasons Why We Are Here Tonight: 1. Referral Base
2. Earn your business as clients
3. Expa nding & Need Help
Do you have someone right now who handles your current financial needs other than yourselves? Yes (If yes, are they open to make a change if we are able to improve and enhance their current situation?) First Names
No
Last Name
______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ _____ ___
Client
Spouse
Current careers? What do you like about your current career? What Would You Change About it? What are some things that you and your family would do differently if time and money were no issue? For example: What do you dream about? What's Important to you? GOALS: ___________________________________________________________________________________________ _____ _____ _____ ____ _____ _____ _____ _____ ____ _____ _____ _____ ____ _____ _____ _____ _____ ____ _____ _____ ___ (Homes, Cars, Travel, Charities, Hobbies, Toys, Education, ect.)
How much annual income would you need to hit those goals? $__________________/ yr. When will your current career allow you to accomplish this?______ ____________ If we can show you a way to help you reach your goals that would give you more money, security and freedom than your current career, would you be open to exploring that option? Y N What age are you on track for to be able to retire? _____ __ What is your ideal retirement age?__ _____ If we can put together a plan to hit that goal, would you follow it? Y N _____ _____ _____ ____ _____ _____ _____ _____ ____ _____ _____ _____ ____ _____ _____ _____ _____ ____ _____ _____ _____ _____ _____ Why I decided to get involved with Primerica. (2 minutes or less) _____ _____ _____ ____ _____ _____ _____ _____ ____ _____ _____ _____ ____ _____ _____ _____ _____ ____ _____ _____ _____ _____ _____ As I go through my presentation I want you to ask yourself 3 questions: 1.
Is Primerica a credible company?
2.
Is what Primerica does for families' life changing?
3.
Who do you know that would benefit from meeting with us? - Maybe this will help: Will you play a little game with me? Who can you think of right now (first names only) that is Married- Has kids- and a Homeowner? Also, who comes to your mind first when I say: Best S alesperson that's not pushy- Best T eacher- Most E nthusiasticnthusiastic- Most A mbitiousmbitious- Most M otivated Look down at the refe rral s heet a nd st art wr itin g name s as they say t hem, ask fo r as m any as they can t hink of the n ( Look start yo ur prese ntatio n)
CLOSING THE IBA After asking: How many days a week can you work wor k part time, wait for for their answer then ask: What if anything would keep you from getting started right now? (If they say "nothing")
Okay then here's what's going to happen: I'm going to get your application started. Then ask you some background questions, And we'll get your background check started today/tonight okay? WFA. Great, do me a favor and grab your driver's Lic ens e . (If there is no objections then fill out their IBA, If they have objections answer their questions and then fill out their IBA, or invite them to the opportunity meeting.)
Once you have ha ve their IBA filled filled out: 1. If they are married do their FNA first, then do t heir fast start. 2. If they are single do their fast start immediately . Be sure you set a minimum of 3-5 Kitchen Table Appointments with them before they leave.
CLOSING CLOSING LIFE LIFE INSURANCE INSURANCE To close their Life Life Insurance make sure you explain the numbers 1 -13 on the FNA Questionnaire. They are described in our Kitchen Table Appointment Video on the YouTube YouT ube Chann C hannel: el: "Team Freedom Free dom Systems S ystems"" If you close on the first appointment: Be sure to follow all the way through to step 16 on the FNA Questionnaire. Make sure you set a Follow up appointment to bring back their Financial Needs Analysis, and get referrals etc. with in 1 week.
Before you leave the home: Leave them with the Client Leave behind (you can get this on Virtual Base shop s hop under under the resources tab), that explains to them the process of what w hat happens from here.
The last thing explain to them: "________ &_________, you will be receiving 3 phone calls. The first one is from our local office. They will call you to go over the application to make sure everything is correct, and make sure you don't have any questions. The second call you are going to get is from Tele-Underwriting. They are going to call you and Make sure I asked the medical questions. Make sure you answer the medical questions the same with them as you did on the application tonight. It will take 5-10min, and they call from an unusual number so please be sure s ure to take those tho se calls for the next few f ew weeks. (If Applicable) The third company that t hat will call is the Nurse to do your Para-Meds. They will come over to take your blood & Urine. They will ask you to fast for 6-12 hours so be sure to drink a lot of water, and don't drink alcohol, energy drinks or eat fast food the day before. Its very important these Para-meds are done with in 7 days so please schedule them as soon as pos s ible ok ay ?"
If you don't close on the first appointment be sure to get g et commitments. If you get commitments, comm itments, set a follow up appointment with in 1 week.
THE FAST START The Fast start Provides the new recruit with with a $300 bonus, an iPad Mini, and a Promotion to District District Leader at 50% 50 % How to qualify: The New recruit must do 3 Personal Recruits x 3,000 Life insurance premium in their training and pass their state exam 30 days from their IBA date.
There are 2 ways to do Primerica You Choose: The wrong way,
The right way
Getting Licensed first:
Getting off to a Fast Start:
Study for test get licensed
Going on 10-15 Kitchen Table Appointments your 1st 30 day s .
You start start with: with:
You start start with: with:
No team Limited Market No referrals No training Rep contract 25%
A Team Team of of 3-6 people (Training New Recruits) Unlimited Market (Training Referrals You're Trained District contract 50%
Since you aren't trained you have to take a trainer along with you. So you split s plit the sale. Half of 25% is 12.5%
You miss out on 3 sales but now you have 3-6 people to train. And you know what your doing so you don't need a trainer so you get 50%
The average life app is $83mo x 12 = $1,000yr 12.5% is $125
The average life app is $83mo x 12 = $1,000yr 50% is $500
3 sales would be $375 your 1 st month licensed.
3 sales would be $1,500 your 1 st month licensed. Plus a $300 bonus from the company Plus an iPad Mini!
Total Value: $375
Total Value: $2,000 (and that's just the 1st month!)
