ieul presentation (september 2008) seminar (piggy bank)

Preparing for our future with our “Safe”

money

Preparing for our future with our “Safe”

money

Saving Today’s Dollars…To Provide For Tomorrow’s Security!

RB & Associates, Inc.RB & Associates, Inc.

Welcome!

Welcome!

This presentation is for illustration purposes only and is not intended as a full description of benefits. Please refer to each company’s brochure for a more comprehensive description of benefits, terms and conditions. Life and Health Insurance plans require underwriting. Benefit amounts can vary based on underwriting. Initial payment does not guarantee approval.

Can we count on Social Security?16 workers 16 workers to 1 retiree to 1 retiree

in 1950 in 1950

3.3 workers to 1 3.3 workers to 1 retiree todayretiree today

Within 40 years Within 40 years it will be 2-to-1it will be 2-to-1

“Social Security was never meant to be the sole source of income in retirement. It is often said that a comfortable retirement is based on

a "three-legged stool" of Social Security, pensions and savings. American workers should be saving for their retirement on a personal basis and through employer-sponsored or other retirement plans.” Social Security Administration web site


Out of every Out of every 100 people100 people born 65 to 69 born 65 to 69 years ago…years ago…

•1919 HAVE INCOMES OF

LESS THAN $7,000$7,000

•5050 HAVE INCOMES OF

$7,000 to $7,000 to $45,000$45,000

•ONLYONLY 44 HAVE INCOMES OF

MORE THAN $45,000+

2727 have died have died

For the remaining 73 people73 people, retirement looks like this:


Most people don’t Most people don’t plan to failplan to fail……

They just fail They just fail to plan!to plan!

(Usually because (Usually because they don’t knowthey don’t know there is a plan)there is a plan)


What do the What do the 4%4% who who retire successfully do?retire successfully do?

1. They stop procrastinating & 1. They stop procrastinating & get startedget started

2. They 2. They save consistentlysave consistently on a monthly basis on a monthly basis

3. They put a fair share of their 3. They put a fair share of their savingssavings into into an account that has… an account that has…

● ● SSafetyafety

● ● A A competitivecompetitive rate of return rate of return

Saving Today’s Dollars…To Provide For Tomorrow’s Security!Saving Today’s Dollars…To Provide For Tomorrow’s Security!


The The secretsecret to long term success… to long term success…

““Spend less than you earn, save & Spend less than you earn, save & invest the difference and do that for a invest the difference and do that for a long time.”long time.” Ron BlueRon Blue


No matter how much we make…No matter how much we make…

We always seem to We always seem to spend to that limitspend to that limit

We need to We need to pay ourselves firstpay ourselves first each month! each month!


There areThere are 2 sides2 sides to the to the retirement storyretirement story

Accumulation Accumulation PhasePhase

Distribution Distribution PhasePhase



There are 3 things we can all do with our money…

•SPEND IT !!!

•SAVE IT!!!

•INVEST IT!!!Saving Today’s Dollars…To Provide For Tomorrow’s Security!

Our money will be “safe” but…

what’s been the what’s been the returnreturn??

Typically only 1 – 3%Typically only 1 – 3%

What about going the banking route?


What about going the stock market route?


Option 1Option 1 OptionOption 22

Invest $10,000 in the Stock Invest $10,000 in the Stock MarketMarket

Place $10,000 in aPlace $10,000 in a Safe Safe AccountAccount

Get an Get an 80%80% increaseincreaseGet a Get a 50%50% decreasedecrease

Get a Get a 5%5% increase increase

Get a Get a 5%5% increase increase

ResultResults?s?$9,000$9,000

(a $1,000 loss)

ResultResults?s?

$11,025$11,025 (a $2,025 difference)(a $2,025 difference)

Nasdaq, Jan 2, 2000Nasdaq, Jan 2, 2000 (+87.09%)

Nasdaq, Jan 2, 2001Nasdaq, Jan 2, 2001 (– 44.52%)

Year Year 11Year Year 22

The average return on mutual funds?

