THE FIRM PLAYBOOK

RESOURCES
The key to winning in Primerica is always plugging into the right resources. You can
get really good at this business fast IF you'll invest time mastering and working the
business. Here are a list of resources for learning our business:
YouTube Video Suggestions:
1. Art Williams (The Founder of Primerica) All his videos are great.
2. Team Freedom Systems: Kitchen Table Appointment, Whole Life vs. Buy Term & Invest the
difference, Universal Life vs. Buy Term & Invest the Difference.
3. BuildingLeaderscom Channel
4. Primerica Channel
5. Weidel Academy (Watch All Videos, but start with 4 point game plan!!!)

Book Suggestions:
1.

A.L. Williams Way: By Art Williams

2.
3.
4.

Coach: By Art Williams

Think and Grow Rich: By Napoleon Hill
Secrets of The Millionaire Mind: T. Harv Ecker

5.
6.
7.
8.

177 Mental Toughness Secrets of The World Class: Steve Siebold

Fight for your money: David Bach
All you can do is All you can do: By Art Williams
Common Sense: By Art Williams

Websites: (for info & Audio)

1.
2.
3.
4.

www.primericaonline.com
www.digitalpfs.com
www.dubbelldreamteam.com User Name: dubbell Password: dreamteam
www.neilteamfreedom.com

STEPS TO THE SYSTEM

1. Prospecting: Get a name & number
Your warm market
New recruits warm market
Referrals
O ut & about

2. Set an Interview OR a Kitchen Table appointment

IF qualified i.e. Married, kids, home. Set the kitchen table appointment.
IF NOT qualified- Recruit them on the spot OR invite them to the opportunity meeting

3. Kitchen table appointment

Client survey page (follow the instructions on the page)
Presentation
Front side
Back side before & After example
Compensation
Families need & want our help.
Keys to success
What if anything would keep you from getting started right now?
IF they say nothing you do their turbo IBA
IF not ask: on a scale of 1-10 what is your desire transition to FNA

4. Financial Needs Analysis questionnaire

Follow instructions on questionnaire word for word.
Overcome Objections if any

5. Fast Start- (If you recruited them, you do this after their FNA is complete)
Paint the picture
Ask: on a scale of 1-10 how bad do you want these things to happen?
How many days/ nights a week can you give to Primerica?
Who have you been thinking you'd like to share this with?
Set appointments with new recruit
Go over fast start manual
Leave them with new associate CD/ Fast start DVD etc..

PROSPECTING OUT & ABOUT

(While prospecting look for wedding rings)
Can I ask you a question? Sure
Are you from around here? Yes
The reason I ask is I own a business in the area, and I'm always looking for great people. You seem like a
sharp person what do you do for work? WFA ______
Do you plan on doing that for the rest of your life, or if the money and position were right, do you keep your
options open? Yes
Great I don't have a lot of time now, what was your name? (Introduce yourself) ______, I don't have my
schedule with me, where's a number I can call you in 20min or so and set up a time to see if we have a
mutual interest? (Look down at your phone and assume he/she is giving you their number)

After Getting the Number you Say:

It was great to meet you _____. I'll call you as soon as I get in front of my schedule. When we meet I'll go
over with you exactly what we do, and the money involved okay? WFA Okay.

SETTING THE APPOINTMENT

PROSPECTING OUT & ABOUT
(When calling them to set up the Appointment if they are a 4-5 pointer the goal is to set a Kitchen table Appointment. If they are
not qualified just set an interview during the day. (or if they are not qualified invite them to the opportunity meeting as t he last
option)

Setting the Kitchen Table Appointment:

Hey _________ this is ________ we met at _________ do you remember me? WFA Yes
I just wanted to touch base with you to set a time we can get together and show you exactly what we do ,
and the money involved; I have ________ or would _________ be better? Would days or evenings be
better? Great what time ______ or ______ ? What area of town do you live in? WFA. Perfect, what's your
address?

Set the appointment. Once the appointment is set you say:

_________ who other than yourself would be involved in making a career decision? WFA. My spouse.
Great, then I'm guessing you and your spouse are the kind of people that make decisions based on all the
facts not partial facts would I be right in assuming that? WFA Yes. Great, then what I'd like to do is meet with
the both of you, that way I can get you all the facts and you can make an informed decision together fair
enough? WFA. Fair enough. Ok, let your spouse know, make sure to put it in your calendar, and I'll see you
________ night at ______.

Setting an Interview:
Hello this is __________ we met at _________ you remember me? WFA Yes
I just wanted to touch base with you to set a time we can get together and show you exactly what we do,
and the money involved; I have ________ or would _________ be better? WFA. Ok perfect, would Mornings
or Afternoons be better? WFA. Great, do you have a pen & paper so you can write down the address to my
Office?

After its set say:

Now look ________ I'm super busy, and I'm sure you are as well. I don't want to waste your time, and I
definitely don't want to waste mine. I have to drive all the way across town to meet you. So if I put this in my
schedule can you promise me you'll be there? WFA. Are you a man/woman of your word? WFA. Yes. Great
then I'll see you on ______at ______. I look forward to meeting with you. Have a great day.

THE INTERVIEW
The goal when doing an Interview:
If they are married is to peak interest enough to set a Kitchen Table Appointment with both Husband & Wife
or If they are not qualified To either recruit them on the spot or invite them to the opportunity meeting.

Here is the format of questions you ask as you start an interview:

What is your current career?
Are you locked in to your current career, or do you keep your options open?
Would you consider a career change if the money were right?
What would you and your family do differently if time and money were no issue? (home, cars, toys, vacations, charities, etc).
(The reason I'm asking is because if I'm going spend the next 2 years training you for a Broker position, I need to make sure
you're a big dreamer, hard working, you're hungry & ambitious & I need to know what you really want etc.)
When will your current occupation allow you to have & do all of those things?
If they're unhappy w/ current occupation ask: Do you have an exit strategy for getting out of your current occupation? Y

If we can show you a better way to help you reach your goals that would give you more money, security and freedom than your
current career, would you be open to exploring that option? Y
N
(Now show the 1 page presentation. If they are married be sure to stop at the keys to success and ask the question below. If they
are not married recruit them on the spot or Invite them to the opportunity meeting.)
Are you the type of person that likes to have all the facts before making a decision, or partial facts?
Who other than yourself would be involved in making a career decision? I'm guessing you are the kind of people that make
decisions based on all the facts, not partial facts would I be right in assuming that? Then I need to get with the both of you so I can
get you all the facts, and you can make an informed decision together fair enough?
When is the best time to meet with the both of you together, days or evenings?
(Explain if necessary the reason we need to meet w/ both husband & wife- We believe in God-Family-Business, let them know
that your not interested in even giving them a shot w/ out meeting their spouse first).
(if they ask to know more about the company just say: "I'm not going to give you all the information yet, because I want to
be sure both you and your spouse see it together so you can make a better decision."

