Together We Are the Best We are National. We are the Best. Together, We are National Best.

Understanding the Lifeline 40 21 29 50 65 85 100 Some questions to consider: Where are you on the life-line? When is the best time to begin saving for retirement? When would you like to retire? How much money will you need to retire? How many years will It take to accumulate enough money for you to retire?   Everyone has a different need or goal depending on where they are located on the lifeline. As children we have no plan and we depend upon our parents for all our financial needs. Some strategies for parents at this stage are early savings plans (e.g. Registered Education Savings Plan) or an early insurance shelter program. At 21 years old, many men and women are more interested in establishing relationships with each other than with their finances. But an early savings plan that can establish good savings habits can be helpful. In many cases however, we are in post secondary schools just trying to pay our tuition and eat. Nevertheless, keeping track of spending and income will help to establish the behavior for future planning. Also, it may be our first encounter with debt – the student loan. At 29 years old we are perhaps beginning our life with a partner and we are considering a home purchase and planning for a family. If we have established early financial planning habits, we may now be in a position to take advantage of our investing. A starter home may be possible as well as some early savings plans for our children. We are also looking at risk management products and we are implementing insurance plans to ensure our family is taken care of should any unfortunate event happen in our life. At 40 years old we are in the midst of our careers and if we have been consistently planning our financial life, we will be adding to assets and starting to look toward the needs of retirement. We may be considering our children’s education needs and helping them with their planning. We also may be assisting our parents with their retirement decisions. If we have not planned up to this point in life, now is the time to really focus. We may have to make serious budgeting decisions and implement more aggressive investment strategies in order to achieve our financial goals. At 50 years old we are now closer to the end than the beginning. We may be questioning our careers and our plans. If we have not had a written financial plan to this point we are running out of time. Now a retirement strategy must be implemented or it will be too late. Our children are staring their life and our empty nest may be the only asset we have after paying for their education. Also, we may be dealing with our parents’ final wishes and find ourselves having to handle estate issues. Did we prepare for these events? Were they are part of our overall plan? At 65 years old we are at retirement. What will our lives be like? What kind of retirement do we want? Is it going to be what we dreamed of? Is it going to be what we planned for, if we had a plan at all? Was our plan a written plan with definite goals and milestones? At 80 years old, all of our efforts in life now belong to the next generation. What did we do to transfer our wealth and knowledge to our children or other loved ones? These are the questions that we will try to help you with as you travel the highway of your life using our financial road map.

What we do for 40 years? ¢ # Hours / week = 40 X $20 / Hour Tax ¢ L E What happens to the money we earn? For most people there is very little left over after taxes, debts, and living expenses. Debt

4 Ways we can Earn Income

THE Lifeline Working Life 40 21 29 50 65 85 100 100 Most people work for 40 years or more, only to find that they have very little to show for all the money they’ve made in their lifetime. If you asked a roomful of 18 year olds how many of them plan on retiring financially successful, what do you think they would say? Nobody starts out life expecting to be financially unsuccessful. Yet, if we look at 100 Canadians at age 65…

Canadians at Age 65 9% Successful 91% Unsuccessful Financially Independent Financially Comfortable 14 Still Working 24 Dead 53 Financially Dependent 1 8 14 53 24 Where are Canadians at age 65? 1% Financially Independent –These Canadians will never have to worry about running out of money and they will look for ways to pass on their money to their children and grandchildren. 8% Financially Comfortable – These people will have enough money to do what they planned to do in retirement, though they will have to watch their money. If they were to increase their standard of living they could run out of money. 14% Still Working – These Canadians are still working at age 65, not because they want to, but because they have to. Many work at low paying jobs e.g., department stores, donut shops, security, toll booths. 24% Don’t live to Age 65 – Does that surprise anyone? ¼ of the Canadian population doesn’t live to age 65. We may not be able to help them but we can help those they leave behind. 53% Financially Dependent – They are dependent on the government, as well as family and friends. What kind of support does the government give to seniors? Where are you now? Where do you want to be? - Stats Canada 2001, taken from 10 Secrets Revenue Canada Doesn’t Want You to Know, by David Voth   Average CPP approximately $504/month (Note: As of Sept 2010); Maximum CPP $960/mo (Jan-Mar 2011) Average OAS approximately $490/month (Note: As of Sept 2010); Maximum OAS $524/mo (Jan-Mar 2011) (Note - Pensioners with an individual net income above $67,668 must repay part or all of the maximum Old Age Security pension amount. The repayment amounts are normally deducted from their monthly payments before they are issued. The full OAS pension is eliminated when a pensioner's net income is $109,607 or above. The repayment amounts are normally deducted from their monthly payments before they are issued. Also, there are supplements available to seniors with no other source of income but that still will not pull them above the poverty line in most cities.) – as of January 2011 9% Successful 91% Unsuccessful CPP $ 504* OAS $ 490* $ 994 / month * Sept 2010 Averages

The MGA System In the good old days Insurance Companies had an in house sales force Managing General Agency Built to house many agents Manages office, negotiates contracts Can usually negotiate higher contract Get an override on their agents May be Captive Agents or Independents Associate General Agency Built to house many agents under an MGA May have direct contracts May act like a subsidiary of the MGA Independent Agent

