it is time for you to take charge of your retirement goals!
TRANSCRIPT
BROKERS ALLIANCE, INC.
Increase Your Income with our Sales Concepts and Products!
Welcome If you are currently funding a 401k, IRA or other Tax Qualified (Deferred) Retirement
Plan, this program is for you.
If you have stopped funding your Tax Qualified Retirement Plan due to the recent changes in today’s economy, we can help you only if you
are serious about resuming funding your plan today.
We can assist most other clients, but this
program is not for you.
Tax Deferred Retirement Plan“The Rest of the Story”
RETIRE WEALTHIER
RETIRE EARLIER
LIFETIME RETIREMENT INCOME
TAX ADVANTAGED
PROVIDE SECURITY
Tax Deferred Retirement Plan
“The Rest of the Story”
Where are you now?
Where do you want to go?
How will you get there?
Tax Deferred Retirement Plan“The Rest of the Story”
IT IS TIME FOR YOU TO TAKE CHARGE OF YOUR RETIREMENT GOALS!
Please take out a pen and a blank sheet of paper.This may be the most important document
you will ever complete for your personal retirement planning.
Take the next few minutes to imagine and write down
your ideal retirement dream.
Assume fi nances are not an issue; you have all the assets
and resources you ever need.
Such as:
When would you retire? Would you relocate? New hobbies?Would you start a new career? Volunteer more often? Travel more?Start your own business? Play more golf/sports? More time with loved ones?
The above are only suggest ions . This i s YOUR ret i rement – make i t your own.
Tax Deferred Retirement Plan“The Rest of the Story”
AMERICA’S FINANCIAL CRISISAmerican’s spent 8% more than they earned in 2008. U. S. D e p t . o f C o m m e r c e 1 0 / 1 2 / 0 9
United States National debt 12.6 trillion dollars. U. S. Tr e a s u r y D e p t . 3 / 1 6 / 1 080% of America’s private pension plans have disappeared.50% of those remaining are frozen. E m p l o y e e B e n e fi t R e s e a r c h I n s t i t u t e D e c . 2 0 0 9
The median income of Americans 65 years old and older in 2007 was $17,424. E m p l o y e e B e n e fi t R e s e a r c h I n s t i t u t e M a r c h 2 0 0 8
In the richest country in the world, 95 out of 100 Americans will never achieve
fi nancial security.
Tax Deferred Retirement Plan“The Rest of the Story”
The Baby-Boomers
The fi rst of 81 million Americans born between 1946 and 1964 started to enjoy their retirement in
2009.
Beginning of 40% of America’s work force no longer funding; instead start collecting their Social
Security Retirement benefi ts.
Urban Institute 2008
Tax Deferred Retirement Plan“The Rest of the Story”
What if…
You could secure and increase your retirement income and not:
Increase your current budget?
Change your current lifestyle?
Tax Deferred Retirement Plan“The Rest of the Story”
IRA/401K
Four Phases of Retirement Planning
Contribution
Tax deferred
Accumulation
Tax deferred
Withdrawal Transfer
Pay Tax Pay Tax
Tax Deferred Retirement Plan“The Rest of the Story”
Will Future Tax Rates Likely Be:
A. Lower?B. Same?C. Higher?
Tax Deferred Retirement Plan“The Rest of the Story”
You owe me income tax!
PAY ME NOW!
OR PAY ME LATER!
Tax Deferred Retirement Plan“The Rest of the Story”
$4,800 a year x 30 Years = $144,000 Total Contribution
The IRA/401(k) StoryDeposi
t$400 per month 25% tax bracket
$1,200 a year x 30 Years =
$36,000 Total Tax Savings 25% tax bracket
No Income Taxes have been Paid for the 30 years on the contribution$400 per month @ 7% over 30 years –
Estimated account balance = $412,198
Tax Deferred Retirement Plan“The Rest of the Story”
Estimated account balance of $412,198 withdraw $66,660 a year
Will provide after taxes of 25%
The IRA/401(k) Story
Income Tax Due is $16,665 per year25% tax bracket
Retirement income of $49,995 a year
Tax Deferred Retirement Plan“The Rest of the Story”
Now…The Rest of the IRA/401(k) Story
$36,000Total Tax Savings
25% tax bracket
Pre-Retirement Income Tax Savings
Income Tax Due is$16,665 a year
25% tax bracket
Retirement Income Tax Costs
Tax Deferred Retirement Plan“The Rest of the Story”
The Rest of the IRA/401(k) StoryTotal Pre-
Retirement Income Tax
Savings
After Retirement
Income Tax Due
After RetirementIncome Tax
Cost
$36,000
3 years=$49,9
95
$16,665$16,665$16,665$16,665$16,665
$16,665$16,665$16,665
$16,6656
years=$99,990
Tax Deferred Retirement Plan“The Rest of the Story”
The Rest of the IRA/401(k) Story
$36,000 saved in Taxes 30 years before retirement
$133,320 paid in Taxes fi rst 8 years of retirement
Tax Deferred Retirement Plan“The Rest of the Story”
The Rest of the IRA/401(k) Story
Pre-Retirement Income
Tax Savings
$36,000
After retirementIncome Tax Cost
$16,665 2.2
Years!