THE FAST START The why is more important than the how. If the why is big enough, people will do whatever it takes to find out the how. So when getting a new pe rson off to a fast start, you must mu st explain WHY they must get you in front of 15 people within their first 30 days. _
"Hey________, I'm very excited that you are getting involved with us. I want you to know that if you follow our system, every goal or dream you have can and will be accomplished." "Within about 60 days from now you will be licensed and trained along with 1, 2, maybe even 3 or more licensed trained people with you, as well as several others that will be on track to do the same. You'll have an unlimited number of appointments to go on because of all of the new recruits coming on to your team that need to be field trained, and be in a position to earn $2,000-$5,000/mo in income out of the gate. You'll be in a position to be RVP within 6 months or so, probably go RVP 12-18 months (so you're mature enough in the business to be one) make $30k-$50k in income your first year, and $150k-$250 plus your second year."
So, on a scale of 1-10, what is your desire to make all of this happen? WFA All you need to do while getting licensed is get me in front front of 15 people that are in the the right market, across the Kitchen Table in the next 30 days. So I'm guessing that's something you can do right? WFA How many days/ nights can you give to Primerica right now? WFA Who have you been thinking t hinking of that you would like to share this with?
Create their list, Find Find out who is qualified and set up 3-5 Kitchen Kitchen Table Appointments. App ointments. For those people p eople on their list not qualified set up a daytime day time interview or invite them to the opportunity meeting. (Remind them if necessary necessary how much mu ch we are going to benefit those they take you to see)
Go over what to say with the new recruit, and help them set their first 3-5 Kitchen T able appointments appointments before they leave. After you set up a couple of appointments, then go over the hiring pack, pack, set goals, go over schedule, PFSU dates, and give them New Recruit CD. (Be sure they listen to it 15-20 times.)
SETTING SETTING APPOINTMENTS APPOINTMENTS Best Friends, Closest Closest Family Members Membe rs Option 1 Hello_________, (Chit Chat) Are you and _______ going to be home h ome tonight? WFA If yes. Great, I have something I want to show you and somebody I would like you to meet. I'm going to stop by what time would be better ______ or ________?
If not tonight: I'm available ________ or _______ __ _____ which day works better? Great, would ________ or ________ be best?
What is it?: I am starting a new second se cond career and I have ha ve to get a license through the state. I have to go through some training before I can go to school. Would you and an d (spouse) help me out and sit through a presentati p resentation on with me and a friend that is training me? WFA W FA Do me a favor, let (spouse) know and put it on your calendar so you don't forget. Okay, great! See you _______ at _______. ____ ___. Bye!
I don't think we are interested? interested? Look_________ Look___ ______ if your not interested and it's not for you would you fee l comfortable telling me no? WFA. Yes Great, then what day would be better ________or ________?
_
SETTING SETTING APPOINTMENTS APPOINTMENTS Option 2 Hello_________, This is__________. How are things going? (Chit Chat) The reason I'm calling ca lling is I am starting a second career and I have ha ve to get a license through the state. I have to go through some training before I can can go to school. Would you and ______ ___ _______ ____ help he lp me m e out and an d sit through throu gh a presentatio pre sentationn with a friend frien d who is training trainin g me? WFA if yes Great, I'm available _________ or _________, which day works best? Would ________or________ ________or__ ______ be best? Do me m e a favor let ______know and put it on your calendar so you yo u don't forget. It's It's really important to me okay. Great, see you ________ __ ______ at _______. Bye!
What is it? I'm working with a financial services company. It's very exciting, I just need a favor, it's part of my training as I get my m y license. I'm just trying trying to get trained and get my name out there so what day would be best _________or__________?
I don't think we are interested? interested? Look_________ if your not interested and it's not for you would you feel comfortable comfortable telling me no? WFA. Yes Great, then what day would be better ________or ________?
INVITE TO THE OPPORTUNITY MEETING Inviting someone from the kitchen table appointment: We find clients who invest 60-90 minutes of our time and come down to ou r business overview have much m uch greater success in hitting their financial goals, and that's what you want isn't it? WFA. Yes. Is there anything you cant get out of _______ night for about an hour at ________? WFA. No. Great, since there's nothing you cant get out of I need nee d you to be at my m y office at ______. Now here's the thing, I'm going to have a seat saved for you with your name on a list. Can you promise me you'll yo u'll be there? WFA. Yes. Now you're a man/woman of your yo ur word right? WFA. Yes. So you promise me you'll you'll be there? WFA. Yes. Great then I will see you _________ __ at __________. Here's The address. add ress.
Inviting someone who's not qualified from a list: Do you plan on working at your job forever forever or would you keep your options open to making money on the side? WFA. Yes I keep my options open. I just started with a company and a nd they are looking fro some sharp people, you are the first person that came to mind. I would like to introduce you to this guy/girl that runs the office. Is there anything you cant get out of _______ night for about an h our at ________? WFA. No. Great, since there's nothing you cant get out o ut of I need you to be at my office at _____ _. Now here's the thing, I'm going to have a seat saved for you with your name on a list. Can you promise me you'll be there? WFA. Yes. Now you're a man/woman of your word right? right? WFA. Yes. So you promise me m e you'll be there? WFA. Yes. Great then I will see you ___________ at __________. _____ _____. Here's The address. (If your inviting from the interview: After you finish the presentation invite them by starting with: Is there anything you cant get out of ..) For_ internal_ use_ only._ _ Not_ to_ be_ used_ with_ or_ distrib uted_ to_ the_ public._
CLOSING THE THE I.B.A I.B.A " After After the opportunity oppo rtunity meeting mee ting is over." After the meeting is over make sure you hand your guest a survey: Say: "Please fill this out thoroughly and let me kn ow when your done."
When the survey is filled out you ask: What did you like better helping people or making money? WFA. Great, I noticed you marked _____ days. What ____ days da ys were you thinking? thinking? WFA. Okay great, here's what going to happen: I'm going to get your applicati ap plication on started, ask you some background questions, qu estions, and we'll get your background check che ck started tonight okay? WFA. Okay. Great, do me a favor and grab your drivers license for me. (If they are married and their spouse has not no t seen the presentation, make sure you set up a time to meet with both of them before be fore you submit the IBA. Preferably Preferably the next day. d ay. Use the script on Closing Questions after the IBA)
OVERCOMING OBJECTIONS (The key to overcoming objections is asking questions.)
