Dollars and Good Sense

Transcription

1 Dollars and Good Sense Eric Truvillion,Registered Representative,Financial Advisor, New England Financial, Tampa FL Alonzo Barnes Jr.,Registered Representative, Financial Advisor, New England Financial, Tampa FL Shhhhhhh #ASHPmidyear Alonzo Barnes Jr Financial Advisor Eric Truvillion Financial Advisor 1

2 We are asking you to do three things Change the quality of your life! Keep in mind your present financial condition and what your goals are. To have a working plan for your Financial Future before you Graduate. Graduation is not the end. Title Financial Advisor Stock Broker Insurance Agent Investment Adviser Registered Representative Investment Specialist Problem Solver Common Denominator 2

3 Why People Fail to Become Financially Independent No financial strategy Procrastination Impact of inflation Pay too much in taxes Poor investment choices Median income for all individuals 65 and older is $23,194. Misconceptions You need Big $$$. Pay off all bills first. Procrastination Someone else is taking care of it. Don t think you need professional help (GPS, *coordinate). Price Vs Cost (Absence of value Vs ROR). 3

4 Job 1 To help you gain and remain financially independent of isolated events and interdependent of the world economic system as a producer! (To Acquire Wealth) WE help Reduce Unnecessary Risk! The Sad Truth Producer Vs Consumer (Ultimate) Elimination of the Middle class Revolving Dollars Ultimate Revolving Your Community to the World Economy Economic Empowerment (reclaim your power) Own/buy,Buy/own 4

5 Life Vs. Financial Synchronize Agree in time.(broke or Slow) Set ahead Today. (Grad.Career.Quality of Life.) Prescription Setting Goals! Real Life Drama In Case of Emergency (I.C.E) Exit Strategy (Cruise,Flight,) More important in life. The War, Katrina, Sub Prime Mortgage, Foreclosures Graduation How can you secure your Financial future and create your New Normal 5

6 The Process Where are you going? (Vision) The Focus is, How do I create my FF (Direction, GPS, Lost) $100,000 Annual Salary 40 hours per week 50 weeks per year 2000 hours per year $50.00 per hour 11 hours per month=$

7 Setting Goals! Pay Yourself First! Knowledge is Key! Prescription Rule of 72 and 115 7

8 Own/Buy, Buy/Own Stock & Mutual funds Variable Life Profile FDO PSA CERN NKE GME TSLA 8

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10 Life Insurance and Disability Insurance The Foundation to any Financial Plan Replace Income Portable Based on application Age and Health Tax Favored Lifetime Earnings Current age 23 Age at retirement 65 Current annual income $110,000 Estimated annual increase 4.00% Projected total earnings by retirement $11,530,156 10

11 Life Insurance Exit Strategy! 11

12 Individual Disability Insurance Disability Income Protection Policy Non cancelable/guaranteed Renewable Your Occupation Rider COLA Residual Rider Guaranteed Insurability 12

13 Be realistic Be proactive Be confident What is the #1 cause of disabilities? (Since 2005) A. Accidents at home B. Musculoskeletal disorders C. Spine and nervous disorders D. Accidents at work 2011 CDA Long-Term Disability Claims Review 13

14 What is the #1 cause of disabilities? (Since 2005) B. Musculoskeletal disorders 2013 CDA Long-Term Disability Claims Review Percentage of LTD Claims Claim Diagnosis Category New Existing New Existing Musculoskeletal/Connective Tissue Nervous System Related Cardiovascular/Circulatory Cancer and Neoplasms Injury and Poisoning Mental Disorders Respiratory System Symptoms, Signs and Ill defined Infections and Parasitic Diseases Digestive System Genitourinary System Endocrine, Nutritional and Metabolic Diseases, and Immunity Disorders Complications of Pregnancy, Childbirth and the Puerperium Skin and Subcutaneous Tissue Congenital Anomalies Blood and Blood Forming Organs Other New claims were approved that year; existing claims are ongoing but approved in prior years CDA Long-Term Disability Claims Review. How many 20-year olds are likely to suffer a disability? A. 1/4 B. 1/10 C. 1/15 U.S. Social Security Administration, Fact Sheet February 7,

15 How many 20-year olds are likely to suffer a disability? A. 1/4 U.S. Social Security Administration, Fact Sheet February 7, 2013 Working men are more likely to become disabled than working women. True False U.S. Social Security Administration, Fact Sheet February 7, 2013 Working men are more likely to become disabled than working women. False U.S. Social Security Administration, Fact Sheet February 7,

16 Percent of New Long-Term Disability Claims by Gender 2013 CDA Long-Term Disability Claims Review The average disability lasts A. 6 months B. 1 year C. 3 years D. 10 years Gen Re, U.S. Group Disability Rate & Risk Management Survey 2012, based on claims closed in 2011 Gen Re, U.S. Individual DI Risk Management Survey 2011, based on claims closed in 2010 The average disability lasts C. 3 years Gen Re, U.S. Group Disability Rate & Risk Management Survey 2012, based on claims closed in 2011 Gen Re, U.S. Individual DI Risk Management Survey 2011, based on claims closed in

17 What was last year s average Social Security benefit amount? A. $2,150 B. $1,580 C. $1,130 D. $975 U.S. Social Security Administration What was last year s average Social Security benefit amount? C. $1,130 U.S. Social Security Administration Disability Insurance Solutions Protect Yourself And Your Practice Replace a portion of your personal income: Individual Disability Insurance Help cover everyday expenses: Business Overhead Expense Insurance Buy out disabled co-owners: Buy-Sell Insurance Provide for disabled employees: Salary Continuation Plan 17

18 Be Realistic I never thought it could happen to me. MetLife Study of the Emotional and Financial Impact of Disability, March

19 the future Advancement Salary & Incentives Savings & Interest Disability Costs Be Proactive People readily spend money to protect the replacement of a home and car, but often spend very little to protect their most valuable asset the ability to get up every day and earn a living. Replacement Value Insurance Premium 19

20 Be Confident Joe Age: 35 Married with kids Annual pay: $275,000 Scenario is hypothetical only and does not depict the results of any actual disability income insurance policy. The provisions in an actual policy, including benefit amount and premium, depend on the individual circumstances. 20

21 $275,000 Joe s Disability Plan Working Income 60% Salary Monthly Benefit Benefit= $13,7 = $13,750 Group Disability Insurance $275,000 Working Income Joe s Disability Plan Monthly Benefit= $12,500 60% Salary - Incentive Pay $250,000 Group Disability Insurance Covered Income $275,000 Working Income Joe s Disability Plan Monthly Benefit= $10,000 60% Salary - Incentive Pay - Max Benefit $250,000 Group Disability Insurance Covered Income 21

22 $275,000 Working Income $250,000 Joe s Disability Plan Monthly Benefit= $7,500 Group Disability Insurance 60% Salary - Incentive Pay - Max Benefit - Taxes Covered Income $275,000 Working Income $0 Joe s Disability Plan Monthly Benefit= $0 Group Disability Insurance 60% Salary - Incentive Pay - Max Benefit - Taxes - Ownership Covered Income TODAY If insurance is offered be wise and take it. You never know if or when you will ever need it, but it could mean the difference between surviving through a disability financially or not! MetLife Study of the Emotional and Financial Impact of Disability, March

23 There is a Different View From the Top Opportunity is our most perishable resource! Next Action Bad /Worst Questions 23

24 Contact Information Eric Truvillion Alonzo Barnes, Jr The Fine Print Thank You! 24