6. INVESTMENT Where do most people deposit or save money? B ANK _______ (Hypothetical Rate of Return) Deposit $ _______ 1 st year 2 nd year 72 ÷ = ____ R ULE OF _____ years it takes for ____ to DOUBLE When is your money going to DOUBLE ? Money Doubles Every ____ Years 29 47 65 $ 10,000 $ 20,000 $ 40,000 ____ % Money Doubles Every ____ Years 29 35 41 $ 10,000 $ 20,000 $ 40,000 53 47 59 65 $ 80,000 $ 160,000 $ 320,000 $ 640,000 The Impact of TAXES & INFLATION $ 100 4 $ 104 1 4 $ 99 ____ % (deposit) + = - = - = $ 103 3 Ways we Serve People 1. Save 2. Make 3. Both Difference: $ 600,000 1% 100 101 102 72 % # $ 4 18 12 6 4 (taxes) (inflation) _________ ( interest) INSURANCE DEBT ELIMINATION

9. Tax Strategies Taxable (Tax Now)Tax Deferred (Tax Later)Tax Advantage (Tax Never) Bank Products - Fixed CD -Money Market -Real Estate Funds - Mutual Funds - Stocks Advantages: - Easy access - Flexible Contributions Disadvantages: -1099 EVERY YEAR - Taxable on capital gains, dividends and interests Retirement Plans - IRA - 401K/403B - SEP IRA - Pension - Annuities Advantages: - Tax deductible - Tax deferred growth - Company match - May reduce tax bracket Disadvantages: - Long term plan - 10% penalty if withdrawn before 59 ½ years old -Taxable upon withdrawal - RMD at age 70 ½ -7702 Plan (GIUL/VUL/ FFIUL) -Roth IRA - 529 College Savings Plan (Affects Financial Aid and Student loan applications) Advantages: - Tax deferred growth - Tax free withdrawal (if properly structured for 7702 Plan) - No penalty if withdrawn before 59 ½ years old (except for Roth IRA) Disadvantages: - Long term plan ?

10. Dying too soonLiving too long InsuranceWealth Invest Responsibility Debt: $ 50,000 Income: $ 400,000 (40,000 x 10) Mortgage: $ 300,000 Education: $ 250,000 Total: $1,000,000 Discipline Retirement $ 0 YoungOlder $ $ $ $ $

11. Mutual Fund Stocks S & P 500 Average 10-12%

12. 7702 Plan (Index Universal Life) $ $ $ $ $ $ $ Index Flexible Permanent Insurance Savings Cost of Insurance Cash Value S&P 500 Euro Stoxx 50 Hang Seng Guaranteed 0.75% Cap 15.0% o Permanent o Index o No Risk o Terminal Illness Death Benefit o Flexible o Freedom Index You 401k 10% 20%15%20% -20%0.75%-20% Cumulative Return 10%25.75% 10% o Long Term Care Benefit (FFIUL) Tax Free Distribution

13. Tax Free Distribution Tax Deferred Growth Tax Deductible Contribution 7702 Plan 401K TSP 403B $40k x 25% = $10,000 $37k x 25% = $ 9,250 $3k to 401k = $750 in TAX savings $3k x 30 Yrs x 12% = $900K in 401k x 10% distribution $90k X 25% TAXx 30 Yrs at work $22,500 Total Tax Savings for 30 Years! Would you rather forego the $22,500 in savings or pay $225,000 tax in the end? $22,500 Tax in just 1 YEAR! X 10 Yrs of Income $225,000 goes to TAXES

14. Which would you rather have? Insurance Protection 401k or Mutual Fund 12% - Gross - 4% - Tax 8% - Net Using the Rule of 72: 72/8 = 9 years 29 – 3,000 38 – 6,000 47 – 12,000 56 – 24,000 65 – 48,000After Tax 7702 Plan – Index Universal Life 12% - Net (Tax Free Distribution) Assuming 25% is COI 3,000 – 750 = 2,250 Using the Rule of 72: 72/12 = 6 years 29 – 2,250 35 – 4,500 41 – 9,000 47 – 18,000 53 – 36,000 59 – 72,000 65 – 144,000TAX FREE

15. Yo u 1 2 3 Trainee Associate30% Senior Associate55% 25% $2,400 x 55% = $1,320 TATA 30%$720 $600 TA 30%$720 SA 55%$1,320 $600 TATA 30%$720 $1,320 + $1,800 = $3,120 x 2 = $6,240 x 12 = $74,880 Part Time !!!

16. REFERRAL ONLY (MUST BE LICENSED) 4-6 CLIENTS/MONTH UP TO 45% ASSOCIATE CONTRACT $2000-$3000 INCOME/MONTH SPLIT INCOME PART TIME (12-20 HRS/WK) 4-6 CLIENTS/MONTH - MEETINGS - FIELD TRAINING - ELITE CIRCLE - CONVENTIONS UP TO 55% SENIOR ASSOCIATE CONTRACT $3000-$5000 INCOME/MONTH SAVE AGGRESSIVELY (50%) PAY OFF DEBTS SAVE $50K - $100K FOR OWN OFFICE (3-5 YEARS) DEBT FREE FULL TIME (40-60 HRS/WK) 10-15 LICENSED IN THE TEAM (MINIMUM) UP TO 81% SENIOR MARKETING DIRECTOR CONTRACT 4 PERSONAL CLIENTS (MINIMUM) 10 BASE SHOP – ALL NON MD 25 IN ENTIRE HIERARCHY $10000-$15000 INCOME/MONTH BONUSES FIELD TRAINING OPPORTUNITIES STOCK OPTIONS EXPANSION