CLOSING QUESTIONS
AFTER THE INTERVIEW
Getting a qualified interview to the Kitchen table appointment:
Who other than yourself would be involved in making a career decision? WFA. My spouse. Great! I'm
guessing you are the kind of people that make decisions based on all the facts, not partial facts would I be
right in assuming that? WFA yes. Great! Then I need to get with the both of you so I can get you all the facts,
and you can make an informed decision together fair enough? WFA. Great, I have tonight or would
tomorrow night be better? (Then set the Appointment.)

If they say I need to talk to my spouse first/ or check my spouses schedule you say:
That's fine lets set a tentative appointment when you are usually together, then if that doesn't work you can
call me back with a time that does work okay?

Coaching them on what to say to their spouse after you set the appointment:
I know a guy/ girl looking for a business partner. They are coming over ________ night to show us exactly
what they're looking for, and what I'd be doing. I set it up for both of us to be there at ______pm on
________night ok ay ?

KITCHEN TABLE APPOINTMENT

Client Survey
3 Reasons Why We Are Here Tonight:
1. Referral Base

2. Earn your business as clients

3. Expanding & Need Help

Do you have someone right now who handles your current financial needs other than yourselves? Yes
(If yes, are they open to make a change if we are able to improve and enhance their current situation?)
First Names

No

Last Name

________________________________________________________________________________________________________________________________

Client

Spouse

Current careers?
What do you like about your current career?
What Would You Change About it?
What are some things that you and your fa mily would do differently if time and money were no issue?
For exa mple: What do you dream about? What's Important to you?
GOALS: ___________________________________________________________________________________ ________
___________________________________________________________________________________________________
(Ho mes, Cars, Travel, Charities, Hobbies, Toys, Education, ect.)

How much annual income would you need to hit those goals? $__________________/ yr.
When will your current career allow you to accomplish this?__________________
If we can show you a way to help you reach your goals that would give you more mone y, security and freedom than your
current career, would you be open to exploring that option?
Y
N
What age are you on track for to be able to retire?_______
What is your ideal retirement age?_______
If we can put together a plan to hit that goal, would you follow it? Y
N
_______________________________________________________________________________________________________________
Why I decided to get involved with Primerica.
(2 minutes or less)
_______________________________________________________________________________________________________________
As I go through my presentation I want you to ask yourself 3 questions:
1.

Is Primerica a credible company?

2.

Is what Primerica does for families' life changing?

3.

Who do you know that would benefit from meeting with us? -Maybe this will he lp:
Will you play a little game with me?
Who can you think of right now (first names only) that is Married- Has kids- and a Homeowner?
Also, who comes to your mind first when I say:
Best Salesperson that's not pushy- Best Teacher- Most Enthusiastic- Most Ambitious- Most Motivated
(Look down at the referral sheet and start writing names as they say them, ask for as many as they can think of then
start your presentation)

CLOSING THE IBA

After asking: How many days a week can you work part time, wait for their answer
then ask:
What if anything would keep you from getting started right now? (If they say "nothing")

Okay then here's what's going to happen:

I'm going to get your application started. Then ask you some background questions, And we'll get your
background check started today/tonight okay? WFA. Great, do me a favor and grab your driver's
Lic ens e .
(If there is no objections then fill out their IBA, If they have objections answer their questions and then fill out their
IBA, or invite them to the opportunity meeting.)

Once you have their IBA filled out:

1. If they are married do their FNA first, then do their fast start.
2. If they are single do their fast start immediately. Be sure you set a minimum of 3-5 Kitchen Table
Appointments with them before they leave.

CLOSING LIFE INSURANCE

To close their Life Insurance make sure you explain the numbers 1-13 on the FNA
Questionnaire. They are described in our Kitchen Table Appointment Video on the
YouTube Channel: "Team Freedom Systems"
If you close on the first appointment:
Be sure to follow all the way through to step 16 on the FNA Questionnaire. Make sure you set a Follow up
appointment to bring back their Financial Needs Analysis, and get referrals etc. with in 1 week.

Before you leave the home:

Leave them with the Client Leave behind (you can get this on Virtual Base shop under the resources tab),
that explains to them the process of what happens from here.

The last thing explain to them:

"________ &_________, you will be receiving 3 phone calls. The first one is from our local office. They will
call you to go over the application to make sure everything is correct, and make sure you don't have any
questions. The second call you are going to get is from Tele-Underwriting. They are going to call you and
Make sure I asked the medical questions. Make sure you answer the medical questions the same with
them as you did on the application tonight. It will take 5-10min, and they call from an unusual number so
please be sure to take those calls for the next few weeks. (If Applicable) The third company that will call is
the Nurse to do your Para-Meds. They will come over to take your blood & Urine. They will ask you to fast
for 6-12 hours so be sure to drink a lot of water, and don't drink alcohol, energy drinks or eat fast food the
day before. Its very important these Para-meds are done with in 7 days so please schedule them as soon
as pos s ible ok ay ?"

If you don't close on the first appointment be sure to get commitments.

If you get commitments, set a follow up appointment with in 1 week.

THE FAST START

The Fast start Provides the new recruit with a $300 bonus, an iPad Mini, and a Promotion to
District Leader at 50%
How to qualify:
The New recruit must do 3 Personal Recruits x 3,000 Life insurance premium in their training and pass their
state exam 30 days from their IBA date.

There are 2 ways to do Primerica

You Choose:
The wrong way,
Getting Licensed first:

The right way

Getting off to a Fast Start:

Study for test get licensed

Going on 10-15 Kitchen Table Appointments your 1st

30 day s .

You start with:

You start with:

No team
Limited Market
No referrals
No training
Rep contract 25%

A Team of 3-6 people

Unlimited Market (Training New Recruits)
Referrals
You're Trained
District contract 50%

Since you aren't trained you have to take a

trainer along with you. So you split the sale.
Half of 25% is 12.5%

You miss out on 3 sales but now you have 3-6

people to train. And you know what your doing so
you don't need a trainer so you get 50%

The average life app is $83mo x 12 = $1,000yr

12.5% is $125

The average life app is $83mo x 12 = $1,000yr

50% is $500

3 sales would be $375 your 1st month licensed.

3 sales would be $1,500 your 1st month licensed.

Plus a $300 bonus from the company
Plus an iPad Mini!

Total Value: $375

Total Value: $2,000

(and that's just the 1st month!)

