© 2008–2014 the hayward-yellen 100 ltd partnership special presentation by pamela yellen,...

77
© 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future

Upload: jace-bodman

Post on 28-Mar-2015

218 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

© 2008–2014 The Hayward-Yellen 100 Ltd Partnership

Special Presentation by Pamela Yellen, President of Bank On Yourself, for

How to Fire Your Banker, Bypass Wall Street, and Take Control of

Your Own Financial Future

Page 2: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Pamela Yellen is President of Bank On Yourself

• Programming offered by Pamela Yellen entitled “How to Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future” shall exhibit fair content balance, providing the audience with information of different perspectives from which to develop an informed professional opinion.

• Pamela Yellen has no actual or potential conflict of interest in relation to this program.

Speaker Disclosure

Page 3: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• The Institute for Wellness and Education is accredited by the Accreditation Council for Pharmacy Education as a provider of continuing pharmacy education. Attendees who participate in the interactive portion and submit the completed evaluation form at the conclusion of the program will have credit for 1.0 hour(s) of continuing pharmacy education (0.10 CEU(s)) uploaded to CPE Monitor within 60 days after the program date. ACPE program number is 0459-0000-14-008-L04-P. Initial release date is 02/28/2014.

Page 4: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

At the completion of this activity, the participant will be able to:

• Describe the advantages and disadvantages of various retirement plan accounts to determine which one will allow them to best reach their financial goals and objectives

• Explain the three steps to becoming their own source of financing for major business and personal expenses

• Discuss a plan for constructing a retirement strategy which allows them to know what their retirement account will be worth on the day they plan to tap into it

• Identify the differences between “paper” wealth and “real” wealth, and provide examples of each

• Outline the tax consequences of common retirement planning methods

Learning Objectives

Page 5: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• On the day you plan to tap into it?

• Would it be helpful to know?

• Is it even possible to know?

• Will tax rates go up? … or down?

• How long does your money need to last?

What Will Your Retirement Account Be Worth

Page 6: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

It’s based on things you

can’t predict or control

The Problem with Conventional Planning

Page 7: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

More than half of all boomers won’t have enough money for basic living expenses in retirement

• Food

• Heating

• Medical care

Source: “The National Retirement Risk Index: An Update.” Center for Retirement Research at Boston College, Oct. 2012

Result

Page 8: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Three in four boomers expect to postpone retirement

• Half think they may never retire

Source: 2012 AARP survey, Boomers’ “Anxiety Index” High

Result

Page 9: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Almost half of all retirees were forced out of work earlier than planned

• Layoffs

• Poor health

• Need to take care of a loved one

Source: Employee Benefit Research Institute

Work Till You Drop?

Page 10: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

“After a lifetime of hard work, many seniors will

find themselves forced to choose between putting

food on the table and buying their medication.”

—U.S. Senate Committee on Health, Education, Labor, and Pensions, July 2012

Page 11: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

I have enough money to live

comfortably for the rest of my life … if I die by next

Tuesday

Page 12: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Q: $20 stock … goes up by 40 percent—how much money did you make?

A: None—unless you sold your stock and locked in your gain

Test Your Money IQ

Page 13: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Paper wealth is meaningless

when it comes to financial certainty and security

Page 14: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

S&P 500:

• Lost 49% from March 2000—October 2002

• Recovered by October 2007

• Lost 57% from October 2007—March 2009

• That’s two losses of 49%+ in just one decade

Stock Market Facts

Page 15: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Two Losses of 49%+Just Since the Year 2000

Are you confident there won’t be another crash in the next 5-10 years … or even tomorrow?

Page 16: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Leo Cullum, The New Yorker, used with permission

Page 17: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Sources: Yahoo Finance, InflationData.com

2,077

The S&P 500 would need to be at 2,077 in today’s depreciated dollars, just to equal its

year 2000 high of 1,527

The S&P 500 closed only 14% higher on February 3, 2014, than it did on March 24, 2000. During

those 14 years, we experienced 36% inflation.