Income Tax
Cost a year
25% tax bracket
Total Tax Savings25% tax bracket
Tax Deferred Retirement Plan“The Rest of the Story”
More of…The Rest of the IRA/401(k)
StoryQ. What if you want to retire early with a IRA/401(k)?A. You will pay an additional 10% penalty if you withdraw before 591/2
Q. What if you want to retire later with a IRA/401(k)?A. You will pay an additional 50% penalty on the
amount you failed to withdraw if you do not begin to take the mandatory distribution by age 701/2
Tax Deferred Retirement Plan“The Rest of the Story”
“Story of two retirees”
Extracted from an investigative report by PBS / Frontline
“Can you afford to retire?”Viewed under arrangement between LaCroix Financial Group,LLC and the
Frontline program producer, WGBH TV Boston, MA.
Tax Deferred Retirement Plan“The Rest of the Story”
PBS / Frontline report pointed out
Account value vulnerability
these issues with 401(k)
You alone manage the account
Market timing risk at retirement
Shrinkage by loans/early withdrawals
The hidden tax disadvantage Most accounts will last 7-10 years
Not a lifetime
Tax Deferred Retirement Plan“The Rest of the Story”
There is a solution
Your Private Retirement Plan
A Tax Advantaged, Non Tax Deferred
AlternativeIndexed Universal Life Insurance
“IUL”
Tax Deferred Retirement Plan“The Rest of the Story”
Account value vulnerability YES NO
PBS / Frontline report pointed out
these issues with 401(k)401(k) PrivateSec. 7702
plan
You alone manage the account YES NO Market timing risk at retirement YES
NO Shrinkage by loans & withdrawals YES YES The hidden tax disadvantages YES NO Most accounts will last 7-10
yrs Lifetime
Tax Deferred Retirement Plan“The Rest of the Story”
The PBS/Frontline report points out
this most disturbing shortcoming: Most 401k accounts will provide retirement
income for 7-10 years not your lifetime $412,198 @ 7%, 25% tax bracket
provides
$49,995 net annual income for 8 years
Tax Deferred Retirement Plan“The Rest of the Story”
PRIVATE PLAN VS TAX QUALIFIED PLAN
37 Year Old Male Preferred Non-Tobacco User
Income of $60,000/Year (25% Tax)
Currently Investing $400 Every Month in his 401k With 7% Return - Ages 37-67
Illustrated:Indexed Universal Life Insurance Policy $272,281 Guaranteed Death Benefi t
$300/Month Premium ($400 – 25% Taxes) Every Month Ages 37-67
Tax Deferred Retirement Plan“The Rest of the Story”
WithdrawalEnd of
year
Age
After Tax (Net) Retirement Income
Tax Deferre
d401k
UL Insurance
Private Plan31. 68 49,995
49,99535. 72 49,995 49,99538. 75 49,995 49,99539. 76 7,449 49,99540. 77 0 49,99550. 87 0 49,99574. 110 0 49,995
This illustration is for educational purposes and is not a specific offering. Values and benefits are not guaranteed unless stated as guaranteed on illustrations. Examples are used to illustrate the potential of alternative retirement scenarios using Universal Life Insurance under Section 7702
Tax Deferred Retirement Plan“The Rest of the Story”
Transfer/LegacyEnd of
year
Age
After Tax Death Benefit
Qualified
401k *
IUL Policy Private
Plan 1. 38 4,800 272,281 31. 68 389,123 406,592 36. 73 106,175 293,91839. 76 7,555
207,40940. 77 0
192,86850. 87 0 182,394 73. 110 0 5,687,926* Maximum/Consult tax professional for accurate estimate
This illustration is for educational purposes and is not a specific offering. Values and benefits are not guaranteed unless stated as guaranteed on illustrations. Examples are used to illustrate the potential of alternative retirement scenarios using Universal Life Insurance under Section 7702
Tax Deferred Retirement Plan“The Rest of the Story”
Next StepsComplete an application for your
private plan(Universal Life Insurance Application)
Gather information regarding your current plan
Set the next appointment to review your plan
Within a few days you will be contacted to schedule an appointment for your brief, no-cost to you, medical
exam
Tax Deferred Retirement Plan“The Rest of the Story”
Tax Deferred Retirement Plan“The Rest of the Story”
The one question to ask of one client every day to increase
your annual income by $100,000
How are you saving for your retirement?
Tax Deferred Retirement Plan“The Rest of the Story”
When the answer is — With a pre-taxed dollar program
THERE IS A BETTER WAY FOR TODAY’S ECONOMY.
WHEN WOULD YOU LIKE TO LEARN ABOUT IT?
Tax Deferred Retirement Plan“The Rest of the Story”
Results:
Minimum of 2 QUALIFIED presentations per week
2 per week X 70% close = 5 sales per month X $3200 target = $16,000 X 80% commission = $12,800 monthly income.
Tax Deferred Retirement Plan“The Rest of the Story”
IN ADDITION TO THE POWER POINT, WE WILL PROVIDE:
All point of presentation documents including the biographies of the experts in the PBS Frontline video
Prospecting documents including, qualifying prospects, effective key phrases, and marketing ideas.
Bob LaCroix
(800) 290-7226 (Ext. 132)
Index Universal Life Specialist