1. 1 Driving Profit From Debt – The Tides are Turning in 2007 Are you advising your clients’ on their biggest asset? Someone is! Steve Crawford MLC Alliances - Victoria

2. 2 The Great Aussie Dream – What Happened in 2006?

3. 3 Driving Profit From Debt The Tides are Turning in 2007 The Tides Are Turning – By 2008…….. Opportunities in 2007 – Strategies for the Pre Retiree Opportunities in 2007 – Strategies for the Accumulator

4. 4 Driving Profit From Debt The Tides are Turning in 2007 The Tides Are Turning – By 2008…….. Opportunities in 2007 – Strategies for the Pre Retiree Opportunities in 2007 – Strategies for the Accumulator

5. 5 The Tides Are Turning - By 2008……

6. 6 $mil per week Referral s per week ?

7. 7 The Tides Are Turning - By 2008…… ?

8. 8 Market Share growth of Brokers Concentration of Broker Aggregators

9. 9 Driving Profit From Debt The Tides are Turning in 2007 The Tides Are Turning – By 2008…….. Opportunities in 2007 – Strategies for the Pre Retiree Opportunities in 2007 – Strategies for the Accumulator

10. 10 Accelerate your salary sacrifice strategy by converting your loan into an interest only facility. Strategies for 2007 – Pre Retirees

11. 11 Accelerate your salary sacrifice strategy by converting your loan into an interest only facility. Strategies for 2007 – Pre Retirees  Unit trust and super invested in Australian shares  Investment return is 8.5% p.a. (split 3% income and 5.5% growth)  Franking level on income is 75%  Interest on instalment margin loan is 8.25% p.a.  10 year comparison

12. 12 Strategies for 2007 – Pre Retirees $35,643 $54,335 $37,251$37,396

13. 13 Strategies for 2007 – Pre Retirees $35,643 $54,335 $37,251$37,396 $50,113$48,949$35,643

14. 14 Strategies for 2007 – Pre Retirees $186,061

15. 15 Accelerate your salary sacrifice strategy by converting your loan into an interest only facility. Strategies for 2007 – Pre Retirees  Use an IO facility with an offset function  Consider interest rate differentials  Use the opportunity to review the client’s loan arrangement  Capitalisation of Interest

16. 16 Driving Profit From Debt The Tides are Turning in 2007 The Tides Are Turning – By 2008…….. Opportunities in 2007 – Strategies for the Pre Retiree Opportunities in 2007 – Strategies for the Accumulator

17. 17 Maximise your future investment and cash-flow options by better structuring your owner occupied home loan. Strategies for 2007 – Accumulators

18. 18 Strategies for 2007 – Accumulators Home Loan Year 1

19. 19 Strategies for 2007 – Accumulators Home Loan Year 8 Actual loan is reduced 

20. 20 Strategies for 2007 – Accumulators Home Loan Year 8 Actual loan is reduced Redrawn for purchase  

21. 21 Strategies for 2007 – Accumulators Investment Loan Year 8 Actual loan is reduced Redrawn for purchase Only partially deductible   

22. 22 Strategies for 2007 – Accumulators Home Loan Year 1

23. 23 Strategies for 2007 – Accumulators Home Loan Year 8 Actual loan is not reduced 

24. 24 Strategies for 2007 – Accumulators Investment Loan Year 8 Actual loan is not reduced Purchase done with cash  

25. 25 Maximise your future investment and cash-flow options by better structuring your owner occupied home loan. Strategies for 2007 – Accumulators

26. 26 Strategies for 2007 – Accumulators Investment Loan Year 8 Actual loan is not reduced Purchase done with cash Original loan fully deductible  

27. 27 Solution – NAB / MLC Customised Solutions Take advantage the transitional cap by investing the sale of your property sooner. Tailored Solutions Credit Approved Short Term Finance Working with Financial Planners  NAB Business Bank  Adviser Business Lending  Portfolio Package  MLC Mortgage Solutions

28. 28 Provide a simple, non-underwritten insurance cover designed specifically to cover your customers home loan responsibilities. Strategies for 2007 – Accumulators – Debt Protection Introducing MLC EasyCover

29. 29 Under-Insurance – A significant problem  Generation X’ers make up a large portion of the “At Risk Population”  70% of 33 – 44 year olds with a household income greater than $100K have a Home Loan, but only 29% have life insurance* 1  60% of Australian families with dependants will run out of money within 12 months if the main breadwinner dies* 2 *1 – Roy Morgan Research, FAMIS database Dec 05 *2 – IFSA Research by Rice Walker Actuaries & TNS Australia 2005 *4 - IFSA report Cost of Under-insurance 2005

30. 30 Critical Illness* Death * Involuntary Unemployment* Illness* / Accidental Injury* MLC Easy Cover – Solution to Debt Protection Automatic Acceptance*

31. 31 Client Retention – Keeping Them on the Books Probability % Financial services held Source: National Customer Convergence in Retail Financial Services (Insurance Study) 50% 10% 5.5% 1% Meeting more customer needs reduces the probability of customer defection.

32. 32 Conclusion – Will Your Business Expand in 2007…..?  The Tides are Turning in 2007 – Will you be affected?  Opportunities Do Exist – Take advantage of this in 2007  Practical Implementation – Effective Solutions The Portfolio Package The NAB Business Bank MLC Mortgage Solutions Easy Cover