introintroduction to leveraged planning to leveraged planning
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Rev. Date 9/25/2012
Presented by:Suzy Turner, Financial Services Manager
Introduction to Leveraged Planning Programs
Not for use with the public - for education and training purposes onlyLeveraged Planning is a registered trademark of Entaire Global Intellectual Property, Inc.
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Exclusive marketer of Leveraged Planning programs
Leverage-based funding for:o Life Insuranceo Annuitieso Business Planning Strategies
Not for use with the public - for education and training purposes only
Global Financial Distributors
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Characteristics
< 50 employees (LLC, C-Corp, S-Corp, LLP)
The Target Market
Not for use with the public - for education and training purposes only4
Common IndustriesMedical
Finance
Construction
Age/Income Range Age: 45-60
Income: > $250,000
Credit ScoreMin: 550
Ideal: > 650
Net Worth
Unencumbered assetsequal to the greater of $1,000,000 or the loanamount (Life Only / Call for Annuity)
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Leveraged Planning
Not for use with the public - for education and training purposes only5
In typical cases, the planning strategies are designed to benefitthe owner of the business, their designee or a specific businessneed, such as:
Buy-Sell
ExecutiveCompensation
WealthTransfer
EstatePlanning
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Benefits for the business owner of using otherpeople s money
o
Maintain free cash flow for businessreinvestment, etc.
o Potential for favorable tax considerations
o Magnified buying power
Why Clients Choose Leveraged Planning
Not for use with the public - for education and training purposes only6
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Leveraged Planning
Not for use with the public - for education and training purposes only7
Global OneFinancial (G1)
The Business(LLC, C-Corp, etc)
The BusinessOwner
Three Parties to the Transaction
Global One extends a commercial loan to the business
Global OneFinancial (G1)
LoanArrangement
The Business(LLC, C-Corp, etc)
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Leveraged Planning
Not for use with the public - for education and training purposes only8
The business (may) extend a loan to the businessowner (or key employee)
The Business(LLC, C-Corp, etc)
LoanArrangement
The BusinessOwner
Loan proceeds must be used to purchase an (approved)insurance or annuity product
The BusinessOwner
G1 AuthorizedInsurance Product
LoanProceeds
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Leveraged Planning
Not for use with the public - for education and training purposes only9
The business takes out and services a loan (paying interest),while the business owner, or other designated individual,
benefits from the program.
Interest Options:
Curren t Pay
Rol lup
Amor t iz ing
Swi tch B e tween Opt ion s
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Benefits of Marketing Leveraged Planning
Not for use with the public - for education and training purposes only10
Average annuity loan size: $750,000
Average life program = $5,000,000 death benefit
Extensive case support and design assistance from dedicatedGFD Financial Service Managers
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Case Studies
Not for use with the public - for education and training purposes only11
The Client: David Salmanson, 48
48 years old, hadn t funded any form of death benefit for his family s needs
Required a death benefit of $10,000,000 and wanted to borrow to achieve his goals.
Using a Leveraged Planning program, Mr. Salmansontook out a loan that required annual interest paymentsof $77,449. The cash value of the policy when Mr.Salmanson was age 70 was projected to be $4,739,261(the death benefit remains level at $10mm) fromwhich he could choose to payoff the loan principal, oropt to allow the principal to be paid from the deathbenefit.
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Case Studies
Not for use with the public - for education and training purposes only12
The Client: Walter Flynn, 55
Mr. Flynn required a death benefit of $4,300,000
Using a Leveraged Planning program, Mr. Flynn took out a loan that required annual interest payments of $47,500 to maintain his death benefit. The projectedretirement income at age 65 will be approximately$116,400. Mr. Flynn will be able to use either the cashvalue of the policy or other business assets to pay off the loan.
Mr. Flynn also hoped to secure a retirement income of $100,000 per year or more at age 65.
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10 Reasons to Market Leveraged Planning
Not for use with the public - for education and training purposes only13
No Personal Guarantee
Exper t i se
Loan Serv ic ing Flexibi l i ty
No Recu rr ing Trus t or L egal Fees
48 Hours of a Prel imin ary Offer
High ly Com pet i t ive Rates
Streamlined An nu al Review
Financing/Ref inancing o f Ex i s t ing
Pol ic ies /Loans
L o w M i n i m u m Lo an Size
Bro ader Range of Carriers A ccepted
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Webwww.globalfd.com
Mailing Address
Global Financial Distributors, Inc.1200 Ashwood ParkwaySuite 150Atlanta, GA 30338
Phone: 800-515-2599
Fax: 770-923-2553
Email: [email protected]
Contact Information
14Systems and methods and/or software related to Entaire
s Leveraged Planning programs are covered by U.S. PatentNos 7 797 214; 7 797 217; and 7 797 218 Not for use with the public - for education and training purposes only