Before you are hit with an objection, you are telling. After the objection, you are selling: (Example: Telling = presentation)
Objection: "Where can I get 9% today?" Selling = "Well, you're not going to get 9% today, however, equity mutual funds over the last 30+ years have averaged 9-12%, And if I could show you how to get a better rate of return would that interest you?
Objections are the steps to the sale. If they don't object, or challenge, most mo st often they won't buy. If client doesn't object, it implies client is not interested in your product If client does object, it shows client is paying attention and is interested in your product Objections Objections define client's main areas of o f interest and give you the feedback you need to structure your strategy toward the final close. Example: If client keeps objecting about income opportunity, you know the client's main interest lies within the business opportunity.
Objections define client's main areas of interest and give you the feedback you need to structure your strategy toward the final close. Example: If client keeps objecting about income opportunity, you know the client's main interest lies within the business opportunity.
Objections are nothing more than a request re quest for more information. Our job is to help a client obtain the facts to make ma ke a decision that improves impro ves their financial situation. Example: If client's main concern is they think they need life insurance at an elderly age, our job is to educate the client on the ability to save towards their FIN #, at which point, they are self-insured.
It's human nature to procrastinate. Keeping a cas h value insurance policy, or a low interest savings account is not wise to procrastinate over.
Our job is to help support the client in taking action and making a decision in the best interest interest of their family.
OVERCOMING OBJECTIONS Learn the 3 Types of Questions
Porcupine Answering Answe ring a question with a question que stion I.e. How much time does it take? How Much time can you invest? invest?
Tie Down Asking Ask ing a question que stion that th at requires requ ires the client to agree a gree I.e. I'm guessing that if I could help you get out of o f debt faster that would be somethi some thing ng that would interest you?
Alternative Alternative Choice Giving Giving more than one option to choose from I.e. When can we get together I have Wednesday or o r would Tuesday be bett b etter? er?
RECRUITING RECRUITING OBJECTIONS OBJECTIONS "Is This a Pyramid?" WFA . What s a pyramid? WFA.
(Someone on top makes all the money)
Can I ask you question, where do you work now? WFA. In the company you work for now, do you have a manager? WFA. Does he have someone above him? Who makes more money you, or the guy at the top? What is your opportunity to have this position? What does that look like to you _______? But it's not is it, it's a business, just like ours. Wouldn't you agree it make sense to work for a company that doesn't put any restrictions on your income potential? Great, let's get you yo u started. Do me m e a favor and grab me m e your drivers lic ens e.
RECRUITING RECRUITING OBJECTIONS OBJECTIONS "I'm not a sales person, pe rson, Or I don't think I can do it." it." What do you do now?
WFA (Mechanic)
How long have you been a mechanic for? WFA (10 years) Before you became a mechanic m echanic did you already know how ho w to break down an engine & put it back together? WFA (N0) You probably had a mentor, or someone you taught you how to fix a car, am I right in assuming that? WFA (Yes) Do you think think you could c ould teach me to break down and put together an engine if I was willing to put in the time and effort to learn? WFA (Yes)
How confident are you that you could teach me? m e? WFA (Very) See just like in your y our business you could teach me, I know kn ow I could teach you; And our business is just words. And you know how to talk right? WFA (Yes) So If I could teach you the right words, and put them in the right order then you could do that no problem right? WFA (Yes) Great, lets get you started. Do me a favor f avor and grab your drivers lic ens e.
RECRUITING RECRUITING OBJECTIONS OBJECTIONS $99 ." "I don't have the $99."
______ ____ ____ is it that t hat you don t have h ave the $99 or is it that th at you don t see s ee the value of what you d be doing for families? fam ilies? WFA. Let me ask you y ou a question, if I told you that outside, I have a brand new BMW M5 and I would sell it to you for exactly $99, but you had to have the money today, would you be able to come up with it? WFA. So what you re really telling me is that you don t see yourself being successful helping families? Who could we go see right now so I can turn this into reality, instead of theory?
RECRUITING RECRUITING OBJECTIONS OBJECTIONS "I don't have the time." What are your time commitments right now? WFA. I work. How many hours a day do you work?
WFA.
Great, that means, you really have 6 to 9 Monday M onday through Friday free. (Softball, church stuff, family).
So out of the things you y ou just mentioned, which is more important than you reaching your goals and dreams? With your credibility and my know-how, it will be impossible to fail. OR
_______ How Ho w many hours ho urs a week do d o you work? WFA. There are 168 hours in a week. If you work 50 hours a week that leaves 118 hours. Lets say you sleep 8 hours a night that leaves 56 hours. Lets say drive time is 2 hours a day. That still leaves 42 hours. Lets say you spend 2 hours a day with your family. That still leaves us with 18 hours. If we could use just 10 of those hours to help you yo u make an extra $1,000-$2,000mo would it make sense sens e to at least give it a shot? WFA. Yes. Great, lets get you started. Do me a favor and grab me your dirvers lic ens e.
RECRUITING RECRUITING OBJECTIONS OBJECTIONS "I don't have the time, or I'm too to o busy."
Big mistake, Little mistake: If you were going to make a mistake in life would you rather make a big mistake or a little little mistake? mista ke? WFA Little A little mistake would be we meet m eet for 15 minutes and a nd you're not interested, in terested, you wasted 15 minutes of your time. A big mistake mis take would be you don't take 15minutes 1 5minutes and this th is may be something som ething you yo u would be really excited about, that could change your life. Wouldn't it make sense to take ta ke 15-20 minutes of o f your time to at least see? WFA Yes. Great I'm available ______ or _______ which is best?
