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

2. Understanding the Lifeline40 21 29 50 65 85
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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.

3. 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. 4 Ways we can Earn Income

5. THE Lifeline Working Life 40 21 29 50 65 85 100
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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…

6. 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

7. 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

8. 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

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

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

11. 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

12. Where Does the Money Go?

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

14. 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?

15. Where Does the Money Go?

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

17. 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?

18. Where Does the Money Go?

19. Typical Business Owner

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

21. 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?

22. 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?

23. 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

24. 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?

25. 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

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

27. 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!

28. Where Does the Money Go?

29. 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

30. Which Model Works for You?

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

32. 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

33. 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

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

35. 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

36. 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%

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

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

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

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