THE FAST START

The why is more important than the how. If the why is big enough, people will do
whatever it takes to find out the how. So when getting a new person off to a fast start,
you must explain WHY they must get you in front of 15 people within their first 30 days.
_

"Hey________, I'm very excited that you are getting involved with us. I want you to know that if you follow our
system, every goal or dream you have can and will be accomplished."
"Within about 60 days from now you will be licensed and trained along with 1, 2, maybe even 3 or more
licensed trained people with you, as well as several others that will be on track to do the same. You'll have an
unlimited number of appointments to go on because of all of the new recruits coming on to your team that
need to be field trained, and be in a position to earn $2,000-$5,000/mo in income out of the gate. You'll be in
a position to be RVP within 6 months or so, probably go RVP 12-18 months (so you're mature enough in the
business to be one) make $30k-$50k in income your first year, and $150k-$250 plus your second year."
So, on a scale of 1-10, what is your desire to make all of this happen? WFA
All you need to do while getting licensed is get me in front of 15 people that are in the right market, across the
Kitchen Table in the next 30 days. So I'm guessing that's something you can do right? WFA
How many days/ nights can you give to Primerica right now? WFA
Who have you been thinking of that you would like to share this with?

Create their list, Find out who is qualified and set up 3-5 Kitchen Table Appointments.
For those people on their list not qualified set up a daytime interview or invite them to
the opportunity meeting.
(Remind them if necessary how much we are going to benefit those they take you to see)

Go over what to say with the new recruit, and help them set their first 3-5 Kitchen Table appointments before
they leave.
After you set up a couple of appointments, then go over the hiring pack, set goals, go over schedule, PFSU
dates, and give them New Recruit CD. (Be sure they listen to it 15-20 times.)

SETTING APPOINTMENTS
Best Friends, Closest Family Members
Option 1
Hello_________, (Chit Chat) Are you and _______ going to be home tonight? WFA If yes.
Great, I have something I want to show you and somebody I would like you to meet. I'm
going to stop by what time would be better ______ or ________?

If not tonight:
I'm available ________ or _______ which day works better?
Great, would ________ or ________ be best?

What is it?:
I am starting a new second career and I have to get a license through the state. I have to
go through some training before I can go to school. Would you and (spouse) help me out
and sit through a presentation with me and a friend that is training me? WFA
Do me a favor, let (spouse) know and put it on your calendar so you don't forget.
Okay, great! See you _______ at _______. Bye!

I don't think we are interested?

Look_________ if your not interested and it's not for you would you feel comfortable telling
me no? WFA. Yes
Great, then what day would be better ________or ________?
_

SETTING APPOINTMENTS
Option 2
Hello_________, This is__________. How are things going? (Chit Chat)
The reason I'm calling is I am starting a second career and I have to get a license through
the state. I have to go through some training before I can go to school. Would you and
__________ help me out and sit through a presentation with a friend who is training me?
WFA if yes
Great, I'm available _________ or _________, which day works best? Would
________or________ be best?
Do me a favor let ______know and put it on your calendar so you don't forget. It's really
important to me okay. Great, see you ________ at _______. Bye!

What is it?
I'm working with a financial services company. It's very exciting, I just need a favor, it's
part of my training as I get my license. I'm just trying to get trained and get my name out
there so what day would be best _________or__________?

I don't think we are interested?

Look_________ if your not interested and it's not for you would you feel comfortable
telling me no? WFA. Yes
Great, then what day would be better ________or ________?

INVITE TO THE
OPPORTUNITY MEETING
Inviting someone from the kitchen table appointment:
We find clients who invest 60-90 minutes of our time and come down to our business
overview have much greater success in hitting their financial goals, and that's what you want
isn't it? WFA. Yes.
Is there anything you cant get out of _______ night for about an hour at ________? WFA. No.
Great, since there's nothing you cant get out of I need you to be at my office at ______. Now
here's the thing, I'm going to have a seat saved for you with your name on a list. Can you
promise me you'll be there? WFA. Yes. Now you're a man/woman of your word right? WFA.
Yes. So you promise me you'll be there? WFA. Yes. Great then I will see you ___________
at __________. Here's The address.

Inviting someone who's not qualified from a list:

Do you plan on working at your job forever or would you keep your options open to making
money on the side? WFA. Yes I keep my options open.
I just started with a company and they are looking fro some sharp people, you are the first
person that came to mind. I would like to introduce you to this guy/girl that runs the office.
Is there anything you cant get out of _______ night for about an hour at ________? WFA.
No. Great, since there's nothing you cant get out of I need you to be at my office at ______.
Now here's the thing, I'm going to have a seat saved for you with your name on a list. Can
you promise me you'll be there? WFA. Yes. Now you're a man/woman of your word right?
WFA. Yes. So you promise me you'll be there? WFA. Yes. Great then I will see you
___________ at __________. Here's The address.
(If your inviting from the interview: After you finish the presentation invite them by starting with: Is there
anything you cant get out of ..)
For_ internal_ use_ only._ _ Not_ to_ be_ used_ with_ or_ distrib
uted_ to_ the_ public._

CLOSING THE I.B.A

"After the opportunity meeting is over."
After the meeting is over make sure you hand your guest a survey:
Say: "Please fill this out thoroughly and let me know when your done."

When the survey is filled out you ask:

What did you like better helping people or making money? WFA.
Great, I noticed you marked _____ days. What ____ days were you thinking? WFA.
Okay great, here's what going to happen:
I'm going to get your application started, ask you some background questions, and we'll get
your background check started tonight okay? WFA. Okay.
Great, do me a favor and grab your drivers license for me.
(If they are married and their spouse has not seen the presentation, make sure you set up a
time to meet with both of them before you submit the IBA. Preferably the next day. Use the
script on Closing Questions after the IBA)

OVERCOMING OBJECTIONS
(The key to overcoming objections is asking questions.)

Before you are hit with an objection, you are telling. After the objection, you are selling:
(Example: Telling = presentation)

Objection: "Where can I get 9% today?"

Selling = "Well, you're not going to get 9% today, however, equity mutual funds over the last 30+ years
have averaged 9-12%, And if I could show you how to get a better rate of return would that interest
you?

Objections are the steps to the sale. If they don't object, or challenge, most often they
won't buy.
If client doesn't object, it implies client is not interested in your product
If client does object, it shows client is paying attention and is interested in your product
Objections define client's main areas of interest and give you the feedback you
need to structure your strategy toward the final close.
Example: If client keeps objecting about income opportunity, you know the client's main interest lies
within the business opportunity.

Objections define client's main areas of interest and give you the feedback you need to
structure your strategy toward the final close.
Example: If client keeps objecting about income opportunity, you know the client's main interest lies
within the business opportunity.

