Brigham Young University

1. 6 Brigham Young University The Church of Jesus Christ of Latter-day Saints MTC – Full-time Missionary Service Growth Model Continuing Education Upward Mobility Benefits with ‘Matching’ Health Insurance Prosperity

2. YOUinc. Building the Business of Your Future

3. 6 PRIMARY E MPLOYMENT O BJECTIVES

4. 6 PRIMARY E MPLOYMENT O BJECTIVES YOU, Inc.

5. YOU, Inc. www.glassdoor.com Jobs Categories Information Sources Wages & Salaries By Job Title Current & Former Employees By Industry Interview Candidates Bonuses By Company Companies Themselves Benefits By Location News Sources Interview Questions Recent Company News Office Photos Company Reviews

6. A Dollar in Incomevs.A Dollar inNet Worth YOU, Inc. . . . Wealth accumulation is shifting from earned income (salaries) to unearned (investments); and control of wealth is shifting from institutions to individuals. Ernst and Young Center for Business Innovation Harvard Business School Press Builder of the HUMAN ASSET The most important form of capital is human capital; people are beginning to see themselves as assets. A Quantifiable HUMAN VALUE HUMAN CAPITAL HUMAN EQUITY

7. A Dollar in Incomevs.A Dollar inNet Worth YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth NET WORTH ASSETS – LIABILITIES

8. Financial Assets - Liabilities ______________ YOU, Inc. = Net Worth A Dollar in Income vs. A Dollar in Net Worth $1,000 Income - 900 Expenses $ 100 Savings / Investment (Increase in Net Worth) $100 Investment (Net Worth) Required $1,000 of Income EMPLOYER ADDS $100 to 401k $100 Investment (Net Worth) Equivalent to $1,000 Pay Increase! Employee Net Worth Options Income Employer Benefits Focus • 401(k) Contributions • HSA Contributions Net Worth • Deferred Compensation • Pension Plans • ESOP Stock Option Plans • Stock Purchase/Ownership • and . . .

9. YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The Pre-Tax Equivalency Formula

10. YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula Savings 1 (minus) Tax Rate

11. Savings 1-Tax Rate Pre-Tax Equivalency = Assumptions Taxes: Federal = 25% State = 8% FICA = 7.5% Total = 40.5% 25% Federal Income Tax Taxes: Federal = 25% State = 8% Total = 33% 8% State Income Tax 7.5% FICA Tax 401K Contribution HSA Contribution Contribution $1,000 $1,000 $1,000 $1,000 = $1,500 = = = $1,681 1 - .33 .67 1 - .405 .595 Earnings $1,500 $1,681 Tax $500 33% Taxes $681 40.5% Taxes Taxes 50% of Spendable Income Taxes 68% of Spendable Income Spend $1,000 $1,000 Taxes on Earnings = 33% Taxes on Earnings = 40.5% Taxes as a % of Spending = 50% Taxes as a % of Spending = 68%

12. YOU, Inc. The Qualified Retirement Plan Multipliers A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers Salary Index Match Employer Match Tax Match MDC

13. The Qualified Retirement Plan Multipliers QRP a.k.a. 401(k) $10,500,000 1st Million Dollar Choice TM $2,000,000 $3,000,000 2nd Tax Match 50% $6,000,000 $6,000,000 100% 3rd Employer Match $10,500,000 4th Salary Index Match 75% 5th Future Million Dollar ChoicesTM $3,000,000 $2,000,000

14. YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs The Behavioral Realities of Qualified Retirement Plans

15. YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs 1 - The work is all done by someone else 2 - Money withdrawn from a paycheck is not missed 3 - There are substantial penalties for early withdrawal

16. Health Savings Accounts (HSA) YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts

17. 13 HSA Benefits YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts 1 Save Taxes 2 Provider Discounts (Debit Cards) 3 You Care 4 Younger People – Better Benefit 5 Insurance for Life (Portable) 6 Individual Premiums Less Than Group 7 Preventive Health Care 8 Doctors Prefer Fee-For-Service Plan 9 More Policy Options 10 Employer Bankruptcy – No – employee impact 11 Personal Medical Information is Private • 12 Non Traditional Expenses • 13 Medical Payments with Non-HSA Dollars

18. Cafeteria Plans / Flex Spending Plans YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans HSA Cafeteria Plan CONTRIBUTIONS Use it . . . Or lose it!