How do we get Paid? Insurance Companies pay based on first year premium plus a bonus (negotiated) They pay the MGA, AGA or the Independent Agent Example: FYC = First Year Commission FYC = 40% of Annual Premium plus Bonus = Negotiated % times FYC So... Suppose an MGA has a contract: FYC + 180

How do we get Paid? FYC + 180 Annual Premium = $1000.00 FYC = $400.00 ($1000.00 times 40%) Bonus = $720.00 ($400.00 times 180%) Total Paid to MGA $400.00 + $720.00 = $1,120.00

Understanding the Insurance Agent’s Life Line New Agents FYC + Bonus

The Builder’s Model Advantages: Team atmosphere, mentoring Licensing programs The headaches are taken care of for you Challenges: New people paid very little If team members are struggling, they will leave Have to build a large team to make a good income You own your dreams, but not your business

Where Does the Money Go?

Understanding the Insurance Agent’s Life Line New Agents FYC + Bonus

The Captive Agent Model Advantages: Mentoring, training Marketing and administrative systems Challenges: Low contracts Limited product selection - Are clients well-served? Can you take your book with you?

Where Does the Money Go?

Understanding the Insurance Agent’s Life Line Producers New Agents FYC + Bonus

The Independent Model Advantages: Challenges: Work under an AGA/MGA Better initial contract than other models May own your book Challenges: You are working alone Earning ceiling, how many clients can you effectively service? High producer to maintain a high contract Who wants to buy your book?

Where Does the Money Go?

Typical Business Owner

Understanding the Insurance Agent’s Life Line Producers New Agents Agency Owners FYC + Bonus

The Traditional AGA/MGA Model Advantages: You own the Agency Better contract paid to your company Can serve more clients, earn more Challenges: Cost of set up and running an agency You own the headaches...administration, compliance, payroll, back office As an MGA owner, who are you training?

Do You TRULY Own Your Business? Can you sell your business? Can you take your business with you if you move to a new agency? What happens if you no longer have a license? If you become incapacitated what happens? If you die, will your loved ones inherit your business? Do you have the experience or resources to start your own agency? How can you ensure your agents will stay with you if you are an AGA or MGA?

There is No Substitute for TRUE Ownership With NB, you own your business from day one and continue to own it throughout your career. You can sell your book of business and your Agency If for any reason you leave National Best, you are FREE to contact your clients and down-line agents If you no longer have a license, your Incorporated Agency can continue to receive overrides and recurring revenue Structured properly, your corporation can receive overrides and recurring revenue even after you die

Do YOU Have a Plan to Successfully Retire One Day? Every advisor will leave the business one day due to retirement, career change, disability or death. Will it be possible to sell your book of business, after the fact? Who will buy it? For how much? Can your spouse or children inherit your book of business? Will your residual income continue for you or your loved ones? What kind of legacy will you leave? Will your clients be well served?

National Best Succession Plan Leverage your years of experience, increase your revenue, leave a legacy Mentor other associates who can rework your book and expand your business New associates participate in National Best Business Coaching Program Clients will learn new strategies and product offerings by attending Financial Literacy Workshops New agents will split revenue with you

National Best Advantages National Best Ownership Program + National Best Succession Plan = A Powerful Combination for Financial Services Professionals

National Best Agency Model Three Generation Over-rides, Bonus Pools Highest Contract = 6 Licenses Best Compensation Model in the Industry FYC + 160% Bonus Paid to the Field New Agents Can Earn a Decent Living No Exchange / Give Up You Keep What you Build!

Where Does the Money Go?

National Best Independent Agent Model New Agents start at FYC + 120% Bonus We match existing contracts for Experienced Agents 10% Residual Over-ride for referring new agents to the Network Preserve Your Existing Brand Transition to National Best Agency Model

Which Model Works for You?

Which Model Works for You? $11,598 $4,480 $3,520

National Best Expansion Program Refer clients to agents in other cities and receive 50% Compensation Expand your agency to other cities and receive 50% Over-rides Co-Leadership Program Teammate moves to a new city Teammate moves to a new team

Best-In-Class Product Providers Contracts with the top 26 insurance companies in Canada Exclusive contracts for online insurance applications - clients pay with credit cards Insure your client even if they’ve had cancer, heart attack or stroke Membership benefits: scholarships, orphan benefits Multi-policy discounts

Strategic Alliances to Sponsor Licensing Life and A&S Mutual Funds Exempt Market Products RESPs

Referrals to Specialists Access to Industry Specialists to close business for you and earn referral commissions Living Benefits Specialists (CI, DI, LTC) Group Benefits / Health Trusts Mortgage Referrals Networking and Services for Business Owners Travel Insurance Referrals Pre-Paid Legal Services

The Plan: Start at FYC + 50% OR The Plan: Start at FYC + 120% Which Would You Prefer? The Plan: Start at FYC + 50% OR The Plan: Start at FYC + 120%

Which Would You Prefer? Buy Term and _______ the Difference OR Buy Term and Earn a Solid 10% Return on the Difference

Which Would You Prefer? Freedom 75 OR Freedom to do What you Love Freedom to Mentor Freedom to Leave a Legacy

Which Would You Prefer? Own Your Dreams, But Not Your Business VS Own Your Dreams AND Your Business

Independent and Locally Average OR Together, We are National Best Which Would You Prefer? Independent and Locally Average OR Together, We are National Best