Driving profit from debt the tides are turning in 2007
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Driving Profit From Debt – The Tides are Turning in 2007. Are you advising your clients’ on their biggest asset? Someone is! Steve Crawford MLC Alliances - Victoria. The Great Aussie Dream – What Happened in 2006?. Driving Profit From Debt The Tides are Turning in 2007.

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Driving Profit From Debt – The Tides are Turning in 2007

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Driving Profit From Debt – The Tides are Turning in 2007

Are you advising your clients’ on their biggest asset?

Someone is!

Steve Crawford

MLC Alliances - Victoria


The Great Aussie Dream – What Happened in 2006?


Driving Profit From DebtThe Tides are Turning in 2007

The Tides Are Turning – By 2008……..

Opportunities in 2007 – Strategies for the Pre Retiree

Opportunities in 2007 – Strategies for the Accumulator


Driving Profit From DebtThe Tides are Turning in 2007

The Tides Are Turning – By 2008……..

Opportunities in 2007 – Strategies for the Pre Retiree

Opportunities in 2007 – Strategies for the Accumulator


The Tides Are Turning - By 2008……


The Tides Are Turning - By 2008……

$mil per week

Referrals per week

?


The Tides Are Turning - By 2008……

?


The Tides Are Turning - By 2008……

Market Share growth of Brokers

Concentration of Broker Aggregators


Driving Profit From DebtThe Tides are Turning in 2007

The Tides Are Turning – By 2008……..

Opportunities in 2007 – Strategies for the Pre Retiree

Opportunities in 2007 – Strategies for the Accumulator


Strategies for 2007 – Pre Retirees

Accelerate your salary sacrifice strategy by converting your loan into an interest only facility.


Strategies for 2007 – Pre Retirees

Accelerate your salary sacrifice strategy by converting your loan into an interest only facility.

  • Unit trust and super invested in Australian shares

  • Investment return is 8.5% p.a. (split 3% income and 5.5% growth)

  • Franking level on income is 75%

  • Interest on instalment margin loan is 8.25% p.a.

  • 10 year comparison


Strategies for 2007 – Pre Retirees

$54,335

$37,396

$37,251

$35,643


Strategies for 2007 – Pre Retirees

$50,113

$48,949

$35,643

$54,335

$37,396

$37,251

$35,643


Strategies for 2007 – Pre Retirees

$186,061


Driving Profit From DebtThe Tides are Turning in 2007

The Tides Are Turning – By 2008……..

Opportunities in 2007 – Strategies for the Pre Retiree

Opportunities in 2007 – Strategies for the Accumulator


Strategies for 2007 – Accumulators

Maximise your future investment and cash-flow options by better structuring your owner occupied home loan.


Strategies for 2007 – Accumulators

Year 1

Home Loan


Strategies for 2007 – Accumulators

Year 8

Home Loan

Actual loan is reduced


Strategies for 2007 – Accumulators

Year 8

Home Loan

Actual loan is reduced

Redrawn for purchase


Strategies for 2007 – Accumulators

Year 8

Investment Loan

Actual loan is reduced

Redrawn for purchase

Only partially deductible


Strategies for 2007 – Accumulators

Year 1

Home Loan


Strategies for 2007 – Accumulators

Year 8

Home Loan

Actual loan is not reduced


Strategies for 2007 – Accumulators

Year 8

Investment Loan

Actual loan is not reduced

Purchase done with cash


Strategies for 2007 – Accumulators

Year 8

Investment Loan

Actual loan is not reduced

Purchase done with cash

Original loan fully deductible


Solution – NAB / MLC Customised Solutions

Take advantage the transitional cap by investing the sale of your property sooner.

  • NAB Business Bank

  • Adviser Business Lending

  • Portfolio Package

  • MLC Mortgage Solutions

  • Tailored Solutions

  • Credit Approved

  • Short Term Finance

  • Working with Financial Planners


Strategies for 2007 – Accumulators – Debt Protection

Provide a simple, non-underwritten insurance cover designed specifically to cover your customers home loan responsibilities.

Introducing MLC EasyCover


Under-Insurance – A significant problem

  • Generation X’ers make up a large portion of the “At Risk Population”

  • 70% of 33 – 44 year olds with a household income greater than $100K have a Home Loan, but only 29% have life insurance*1

  • 60% of Australian families with dependants will run out of money within 12 months if the main breadwinner dies*2

*1 – Roy Morgan Research, FAMIS database Dec 05

*2 – IFSA Research by Rice Walker Actuaries & TNS Australia 2005 *4 - IFSA report Cost of Under-insurance 2005


MLC Easy Cover – Solution to Debt Protection

Death*

Illness* / Accidental Injury*

Involuntary Unemployment*

Critical Illness*

Automatic Acceptance*


Client Retention – Keeping Them on the Books

Meeting more customer needs reduces the probability of customer defection.

50%

Probability

%

10%

5.5%

1%

Financial services held

Source: National Customer Convergence in Retail Financial Services (Insurance Study)


Conclusion – Will Your Business Expand in 2007…..?

  • The Tides are Turning in 2007 – Will you be affected?

  • Opportunities Do Exist – Take advantage of this in 2007

  • Practical Implementation – Effective Solutions

  • The Portfolio Package

  • The NAB Business Bank

  • MLC Mortgage Solutions

  • Easy Cover


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