The S&P 500 has had only 0.95% annual growth over

14 years!

February 3, 2014: S&P closes at

1,742

March 24, 2000: S&P 500 closes at record high

of 1,527

Your Retirement “Plan” Powered by Wall Street:14 Years of the S&P 500 Index

Page 18: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Real Life Experience

Dan ProskauerVice President of Technology

• The picture that’s making everyone’s jaw drop

• “If I can help a few people start Bank On Yourself this year instead of next year—or instead of never— it’s worth it.”

Page 19: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Real Life Experience

Page 20: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Real Life Experience

Page 21: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

How Is This Possible?

• Volatility is removed

• Saving becomes fun

• You have flexibility and control, because your money isn’t locked up in a government-controlled plan

• Your confidence is restored, so you can enjoy more of life’s luxuries

Page 22: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Bank On Yourself Isn’t a Magic Pill

• Your plan value won’t equal your contribution in the early years

• But because the volatility is removed, you’ll quickly see your net worth go in just one direction – UP!

Page 23: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Real Life Experience

Would you like your net worth to grow like this?

Page 24: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

With Bank On Yourself …

Your Paper Wealth IS Your Real Wealth!

Page 25: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

You can’teat a

number on paper

Page 26: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

An asset that has …

• Increased in value …

• Every single year …

• For more than 160 years

• Dividend-payingwhole life insurance

What Is Bank On Yourself?

Page 27: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Not the kind Suze Orman and Dave Ramsey love to hate

• Options (riders) to supercharge the growth

• Commissions are reduced by 50–70%

• Can be a powerful financial management tool from day one

• Plans available for people up to age 85

• Don’t rule yourself out due to health problems

Dividend-PayingWhole Life Insurance

Page 28: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Predictability and guarantees

• Control

• Liquidity

• Safety

• Tax Advantages

Provides anUnbeatable Combination

Page 29: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Guaranteed Growth

• Cash value (money you can use now)

• Death benefit (money for your family and charity, later)

• Potential for dividends

• No luck, skill, or guesswork required

• Know the value of your account the day you plan to tap into it …

• And at any point along the way

Predictability and Guarantees

Page 30: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Putting your money in a government-blessed-and-controlled retirement plan is like putting it in prison

• You don’t control the money in your 401(k) or IRA, or any similar plan

• The government controls your money

• They change the rules any time they want!

Control

Page 31: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• The prison warden has your money under lock and key

• While your money’s in the slammer, they can arbitrarily impose any new restrictions or regulations they come up with

• You have no recourse

Control

Page 32: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Who Controls Your Money in a Bank On Yourself Plan?

You Do!

Page 33: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Life insurance policies are private, unilateral contracts

• The company can’t change the rules without your consent

• That’s the law

You Control Your Moneyin a Bank On Yourself Plan

Page 34: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• No government-imposed limits on how much you can put in

• No government restrictions or penalties for “early” withdrawal or waiting “too long”

• No penalties for taking “too little” each year

• No Required Minimum Distributions

• Retirement income when and how you want it

You Control Your Moneyin a Bank On Yourself Plan

Page 35: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• You can borrow against your cash value any time you want

• No rules requiring you to pay it back on a certain schedule

You Control Your Moneyin a Bank On Yourself Plan

Page 36: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

“I had very limited control of my money in my 401(k). I couldn’t

put in as much as I wanted, and I needed permission to borrow my own money if necessary. Bank On Yourself gives me

control over my money.”—David Shelton, healthcare

company vice president

Page 37: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Financing through Bank On Yourself beats financing, leasing, and even directly paying cash!

• You finance everything you buy

• Either you pay interest when you finance or lease

• Or you lose interest and investment income when you pay cash

Liquidity:Fire Your Banker

Page 38: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Fund a Bank On Yourself plan first, then …

• Use the money in your policy whenever you want

• For any purpose at all

• Set your own repayment schedule

• Your plan continues growing as though you never touched a dime of it!

