Course Material

1.DROP BY
PRESENTATION
2. RULE OF 72
3. 4 PILLARS
4. GATHER INFO

Qualified Training Course

LEVEL 1
 DROP BY PRESENTATION
OPENING

First off, I really want to thank you for your time. There are a few things I want to get out of today:

1. First and foremost, I want to make sure that I leave a good impression today
2. The second thing is we are looking to grow our client base, there is a huge need for what we do,
and we are really looking to help people get into a better financial position.
3. The third thing is we are expanding as a company on a part time or full-time basis because of the
need

So, as we go through this, there might be some people that come to mind on the client or business side
that you could refer me to. However, I don’t want to leave any of this off the table for you, so if any of
this information hits home with you, I want to make sure I give you an opportunity to express that, does
that sound fair?

WHO WE ARE

Great, the name of our company is World Financial Group, have you heard of us before? We are an
independent broker of the financial services industry. What that means is we don’t own any products of
our own; which is great, because we can take an unbiased approach when creating a plan for a family,
because we have access to the entire industry. We partner with major banks, investment, and insurance
companies such as, TD, RBC, BMO, Franklin Templeton, and Invesco.

The reason we are able to partner with these major companies is because we are owned by a company
named Aegon. Have you heard of them before? They are a Dutch firm that purchased us 20 years ago
and they have roughly 600B assets under management.

In order for us to get access to a Franklin Templeton directly for example, we typically need a minimum
of $250K to invest. How many people have that kind of money? Not many. Now imagine walking into a
bank or investment firm with 600B, is it fair to say we’re going to get better products, rates, and
services? Absolutely, so because of Aegon we can take our clients directly to these companies for as
little as $25-$100/month to invest. We’re taking high net worth products and advice to the middle
market.

EDUCATION AND AWARENESS

But the foundation of our company is education and awareness. Would you agree we haven’t learned a
whole lot about money and finance growing up? So what we find is once people become better
educated and aware, they tend to make better decisions. And when they make better decisions what
happens? They tend to get better results. That’s the same thing with anything in life: diet, exercise, etc.
The other thing that sets us apart from the rest of the industry, is that under the umbrella of WFG, we
have the ability to build agencies. And if you think about what we’re doing; we’re taking a new idea into
an old industry, and we are completely changing the way that financial services education is brought to
the public.

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And if you think about other companies who have done that. For example, McDonald’s, did they invent
the hamburger? No, they just changed the way it was distributed through franchising. How about Wal-
Mart? Did they invent retail? No, but just a different way to distribute it. Same thing with Starbucks and
coffee. So are you starting to see where I’m going? Every once in a while, there’s a company that comes
along and changes the whole approach to distribution. So our firm hasn’t invented anything new from a
product standpoint, we just changed the way financial services education is distributed. Does that make
sense? That’s why our company continues to expand because we have to as our mission statement is No
Family Left Behind. There’s a huge need for what we do. Any questions so far?

WHAT WE DO

Great, so at the end of the day, here’s what we do. This pie chart right here represents a family’s
monthly cashflow. Would you agree, about half of what we make goes to living expenses, a quarter goes
towards debt, and what do you think this T stands for? Taxes. And this little white sliver is for savings if
any. Now traditionally when we sit down with an advisor, they’ll typically ask one question, “how much
money do you have left over at the end of the month so I can put a plan together for you?” What do you
think most people say? Exactly, very little. So, if they don’t have the money, some advisors are saying we
can’t help you. But there are some nice advisors out there that will still help by looking at the living
expenses side of the pie. They’ll typically say: Starbucks everyday? Cut that out. 3 Kids in Hockey? Try
soccer. You’re eating out way too much. And they’ll slash our lifestyle and put us on a budget. I’m not
saying budgets are bad, but they’re kind of like a diet. How long do they typically last?

So, what we do is we look at the right side of the pie first, we teach people simple debt and tax
strategies so we can free up money on this side of the pie. Depending on the situation, we can free up
anywhere from $200-$1000 a month, sometimes more, sometimes less, sometimes none, but this is our
sweet spot. And how powerful do you think that would be for most people? How do you think an extra
$500 bucks a month would help a family’s savings program? How would that help yours? I mean what
would you guys do with an extra $500 bucks a month?

That’s what we do for people. How do you think those families would start to feel about us when we’re
able to do that? That’s we are excited right now. That’s why we are looking for referrals.
That’s why we need to get our name out there.

Now with the money we free up or any extra money available, we can finally start saving for our future,
for our children’s education, proper protection, and freedom from debt. The best part is we don’t
charge our clients for consultations. It’s the companies that we use that pay us directly. Everybody wins.

THE NEED

Let’s talk about the need. Stats Canada says that 91% of Canadians aren’t going to make it to retirement,
and 9% will be ok. When I first heard this it actually scared me. Because imagine this, we take 10 people
that just graduated from high school and line them up against the wall and ask them, “who here is going
to retire financially independent?” They all put up their hand, don’t they? And then we throw them in
the system as we know it, and one walks away financially independent.

