INVESTMENT
INSURANCE
DEBT ELIMINATION
Where do most people deposit or save money?
1%
B ANK _______
100
Deposit $ _______
101
1st year $ _______
102
2nd year $ _______
72
RULE OF _____
(Hypothetical Rate of Return)
When is your money going to DOUBLE?
$ to DOUBLE
% = ____
# years it takes for____
72 ÷ ____
4 %
____
Money Doubles Every 18
____ Years
12 %
____
6 Years
Money Doubles Every ____
&
INFLATION
4 %
____
$ 100
(deposit)
+
4
(interest)
$ 40,000
=
$ 104
47
$ 80,000
-
1
53
$ 160,000
=
$ 103
59
$ 320,000
-
4
65
$ 640,000
=
$ 99
29
$ 10,000
29
$ 10,000
47
$ 20,000
35
$ 20,000
65
$ 40,000
41
Difference:
$ 600,000
_________
The Impact of
TAXES
(taxes)
(inflation)
3 Ways we
Serve People
1. Save
2. Make
3. Both
Tax Strategies
Taxable (Tax Now)
Bank Products
- Fixed CD
-Money Market
-Real Estate Funds
- Mutual Funds
- Stocks
Advantages:
- Easy access
- Flexible Contributions
Disadvantages:
-1099 EVERY YEAR
- Taxable on capital
gains, dividends and
interests
Tax Deferred (Tax Later)
Tax Advantage (Tax Never)
-7702 Plan (GIUL/VUL/
FFIUL)
-Roth IRA
- 529 College Savings Plan
Retirement Plans
- IRA
- 401K/403B
- SEP IRA
- Pension
- Annuities
(Affects Financial Aid and
Student loan applications)
Advantages:
- Tax deductible
Advantages:
- Tax deferred growth
- Tax deferred growth
- Company match
- May reduce tax bracket
- Tax free withdrawal
(if properly structured for 7702 Plan)
- No penalty if withdrawn
before 59 ½ years old
(except for Roth IRA)
Disadvantages:
- Long term plan
- 10% penalty if withdrawn
before 59 ½ years old
-Taxable upon withdrawal
- RMD at age 70 ½
Disadvantages:
- Long term plan
?
Dying too soon
Living too long
Insurance
Wealth
$
Debt:
$ 50,000
Income:
$ 400,000 (40,000 x 10)
Mortgage: $ 300,000
Education: $ 250,000
Total: $1,000,000
$
$
$
Retirement
$
$
0
Invest
Young
Responsibility
Discipline
Older
Stocks
Mutual Fund
S & P 500
Average 10-12%
$ $
$ $
$ $ $
Tax Free Distribution
7702 Plan (Index Universal Life)
Index
Flexible
Insurance
Savings
Cost of Insurance
o Permanent
o Index
o No Risk
o
o
o
o
Terminal Illness Death Benefit
Flexible
Freedom
Long Term Care Benefit (FFIUL)
Cumulative Return
Permanent
Cash Value
Guaranteed
0.75%
S&P 500
Euro Stoxx 50
Hang Seng
Cap
15.0%
Index
You
401k
10%
10%
10%
20%
15%
20%
-20%
10%
0.75%
25.75%
-20%
10%
Tax Free
Distribution
Tax Deferred
Growth
7702
Plan
$40k x 25% = $10,000
$37k x 25% = $ 9,250
$3k to 401k = $750 in TAX savings
x 30 Yrs at work
$22,500 Total Tax Savings
for 30 Years!
Tax Deductible
Contribution
401K
TSP
403B
$3k x 30 Yrs x 12% = $900K in 401k
x 10% distribution
$90k
X 25% TAX
$22,500 Tax in just 1 YEAR!
X 10 Yrs of Income
$225,000 goes to TAXES
Would you rather forego the $22,500 in savings or pay $225,000 tax in the end?
401k or Mutual Fund
7702 Plan – Index Universal Life
12% - Gross
12% - Net (Tax Free Distribution)
- 4% - Tax
Using the Rule of 72: 72/12 = 6 years
8% - Net
Assuming 25% is COI
Using the Rule of 72: 72/8 = 9 years
3,000 – 750 = 2,250
29 – 3,000
38 – 6,000
29 – 2,250
47 – 12,000
41 – 9,000
56 – 24,000
65 – 48,000
47 – 18,000
35 – 4,500
After Tax
53 – 36,000
59 – 72,000
65 – 144,000 TAX FREE
Which would you rather have?
Insurance
Protection
Senior Associate 55%
$2,400
x 55%
= $1,320
25%
Trainee Associate 30%
T
A
30% $720
1
TA
$600
$600
Yo
u
2
30% $720
$1,320
SA
55% $1,320
$600
+ $1,800
= $3,120
x 2
= $6,240
3
T
A
30% $720
x 12
= $74,880
Part Time !!!
FULL TIME (40-60 HRS/WK)
10-15 LICENSED IN
THE TEAM
(MINIMUM)
UP TO 81%
SENIOR MARKETING DIRECTOR
CONTRACT
4 PERSONAL CLIENTS (MINIMUM)
10 BASE SHOP – ALL NON MD
25 IN ENTIRE HIERARCHY
PART TIME (12-20 HRS/WK)
4-6 CLIENTS/MONTH
- MEETINGS
- FIELD TRAINING
- ELITE CIRCLE
- CONVENTIONS
UP TO 55%
SENIOR ASSOCIATE
CONTRACT
$10000-$15000
$3000-$5000
BONUSES
FIELD TRAINING
OPPORTUNITIES
STOCK OPTIONS
EXPANSION
SAVE AGGRESSIVELY (50%)
PAY OFF DEBTS
SAVE $50K - $100K FOR OWN
OFFICE (3-5 YEARS)
DEBT FREE
INCOME/MONTH
INCOME/MONTH
REFERRAL ONLY
(MUST BE LICENSED)
4-6 CLIENTS/MONTH
UP TO 45%
ASSOCIATE
CONTRACT
$2000-$3000
INCOME/MONTH
SPLIT INCOME