Personal Economic Model Browser-Based Subscription

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1 Personal Economic Model Browser-Based Subscription THE FLOW OF MONEY COMMUNICATED AT THE HIGHEST LEVEL What is the Personal Economic Model? The Personal Economic Model (PEM) is a simple and engaging conversation that you can have with your prospects and clients. For the first time, your prospects and clients will be able to see what you know, not just hear what you say. MoneyTrax INC. 10 Reasons to Make the PEM Presentation Part of Your Practice Browser-based tool provides instant availability anywhere you can connect to the Internet. Improves your communication capabilities so your client can see not just hear what you say. Allow you to visually explain the value and use of every financial product you sell. Answers the four toughest financial questions every client wants to know. Allow you to have limitless conversations supported by 18 calculators that are available at the click of a button. It will have your prospects wanting all the insurance the company will issue. It will have your prospects want to fund their life insurance to the maximum amount. Helps your client understand their Human Life Value. Each presentation comes with proven client friendly scripts and video training. Includes all the training you need to get started Purchase today, use tomorrow! INCLUDED CALCULATORS Human Life Economic Value Wealth & Income Potential Budget Report History of Taxes Risk Taxation Accessibility - Allocation Mix Risk Account Types Compounding vs. Speculation Accumulation vs. Distribution Safe Account Types Convert Savings to Private Reserve Tank Protection Shield: Three Legged Stool Retirement Income Alternatives Retirement: Ready or Not Lifestyle Illustrated House: Your House as an Investment Qualified Plans Collateral Capacity Structured Payments

2 Door Openers What do you do? Your response: I am in the financial services business with a very unique approach in that I help people find money they are currently losing unknowingly and unnecessarily. I believe there is more opportunity to serve my clients by helping them avoid the losses than by picking the winners. What do you do? Your response: I help people see their lifetime capital potential and develop a realistic cash flow strategy so that they will be able to retire at the same standard of living that they are living today. What do you do? Your response: I help people answer the four toughest financial questions they face. 1. What rate of return do you have to earn on your savings and investment dollars to be able to retire at your current standard of living and have your money last through your life expectancy? 2. How much do you need to save on a monthly or annual basis to be able to retire at your current standard of living and your money last until life expectancy? 3. Doing what you are currently doing, how long will you have to work to be able to retire and live your current lifestyle until life expectancy? 4. If you don t do anything different than you are doing today, how much will you have to reduce your standard of living at retirement for your money to last to your life expectancy? I can give you these answers in less than 10 minutes. When do you want to know? How to respond when your prospect says I already have an advisor. Your response: Great, have they provided you with the answers to the four most important financial questions every person who is concerned about their future should know? They will ask: What are the questions? 1. Do you know the rate of return you will have to earn on your savings and investment dollars to be able to retire at your current standard of living and your money last through your life expectancy? NO 2. Do you know how much you need to save annually to retire at your current standard of living and your money last until life expectancy? NO 3. Doing what you are currently doing, do you know how long you will have to work before you can retire and have your money last through your life expectancy? NO 4. If you don t do anything different than you are doing today, do you know how much will you have to reduce your standard of living at retirement for your money to last to your life expectancy? NO I can give you these answers in less than 10 minutes. When do you want to know?