RECRUITING RECRUITING OBJECTIONS OBJECTIONS "How do you get your clients." Most companies spend tens of thousands or millions of dollars on advertising to sell their products products or services. We believe that the best form of advertising is WORD OF MOUTH. The Marketing plan of PFS is a New Associate's Assoc iate's Natural Market, with two objectives in mind. 1. To help the new associate build a business with Primerica starting part-time, and when the t iming is right, make a career change. 2. To educate the consumer of our products and concepts through our complimentary FNA F NA (Financial Needs Analysis), become a client, start a Game Plan to become Properly Protected, Debt Free, and Financially Independent. As a new associate, you complete a Top 30 Training List. We qualify the top 10, together we see those 10 during your field training, our goal is to get you trained and qualify for a FAST START BONUS BONU S within your first 30 days.
Results:
LIFE INSURANCE OBJECTIONS "We want wan t to think about it, or we don't do anything anything on the first night." I understand, I'm sure the reason you don t like to do anything on the first night is because you want to think it over to be sure you don t make a mistake, is that correct? WFA. Would you agree that what I've shown you so far is an improvement upon your current situation? WFA How much time do you need to think it over to feel completely comfortable with going ahead is 6-8 weeks long enough? WFA. Great so while your thinking it over, what makes most financial sense to the both of you, being properly protected while your thinking about it, or not being protected, if there's no obligation either way? WFA Great, we ll get the underwriting process started tonight to see if we can get you yo u qualified for the coverage as your thinking about it/ shopping around. That way your family has coverage vs. no coverage Okay? By the way as your shopping around, if you find something that looks looks better on the surface be sure to get something on paper, we ll take a look at it when we come back and make sure you get the best possible coverage with the best possible value for your family okay? Do me a favor and grab your drivers license.
LIFE INSURANCE OBJECTIONS "I just don't see the need for life life insurance." insurance ." I understand that nobody likes to invest in something they don t think they need. But B ut let me ask you a question. If I had a toaster that popped up $3,000 a mo. Every month, would you insure that toaster in case it breaks? WFA Even if it cost you $500 mo. to insure the toaster would you still do it? WFA.
Guess who w ho acts as the toaster in your household? WFA. So if you can c an insure your income like you would w ould insure the toaster for a lot less than $500 mo. Wouldn't it make financial sense to see if we could do that? WFA. Great so we'll see if we can get you medically qualified for the coverage. Do me a favor and grab me your drivers license for me.
LIFE INSURANCE OBJECTIONS "We have some som e other things we need to take care of first, first, like health hea lth insurance." I understand, all of those other things are important to your family. However, what actually pays for those things like health insurance? WFA My inc ome
So what would you say is more m ore important important to protect those other things" or your income which actually pays for those other things? WFA My income So if we can put together an affordable plan that protects your income, so you can ca n provide those things for your family no matter what happens, S ure, or If I could afford it. will you implement it WFA Sure, They say sure:
Great, lets see if we can get you y ou qualified for the coverage. Do me a favor and grab your drivers license. They say If I could afford it: Great lets go over this budget worksheet and see where we can free up some money to protect your family fair enough?
LIFE INSURANCE OBJECTIONS "My agent is a close friend friend or a family family member." me mber." I m sure you would never do anything to hurt your relationship with your friend or family member would you? WFA What's more m ore important to you your relationship with your friend/ family member or your Spouse & Kids? WFA Great, so if we could do a better job for your family, wouldn't it make the most financial sense to take advantage of it? WFA Great, and if your current agent really loves and cares about your family, wouldn't he/she want you to do what's truly best for your family? WFA Great, so let me see if we can improve your current situation, and if we can we'll see if we can get g et you qualified for the coverage. Okay?
LIFE INSURANCE OBJECTIONS "Dr. Phil Close- Bills Bills are more m ore than their income." incom e." Can I teach you something real quick? WFA Have you guys ever seen Dr. D r. Phil on Television Television before or at least know who he is? WFA Great, The reason I ask is I want to be Dr. Phil for a second, is is that ok? When Whe n I walked into your house, I noticed a few things. I noticed noticed you have cable or satellite television television is that right? I also noticed as I went wen t through your FNA that you have Internet, and Cell phone as well as auto and heath insurance Is that correct? So let me ask you john & Mary which one of those things is more important than protecting your family? WFA None N one of them Or Auto Au to & Health insurance insurance is the law. If they say auto and/ or Health insurance is the law:
So what's w hat's more important to you your family or the law? WFA My Family Fa mily Great We'll W e'll see if we can get you qualifie qu alifiedd for the coverage. Do me a favor and grab your drivers license for me. If they say none of them:
So my question to you John & Mary is why do you have all of those things but you don t have protection protection for your family? WFA no one ever taught us Great We'll W e'll see if we can get you qualifie qu alifiedd for the coverage, Do me a favor and grab your drivers license.
_
LIFE INSURANCE OBJECTIONS "I want to talk with my agent agen t first." first." Can I ask you a question? WFA sure. If you went w ent to the dentist for a toothache, and the dentist pulled the wrong tooth. Would you go back to that dentist or find a new one? on e? WFA You finances are no different. Would you agree that what I've shown you here tonight is better? WFA Yes. Your agent could have done the same thing before, but he chose not to. If your agent truly had your best interest at heart wouldn't they have done the right thing the first time? WFA Yes. So lets see if we can get you qualified qua lified for the the coverage, we'll get you a policy in hand that we can c an compare side by side, s ide, then if you still would like we can all get together and make m ake sure your getting what's best for your family; fair enough? WFA. Great do me a favor and grab your drivers license.