Objections are nothing more than a request for more information. Our job is to help a
client obtain the facts to make a decision that improves their financial situation.
Example: If client's main concern is they think they need life insurance at an elderly age, our job is to
educate the client on the ability to save towards their FIN #, at which point, they are self-insured.
It's human nature to procrastinate. Keeping a cash value insurance policy, or a low interest savings account is
not wise to procrastinate over.

Our job is to help support the client in taking action and making a decision in the best
interest of their family.

OVERCOMING OBJECTIONS
Learn the 3 Types of Questions
Porcupine
Answering a question with a question
I.e. How much time does it take?
How Much time can you invest?

Tie Down
Asking a question that requires the client to agree
I.e. I'm guessing that if I could help you get out of debt faster that
would be something that would interest you?

Alternative Choice
Giving more than one option to choose from
I.e. When can we get together I have Wednesday or would Tuesday
be better?

RECRUITING OBJECTIONS
"Is This a Pyramid?"
What s a pyramid? WFA.

(Someone on top makes all the money)

Can I ask you question, where do you work now? WFA.

In the company you work for now, do you have a manager? WFA.
Does he have someone above him? Who makes more money you, or
the guy at the top?
What is your opportunity to have this position?
What does that look like to you _______?
But it's not is it, it's a business, just like ours.
Wouldn't you agree it make sense to work for a company that doesn't
put any restrictions on your income potential?
Great, let's get you started. Do me a favor and grab me your drivers lic
ens e.

RECRUITING OBJECTIONS
"I'm not a sales person, Or I don't think I can do it."
What do you do now?

WFA (Mechanic)

How long have you been a mechanic for? WFA (10 years)
Before you became a mechanic did you already know how to break
down an engine & put it back together? WFA (N0)
You probably had a mentor, or someone you taught you how to fix a
car, am I right in assuming that? WFA (Yes)
Do you think you could teach me to break down and put together an engine if
I was willing to put in the time and effort to learn? WFA (Yes)

How confident are you that you could teach me? WFA (Very)
See just like in your business you could teach me, I know I could
teach you; And our business is just words. And you know how to talk
right? WFA (Yes)
So If I could teach you the right words, and put them in the right
order then you could do that no problem right? WFA (Yes)
Great, lets get you started. Do me a favor and grab your drivers
lic ens e.

RECRUITING OBJECTIONS
"I don't have the $99."

_______ is it that you don t have the $99 or is it that you don t see the
value of what you d be doing for families? WFA.
Let me ask you a question, if I told you that outside, I have a brand new
BMW M5 and I would sell it to you for exactly $99, but you had to have
the money today, would you be able to come up with it? WFA.
So what you re really telling me is that you don t see yourself being
successful helping families? Who could we go see right now so I can
turn this into reality, instead of theory?

RECRUITING OBJECTIONS
"I don't have the time."
What are your time commitments right now? WFA. I work.
How many hours a day do you work?

WFA.

Great, that means, you really have 6 to 9 Monday through Friday free.
(Softball, church stuff, family).

So out of the things you just mentioned, which is more important than
you reaching your goals and dreams?
With your credibility and my know-how, it will be impossible to fail.
OR
_______ How many hours a week do you work? WFA.
There are 168 hours in a week. If you work 50 hours a week that
leaves 118 hours. Lets say you sleep 8 hours a night that leaves 56
hours. Lets say drive time is 2 hours a day. That still leaves 42 hours.
Lets say you spend 2 hours a day with your family. That still leaves us
with 18 hours. If we could use just 10 of those hours to help you make
an extra $1,000-$2,000mo would it make sense to at least give it a
shot? WFA. Yes.
Great, lets get you started. Do me a favor and grab me your dirvers
lic ens e.

RECRUITING OBJECTIONS
"I don't have the time, or I'm too busy."
Big mistake, Little mistake:
If you were going to make a mistake in life would you rather make a big mistake or a
little mistake? WFA Little
A little mistake would be we meet for 15 minutes and you're not interested, you wasted
15 minutes of your time.
A big mistake would be you don't take 15minutes and this may be something you
would be really excited about, that could change your life.
Wouldn't it make sense to take 15-20 minutes of your time to at least see? WFA Yes.
Great I'm available ______ or _______ which is best?

RECRUITING OBJECTIONS
"How do you get your clients."
Most companies spend tens of thousands or millions of dollars on advertising to sell their products or
services. We believe that the best form of advertising is WORD OF MOUTH.
The Marketing plan of PFS is a New Associate's Natural Market, with two objectives in mind.
1. To help the new associate build a business with Primerica starting part-time, and when the timing is right,
make a career change.
2. To educate the consumer of our products and concepts through our complimentary FNA (Financial Needs
Analysis), become a client, start a Game Plan to become Properly Protected, Debt Free, and Financially
Independent.
As a new associate, you complete a Top 30 Training List.
We qualify the top 10, together we see those 10 during your field training, our goal is to get you trained and
qualify for a FAST START BONUS within your first 30 days.

Results:

LIFE INSURANCE OBJECTIONS

"We want to think about it, or we don't do anything on
the first night."
I understand, I'm sure the reason you don t like to do anything on the
first night is because you want to think it over to be sure you don t
make a mistake, is that correct? WFA.
Would you agree that what I've shown you so far is an improvement
upon your current situation? WFA
How much time do you need to think it over to feel completely
comfortable with going ahead is 6-8 weeks long enough? WFA.
Great so while your thinking it over, what makes most financial sense to
the both of you, being properly protected while your thinking about it, or
not being protected, if there's no obligation either way? WFA
Great, we ll get the underwriting process started tonight to see if we
can get you qualified for the coverage as your thinking about it/
shopping around. That way your family has coverage vs. no coverage
Okay?
By the way as your shopping around, if you find something that looks
better on the surface be sure to get something on paper, we ll take a
look at it when we come back and make sure you get the best possible
coverage with the best possible value for your family okay?
Do me a favor and grab your drivers license.

LIFE INSURANCE OBJECTIONS

"I just don't see the need for life insurance."
I understand that nobody likes to invest in something they don t think
they need. But let me ask you a question. If I had a toaster that popped
up $3,000 a mo. Every month, would you insure that toaster in case it
breaks? WFA
Even if it cost you $500 mo. to insure the toaster would you still do it?
WFA.

Guess who acts as the toaster in your household? WFA.

So if you can insure your income like you would insure the toaster for a
lot less than $500 mo. Wouldn't it make financial sense to see if we
could do that? WFA.
Great so we'll see if we can get you medically qualified for the coverage.
Do me a favor and grab me your drivers license for me.