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There are a couple of reasons for it.

1. The first reason is the 91% probably don’t save as much money as the 9%. That’s just society, we
want to try and keep up with the Joneses.
2. The second reason is most jobs don’t pay us enough anymore. It seems like our wages are not
keeping up to the cost of living.

On this side though, you have the 9%.

 8 of the 9 are doing okay financially. They understand this concept of saving and investing
money, so that’s why statistically they are on track to retirement. They may not be making more
money than the 91%, but they are more disciplined.
 1% of the population though are wealthy, and 2/3 of the wealthy are business owners.

So, what we do is we take all the strategies available to the wealthy because wealthy people understand
a couple of things. They know how taxation works and they also understand the tax savings and benefits
for owning a business. We take all of these strategies available to the 9 and bring them to the 91%.

Our mission statement is No Family Left Behind and we’re serious about serving the middle class. But I’ll
tell you what, not only do we serve the middle class, but we’ve also got clients in the 8 percent and I also
have a few in the 1% because you know what, there’s things that they still need to learn. So, I want you
to put your business hat on for a second. Our business serves a hundred percent of the population, we
service clients from 15 days old to over 90 years old!

How powerful is that? Being able to serve the entire population in a time when the need is so high. Any
questions on that?

CLOSE

Let me talk about the two opportunities with our firm.

First, we are very good at the client side of things, and we are able to utilize some of the best companies
in the industry. We teach people simple concepts and strategies, do a financial check-up, and we like to
meet with them once a year to make sure we get them on track. Does that make sense?

But at the end of the day we’re not magicians and there’s only so much that we can do, which is why
again we always talk about our business opportunity.

Right now, our company is expanding and we are looking for some good people to work with us. Most
people start on a part-time basis, where there is no risk involved, and they can make an extra $500-
$1000 a month. Worst case scenario they learn about money and finance.

In summary, there are three things we are looking for:

1. Clients
2. Part-Time
3. Full-Time

Which one of these three options peaks your interest the most?

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Answer:
Business: Invite to BPM

Great, what I would like to do is have you out to our upcoming open house presentation. It will give you
a chance to see our office, meet a couple people and learn more about what we do. I can’t guarantee it
would be a good fit but I think it makes good sense for you to come take a look, wouldn’t you agree?

A/B close on days

Client:

Great, what I would like to do is show you a bit more of what we teach clients on the education side of
things. (Go into Rule of 72, 4 Pillars, and gather info)

Nothing:

Great, as I mentioned at the beginning, we are looking for referrals so who do you know that might fit
into these three categories? (if nobody then go back to client answer)

[Optional Business Close for Level 1; Required for Level 3]

Right now, our company is expanding. Remax was founded in 1972 and you know what they did? They
licensed over 100,000 Realtors in 35 years and at one point sold over half of the world’s real estate.
We’re doing the exact same thing. There are about the same number of realtors in Calgary as there are
life licensed agents in our company in all of Canada. We have a huge opportunity right now with our firm
and we are looking for people to come in to start on a part-time basis. Keep their job, test drive the
vehicle, maybe make an extra $500-$1000 a month. Make $1000 a month part time, but get an
education on money and be a part of something. They’ll meet some good people and get in a great
environment. For those people, they take a look at the business side and then they also become a client.
So, has anything I’ve said hit home with you so far?

pg. 4
 MAIN POINTS

Opening

1. Make a good impression

2. Expanding client base
3. Company is expanding – part time / full time basis
 Ask for referrals
 May hit home for you as well

Who We Are

 Independent broker – don’t own products

 Partner with major companies (name some)
 Aegon – who are they?
 How we get access to high net worth investments

Education and Awareness

 Didn’t learn much about money and finance growing up

 New idea in old industry
o McDonald’s
o Wal-Mart
o Starbucks
 Mission statement

What We Do

 Explain pie chart – living expenses, debt, taxes, savings

 Traditional advisor vs. WFG
o Financial Budget

The Need

 91% vs 9%
 10-person analogy
 Reasons for that stat

Close

 Client Side
 Business side, with closing question
 Next Step

pg. 5
 RULE OF 72
Have you ever heard of the Rule of 72 before? Einstein coined it; he calls it the 8th wonder of the world. If we take
the number 72 and we divide it by the interest we are getting it will equal the number of years it will take for our
money to double.
(Write out)
72/% = # of yrs to double your money

What do you think we are getting on a savings account at the bank? It’s about .5%. For simplicity sake, let’s use 1%.
72 divided by 1 is 72. It would take our money 72 years to double. How many 72 years do we have left?
(Write out)
72/1 = 72

Let’s say we are 29 years old and we just got a $10,000 inheritance. Where do most Canadians take their money?
To the Bank. Let’s say that the bank is in a great mood and they give us 4% on our GIC (probably not going to
happen but let's just say for the sake of the illustration). 72 divided by 4 is 18. Our money is now going to double
every 18 years. At 47 it will double to $20K, and at 65 when we are ready to retire our money is going to double to
$40K.
(Write out)

72/ 4 = 18

US------------Bank

4%

29- 10k
47- 20k
65-40k

Now what does the bank do with our original $10,000? They reinvest it through Professional Money Managers and
loan it out through debt. Is it fair to say that the banks get a higher rate of return than we do? Let’s just say it’s
anywhere between 10-20% over a long period of time. Let’s just say it’s 12%, 72/12 is 6.