LIFE INSURANCE OBJECTIONS "I have Group G roup Coverage at my job." How long have you worked at your job? WFA Where did you work at before then? WFA How long did you work there for? WFA Did you have a job before that? How long were you there? WFA What happened to your coverage each time you got a new job? WFA You lost it right, because what happens to your coverage if you get laid off, they change benefits, or your too sick to work or get a better offer else where? WFA. You lose it. Wouldn't it make sense to see if we can put together an affordable plan that you can take with you y ou no matter where you go, so that your family is taken care of regardless of what your yo ur employer decides to do? WFA Great we'll go through some options and see if we can get you qualified for the coverage fair enough? WFA. Fair enough. (If you need to show the ERISA group coverage article from Business Week magazine)
LIFE INSURANCE OBJECTIONS "I already have a financial financial planner. planne r."" _________ _______ __ If you got diagnosed diagnos ed with cancer, canc er, and the doctor told you yo u you were terminally ill and you must go in and have major surgery; Would you probably get a second opinion? WFA. Yes You would want to make sure you got the best advice possible, and more than one opinion would allow you to weigh your options right? WFA. Yes. Don't you think if you would get a second opinion with your health it would make sense to do the t he same thing with your finances so you y ou could weigh your options and make m ake sure you were getting g etting the most value for you and your family? WFA. Yes. Great, what we'll do is take a look and see if we can make an improvement fair enough? WFA. Fair enough.
SCRIPTS "Calling "Calling a referral from a client" Hello, is (referral's name) home? Hi (referrals name), this is __________ You were referred to me by (referrals name) How are you? (Name of person p erson who referred) said that you were the type of person that given given the opport o pportunity unity to make more money m oney and sig nificantly nificantly improve your financial situation, that you would definitely be motivated to take advantage of it, is that true? WFA. Sure. Great, It will only take about 15 -20 -2 0 minutes. I can meet with you ________ or would _______ be better?
What's it about? We deal in financial services. (People who referred) were very excited About Abo ut what we w e did for them t hem and an d they asked ask ed me to t o share with w ith you What W hat we were able to for their family. (people who referred) trusted me enough to refer me to (you and spouse) You can be assured I will not waste your y our time. It will only take about 15 -20 minutes and if I'm not able to significantly improve your current situation it will be very v ery informative. (If they say they are not interested or too busy use Big mistake, Little mistake)
SCRIPTS "Calling a referral from a recruits list."
Hello, is (referral's name)? Hi this is___________ I own a business here in _________ and I was referred to you. I was told t old that you're a sharp, motivated person that would keep your options if the money and position were right is that true? WFA
If they say yes: Great, what I'd like to do is set up a time we can get together for 15-20 minutes m inutes to show you exactly what we do for the consumer and the money involved. Then we'll see if we have a mutual interest and go from there fair enough? WFA. Fair Enough. Great, I have _______ or would ______ be better? Are mornings or afternoons best? (set the appointment) Do you have a pen you can write down the address to my m y office?
Once the appointment is set you say: Now look ________ I'm s uper busy, and I'm sure you are as well. I don't want to waste your time, and I definitely don't want to waste mine. I have to drive all the way across town to meet you. So if I put this in my schedule can you promise me you'll be there? WFA. Are you a man/woman of your word? WFA. Yes. Great then I'll see you y ou on ______at ______. I look forward to meeting with you. Have a great day.
If they say what do you do: You know all the financial issues America is facing, we help fix them. Obviously you can see why we are growing so fast right? WFA. Yes. Great then when is a time we can meet for 15-20 minutes I have _______ or would ______ be better? (If they keep pressing tell them: "We help middle class Americans Get out of debt, save money for retirement, and create a game plan to retire. D o you keep your options open if the money is right?" WFA. If they still won't commit use Big mistake, Little mistake.)
SCRIPTS "Doing a drop by." When doing a drop by, you can stop by their house or work. Don't take anything to the door with you. The only on ly goal for the new recruit is to introduce the th e trainer to their friend. The trainer then sets the appointment.
Knock on the door: New recruit- "Hey _______ how are you? Chit Ch it Chat. We were just in the neighborhood introduces the and I wanted wa nted to introduce you to a friend of mine." (The new recruit introduces Trainer to the friend.) Trainer- " Good to meet you _______. The reason we popped by is __ ______ just got started with our company and has to get some training. _(Trainee)_ said that he/she had enough credibility with you and your husband/wife, that you would be willing to help him/ her with one of their training presentations. Do they have e nough credibility with you and your husband/wife that you would be willing to give them 2 0-30 minutes of your time? WFA Yes. Is now a good time, or would another time be better? WFA
If they say now: Go to your yo ur car and grab your presentation etc. and do a K itchen table appointment.
If they say another time: Great, I am available ______or would ______ be better? Would ______or ______ be better? Great, do me a favor and put it in your calendar so you don't forget. Thanks, I look forward to seeing you _____ at ________.
CREDIBILITY There are so many ma ny great things happening with w ith Primerica. Primerica. While learning the Product skills, activity skills, skills, and Mental M ental skills of our business. It's very important you know kno w what an incredible company we are. Here are some tips you can use to help he lp your new recruits understand how powerful this opportunity is. YouTube Video Video Suggestions: Suggestions: 1. 2.
Primerica IPO Fox News Primerica IPO Best IPO of 2010 "CNBC Jim Cramer"
3. 4. 5. 6.
Primerica and Consumer Federation of America Suze Orman Cash Value Life Insurance vs. Term Insurance Dave Ramsey on Term Life insurance and Whole Life Insurance Primerica Consider the source s ource
Book Suggestions Sugge stions:: 1. 2.
How your life insurance policies rob you: By Arthur Art hur Milton What's wrong with your life insurance: By Norman F. Dacey
3. 4. 5. 6.
The Games and Scams of Cash Value Life Insurance: By John J. Pepin, Ph. D. Personal Finance For Dummies: By Eric Tyson The Total Money Makeover: By Dave Ramsey Fight for your money: David Bach
7. 8. 9.
The money book for the young fabulous& broke: By Suze Orman Coach: By Art Williams All you can do is All you can do: By Art Williams Williams
10.
Common Sense: By Art Williams
Websites: Bureau- www.bbb.org (A+ (A+ Rating) 1. Better Business Bureau- www.bbb.org 2. 3. 4. 5.