Liquidity:Fire Your Banker

Page 39: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Liquidity:Fire Your Banker

The Bank On Yourself strategy solves the problem

of having to constantly interrupt the growth of your money, whenever you spend

or invest it!

Page 40: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Life insurance companies are audited regularly by the state insurance commissioner’s office to ensure they maintain sufficient reserves to pay future claims

• They’re audited regularly by several independent rating companies

Safety

Page 41: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• State insurance commissioner’s office can take over and run the company in the interests of policyholders

• Historically, a failed insurer’s business is taken over by another company, according to the National Organization of Life and Health Insurance Guaranty Associations

• Additional protections are available in each state

Safety

Page 42: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• May be protected from creditors and lawsuits

• Rules vary from state to state

Extra Benefit:Asset Protection

Page 43: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Does having money safe and available to you take

away any of your options?

Page 44: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• You have safety, liquidity, and control

• Greater growth than savings or money market accounts, without the risk or volatility of traditional investments

• Access to your money when and how you want—for purchases or investments

• Get continuous growth, even on the money you’re using

More options and flexibility, not less

You Are Not Putting Your Money in a Straitjacket

Page 45: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Independent Pharmacy Owner Michael Bemis of Bemis Drug:

“My Bank On Yourself plan gives me easy access to capital, and I’m receiving a dividend even on the money I borrowed. It works great for purchasing equipment for my pharmacy, such as a new counting machine.

“Why borrow from a bank, when you can borrow from yourself?

“I get to pay myself interest on the money I loan to the pharmacy for purchases, and it grows my Bank On Yourself plan.”

Page 46: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Can give you a retirement income with no taxes due

• Reduce the taxes you may have to pay on your Social Security benefits

• Extra tax breaks for pharmacy owners and other business owners

• Death benefit passes to your loved ones income tax-free … and avoids probate

Tax AdvantagesOf Bank On Yourself

Page 47: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• You pay your taxes up front while you know what they are

• No taxes due on your gains in retirement*

• Avoid unwelcome surprises

• Both Roth plans and Bank On Yourself plans offer that strategy

• But only Bank On Yourself has all the additional advantages and guarantees we’re talking about today

Tax AdvantagesOf Bank On Yourself

* Under current tax laws

Page 48: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

But everyone knows it’s better to defer taxes with

a 401(k), IRA, etc.

… Isn’t it?

Page 49: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• You need $70,000 per year in retirement• You retire with an average tax rate of 25%

Quick Case Study

TaxDeferred

PlanYou need $93,333You pay taxes ($23,333)You net $70,000

Bank On Yourself

Plan $70,000($ 0) $70,000

Page 50: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

How Would You Prefer to Spend That

Extra $23,000 Per Year?

Enjoying life more?Paying more taxes?

Page 51: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

And … if tax rates go up and you’re successful

growing your nest egg in a tax-deferred plan, you’ll

only end up paying higher taxes on a bigger number

Page 52: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Give you guaranteed

growth?

Page 53: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Lock in your principal and

growth?

Page 54: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Give you control of your

money?

Page 55: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Give you tax-free retirement

income?

Page 56: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Let you use your money without

penalties?

Page 57: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Let your money grow while you use it?

Page 58: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Let you access your money

without liquidating?

Page 59: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Let you fund it every year with no government limits?

Page 60: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Finish funding itself if you die prematurely?

Page 61: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Retirement PlanChecklist

Does Your Retirement

Plan …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Tell you the plan value on the day you plan to tap it?

Page 62: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

SummaryDoes the Retirement Plan

You Currently Have or Are Considering …

401(k)s and

403(b)sIRAs Roth

PlansBank On Yourself

Plans

Give you guaranteed, predictable growth?Lock in your principal and growth, even when the market crashes?Give you control of your money without government restrictions and penalties?Give you tax-free retirement income?Let you use your money in the plan without penalties, however and whenever you want?Let you use your money in the plan yet still have it grow as though you didn’t touch it?Let you access your money without liquidating your investments?Allow you to fund it every year, without limits imposed by the government?Finish funding itself if you die prematurely?Tell you the minimum guaranteed value of the plan on the day you expect to tap into it, and at any point along the way?