19. Cafeteria Plans / Flex Spending Plans YOU, Inc. • Health expenses deductible not • covered by health insurance A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans • Employer Sponsored • Employee projects and • contributes health expenses • No taxes paid on contributions • Annually USE IT or LOSE IT • < 2% of contributions are unused • Taxes Saved compensate for • potential contributions lost • Immediately elect to invest • taxes saved GREAT R.E.S.I.R.V. !

20. Stock Options / ESOPS YOU, Inc. Profit Sharing Plans A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Warrants Bonus Plans EmployeesOWNthe Company

21. GROUP INSURANCE YOU, Inc. Group Life A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Group Disability Income Caveat: Only less expensive if employee less than a preferred risk red = pre-existing medical condition

22. YOU, Inc. Education Benefits A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Education Benefits

23. EDUCATION BENEFITS YOU, Inc. The Employer: A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Education Benefits pays down a Student Loan provides an ongoing education benefit

24. YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Education Benefits Start a Business That Builds Net Worth Start a Business That Builds Net Worth

25. Is your businessa way to‘make a living’ YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Education Benefits Start a Business That Builds Net Worth or a way to‘build Net Worth’ “We have interviewed many people worth $2 or $3 million who have total realized annual household incomes of less than $80,000.” Page 56 • “How much does the typical American household realize in income each year? About $35,000 to $40,000, or nearly the equivalent of 90 percent of its net worth” Page 56

26. Businesses that Enhance Your Probability of Success YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Education Benefits Start a Business That Builds Net Worth Businesses that Enhance Your Probability of Success http://images.businessweek.com/slideshows/20110118/most-and-least-profitable-business-types/slides

27. 10 Most Profitable Businesses 10 Least Profitable Businesses 1 – Accounting, Tax Preparation, Bookkeeping, and Payroll Services 88 – Hardware and Plumbing and Heating Equipment and Supplies Merchant Wholesalers 2 – Offices of Dentists 89 – Cement and Concrete Product Manufacturing 3 – Legal Services 90 – Printing and Related Support Activities 4 – Offices of other Health Practitioners 91 – Household and Institutional Furniture and Kitchen Cabinet Manufacturing 5 – Other Finance Investment Activities 92 – Lumber and Other Construction Materials Merchant Wholesalers 6 – Offices of Physicians 7 – Outpatient Care Centers 93 – Foundation, Structure, and Building Exterior Contractors 8 – Death Care Services 9 – Other Professional, Scientific, and Technical Services 94 – Building Material and Supplies Dealers 95 – Utility System Construction 10 –Child Day Care Centers 96 – Highway, Street, and Bridge Construction 97 –Nonresidential Building Construction

28. Franchises YOU, Inc. 95% chance of 5 year success A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Education Benefits Start a Business That Builds Net Worth Businesses that Enhance Your Probability of Success Multi-Level Marketing 99% fails to meet expectations

29. YOU, Inc. A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Education Benefits Start a Business That Builds Net Worth Businesses that Enhance Your Probability of Success The Eight Engines of Net Worth The Eight Engines of Net Worth

30. EIGHT ENGINES OF NET WORTH YOU, Inc. 1 - Investment Contributions / Savings A Dollar in Income vs. A Dollar in Net Worth The Pre-Tax Equivalency Formula The QRP Multipliers The Behavioral Realities of QRPs Health Savings Accounts Cafeteria Plans / Flex Spending Plans Stock Options / ESOPS Group Insurance Education Benefits Start a Business That Builds Net Worth Businesses that Enhance Your Probability of Success The Eight Engines of Net Worth 2 - Investment Growth 3 - Real Estate Contribution Leverage 4 - Real Estate Growth 5 - Debt Reduction On Financial Assets 6 - Increasing Value of a Business Net Worth 7 - Being Born in a Family of Wealth 8 - Actors, Athletes, Lottery Winners

31. 6 PRIMARY E MPLOYMENT O BJECTIVES

32. 6 Brigham Young University The Church of Jesus Christ of Latter-day Saints MTC – Full-time Missionary Service Benefits with ‘Matching’ Growth Model Growth Model Continuing Education Upward Mobility Upward Mobility Health Insurance Benefits with ‘Matching’ Health Insurance Continuing Education Prosperity Prosperity

33. 6 Brigham Young University The Church of Jesus Christ of Latter-day Saints MTC – Full-time Missionary Service Growth Model Continuing Education Upward Mobility Benefits with ‘Matching’ Health Insurance Prosperity

34. Financial Assets - Liabilities _______________ = Net Worth ONE MILLION DOLLARS NET WORTH INCOME $1,000,000 x .01 = $10,000 $10,000 $10,000 x 2 = $20,000