Primerica- www.primerica.com Primerica- www.primerica.com Find The Best- www.findtheb www.findthebest.com est.com (search: (search: Primerica) Investor Relations: investors.primerica.com (SEC filings, News Releases, Stock Information etc.) Morningstar- www.morningstar www.morningstar.com .com (Search: (Search: Primerica)
CREDIBILITY "Morningstar" Majority Shareholders of Primerica, Inc. (PRI) (PRI) as of Jan 1st, 2014 Morningstar, Inc. (Morningstar is an Independent investment research company)
CREDIBILITY "FindTheBest.com" FindTheBest.com - (Is an objective comparison engine that allows you to find a topic, compare your options and select the best choice for you.) *as of January 1 st , 2014
CREDIBILITY Better Business Bureau - (The BBB collects and provides free business reliability reliability reviews on more than 4 million businesses to over 100 million requests from consumers .) *As of January 1 st, 2014
LIFE INSURANCE There are two major differences in life insurance: 1. Cash Value Life Insurance 2. Term Life Insurance
Cash Value Life Insurance has Different Names: 1.
Whole Life insurance Whole life has a guaranteed rate of return, a guaranteed guaranteed rate of return usually between 1-5%, and a guaranteed cash value at the age of 65. If the client lives to age 100 the policy will mature and the Policy owner will receive the cash c ash value of the policy which is equal to the face amount. If at any time prior to age 100 the t he insured dies the policy owner will only receive the face amount of the policy NOT the cash value.
2.
Universal Life Insurance There are different names for universal life insurance suc h as Flexible Premium adjustable life insurance, Indexed universal life insurance (IUL, they sometimes call it EUL for Equity indexed universal life insurance) *Universal life insurance is Annual Renewable Term insurance, and t he rest of the money is invested in the companies general account which gives the client guarantees. The guaranteed rate of return is usually between 1-5%. The guarantee is on the money left over AFTER they pay for insurance. I.e. (f the cost of insurance is higher than t he am ount of the clients premiums, there is no mon ey to invest so there can be no rate of return. In the event this happens the client has 2 options. 1 let the company withdrawal funds out of the cash value account to pay the a dditional premiums premiums which is cons idered an Automatic Premium loan. This could also risk the policy Lapsing. Leaving the client with N o insurance, and No cash value. 2 They ca n pay the additional cost of insurance which rises each ye ar.) If the client has an Indexed Universal Life Insurance Policy then the Rate of Return has a minimum guarantee, and the potential for better returns because it is based of an index reflecting the market.
3.
Variable Universal Life Insurance Variable life insurance is comprised of 2 parts. Annual Renewable term insurance, and the rest of the money is invested into int o the insurance companies separate account. The separate account is invested in the market. There are NO GUARANTEES with Variable Universal Life Insurance.
(With Universal Universal Life Insurance AND Variable Universal Life Insurance there are 2 d eath benefit options. They are referred to as Option A or B.. Option A pays only the Face amount NOT th e Cash Value. Option B also called Increasing Increasing Face Amount pays both the death benefit and the cash value but the fees, and costs associated with the policy are higher. Sometimes Insurance companies switch the A & B around so be sure to check in the policy.) policy.)
_ _ *This is for training training purposes only, it is not intende d to be used wit h or distributed to the public. All of this information is not intended for accuracy or to be used with potential or current clients.
LIFE INSURANCE "Term Life Insurance" There are also different kind of Term Insurance Policies: 1.
Level Term Insurance Level term insurance gives the client protection for a certain term like 5,10,15,20 years etc. This is what we sell 100% of the t he time. We offer 10,15,20,30,35 year term policies. Term insurance is t he best, because it is pennies on the dollar compared to Cash Value Life insurance, which allows the client to purchase far more coverage for less money, and invest the difference elsewhere. (We suggest Mutual Funds)
2.
Decreasing Term Insurance Decreasing term insurance is often referred to as mortgage insuranc e. A lot of times there still st ill is a term, but the premium stays the same over the term, although year over year the coverage goes down.
3.
Annual Renewable Term Insurance (A.R.T.) Annual Renewable Term Insurance is 1 year insurance. It renews annually as as the client gets older. Every year it renews the cost of insurance gets more expensive. An Annual Renewable Term ins urance Policy can last until the client c lient is age 95 or 100.
4.
Return Return of Premium Term Insurance This is where the t he client will purchase a level term insurance policy at a significantly higher higher cost. Then T hen after the term of the policy is up the company will refund the client the premiums they paid to the insurance company over the length of the term.
*This is for training training purposes only, it is not intende d to be used wit h or distributed to the public. All of this information is not intended for accuracy or to be used with potential or current clients.
WHOLE LIFE INSURANCE Whole life has a guaranteed rate of return, a guaranteed rate of return usually between 1-5%, and a guaranteed cash value at the age of 65. If the client lives lives to age 100 the policy will mature and the Policy owner will w ill receive the cash value of the policy which is equal to the face amount. amou nt. If at any time prior to age 100 the insured dies the policy owner will only receive the face amount amo unt of the policy NOT the cash value. _
Suze Orman, CNBC
Dave Ramsey, Ramsey, FOX NEWS N EWS
For internal use only. Not to be used us ed with, or distributed to, the public.
For internal use only. Not to be used us ed with, or distributed to, the public.
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For internal use only. Not to be used us ed with, or distributed to, the public.
For internal use only. Not to be used us ed with, or distributed to, the public.
For internal use only. Not to be used us ed with, or distributed to, the public.
For internal use only. Not to be used us ed with, or distributed to, the public.
For internal use only. Not to be used with, or distributed to, the public.
For internal use only. Not to be used us ed with, or distributed to, the public.