3 Personal Economic Model The Personal Economic Model is a registered trademark of MoneyTrax, Inc.

4 PEM Calculator Definitions #1) Human Life Economic Value: Use this tool when the client is having a hard time determining how much insurance they should own. A premature death would cause serious financial issues and possible collapse of the client s entire financial future. HLV is the amount an attorney would sue for in a wrongful death suit to replace the income lost. Wouldn t you want the same amount if you died of natural causes? #2) Wealth & Income Potential: Your income potential is an estimate of the amount of money that could flow through one s hands during their lifetime. Your wealth potential represents what the money you earn could have earned had you been able to invest it. It provides a different perspective for one to look at the value of their earned income. #3) Budget Report: Some clients need to start with the basics and see exactly where their money is going before you can begin helping them determine how much they can save and where they should put those dollars. #4) History of Taxes: This visual representation of tax rates since 1913 will help bring clarity to the conversation of where your client thinks taxes may be heading in the future. This tool illustrates not only the tax rate each year but the threshold level as well. It also has a debt clock calculator showing the national debt. #5) Risk Taxation Accessibility - Allocation Mix: When it comes to discussing investment opportunities there are three things one would be wise to consider. The first is Risk the second is Taxes and the third is Access to your money. Each client has different desires in regards to these three issues. This tool will allow them to tell you what they have and make sure that what they have is really what they want. #6) Risk Account Types: This tool lists a few common products one would expect to find in the investment tank with a listing of the benefits one would expect to find in each. Usually dollars put in this tank have rate of return as a primary focus. #7) Compounding vs. Speculation: Compound interest over time uninterrupted at reasonable rates can compare quite well to accounts that have potential for higher returns but also bring the potential for loss into the equation. This is a great tool to illustrate that chasing higher rates of returns may not always produce the most favorable results. #8) Accumulation vs. Distribution: You may look at the same account differently during the distribution phase of your life than you do during the accumulation phase. This tool illustrates the power of owning permanent life insurance cash value as an asset class and the additional benefit provided from the death benefit. This additional benefit gives the owner freedom to spend a hard asset knowing that the value spent will be replaced with tax-free proceeds at their death. No other asset can do this. #9) Safe Account Types: This is a general listing of the accounts one would expect to find in the safe tank along with the benefits provided by each account. Permanent life insurance would be found in this tank and a MEC contract (maximum efficient contract) can provide more benefits than many clients ever knew.

5 PEM Calculator Definitions (continued) #10) Convert Savings to Private Reserve Tank: This is a simple click of a button on the bottom half of the safe tank which changes the name of the safe tank to Private Reserve. The Private Reserve is a more descriptive name for the different accounts one has available that can provide access to capital through collateralization. Permanent insurance again tops the list and performs extremely well as ones Private Reserve. #11) Protection Shield: Three Legged Stool: Clicking on the protection shield when in the Private Reserve mode will give you access to three different conversations to help one understand permanent insurance. First is the Needs vs. Wants discussion to determine how much insurance someone wants. Second is the 10 Minute Lesson on Life Insurance that will have your prospects asking how much can I put in rather than how much does it cost. The third leg of the stool is the discussion on rate of return which illustrates how one is not limited by the return paid by the insurance carrier on their individual contract. #12) Retirement Income Alternatives: This is a fantastic presentation which shows the benefit of owning life insurance and how life insurance can increase one s spendable income. This is done by being able to consume one s nest egg rather than living off of the interest hoping to preserve their nest egg. #13) Retirement: Ready or Not: A powerful calculator that answers the four toughest financial questions everyone wants to know. What rate of return do I need to earn?, How much do I need to save?, How long will I have to work?, and How much will I have to reduce my current standard of living if I don t do something different? This tool is a great door opener to get people engaged. #14) Lifestyle Illustrated: This is a list of many of the expenses associated with one s current lifestyle and opens the door for conversations around what they will need in the future to live just like they are living today adjusted for inflation. Our focus would be to maximize efficiency and avoid losses to improve one s financial future rather than changing current lifestyle if possible. #15) House: Your House as an Investment: Some are of the opinion that their house is an investment. Others believe their house is in the Safe tank. While it is possible for one to have money returned to them at the time of the sale, it is probably not a great investment and not as safe as cash value. It should be considered a current lifestyle expense. #16) Qualified Plans: Contributions to a Qualified Plan postpone the tax and the tax calculation. If you believe you could pay taxes at a higher rate than you are paying today perhaps you would be wise to think about other options. Contributions must eventually pass through the tax filter where the government will take their share. These are not tax savings plans. #17) Collateral Capacity: This is a MoneyTrax term which signifies the amount of money one has available through collateralization. Three things affect your collateral capacity. Contributions into your tank, return on the money you have in the tank, and lien reduction on borrowed funds collateralized against the dollars in your tank. Net worth is one thing, how much you can get to is another. #18) Structured Payments: This is a story to illustrate the impact of structured loan payments and how they can put pressure on your financial system by reducing the amount of discretionary income you have available at the end of the month. Current lifestyle expenses are at war with your future lifestyle requirements and achieving the proper balance between these two is real financial planning.

6 ORDER USE LEARN peminfo.com pemapp.com pemhub.com 1. Go to peminfo.com (password: pem) 2. Click the Subscribe Now green button. 3. Complete your billing info and enter your Preferred Partner Code - drops price 50%! 1. Go to pemapp.com 2. Enter the username and password you were sent from MoneyTrax. 3. Continue your presentation or start a new case. 1. Go to pemhub.com 2. Enter the username and password you were sent from MoneyTrax. 3. Watch the Quick Start Tutorials. Questions? Call Option 1 INC. MoneyTrax