LIFE INSURANCE OBJECTIONS

"We have some other things we need to take care of
first, like health insurance."
I understand, all of those other things are important to your family.
However, what actually pays for those things like health insurance? WFA
My inc ome

So what would you say is more important to protect those other things"
or your income which actually pays for those other things? WFA My income
So if we can put together an affordable plan that protects your income,
so you can provide those things for your family no matter what happens,
will you implement it WFA Sure, or If I could afford it.
They say sure:
Great, lets see if we can get you qualified for the coverage.
Do me a favor and grab your drivers license.
They say If I could afford it:
Great lets go over this budget worksheet and see where we can free up
some money to protect your family fair enough?

LIFE INSURANCE OBJECTIONS

"My agent is a close friend or a family member."
I m sure you would never do anything to hurt your relationship with your
friend or family member would you? WFA
What's more important to you your relationship with your friend/ family
member or your Spouse & Kids? WFA
Great, so if we could do a better job for your family, wouldn't it make the
most financial sense to take advantage of it? WFA
Great, and if your current agent really loves and cares about your family,
wouldn't he/she want you to do what's truly best for your family? WFA
Great, so let me see if we can improve your current situation, and if we
can we'll see if we can get you qualified for the coverage. Okay?

LIFE INSURANCE OBJECTIONS

"Dr. Phil Close- Bills are more than their income."
Can I teach you something real quick? WFA
Have you guys ever seen Dr. Phil on Television before or at least know who
he is? WFA
Great, The reason I ask is I want to be Dr. Phil for a second, is that ok?
When I walked into your house, I noticed a few things. I noticed you have
cable or satellite television is that right? I also noticed as I went through your
FNA that you have Internet, and Cell phone as well as auto and heath
insurance Is that correct?
So let me ask you john & Mary which one of those things is more important
than protecting your family? WFA None of them Or Auto & Health insurance is the law.
If they say auto and/ or Health insurance is the law:
So what's more important to you your family or the law? WFA My Family
Great We'll see if we can get you qualified for the coverage. Do me a favor
and grab your drivers license for me.
If they say none of them:
So my question to you John & Mary is why do you have all of those things
but you don t have protection for your family? WFA no one ever taught us
Great We'll see if we can get you qualified for the coverage, Do me a favor
and grab your drivers license.

LIFE INSURANCE OBJECTIONS

"I want to talk with my agent first."
Can I ask you a question? WFA sure.
If you went to the dentist for a toothache, and the dentist pulled the
wrong tooth. Would you go back to that dentist or find a new one? WFA
You finances are no different. Would you agree that what I've shown
you here tonight is better? WFA Yes.
Your agent could have done the same thing before, but he chose not to.
If your agent truly had your best interest at heart wouldn't they have
done the right thing the first time? WFA Yes.
So lets see if we can get you qualified for the coverage, we'll get you a
policy in hand that we can compare side by side, then if you still would
like we can all get together and make sure your getting what's best for
your family; fair enough? WFA.
Great do me a favor and grab your drivers license.

LIFE INSURANCE OBJECTIONS

"I have Group Coverage at my job."
How long have you worked at your job? WFA
Where did you work at before then? WFA
How long did you work there for? WFA
Did you have a job before that? How long were you there? WFA
What happened to your coverage each time you got a new job? WFA
You lost it right, because what happens to your coverage if you get laid
off, they change benefits, or your too sick to work or get a better offer
else where? WFA. You lose it.
Wouldn't it make sense to see if we can put together an affordable plan
that you can take with you no matter where you go, so that your family
is taken care of regardless of what your employer decides to do? WFA
Great we'll go through some options and see if we can get you qualified
for the coverage fair enough? WFA. Fair enough.
(If you need to show the ERISA group coverage article from Business Week magazine)

LIFE INSURANCE OBJECTIONS

"I already have a financial planner."
_________ If you got diagnosed with cancer, and the doctor told you you
were terminally ill and you must go in and have major surgery; Would you
probably get a second opinion? WFA. Yes
You would want to make sure you got the best advice possible, and more
than one opinion would allow you to weigh your options right? WFA. Yes.
Don't you think if you would get a second opinion with your health it would
make sense to do the same thing with your finances so you could weigh
your options and make sure you were getting the most value for you and
your family? WFA. Yes.
Great, what we'll do is take a look and see if we can make an
improvement fair enough? WFA. Fair enough.

SCRIPTS

"Calling a referral from a client"

Hello, is (referral's name) home? Hi (referrals name), this is __________
You were referred to me by (referrals name) How are you?
(Name of person who referred) said that you were the type of person
that given the opportunity to make more money and significantly
improve your financial situation, that you would definitely be motivated to
take advantage of it, is that true? WFA. Sure.
Great, It will only take about 15 -20 minutes. I can meet with you
________ or would _______ be better?

What's it about?
We deal in financial services. (People who referred) were very excited
About what we did for them and they asked me to share with you What we
were able to for their family.
(people who referred) trusted me enough to refer me to (you and spouse)
You can be assured I will not waste your time.
It will only take about 15 -20 minutes and if I'm not able to
significantly improve your current situation it will be very informative.
(If they say they are not interested or too busy use Big mistake, Little mistake)

SCRIPTS

"Calling a referral from a recruits list."

Hello, is (referral's name)? Hi this is___________ I own a business here in _________ and I was
referred to you. I was told that you're a sharp, motivated person that would keep your options if the
money and position were right is that true? WFA

If they say yes:

Great, what I'd like to do is set up a time we can get together for 15-20 minutes to show you exactly
what we do for the consumer and the money involved. Then we'll see if we have a mutual interest and
go from there fair enough? WFA. Fair Enough. Great, I have _______ or would ______ be better? Are
mornings or afternoons best? (set the appointment)
Do you have a pen you can write down the address to my office?

Once the appointment is set you say:

Now look ________ I'm super busy, and I'm sure you are as well. I don't want to waste your time, and I
definitely don't want to waste mine. I have to drive all the way across town to meet you. So if I put this in
my schedule can you promise me you'll be there? WFA. Are you a man/woman of your word? WFA.
Yes. Great then I'll see you on ______at ______. I look forward to meeting with you. Have a great day.

If they say what do you do:

You know all the financial issues America is facing, we help fix them. Obviously you can see why we
are growing so fast right? WFA. Yes.
Great then when is a time we can meet for 15-20 minutes I have _______ or would ______ be better?
(If they keep pressing tell them: "We help middle class Americans Get out of debt, save money for
retirement, and create a game plan to retire. Do you keep your options open if the money is right?"
WFA. If they still won't commit use Big mistake, Little mistake.)