Other Life Insurance Insurance Company
Husband:
$250,000
$163.50/mo $163 .50/month nth
Wif Wife:
$250,000
$151.00/mo $151 .00/month nth
Total Premium:
$314.50/month $314.50/month
Approximate cash value at age 65 - $215,000 Primary: Male, Age 27, Preferred, with Waiver of Premium, $163.50 /month. Spouse: Female, Age 24, Preferred, with Waiver of Premium, $151/month. Total: $314.50/month $314.50/month
Primerica Offered
35-year term policy Husband:
$250,000
Wife:
$250,000
Child:
$10,000
Total Premium
$72.75/month
, Age 27, Preferred, with Waiver of Premium. Spouse: Female, Age 24, Preferred, with Waiver of Premium and $10,000 Child Term Term Rider. Total: $72.75/month
Other Life Insurance Co. Premium: Premium :
$314.50/month $314.50/month
Primerica Primerica Premium:
$72.75/month $72.75/month
Difference:
$241.75/month
$241.75/month savings invested in mutual funds in a Roth IRA at 10%
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For internal use only. Not to be used us ed with, or distributed to, the public. public.
UNIVERSAL LIFE INSURAN INSURANCE CE "I.U.L, V.U.L, etc." Universal Life Insurance There are different names for universal life insurance such as Flexible Premium adjustable adjustable life insurance, Indexed universal life insurance (IUL, they sometimes call it EUL for Equity indexed universal life insurance) *Universal life insurance is Annual Renewable Term insurance, and the rest of the money is invested in the companies general account which gives give s the client guarantees. The guaranteed rate of return is usually between 1-5%. The guarantee is on the money left over AFTER they t hey pay for insurance. I.e. (f the cost of insurance is higher than the amount of the clients premiums, there is no m oney to invest so there can b e no rate of return. In the event this happens the client has 2 options. 1 let the company withdrawal funds out of the cash value account to pay the additional premiums which is considered an Automatic Premium loan. This could also risk the policy Lapsing. Leaving the client with No insurance, and No cash value. 2 They can pa y the additional cost of insurance w hich rises rises each year.) If the client h as an Indexed Universal Life Insurance Policy then the Rate of Return has a minimum guarantee, and the potential for better returns because it is based o f an index i ndex reflecting reflecting the market.
Variable Universal Life Insurance Variable life insurance is comprised of 2 parts. Annual Renewable term insurance, and the rest of the money is invested into the insurance companies separate account. acc ount. The separate account is invested in the market. There are NO GUARANTEES with Variable Universal U niversal Life Life Insurance.
_ (With Universal Universal Life Insurance AND Variable Universal Life Insurance there are 2 d eath benefit options. They are referred to as Option A or B.. Option A pays only the Face amount NOT the C ash Value. Option B also called Increasing Increasing Face Amou nt pays both the death benefit and the cash value but the fees, and costs associated with the policy are higher. Sometimes Insurance companies switch the A & B around so be sure to check in the policy.) policy.)
_ _
For internal use only. Not to be used us ed with, or distributed to, the public.
CREDIBILITY "Forbes Article"
Forbes: Retirement Disaster Looms For Universal Life Policyholde Po licyholders. rs. September 13t h 2012 _
The insurance industry has a dirty little secret that threatens the retirement plans of millions of unsuspecting families. The problem is buried in the fine print print of universal life policies widely promoted since the 1980s as a new and improved version of the old fashioned Whole life ins urance product our grandparents grandparents relied on as the surest way to save s ave for retirement. retirement. Most people have no idea about what they've already lost and will discover in time that there was no "sure" in their insurance. Instead the insurance companies shifted their risk on to the policy holders. For example, people who bought universal life policies when they w ere in their thirties, with a $100,000 death benefit, might have faithfully paid premiums of about $3,500 year in and out thinking all was well and they were building their nest eggs. When they t hey were younger and cheaper to insure, they were-those premiums went into the cash value buckets. But as they got older, the "real" premium-the cost of insuring them-rose. A person in his or her late 50s might have a policy whose cost c ost of insurance-the real premiums-have doubled. Five years further on, the real premiums could jump to tens of thousands t housands of dollars. Most policy holders don't realize they have a problem, until one day they need the cash value or discover that they will be left without even ev en the life insurance. How we got here is depressingly familiar in an age of financial mis-engineering.
Forbes : http://www.forbes.com/si http://www.forbes.com/sites/investor/2012 tes/investor/2012/09/13/retirement-disaster /09/13/retirement-disaster-looms-for-looms-for-universal-l universal-life-pol ife-policyholders/ icyholders/
For_ internal_ use_ only._ _ Not_ to_ be_ used_ with_ or_ distrib uted_ to_ the_ public._
For internal use only. Not to be used us ed with, or distributed to, the public.
For internal use only. Not to be used us ed with, or distributed to, the public. public.
For internal use only. Not to be used us ed with, or distributed to, the public.
Some policies may only contain the minimum interest rate and maximum insurance charges that a company guarantees will occur. For example, this UL policy contains a guaranteed interest rate of 3%. However, companies may, and frequently do, pay more than the guaranteed minimum substantial and greatly affect the accumulation amount and lapse date. Likewise, companies may, and frequently do, charge less than the maximum insurance or expense charges. Only guaranteed interest rates and maximum charges are used in the following examples because that is what is available from the policy itself. To determine how any particular policy performs and the actual cost for the policy, contact the company that issues the policy. For internal use only. Not to be used us ed with, or distributed to, the public. public.
For internal use only. Not to be used us ed with, or distributed to, the public.
For internal use only. Not to be used us ed with, or distributed to, the public.
RETURN OF PREMI PREMIUM This is where w here the client will purchase a level term insurance policy p olicy at a significantly higher cost. Then after the term of the policy is up the company will refund the client the premiums they paid to the insurance company over the length of the term. _
This example is for illustrative purposes and d oes not represent an actual investment. This example shows a constant rate of return, unlike actual investments which will fluctuate in value. The rate r ate of return is compounded monthly. It does not include fees and taxes, which would lower results. For internal use only. Not to be used with, or distributed to, t he public.
WHICH WOULD YOU BUY? Refrigerator Refrigera tor A
• • •
Refrigerator Refrig erator B
$2,000 Price Tag 36 year guarantee Get your $2,000 back after 36 years.
• • •
$1,000 Price Tag 36 year guarantee Get $0 money back
If you had $2,000 which Refrigerator would you buy? The Rule of 72 : This simple calculation gives you the approximate number of years it will take to double your investment.
