Financial Literacy
How does the Rule of 72 Work?
You divide your interest rate into the number 72 and it will roughly determine how long it takes for your money to double
It is recommended to have 3 -6 months of savings in this type of account
Emergency Fund
If a client is looking for the MOST AFFORDABLE life insurance, what should we recommend them?
TERM Life Insurance
What do you call the term of "putting your money in more than one place"?
Diversifying
You have ______ within you.
-Ed Mylett
GREATNESS
Which of the following is the best option for a client who wants to grow their money SAFE & PRODUCTIVELY?
A) Fixed
B) Variable
C) Index
D) Mutual
C) Index
Name a Big threat that can thwart your wealth building efforts?
Procrastination
Inflation
Losses
Taxes
If I client is looking for a policy with SAFE & PRODUCTIVE cash value accumulation, what would be the best policy to recommend?
Index Universal Life
What is the term for when the cost of goods go up over the years and your purchasing power is less?
Inflation
"The shortest distance between 2 points is a _________ ____________."
- Rich Thawley
(Greek mathematician Archimedes)
Straight Line
Which of the following is NOT a tax deferred solution?
A) 401k
B) ROTH IRA
C) Annuity
D) TSP
2) ROTH IRA
What are the 3 ways your money is Taxed?
Tax Now (Taxable)
Tax Later (Tax Deferred)
Tax Never (Tax-Free)
What are the 4 key features of the Transamerica FFIUL?
1) Death Benefit
2) Potential Growth
3) Rate of Return / Safety
4) Tax Free Withdrawals
If you owed someone $500 plus interest, which would be the higher to pay back?
$510 or $500 plus 5%
$500 plus 5% = $525
Compound Interest is the _______ ________ of the World
- Albert Einstein
Eighth Wonder
What is the difference between Simple Interest and Compound Interest?
Simple Interest is when interest is paid on the original principle amount.
Compound Interest is when interest is paid on not only the original principle amount but all the interest that has been accrued from prior years.
What are ways you can increase your cashflow so you can Save more money?
Get is Side Gig
Start a Business
Adjust your W - 2 Allowances
Create a Budget / Pay off Debt
How much life insurance is a client recommended to have?
10x Annual Income
Or DIME
If someone said that they wanted to wait to start saving when they make more money, what concept could you teach to help them learn that time is precious?
Time Value of Money
There's nothing more powerful than a ___ ___ mind.
-Jaime Villalovos
MADE UP
Name 2 ways to either Eliminate or Stay Out of Debt
Pay on time
Target one debt at a time
Stop charging on your credit cards
Find a way to reduce your interest rate
If you loose 50% in the market, what percent gains to you have to make to get back to your original amount?
100% gain
How are the gains of the IUL withdrawn tax free?
Is it considered a loan against your life insurance
What are the 6 steps that we help people with in regards to their Financial situation.
1. Cash Flow 2. Debt Management
3. Proper Protection 4. Emergency Fund
5. Long Term Savings 6. Estate Planning
In regards to Compound Interest
"He who understands it ________ it.
He who doesn't _________ it."
- Albert Einstein
Earns
Pays