SCRIPTS
"Doing a drop by."
When doing a drop by, you can stop by their house or work. Don't take anything
to the door with you.
The only goal for the new recruit is to introduce the trainer to their friend. The
trainer then sets the appointment.

Knock on the door:

New recruit- "Hey _______ how are you? Chit Chat. We were just in the neighborhood
and I wanted to introduce you to a friend of mine." (The new recruit introduces the
Trainer to the friend.)
Trainer- " Good to meet you _______. The reason we popped by is ________ just got
started with our company and has to get some training. _(Trainee)_ said that he/she had
enough credibility with you and your husband/wife, that you would be willing to help him/
her with one of their training presentations. Do they have enough credibility with you and
your husband/wife that you would be willing to give them 20-30 minutes of your time?
WFA Yes.
Is now a good time, or would another time be better? WFA

If they say now:

Go to your car and grab your presentation etc. and do a Kitchen table appointment.

If they say another time:

Great, I am available ______or would ______ be better? Would ______or ______ be
better? Great, do me a favor and put it in your calendar so you don't forget. Thanks, I
look forward to seeing you _____ at ________.

THE PRODUCTS

CREDIBILITY
There are so many great things happening with Primerica. While learning the Product
skills, activity skills, and Mental skills of our business. It's very important you know
what an incredible company we are. Here are some tips you can use to help your new
recruits understand how powerful this opportunity is.
YouTube Video Suggestions:
1.
2.

Primerica IPO Fox News

Primerica IPO Best IPO of 2010 "CNBC Jim Cramer"

3.
4.
5.
6.

Primerica and Consumer Federation of America

Suze Orman Cash Value Life Insurance vs. Term Insurance
Dave Ramsey on Term Life insurance and Whole Life Insurance
Primerica Consider the source

Book Suggestions:
1.
2.

How your life insurance policies rob you: By Arthur Milton

What's wrong with your life insurance: By Norman F. Dacey

3.
4.
5.
6.

The Games and Scams of Cash Value Life Insurance: By John J. Pepin, Ph. D.
Personal Finance For Dummies: By Eric Tyson The
Total Money Makeover: By Dave Ramsey
Fight for your money: David Bach

7.
8.
9.

The money book for the young fabulous& broke: By Suze Orman
Coach: By Art Williams
All you can do is All you can do: By Art Williams

10.

Common Sense: By Art Williams

Websites:
1. Better Business Bureau- www.bbb.org (A+ Rating)
2.
3.
4.
5.

Primerica- www.primerica.com
Find The Best- www.findthebest.com (search: Primerica)
Investor Relations: investors.primerica.com (SEC filings, News Releases, Stock Information etc.)
Morningstar- www.morningstar.com (Search: Primerica)

CREDIBILITY
"Morningstar"
Majority Shareholders of Primerica, Inc. (PRI) as of Jan 1st, 2014
Morningstar, Inc. (Morningstar is an Independent investment research company)

CREDIBILITY
"FindTheBest.com"
FindTheBest.com - (Is an objective comparison engine that allows you to find a topic,
compare your options and select the best choice for you.) *as of January 1st, 2014

CREDIBILITY
Better Business Bureau - (The BBB collects and provides free business reliability
reviews on more than 4 million businesses to over 100 million requests from consumers.)
*As of January 1st, 2014

LIFE INSURANCE
There are two major differences in life insurance:
1. Cash Value Life Insurance
2. Term Life Insurance

Cash Value Life Insurance has Different Names:

1.

Whole Life insurance

Whole life has a guaranteed rate of return, a guaranteed rate of return usually between 1-5%, and a
guaranteed cash value at the age of 65. If the client lives to age 100 the policy will mature and the
Policy owner will receive the cash value of the policy which is equal to the face amount. If at any
time prior to age 100 the insured dies the policy owner will only receive the face amount of the
policy NOT the cash value.

2.

Universal Life Insurance

There are different names for universal life insurance such as Flexible Premium adjustable life
insurance, Indexed universal life insurance (IUL, they sometimes call it EUL for Equity indexed
universal life insurance)
*Universal life insurance is Annual Renewable Term insurance, and the rest of the money is
invested in the companies general account which gives the client guarantees. The guaranteed rate
of return is usually between 1-5%. The guarantee is on the money left over AFTER they pay for
insurance. I.e. (f the cost of insurance is higher than the am ount of the clients premiums, there is no money to invest
so there can be no rate of return. In the event this happens the client has 2 options. 1 let the company withdrawal funds
out of the cash value account to pay the additional premiums which is considered an Automatic Premium loan. This
could also risk the policy Lapsing. Leaving the client with No insurance, and No cash value. 2 They can pay the
additional cost of insurance which rises each year.) If the client has an Indexed Universal Life Insurance Policy then the
Rate of Return has a minimum guarantee, and the potential for better returns because it is based of an index reflecting
the market.

3.

Variable Universal Life Insurance

Variable life insurance is comprised of 2 parts. Annual Renewable term insurance, and the rest of
the money is invested into the insurance companies separate account. The separate account is
invested in the market. There are NO GUARANTEES with Variable Universal Life Insurance.

(With Universal Life Insurance AND Variable Universal Life Insurance there are 2 death benefit options. They are referred to as
Option A or B.. Option A pays only the Face amount NOT the Cash Value. Option B also called Increasing Face Amount pays both
the death benefit and the cash value but the fees, and costs associated with the policy are higher. Sometimes Insurance
companies switch the A & B around so be sure to check in the policy.)

_ _
*This is for training purposes only, it is not intended to be used with or distributed to the public. All of this information is not
intended for accuracy or to be used with potential or current clients.

LIFE INSURANCE
"Term Life Insurance"
There are also different kind of Term Insurance Policies:
1.

Level Term Insurance

Level term insurance gives the client protection for a certain term like 5,10,15,20 years etc. This is what
we sell 100% of the time. We offer 10,15,20,30,35 year term policies. Term insurance is the best,
because it is pennies on the dollar compared to Cash Value Life insurance, which allows the client to
purchase far more coverage for less money, and invest the difference elsewhere. (We suggest Mutual Funds)

2.

Decreasing Term Insurance

Decreasing term insurance is often referred to as mortgage insurance. A lot of times there still is a term,
but the premium stays the same over the term, although year over year the coverage goes down.

3.

Annual Renewable Term Insurance (A.R.T.)

Annual Renewable Term Insurance is 1 year insurance. It renews annually as the client gets older. Every
year it renews the cost of insurance gets more expensive. An Annual Renewable Term insurance Policy
can last until the client is age 95 or 100.

4.