Only Only 3.1%3.1% for past for past 25 years 25 years (minus the fees)(minus the fees)


No wonder they call the Stock Market the…

““Wall Street Casino”Wall Street Casino”


Can we balance our need for safety…and make our money grow?

Protection

Potential

Indexed Indexed Universal Universal

LifeLife

Mutual Funds Bonds

Variable AnnStocks

CD’sFixed Ann

T-Bill’s



What is Indexed Universal Life?

Inside an insurance Inside an insurance “wrapper”“wrapper”

It’s a Safe SAVINGS programIt’s a Safe SAVINGS program

Savings Inside!


What is the S&P 500?


-45.00%

-25.00%

-5.00%

15.00%

35.00%

55.00% Monthly Closing Values

S&P Annual Returns 1954 - 2005

How the market works…

Will it be “up” the year you retire and when you need your money?


0.00%

20.00%

40.00%

60.00% Monthly Closing Values

With Indexed Universal Life You Only SHARE in Index Gains You Never SHARE in Index LOSSES

S&P Annual Returns 1954 - 2005


When saving for your future, be sure to follow the rules…

"Rule No. 1: Never Lose Money. "Rule No. 1: Never Lose Money.

Rule No 2: Never Forget Rule No. Rule No 2: Never Forget Rule No. 1."1."

Warren Buffett Warren Buffett


How does an IULIUL work?

Insurance “Wrapper”Insurance “Wrapper” Savings sideSavings side

Your Savings DollarYour Savings Dollar

1. 1. Watches Watches S&P 500S&P 500

3. If S&P 500 “down” 3. If S&P 500 “down” pays pays guaranteed 1%guaranteed 1%!!

2. If S&P 500 is “up” 2. If S&P 500 is “up” it pays it pays up to 15%up to 15%!!

4. When you retire… 4. When you retire… take your money tax-free take your money tax-free

((based on current tax law)

Die PrematurelyDie Prematurely

Become DisabledBecome Disabled

The plan is The plan is self-completingself-completing

oror


Immediate death benefitImmediate death benefit

$226,284$226,284 (can you get that (can you get that

guaranteeguarantee from your banker of from your banker of stockbroker?)stockbroker?)

Live?…Retire Tax Free! (based on current tax law)

Potential Retirement Income:

(age 70) +$418,581$418,581

Potentially withdraw Potentially withdraw

$63,009$63,009 Tax-Free Tax-Free annually to age 120 annually to age 120

(based on current tax law)(based on current tax law)

Plan completed for

Disabled? you!Die?

Plan completed for you!

We can all be better prepared…We can all be better prepared…

With a With a Self-CompletingSelf-Completing IUL Retirement Plan IUL Retirement Plan

Payments made for you each month(payments made for 5 years)

$334.00/monthly$334.00/monthly(must qualify for this option)(must qualify for this option)


Most of us don’t hear Most of us don’t hear the 2the 2ndnd half half of the retirement story of the retirement story

The The # 1 fear# 1 fear that retired that retired Americans face is… Americans face is…

Outliving their money!Outliving their money!

Distribution Distribution PhasePhase


The 2The 2ndnd half half of the retirement story of the retirement story

70 71 72 73 74 75 76 77 78 79 80 80 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

AgeRetirement Income Summary beginning at age 70

Bank CD EIULIRA/401K$ 418,581

$ 1,049,717

Out of money in 19 years

Out of money in

7 years

Tax-Free* $63,009 to age 120!

At age 100 you would have collected

$1,890,270 (tax-free)* and still leave behind

* Based on current tax law


Indexed Universal Life vs. MarketIndexed Universal Life vs. Market



RB & Associates, RB & Associates, Inc. Inc. An Insurance

Marketing Company

Friend’s Name Telephone #

1.

2.

3.

4.

5.

6.

Bill & Susan Smith (949) 100-0001

Sam & Jill Miller (949) 200-0002

(714) 786-3201 Ron & Florence Day

Pete Johnson

Craig & Jane Jones

Tom & Sandy Wilson

(949) 100-0001

(714) 962-1700

(949) 355-9801

“Providing you with a solution…not just a product.”™


ieul presentation (september 2008) seminar (piggy bank)

Economy & Finance

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