Transformation Financial
1
About Us:
AEGON: Our Parent Company
(Founded 1844, $440 Billion, 2nd Largest)
Transamerica
TFA/TFI
What are your thoughts?
• FINANCIAL LITERACY IN OUR COUNTRY?
• FINANCIAL SERVICES INDUSTRY
• 9 OUT OF 10 INDIVIDUALS HAVE NO ADVISOR
“NO FAMILY LEFT BEHIND”
1
What are some common
Financial Institutions where people put their money?
Banks
Investments
Insurance
2
72
2%
29
65
RULE OF 72
3
Interest = # of years to double $
36 year
10,000
20,000
All figures are for illustrative purposes only and do not reflect an actual investment in any product. Additionally, they do not reflect the performance risks, expenses or charges associated with any actual investment. Past performance is not an indication of future performance. The Rule of 72 is a mathematical
concept that approximates the number of years it will 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. Additionally, there are no
guarantees that any investment or savings program can outpace inflation.
ELEVATOR EXAMPLE
Tax and/or legal advice not offered by World Financial Group, Inc, or their affiliated companies. Please consult with your personal tax professional or legal advisor for further guidance on tax or legal matters.
4
5
5
5
72
2%
29
65
3
RULE OF 72
Interest = # of years to double $
36 year
10,000
20,000
12%
29
35
41
47
53
59
65
6 years
10,000
20,000
40,000
80,000
160,000
320,000
640,000
All figures are for illustrative purposes only and do not reflect an actual investment in any product. Additionally, they do not reflect the performance risks, expenses or charges associated with any actual investment. Past performance is not an indication of future performance. The Rule of 72 is a mathematical
concept that approximates the number of years it will 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. Additionally, there are no
guarantees that any investment or savings program can outpace inflation.
FIXED
TAX
NOW
VARIABLE
TAX
LATER
INDEXED
TAX
ADVANTAGED
All figures are for illustrative purposes only and do not reflect an actual investment in any product. Tax and/or legal advice not offered by World Financial Group, Inc, or their affiliated companies. Please consult with your personal tax professional or legal advisor for further guidance on tax or legal matters.
6
8
RETIREMENT
Three-Legged Stool
Government
Corporations
Personal Savings
Social Security
Pensions
0-2%
401(K)
Tax and/or legal advice not offered by World Financial Group, Inc, or their affiliated companies. Please consult with your personal tax professional or legal advisor for further guidance on tax or legal matters.
DEFERRED COMPENSATION PLANS
9
401(k), IRA, 403b, etc.
Contribution
Accumulation
$500
x 12 months
$6,000
x 30 % Tax Bracket
$1,800 annually
x 30 years-tax savings
$500 per month
@ 12%
@ 30 years
$54,000
≈$1,800,000.00
Distribution
$1,800,000
x
6%
$108,000
x 30% Tax Bracket
$30,000 annually
x
30 years
$900,000
Tax and/or legal advice not offered by World Financial Group, Inc, or their affiliated companies. Please consult with your personal tax professional or legal advisor for further guidance on tax or legal matters. All figures are for illustrative purposes only and do not reflect an actual investment in any product. They do not reflect the
performance risks, expenses or charges associated with any actual investment. Past performance is not an indication of future performance. The performance of investments fluctuate over time, and as a result, the actual time it will take an investment to double in value cannot be predicted with any certainty.
Additionally, there are no guarantees that any investment or savings program can outpace inflation. Please note that high risk has been historically associated with higher rates of return.
10
Cash Value
(Savings Acct.)
Life Insurance
Death Benefit
1986 TAMRA act and
Internal Revenue Codes
72, 7702, 1.01(a)(2)
100% Income
Tax Free
LIRP-Life Insurance Retirement Plan
IUL- Index Universal Life
Tax and/or legal advice not offered by World Financial Group, Inc, or their affiliated companies. Please consult with your personal tax professional or legal advisor for further guidance on tax or legal matters.
Benefits of the IUL
1.
2.
3.
4.
5.
6.
7.
8.
9.
Protection against market loss
Higher rate of return - upside growth potential
Average growth over 8.7% the past 25 years
Access to your money before 59 ½ (5-15 year surrender)
Death Benefit - Permanent Life Insurance
Terminal Illness Rider - accelerated
Long Term Care
Living Benefits Rider
100% Tax Advantaged
Because every family deserves a secure financial future
Tax-advantaged college planning options
Understand
your
education
funding
options
 Section 529 college savings plans
 Coverdell Education Savings Accounts
 Uniform Gift/Transfer to Minors Act
(UGMA/UTMA) custodial accounts
Indexed Annuities
One Final Thought
What steps are you going to take
NOW to prepare for YOUR future?