Return of Premium Term Insurance

This is where the client will purchase a level term insurance policy at a significantly higher cost. Then after
the term of the policy is up the company will refund the client the premiums they paid to the insurance
company over the length of the term.

*This is for training purposes only, it is not intended to be used with or distributed to the public. All of this information is not
intended for accuracy or to be used with potential or current clients.

WHOLE LIFE INSURANCE

Whole life has a guaranteed rate of return, a guaranteed rate of
return usually between 1-5%, and a guaranteed cash value at the
age of 65. If the client lives to age 100 the policy will mature and the
Policy owner will receive the cash value of the policy which is equal
to the face amount. If at any time prior to age 100 the insured dies
the policy owner will only receive the face amount of the policy NOT
the cash value.
_

Suze Orman, CNBC

Dave Ramsey, FOX NEWS

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

!"#$#%&'()*+,$%-'#%)#$./0#)%-0)%&'.+#)%$(%,"-,%1(*%+-0%+"(($#%-%&(2.+1%,(%/#,%3(,"%+-$"%4-2*#%-0)%)#-,"%3#0#5.,%('%
6*$,%)#-,"%3#0#5.,%7"#0%1(*%).#8%95%+(*'$#:%,"#%+($,%(5%-%&(2.+1%.0%7".+"%1(*%/#,%3(,"%.$%"./"#'8!!

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

Other Life Insurance Company

Husband:

$250,000

$163.50/month

Wife:

$250,000

$151.00/month

Total Premium:

$314.50/month

Approximate cash value at age 65 - $215,000

Primary: Male, Age 27, Preferred, with Waiver of Premium, $163.50 /month. Spouse: Female, Age 24,
Preferred, with Waiver of Premium, $151/month. Total: $314.50/month

Primerica Offered
35-year term policy
Husband:

$250,000

Wife:

$250,000
$10,000

Child:
Total Premium

$72.75/month

, Age 27, Preferred, with Waiver of Premium.

Spouse: Female, Age 24, Preferred, with Waiver of Premium and $10,000 Child Term Rider. Total: $72.75/month

Other Life Insurance Co. Premium:

$314.50/month

Primerica Premium:

$72.75/month

Difference:

$241.75/month

$241.75/month savings invested in mutual funds in a

Roth IRA at 10%

!"#$%&'()*+&%#$%,-.%#++/$0.(0#1&%*/.*-$&$%(23%3-&$%2-0%.&*.&$&20%(2%(40/(+%#21&$0)&205%60%3-&$%2-0%#24+/3&%,&&$%(23%0('&$7%8"#4"%8-/+3%+-8&.%
.&$/+0$5%60%$"-8$%(%4-2$0(20%.(0&%-,%.&0/.27%/2+#9&%(40/(+%#21&$0)&20$%8"#4"%8#++%,+/40/(0&%#2%1(+/&5%!"&%.(0&%-,%.&0/.2%/$&3%#$%4-)*-/23&3%
)-20"+:5%;#$0.#</0#-2$%<&,-.&%(=&%>?@%)(:%<&%$/<A&40%0-%(%BCD%0('%*&2(+0:5%%E-2$/+0%:-/.%0('%(31#$-.%8#0"%(2:%F/&$0#-2$5%%

For internal use only. Not to be used with, or distributed to, the public.

UNIVERSAL LIFE INSURANCE

"I.U.L, V.U.L, etc."
Universal Life Insurance
There are different names for universal life insurance such as Flexible Premium adjustable life insurance,
Indexed universal life insurance (IUL, they sometimes call it EUL for Equity indexed universal life insurance)
*Universal life insurance is Annual Renewable Term insurance, and the rest of the money is invested in the
companies general account which gives the client guarantees. The guaranteed rate of return is usually
between 1-5%. The guarantee is on the money left over AFTER they pay for insurance. I.e. (f the cost of
insurance is higher than the amount of the clients premiums, there is no money to invest so there can be no rate of return. In the
event this happens the client has 2 options. 1 let the company withdrawal funds out of the cash value account to pay the
additional premiums which is considered an Automatic Premium loan. This could also risk the policy Lapsing. Leaving the client
with No insurance, and No cash value. 2 They can pay the additional cost of insurance which rises each year.) If the client h as an
Indexed Universal Life Insurance Policy then the Rate of Return has a minimum guarantee, and the potential for better returns
because it is based of an index reflecting the market.

Variable Universal Life Insurance

Variable life insurance is comprised of 2 parts. Annual Renewable term insurance, and the rest of the money
is invested into the insurance companies separate account. The separate account is invested in the market.
There are NO GUARANTEES with Variable Universal Life Insurance.

_
(With Universal Life Insurance AND Variable Universal Life Insurance there are 2 death benefit options. They are referred to as
Option A or B.. Option A pays only the Face amount NOT the Cash Value. Option B also called Increasing Face Amount pays both
the death benefit and the cash value but the fees, and costs associated with the policy are higher. Sometimes Insurance
companies switch the A & B around so be sure to check in the policy.)

_ _

For internal use only. Not to be used with, or distributed to, the public.

CREDIBILITY
"Forbes Article"
Forbes: Retirement Disaster Looms For
Universal Life Policyholders.
September 13th 2012_

The insurance industry has a dirty little secret that threatens the retirement plans of millions of unsuspecting
families.
The problem is buried in the fine print of universal life policies widely promoted since the 1980s as a new
and improved version of the old fashioned Whole life insurance product our grandparents relied on as the
surest way to save for retirement.
Most people have no idea about what they've already lost and will discover in time that there was no "sure"
in their insurance. Instead the insurance companies shifted their risk on to the policy holders.
For example, people who bought universal life policies when they were in their thirties, with a $100,000
death benefit, might have faithfully paid premiums of about $3,500 year in and out thinking all was well and
they were building their nest eggs. When they were younger and cheaper to insure, they were-those
premiums went into the cash value buckets.
But as they got older, the "real" premium-the cost of insuring them-rose. A person in his or her late 50s might
have a policy whose cost of insurance-the real premiums-have doubled. Five years further on, the real
premiums could jump to tens of thousands of dollars.
Most policy holders don't realize they have a problem, until one day they need the cash value or discover
that they will be left without even the life insurance.
How we got here is depressingly familiar in an age of financial mis-engineering.