_
Number of Years
0
4%
6%
12%
$1,000
$1,000
$1,000
6
$2,000
12 18
$1,000
$8,000
$1,000
24
$1,000
30 36
$4,000
$16,000 $32,000
$1,000
$1,000
$32,000
GROUP LIFE INSURANCE Group Life insurance is usually A.R.T. or a 5 year term insurance plan. The problem prob lem with group coverage is, If the employer decides to change coverage cov erage or stop it all together the employee will no longer have insurance. If the employee changes jobs, quits, gets fired, or becomes ill and cannot work, they will no longer longer have the coverage. Employers are allowed to provide $50,000 of coverage to the employee or 1 ½ times the employees salary for free. Anything Anything above that must mus t be paid for by the employee. A lot of times times our 10 year will be highly competiti compe titive ve with a group policy.
_
For internal use only. Not to be used with, or distributed to, the public.
For internal use only. Not to be b e used with, or distributed di stributed to, the public.
MUTUAL FUNDS "3 Fundamental Fundamental Accounts" Most people confuse Stocks from Mutual Funds. Mutual funds are comprised of different types of investments but mainly Stocks and Bonds. Let me explain. 1. 2.
Stocks (equities) are an ownership share in a company. Bonds (Debt Instrument) are an Investment where an investor lends money to an entity that borrows the funds for a defined period of time at a defined interest rate.
Understanding how owning a stock of a corporation is similar to understanding how owning your home works: Value of your home: $200,000 Amount of your Mortgage: $150,000 The equity in your home would be $50,000
This is the Percentage you own. If the real estate value goes up your equity goes up, if the real estate value goes down your equity will also go down. Similar to stock (equities) you own a percentage of that company. So if the value of that company goes up, the value of the stock will rise. If the value of the company goes down t he stock price will go down.
How is a stock different then a Mutual fund?: Lets say you y ou Invest $100 a month so you y ou buy 1 share of 4 different companies
$25
$25
$25
$25
If one of those companies c ompanies go out of business you lose 25% of your portfolio. How do you reduce that risk?: The answer is through Diversification. Most investors achieve this through the S & P 500 but in order to purchase 1 share of each of those companies would take around *$40,000. Most M ost people don't don't have that t hat much to invest so they use mutual funds.
*This is for training training purposes only, it is not intende d to be used wit h or distributed to the public. All of this information is not intended for accuracy or to be used with potential or current clients.
MUTUAL FUNDS "3 Fundamental Fundamental Accounts" A Mutual fund is: A Group Gr oup on individu in dividual al investors inves tors that pool p ool their the ir money together togeth er into a professio pr ofessionally nally mana m anaged ged pool of money. Individual Indivi dual Investors Invest ors
Professionally Managed Money
The Global Economy Econom y Consumer The The Proctor & Gamble Company Entertainment The Walt Disney Company Pharmaceuticals Pfizer, Inc. Telecommunications Verizon Communications, Communications, Inc.
A Typical cal Mutual Mutual fund hold 150-300 companies.
_
_ The number numb er one question people ask is could I lose all my money, mone y, or what happens if one of these companies goes out of business? 1. 2.
You would lose all of your y our money if all of the companies in the mutual fund went out of business at the same time. (If that happens, I don't think it would matter how much money any of us have.) If Pepsi goes out of business, Coca-Cola stock would probably go up dramatically. Just like if Home Depot went out of business, Lowes stock would go up.
Pepsi
Coca- Cola
Lowes
Home Depot
*This is for training training purposes only, it is not intende d to be used wit h or distributed to the public. All of this information is not intended for accuracy or to be used with potential or current clients.
MUTUAL FUNDS "3 Fundamental Fundamental Accounts" What happens if the stock market goes down?: This is why we teach a concept called "Dollar Cost Averaging" or Systematic Investing.
$25
A
$20 e c i r P e r a h
Rising Market $15
B
$10 $5
Fluctuating
$0 1
2
3
4
5
Month Invests $100 per month
Invests $100 per month
A B
Month 1 Per share: $ share: $10 10 # of shares: shares : 10.00 Per share
$1 0
# of shares 10 10.. 00
Month 2 $12
Month 3 $14
Month 4 $16
Month 5 $18
Month 6 $20
8.33
7.14
6.25
5.56
5.00
$7
$4
$2
$6
$10
14.29
25.00
50.00
16.67 16.67
10.00
Amount Invested Invested in 6 months
Number of Shares Accumulated
$600
42.28
$845.60
$6000 $60
125.955 125.9
$1,259.50
Number of Shares Accumulated Accumulated
42 Number of Shares Accumulated Accumulated
126
Value of Investment Investment
Which investor would you rather be Investor A or Investor B? *This is for training training purposes only, it is not intende d to be used wit h or distributed to the public. All of this information is not intended for accuracy or to be used with potential or current clients.
6
MUTUAL FUNDS "3 Fundamental Fundamental Accounts" 1. Emergency Account Goal: Up to three months of income: • • •
Emergencies Vacations Purchases within 0-2 years
2. Short-Term Account Goal: Up to six months of income : • • • • • • •
Reserve for unforeseen events Loss of job Disabilities Short-term purchases Car Down payment for house Purchases within 3-5 years
3. Wealth-Building Accounts Goal: Retirement Funds for Financial Independence Number : • • •
Roth or Traditional IRA* 401(k), deferred comp, TSA, etc.* Tax-deferred accounts*
Based on your total savings amount, allocate: 50% to your emergency account 25% to your short-term account 25% to your wealth-build wealth -building ing account.
• • •
Once emergency and short-term short-t erm goals are satisfied, add those investment amounts to t o the wealth-building account. _
$________ Short-Term $________ Emergency Fund
50%
25% $________ Wealth-Building
25%
*This is for training training purposes only, it is not intende d to be used wit h or distributed to the public. All of this information is not intended for accuracy or to be used with potential or current clients.