72/ 12= 6

US------------Bank-------------PMM 29 - 10k 25 - 20k

47 - 20k 41- 40k
4% 65 - 40k 47- 80k
53 – 160k
10-20% 59 – 320k
65 – 640k

Do you think they are ok giving us $40 K and taking $600 K? yes!

What we are trying to do here is bypass the Bank and go right to the Professional Money Managers to get a better
rate of return. We can never guarantee anything but I can tell you we can do better than 1%.

Now one last question I will ask you, what’s one thing we can’t buy back in life? Time, which is why we can’t wait
to start taking advantage of this rule.

pg. 6
 4 PILLARS
Now that we understand the rule of 72, now we need to know where to put our money. In Canada there
are a few places where we save money:
(draw out empty vehicles)

I am going to draw these like vehicles, as that’s what they are. They are vehicles driving us to retirement.
In order for vehicle to move, we need a driver don’t we? So, our drivers will be our investments such as;
savings account, stocks, bonds, GIC, mutual funds, SEG funds. If we have a savings account or GIC inside
of here, how fast are we going to go? Slow, which is why we want to have a better investment so we can
actually get somewhere.

So, once we know our drivers we need to know our vehicles.

(list 4 vehicles)

So, our money is going to grow the same in each of these accounts, the only difference is how we are
taxed.

What has been your experience with these 4 vehicles?

RSP
First place you can save money is an RSP:
 When you put money in, you get a Tax Write Off (TWO)- lowers our income come tax season
 Your money grows Tax Deferred, which means you are not taxed now, you are taxed later
 With this vehicle when you take your money out, how much are you taxed? 100%
Say you have $100 and it grows to $200 dollars, you will be taxed on the entire $200

pg. 7
Non-Registered
Second place you can save money is a Non-registered:
 When you put money in here, there is a Potential Tax Write Off (PTWO)
o How this works is if you borrow money and reinvest it, the interest of the loan is a tax
write off
 Your money grows Tax Advantage, which means you are taxed on roughly 50% of the growth
If you have $100 and it grows to $200, you will be taxed on half of the growth - $50

TFSA
The third vehicle where you can put your money in is a Tax-Free Savings Account, which never should
have called this a savings account, as you can put investments in it. They should have called it a Tax Free
Investment Account:
 No Tax Write off
 Money grows tax free
 We can pull it out tax free

Only downside is it has limits; you can only put $6,000 per year but if you didn’t use last year’s
contribution room it carries over to the next year. If you turned 18 in 2009 then the amount you could
put in as of today is $63,500.

The money is also very accessible to people which can be a negative thing because people often use it as
a transactional account, when it could be used as their long-term retirement plan. Imagine if you had a
million dollars you could keep it all. Whereas with an RSP, you would only get to keep roughly $700,000.

pg. 8
PTS

The last vehicle is the Permanent Tax Shelter. Most people haven’t heard of this before since typically
the banks don’t offer it because most advisors aren’t insurance licensed.

A few good things about this vehicle are:

1. First thing is all of our money inside will grow Tax Sheltered
2. Second, our money is creditor protected – meaning if you were to go bankrupt or get sued then
the creditors can not go after your money
3. Third thing is it bypasses probate
a. Have you ever heard of probate before? No, well probate is the process that happens to
our assets when someone passes away. A lot of times the client’s money will go to the
estate where there can be lawyers and fees so this will skip that and the money will go
directly to the family

We like to use the analogy of orange, when you buy an orange, do you buy it for the fruit or the peel?
The fruit, but we have to pay for the peel too, don’t we? Because what does the peal do? Protects it. In
this case the peeling is the Permanent Term Life Insurance (PTLI), insurance that never expires. The fruit
is the investment.

PTLI
$$

So, with the money we put towards the plan a portion will go to the insurance, but majority will go to
the investment.

There’s couple benefits to this, upon death there will be a tax free pay out to your beneficiary, but the
goal is to grow a large pot of money that we can access on a tax-free basis. The only catch is you have to
be healthy to own one because you have to qualify medically.

So, what we teach clients is to diversify. Have different pots of money so come retirement, you can
dictate your tax bracket as opposed to the government. Take more from one, less from the other. So,
you want to diversify your investments but you also want to diversify across the strategy. Do you feel
like you are properly diversified across all four?

My hope would be to put a plan together that addresses that. Id like to gather some basic information
and from there I can show you which vehicles suit you best, does that sound fair?

pg. 9