Page 63: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

As Texas Bix Bender

once noted, “Just

cuz you’re following

a well-marked trail

don’t mean whoever

made it knew where

they were goin’.”

Page 64: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Joe and Jane Pharmacist

• They’re both 45 years old

• Have $25,000 in credit card debt

• Have $135,000 in other personal and business debt

• Want a new $35,000 car every four years

• Want $100,000 for … pharmacy automation … kids’ college … or motor home

Case Study

Page 65: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Joe and Jane’s Personalized Solution

Page 66: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

You indicated your biggest financial concerns are:• Putting $$$ into traditional retirement plans that

have been going backwards for 15 years• Lack of savings• Lack of liquidity• Current and future taxes

You said your top financial goals are:• Secure retirement• Help pay for kids’ college• Buy automation for the pharmacy• Pharmacy renovation

Page 67: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Approximately $675,692 in interest payments could leave your home over the next 10 years—never tobe seen again—if you keep doing what you’ve been doing. … And you could lose more than that, if you take on additional debt.

Page 68: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Moves $50,000 from money market account earning 0.2% to Bank On Yourself plan

• Commits $2,500 monthly from current resources

• Redirects $1,000 monthly to build his personal, private Bank On Yourself plan, instead of a government-controlled plan

• No more premiums after age 70

Funding Joe’s Plan

Page 69: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• Instant life insurance coverage of $1,900,000• Liquid emergency fund of $154,000 in three years• Credit cards paid off in one year• Retirement income of $80,000 per year from age

71 to 99 (little or no taxes due)• • Death benefit remaining at age 95: $660,000

Total potential retirement income: $2,320,000

Page 70: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Your plan would be custom-tailored to your unique

situation and your short-term and long-term

goals and dreams

No Two Bank On Yourself Plans Are Alike

Page 71: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Top Seven Ways Pharmacists Use the Bank On Yourself Method

1. As a safe, predictable retirement plan alternative

2. To self-finance business and personal purchases, recapturing interest they’re now paying to banks and leasing companies

3. As a better way to save and pay for college

4. For investment opportunities (real estate, pharmacy acquisition, etc.)

Page 72: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Top Seven Ways Pharmacists Use the Bank On Yourself Method

5. To provide safe and liquid cash reserves that earn far more than CDs and money markets

6. To fund buy-sell agreements and for business succession planning

7. To take back control of their money and finances

Page 73: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Pitfalls to Watch Out For

Beware of untrained advisors:

• If your plan isn’t structured properly, it could grow much more slowly, lose the tax advantages, or both

• A different life insurance policy type may be recommended – No other product comes with as many guarantees as dividend-paying whole life insurance

Page 74: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Pitfalls to Watch Out For

If your current financial advisor or insurance agent tells you he knows how to implement this, ask him: “If you could have done this for me … why didn’t you?”

Page 75: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Only a Handful of Life Insurance Companies Offer

the Right Policies

What to look for:

• Must offer dividend-paying whole life policies

• Must have paid dividends every year for at least 100 years

Page 76: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

Only a Handful of Life Insurance Companies Offer

the Right Policies

What to look for:

• Must offer “non-direct recognition” policy loans

• Must be among the financially-strongest companies in the country (Comdex rating of at least 95)

Page 77: © 2008–2014 The Hayward-Yellen 100 Ltd Partnership Special Presentation by Pamela Yellen, President of Bank On Yourself, for How to Fire Your Banker, Bypass

• There’s an old African proverb: “The best time to plant a tree is twenty years ago.

• The time may never be perfect to start. – We can always find a reason to put it off

You Can Take Back Control of Your Financial Future!

The second best time is today.”