Forbes : http://www.forbes.com/sites/investor/2012/09/13/retirement-disaster-looms-for-universal-life-policyholders/

For_ internal_ use_ only._ _ Not_ to_ be_ used_ with_ or_ distrib
uted_ to_ the_ public._

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

Some policies may only contain the minimum interest rate and maximum insurance charges that a
company guarantees will occur. For example, this UL policy contains a guaranteed interest rate
of 3%. However, companies may, and frequently do, pay more than the guaranteed minimum
substantial and greatly affect the accumulation amount and lapse date. Likewise, companies
may, and frequently do, charge less than the maximum insurance or expense charges. Only
guaranteed interest rates and maximum charges are used in the following examples becaus e
that is what is available from the policy itself. To determine how any particular policy performs
and the actual cost for the policy, contact the company that issues the policy.
For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

RETURN OF PREMIUM
This is where the client will purchase a level term insurance policy at
a significantly higher cost. Then after the term of the policy is up the
company will refund the client the premiums they paid to the
insurance company over the length of the term.
_

This example is for illustrative purposes and does not

represent an actual investment. This example shows
a constant rate of return, unlike actual investments
which will fluctuate in value. The rate of return is
compounded monthly. It does not include fees and
taxes, which would lower results.
For internal use only. Not to be used with, or distributed to, the public.

WHICH WOULD YOU BUY?

Refrigerator A

Refrigerator B

$2,000 Price Tag

36 year guarantee
Get your $2,000 back
after 36 years.

$1,000 Price Tag

36 year guarantee
Get $0 money back

If you had $2,000 which Refrigerator would you buy?

The Rule of 72: This simple calculation gives you the approximate number of
years it will take to double your investment.

Number
of Years

4%

6%

12%

$1,000

$1,000

$1,000

$2,000

12
18

$1,000

$8,000

$1,000

24

$1,000

30
36

$4,000

$16,000
$32,000

$1,000

$1,000

$32,000

GROUP LIFE INSURANCE

Group Life insurance is usually A.R.T. or a 5 year term insurance plan. The
problem with group coverage is, If the employer decides to change coverage
or stop it all together the employee will no longer have insurance. If the
employee changes jobs, quits, gets fired, or becomes ill and cannot work,
they will no longer have the coverage. Employers are allowed to provide
$50,000 of coverage to the employee or 1 times the employees salary for
free. Anything above that must be paid for by the employee. A lot of times our
10 year will be highly competitive with a group policy.

For internal use only. Not to be used with, or distributed to, the public.

For internal use only. Not to be used with, or distributed to, the public.

MUTUAL FUNDS
"3 Fundamental Accounts"
Most people confuse Stocks from Mutual Funds. Mutual funds are comprised of
different types of investments but mainly Stocks and Bonds. Let me explain.
1.
2.

Stocks (equities) are an ownership share in a company.

Bonds (Debt Instrument) are an Investment where an investor lends money to an entity that borrows
the funds for a defined period of time at a defined interest rate.

Understanding how owning a stock of a corporation is similar to understanding how

owning your home works:
Value of your home: $200,000
Amount of your Mortgage: $150,000
The equity in your home would be $50,000
This is the Percentage you own. If the real estate value goes up your equity goes up, if the real estate value
goes down your equity will also go down.
Similar to stock (equities) you own a percentage of that company. So if the value of that company goes up,
the value of the stock will rise. If the value of the company goes down the stock price will go down.

How is a stock different then a Mutual fund?:

Lets say you Invest $100 a month so you buy 1 share of 4 different companies

$25

$25

$25

$25

If one of those companies go out of business you lose 25% of your portfolio.
How do you reduce that risk?:
The answer is through Diversification.
Most investors achieve this through the S & P 500 but in order to purchase 1 share of each of those
companies would take around *$40,000. Most people don't have that much to invest so they use mutual
funds.

*This is for training purposes only, it is not intended to be used with or distributed to the public. All of this information is not
intended for accuracy or to be used with potential or current clients.

MUTUAL FUNDS
"3 Fundamental Accounts"
A Mutual fund is:
A Group on individual investors that pool their money together into a professionally managed
pool of money.
Individual Investors

Professionally
Managed Money

The Global Economy

Consumer The Proctor
& Gamble Company
Entertainment The Walt Disney
Company
Pharmaceuticals Pfizer, Inc.
Telecommunications
Verizon Communications, Inc.

A Typical Mutual fund

hold 150-300 companies.
_
_

The number one question people ask is could I lose all my money, or what happens if
one of these companies goes out of business?
1.
2.

You would lose all of your money if all of the companies in the mutual fund went out of business at the
same time. (If that happens, I don't think it would matter how much money any of us have.)
If Pepsi goes out of business, Coca-Cola stock would probably go
up dramatically. Just like if Home Depot went out of business, Lowes stock would go up.

Pepsi

Coca- Cola

Lowes

Home Depot

*This is for training purposes only, it is not intended to be used with or distributed to the public. All of this information is not
intended for accuracy or to be used with potential or current clients.

MUTUAL FUNDS
"3 Fundamental Accounts"
What happens if the stock market goes down?:
This is why we teach a concept called "Dollar Cost Averaging" or Systematic Investing.
$25

Share Price

$20

Rising Market

$15

$10
$5

Fluctuating

$0
1

Month
Invests
$100
per month
Invests
$100
per month

A
B

Month 1
Per share: $10
# of shares: 10.00
Per share

$1 0

# of shares 10.00

Month 2
$12

Month 3
$14

Month 4
$16

Month 5
$18

Month 6
$20

8.33

7.14

6.25

5.56

5.00

$7

$4

$2

$6

$10

14.29

25.00

50.00

16.67

10.00

Amount Invested
in 6 months

Number of Shares
Accumulated

$600

42.28

$845.60

$600

125.95

$1,259.50

Number of Shares
Accumulated

42
Number of Shares
Accumulated

126

Value of Investment

Which investor would you rather be Investor A or Investor B?

*This is for training purposes only, it is not intended to be used with or distributed to the public. All of this information is not
intended for accuracy or to be used with potential or current clients.

MUTUAL FUNDS
"3 Fundamental Accounts"
1. Emergency Account
Goal: Up to three months of income:

Emergencies
Vacations
Purchases within 0-2 years
2. Short-Term Account
Goal: Up to six months of income:

Reserve for unforeseen events

Loss of job
Disabilities
Short-term purchases
Car
Down payment for house
Purchases within 3-5 years
3. Wealth-Building Accounts
Goal: Retirement Funds for Financial Independence Number:

Roth or Traditional IRA*

401(k), deferred comp, TSA, etc.*
Tax-deferred accounts*

Based on your total savings amount, allocate:

50% to your emergency account
25% to your short-term account
25% to your wealth-building account.
Once emergency and short-term goals are satisfied,
add those investment amounts to the wealth-building
account.
_

$________
Short-Term
$________
Emergency Fund

50%

25%
$________
Wealth-Building

25%

*This is for training purposes only, it is not intended to be used with or distributed to the public. All of this information is not
intended for accuracy or to be used with potential or current clients.