agent power-point-
TRANSCRIPT
Judge Learned Hand 1872-1961 U.S. Federal Courts of Appeals
In America there are two tax systems One for the Informed (lower taxes)
And one for the Under-Informed (higher taxes)
Qualified Plans (401k’s, IRA’s 403b’s) are for the Under-Informed
It’s time to become informed
Primary Risks of Qualified Plans
1. Market Losses
2. High Management Fees
3. Future Tax Rate Increases
4. Longevity Risk
There Is A Better Plan
Primary Risks of Qualified Plans
1. Market Losses
2. High Management Fees
3. Future Tax Rate Increases
4. Longevity Risk
There Is A Better Plan
The Real Cost of Owning a Mutual Fund:
Disclosed and/or hidden fees can easily eat up 30% or more
. com
Non taxable account0.90% Expense Ratio1.44% Transaction Costs0.83% Cash Drag1.00% Tax Cost4.17% Average Costs
Ty A. Bernicke - 04.04.11
How Much Do You Pay?
thus facilitating “apples-to apples "comparisons among their plan’s investment options; and a new level of fee and expense transparency
FACT SHEET
February 2012
Final Rule to Improve Transparency of Fees and Expenses to Workers in 401(k)-Type Retirement Plans
…thus facilitating “apples-to-apples” comparison of fees and expense transparency
Primary Risks of Qualified Plans
1. Market Losses
2. High Management Fees
3. Future Tax Rate Increases
4. Longevity Risk
There Is A Better Plan
Did You Just Say Taxes Will Probably Go Up?
Your Current Tax Rate
Your Future Tax Rate
Tax Deferral Isn’t Good For You. But it’s GREAT for Uncle Sam
How will the Government make up for the
shortage?
Raise Taxes
Change Tax Brackets or
Eliminate Tax Deductions
Primary Risk of Qualified Plans
1. Market Losses
2. High Management Fees
3. Future Tax Rate Increases
4. Will I Outlive My Money
And the Safer Alternative
Primary Risk of Qualified Plans
AARP Quote… (61 percent) said they
fear depleting their assets more
than they fear dying.
And the Safer Alternative
According to the Federal Reserve
22% of this investment is owned by the wealthiest 1% of U.S.
55% of this asset is owned by the wealthiest 10%.
Source: http://online.wsj.com/news/articles/SB10001424052748703435104575421411449555240
What do advisors to the wealthiest 10% know
that your CPA doesn’t?Wall Street Journal October 2010
Tax Free Retirement Savings & A Tax Free Death Benefit
Rolled Into One Plan
Tax Free Income For Now or Retirement
& A Tax Free Death Benefit To Protect Your Family
Created by 3 Congressional Acts
TEFRA - DEFRA - TAMRA
Tax Free UnderInternal Revenue Codes
7702 & 72(e)
Superior Attributes of a Tax Free Plan
1. No Market Losses
2. 30% - 50% Lower Management Fees
3. Tax Free Income for LIFE
4. Income for Life
The Safer Alternative
No Market Loss - The Cap & Floor
You Give Up Some of the Gain
22%10%To 15%
8.5% .8.5%
.
-25%
0%
Cap
Floor
You Give UpSome of the Gain
To Guarantee Zero Loss
S&P With Loss
IUL with Cap & Floor
Year
S&P Returns
Account Value
IUL
ReturnsAccount
Value
2000
-10.14% $89,860
0.00% $100,000
2001
-13.04% $78,142
0.00% $100,000
2002
-23.37% $59,880
0.00% $100,000
2003
26.38% $75,677
13.00% $113,000
2004
8.99% $82,480
8.99% $123,159
2005
3.00% $84,955
3.00% $126,853
2006
13.62% $96,526
13.00% $143,344
2007
3.50% $99,933
3.50% $148,404
2008
-38.49% $61,469
0.00% $148,404
2009
23.45% $75,883
13.00% $167697
2010
12.78% $85,581
12.78% $189,129
2011
0.00% $85,581
0.00% $189129
2012
13.29% $96,955
13% $213,715
2013
29.60% $125,653
13.00% $241,498
16 Yrs.
3.54%Taxable $125,653
7.92%
Tax Free $241,498
Guarantee: Zero Market Loss$241,498 7.92% Tax Free
$125,653 3.54% Taxable
Cap
Floor
$100k Initial InvestmentApples to Apples Comparison
Actual S&P Performance
2 Year “Average Return” According to Wall Street
Year
#1 $100,000 + 100% = $200,000
#2 $200,000 - 50% = $100,000
100% +
-50%
+50% divided by 2 years = "Average Gain of 25%” ???
Benefits of a Tax Free Plan
1. No Market Losses
2. 30% - 50% Lower Management Fees
3. Tax Free Income
4. Life Time Income
5. Flexible Contributions
The Safer Alternative
Benefits of a Tax Free Plan
1. No Market Losses
2. 30% - 50% Lower Management Fees
3. Tax Free Income
4. Life Time Income
5. Flexible Contributions
The Safer Alternative
Benefits of a Tax Free Plan
1. No Market Losses
2. 30% - 50% Lower Management Fees
3. Tax Free Income
4. Life Time Income
5. Flexible Contributions
The Safer Alternative
Benefits of a Tax Free Plan
1. No Market Losses
2. 30% - 50% Lower Management Fees
3. Tax Free Income
4. Life Time Income
5. Flexible Contributions
The Safer Alternative
Borrow$$$
Cash Value / Savings Continues to Grow
How Is That Possible?
Borrow$$$ Borrow
$$$Age 65 100
Even As You Take Home Retirement Income
The Cash Value / Savings
COLLATERALAgainst Any Loans You Take
The Cash Value continues to grow even when you borrow money
$200,000 Value
House has No
mortgage
Borrow$100k from home
Plus Interest
Why a Loan Does Not Lower The Cash Value
$200,000
$200,000
X 10% $220,000
Cash ValueSavings
SubtractRetirement Income
Loan & Interest
Balance IsA Tax Free Death Benefit to Heirs
_=
The Income You BorrowIs Not Repaid Until After You Pass On.
Guaranteed 100% at risk of loss
Guaranteed you’ll pay
Guaranteed not locked in
Guaranteed taxable
Not fully disclosed
Guaranteed 0% risk of market loss
Guaranteed Tax Free
Guaranteed locked-in
Guaranteed tax free
Fully disclosed
Risk
Taxes
Gains
Death Benefit
Fees
Taxable 401k/Qualified Tax Free Plan
Compare the Guarantees