retirement roadmap. disclaimer nothing in this presentation is a guarantee of future income or...
TRANSCRIPT
Retirement Roadmap
Retirement RoadmapDisclaimer
Nothing in this presentation is a guarantee of future income or earnings.
Information contained in this presentation is intended for general education and information use only and is not intended as a solicitation for buying or selling products.
The material in this presentation is not intended to give advice on tax planning, investments, legal, accounting, estate planning, or financial planning but rather is designed to educate people about various retirement concepts.
Any assumptions made in hypothetical examples are to help explain the concepts and are for illustrative purposes only and should in no way be construed as any type of guarantee.
Past performance is also not a guarantee of future results.
Retirement RoadmapGround to Cover
1. PRIVATE EQUITY Savings.
2. Build a truly TAX-FREE Retirement Income.
3. Aggressively PROTECT your Retirement Assets
4. Enjoy Retirement AND leave a FINANCIAL LEGACY( Proverbs 13:22)
Begin with the End in Mind
• Where are you on your “Retirement Roadmap”?
• At what Age do you want to retire?
• How much monthly income do you want during retirement?
• What action plans do you have in place to reach your goals?
The Most Detailed Map in the World is Worthless…Unless you Know Where You Are on that Map
How Far Does $ 2 Million Go?($50k yr for 40 yrs)
Taxes40%
Interest34%
Lifestyle23% Sav-
ings3%
Average Lifetime Income
Taxes Interest Lifestyle Savings
= $60,000
(Property, Sales, Income, Auto,…)
(Mortgage, Auto, Credit Cards Student Loan,…)
How Far Does $ 2 Million Go?($50k yr for 40 yrs)
Taxes25%
Interest20%
Lifestyle30%
Savings25%
Average Lifetime Income Re-Aligned
Taxes Interest Lifestyle Savings
= $400,000
Insurance 101
Minimum Amt for Coverage – Set by Insurance Company
1988 - Maximum Amt Allowed – Set by IRS(TAMRA) Technical and Miscellaneous Revenue Act
Understanding Cash Value Insurance
MEC – Modified Endowment Contract
• Guarantees• No Risk • Tax Deferred Growth• Tax Free Access• Few Limits on Contributions• Guaranteed Loans / Unstructured Pmts• Use as Collateral• Protected under Contract• No Age Limit Penalties (59 ½ or 70
RMD)• Competitive Returns• More Flexible than Qualified Plans• Creates a LegacyInsurance
Cash ValuePrivate Equity
$• Infinite Design
• Death Benefits
• Living Benefits
MEC – Maximum Efficient Contract
Reduce TaxesAre Taxes Likely to go UP or DOWN in the future?
SEED HARVEST
OR
Private Equity Qualified Plans
A Few Things to Consider…
• Tax Brackets are Affected by Fewer Deductions During Retirement• Retirement Income from Qualified Plans Factor into Social Security Calculations
Tax Free Access to Cash Value
Protect your Retirement
Tax Law Contract Law
vs
• Constantly Changing
• Target for Congress
• Target for Litigation
• Can’t be Changed
• No Government Control
• Protected from Predators and Creditors
* U.S. Department of Labor
Estimated at $3 Trillion Dollars*
Understanding How Money Works“There Is Far More Opportunity in Avoiding the Losses
than in Picking the Winners”IUL vs S&P
Retirement OptionsNow
Private Equity Plan
Government Plan
Retirement 70 ½
Risky Volatile Target Fully Taxed Uncertainty
Guaranteed Stable Protected Tax Free Peace
Market RiskGov’t Risk
Legacy BenefitCash Build
Timeline
Self Completing Plan
Leaving a Legacy100% Tax Free
Proceeds from these Specially Designed Policies transfer INCOME TAX FREE to Heirs
Are Qualified Plans the Best Option?Government Influence on 401k and IRA’s
“The ugly truth is that the 401(k) plan is a lousy idea, a financial flop, a rotten repository for our retirement reserves”
Time Magazine ~ October 2009
HIGH FEES ~ HIGH RISK ~ HIGH TAXES
Additional Benefits
1. FEW LIMITS on contributions
2. NO waiting till 59 ½
3. NO forced RMD at 70 ½
Examples25 year old male – Preferred
$200,000 Contract
Age 65Based on 7.5%
ReturnContract• $190k Cash Value• $390k Death
Benefit
Investment• $243k Cash net of
20% tax• $0 Death Benefit
$200,000 initial face value$150.00 per month
• $498k Cash Value• $698k Death
Benefit
$200,000 initial face value$200.00 per month
• $487k Cash net of 20% tax
• $0 Death Benefit
MAX FUNDED$200,000 initial face value$381.90 per month
• $1,055k Cash Value• $1,287k Death
Benefit• Approx $62k/yr age 66-
100
• $930k Cash net of 20% tax
• $0 Death Benefit
Examples30 year old male – Preferred
$300,000 Contract
Age 65Based on 7.5%
ReturnContract• $298k Cash Value• $598k Death
Benefit
Investment• $326k Cash net of
20% tax• $0 Death Benefit
$300,000 initial face value$300.00 per month
• $563k Cash Value• $863k Death
Benefit
$300,000 initial face value$500.00 per month
• $542k Cash net of 20% tax
• $0 Death Benefit
MAX FUNDED$300,000 initial face value$840.13 per month
• $1,014k Cash Value• $1314k Death Benefit• Approx $117k/yr age
66-100
• $912k Cash net of 20% tax
• $0 Death Benefit
Examples45 year old male – Preferred
$300,000 Contract
Age 65Based on 7.5%
ReturnContract• $90k Cash Value• $390k Death
Benefit
Investment• $133k Cash net of
20% tax• $0 Death Benefit
$300,000 initial face value$300.00 per month
• $196k Cash Value• $496k Death
Benefit
$300,000 initial face value$500.00 per month
• $223k Cash net of 20% tax
• $0 Death Benefit
MAX FUNDED$300,000 initial face value$1,221.00 per month
• $575k Cash Value• $875k Death Benefit• Approx $62k/yr age 66-100
• $545k Cash net of 20% tax
• $0 Death Benefit
Examples60 year old male – Preferred
$300,000 Contract
Age 75Based on 7.5%
ReturnContract• $47k Cash Value• $325k Death
Benefit
Investment• $147k Cash net of
20% tax• $0 Death Benefit
$300,000 initial face value$550.00 per month (minimum)
• $185k Cash Value• $486k Death
Benefit
$300,000 initial face value$1,000.00 per month
• $267k Cash net of 20% tax
• $0 Death Benefit
MAX FUNDED$300,000 initial face value$2,003 per month (maximum)
• $493k Cash Value• $795k Death
Benefit• Approx $38k/yr age 76-100
• $535k Cash net of 20% tax
• $0 Death Benefit
Next Steps…
1. Submit some basic information.
2. Review your personal proposal.
3. Make a personal decision if you want to move forward.
4. Rest easy knowing that your retirement is safe and secure.
Do you know anyone else that might be interested?
Thank You