financial insurance advisors
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FIA is a One-Stop Financial Center, helping people take charge of their family’s future.
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FIA helps bring Equity Indexed Products to middle America by helping clients make money when the stock market is up, never losing money when the market is down and accessing their money tax free at retirement. FIA offers a variety of insurance products such as indexed life, indexed annuities, term insurance and more.
One-Stop Financial Center
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The Great Consumer Dilemma
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Tracking 100 Americans from age 25 to 65 …
36 will be dead…54 will be DEAD BROKE…5 will still be working…
4 will be financially secure and
1 will be Financially Independent
Where does your money go?
The Facts Of Life
Insurance
Savings/ Investments
Living Expenses
Consumer Debt 21% Mortgage 21%
Taxes 28%
What did the 5 financially successful Americans do differently?
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The 4 Cornerstones of FinanceThe 4 Cornerstones of Finance
Age 2%Money Doubles Every 36 Years
29 $100,000
65 $200,000
* These hypothetical examples are for illustrative purposes only and do not represent any particular investment vehicle.
The Rule of 72 is a mathematical concept that approximates the number of years it would take to double the principal at a constant rate of return.
The performance of investments fluctuates over time, and as a result, the actual time it will take an investment to double in value cannot be predicted with any certainty.
The Rule of 72
Divide 72 by the interest rate to estimate the number of years it takes for your money to double.
Age 8%Money Doubles Every 9 Years
29 $100,000
38 $200,000
47 $400,000
56 $800,000
65 $1,600,000
Age 10%Money Doubles Every 7.2 Years
29 $100,000
36.2 $200,000
43.4 $400,000
50.6 $800,000
57.8 $1,600,000
65 $3,200,000
The person with the most “doubles” wins.
Average 401k Active Money ManagementIndexed Products
* Average 401k taken from the book “The Great 401(k) Hoax” by William Wolman
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Albert Einstein's 9th Wonder: Compound Interest
The Cost of Waiting to Invest
Years until Retirement
$29840
35 $448
30 $682
25 $1,056
20 $1,687
15 $2,843
10 $5,330
5 $13,160
Monthly Savings
Procrastination – The high cost of waitingTime can be your greatest ally or your greatest enemy. The key is to get
started now. Below are monthly savings amounts needed to achieve $1,000,000 at retirement, assuming a tax-deferred 8% interest rate.
Make time your greatest ally. Get started today.
How Taxes Affect Investments
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Tax
Deferred
Accumulation
Tax
Free
Distribution
Tax
Deductible
Contribution
Which would you choose?
You can only get two of the three!
Maximize Your Tax Advantages
Farmer who didn’t think.
What is the Perfect Account?
-Good Returns
-Compound interest – Rule 72
-Safety
- Tax free growth
-Tax free income
-Access/Liquidity
The Great Consumer Dilemma
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14 15 16
1
4 5
6 7
8 9 10
11 12 13
2 3
Rate of Return Test?
Which investments
Do not pass the: Liquidity Test?
Safety Test?
1. Commodities2. Business Ventures3. Limited Partnerships4. Raw Land5. Speculative Common
Stocks6. Lower Quality Bonds7. Investment Real Estate8. Blue Chip Stocks9. High Yield Bonds10.Mutual Funds11.CD’s12.Investment Grade
Insurance13.Money Market Funds14.U.S. Treasury Bills15.Annuities16.Equity in House
Tax Test?
Safety ofPrincipal
Fixed Products
1% to 4%
Risk ofPrincipal
VariableProducts
UpsidePotential
IndexedProducts
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Types of Investments: TIC-TAC-TOE
They are fixed interest rate products that earn interest based on the potential of an index
Protect your principle and earned interest from loss
Long term savings vehicles designed to accumulate cash on a tax deferred basis
Guarantee a lifetime of income. 11
What are Equity Indexed Products
$150,000
$140,000
$130,000
$120,000
$100,000
$160,000
$170,000
$90,000
$110,000
$100,000 Invested in 1997
Indexed AccountLarge Company Stocks
Many people sacrifice return for safety, and other people sacrifice safety for return. Indexing brings together the best of both.
8/1997 8/1998 8/1999 8/2000 8/2001 8/2002 8/2003 8/2004 8/2005 8/2006 8/2007 11/2008
$149,937
$126,925
$139,237
$95,529
$115,449
$129,330
$117,435
$152,488
$133,977
$103,775$96,845
$114,490$122,504 $122,504
$122,504
$140,255
$155,476
$166,359
$150,073
$131,080
$107,000
$166,359
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Indexed Products VS. Large Company Stock Protection & Potential
People who are dissatisfied with interest from CDs or other fixed rate savings accounts
People who don’t have the time or temperament for the stock market
People who are tired of losing money in the stock market and want investments with guarantees to never lose money
Still would like to participate in the returns of the market without having any money actually in the market
People who want to grow & access their money tax free at retirement
People who want liquidity 13
When are Indexed Products Appropriate?
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The Next StepThe Next Step
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