1. A New Financial Landscape
Why today's financial reform means
opportunity for you
2. What to expect?
• Be Surprised
• Happy to learn the REAL truth
• Upset and even angry
• Feel they have been deceived
3. Universal Need:
Money has always been important in my life
I expect it to be important in the future
4. If you never set financial goals,
how will you ever know
when you have achieved them?
5. Three Legged Stool
6. A New Financial Landscape
The role of Banks, Insurance
Companies, and Stock Brokerage
firms has dramatically changed
7. A New Financial Landscape
Today, you have to look at
8. Common Myths
Where do myths come from?
Most people get their advice from others
They rely on the Opinions of others
They do not do the homework or research for
Get The Facts
9. Common Myths
I have been told that:
“Life Insurance was a Bad Investment
10. All Investments
11. Net Amount at Risk - COI Cost of Insurance
12. Only an Insurance Company
The EDGE today is with an Insurance Company.
An insurance company can also be your best
financial friend and ally in turbulent economic
13. Only an Insurance Company offers!
• With life insurance you can receive special
benefits unavailable from your banker or
• These benefits include safety of principal
and prior earnings, low fees and
favorable tax treatment.
14. Life insurance
is a financial TOOL that
solves an economic problems
Run out of money
Risk of Losing Money
Live Too Long/Die Too Soon
more effectively and for less cost
than any other financial alternative.
15. Life Insurance
• This death focus is at the heart of most life
• Over time the "you die... we pay"
characteristic of life insurance has been
conventional wisdom –
The “Old Type or the “New Type”?
16. Life Insurance for YOUR Benefit
• Replacing current income with passive income
using Life Insurance will:
• reduce increasing expenses,
• eliminate stock market risk, and
• deliver significantly more spendable money
-- than a 401(k), IRA, or TSA account
17. Life Insurance for YOUR Benefit
Increase your spendable income
by 300% or more
401(k), TSA, or IRA.
18. Life Insurance for YOUR Benefit
• Keep all of YOUR stock market gains.
• Safely participate in the stock market without
risking principal, or paying income taxes.
• You keep all the previous gains, and never go
When the market is down
you will never go down.
19. Reduce Your Fees
• Most people have no idea how much
management fees and 401k fees REALLY cost
• It’s what you get to keep that matters
20. Replace higher fee expenses.
• As your mutual fund account value
increases, so does the dollar amount of the fee
expense you pay.
• Insurance, on the other hand, has a fixed
level fee that's part of a lifetime level
• As the account value grows, the insurance
fee stays the same.
21. Increasing vs. Fixed Fees
Year Value @ 7% Qual. plan fee (1.5%) Life Ins. Fee
1 $12,660 $190 $1,500
15 $283,694 $4,255 $1,500
20 $441,433 $6,621 $1,500
25 $647,592 $9,714 $1,500
30 $917,033 $13,755 $1,500
Example, contributing $12,000 annually
into a qualified plan7% return- 1.5% management fee.
“Low Cost”, Growth Fund in a 401(k)
Fund mgt fees 1.13%
Fund trading costs 0.86%
Participant education fees 0.75%
Administration fees 0.15%
Custodial fees 0.05%
Audit and legal fees 0.05%
Total charges 2.99%
LA Times.com 3/ 27/ 07
23. Time.com June 4, 2012:
“It isn't unusual to find 401(k)
plans with a total cost paid by the
participant exceeding 3%
24. “The 401(k) ReThink“
"once you're in a 401(k) there's no CAP
on how much the plan might skim off the
top and fees... many plans, especially
those sold to small companies, can eat up
roughly half of the real investment
September 7, 2009 Forbes.com
• If you contribute $1,000 a month for 30 years
and earn a 7% return, you will accumulate
• Run this at 5.5% -- less 1.5% fees -- and you
will have $913,617.
• That's $306,362 or 25% of YOUR total gain
went to Wall Street
26. Replace Higher Fee Expense
• The 50 year total sent to Wall Street would be
• This is totally lost money, because you
will never earn, gain, or receive income on it.
• By contrast life insurance expenses for these
50 years would only be $75,000. and zero
27. The insurance company
doesn't punish you
your account balance
28. “The ugly truth,… is
the 401(k) is a lousy
a financial flop, a
rotten repository for
Read more: http://www.time.com/time/business/article/0,8599,1929119,00.html#ixzz0okff0Dcf
Why It's Time to Retire the 401(k)By Stephen Gandel Friday, Oct. 09, 2009
29. Eliminate Premature distribution
• Should you decide to liquidate your qualified
plan in the early years before age 59 1/2, you
will incur a 10% federal tax penalty, and in
many cases a state penalty.
• This tax is another expense that reduces your
principle and prior earnings.
• There is no tax penalty with insurance.
30. Receive Living Benefits.
• Government sponsored retirement plans
DO NOT provide any sort of additional
• Life insurance, on the other hand is uniquely
designed to protect you against unforeseen
31. Receive Living Benefits.
These living benefits at no additional cost.
• terminal illness,
• chronic illness,
• critical illness, and
• guaranteed lifetime income.
32. 7 out of 10
Out of every 10 people who reach age
At least 7 people will experience one
the big three cancer , heart
attack, and stroke.
33. Receive Living Benefits
1. Heart Attack 9. Arterial Aneurysms
2. Stroke 10. Central Nervous System Tumors
3. Cancer 11. Major Multi-System Trauma
4. End Stage Renal Failure 12. AIDS
5. Major Organ Transplant 13. Severe Disease of Any Organ
6. ALS 14. Major Burns
7. Blindness 15. Loss of Limbs
16. Severe Central Nervous System
Disease (Parkinson’s, Huntington’s, MS,
34. Receive Living Benefits
Unable to perform 2 of 6
Activities of Daily Living:
bathing, continence, dressing,
eating, toileting, and transferring
35. LIFE COMES WITH RISKS
• A Harvard study found that 46.2% of
bankruptcies were attributable to major
• Nearly 75% had health insurance.
 Published in February 2005 Journal Health Affairs
36. Contributions to qualified plans
are “Phantom Deductions”
It must be paid back at some point in time at a
future income. You will have to pay it all back
Every penny of principle is added on top of the
interest -- and must be repaid a combined state
and federal tax rates which currently can exceed
37. The IRS has two basic rules:
pay me now! Or pay me later!
Which one do you think is the best
38. Life Savings Plan
Smarter more complete alternative to
401k, IRA, Roth
also know as IRS Code Sec 7702
Life Savings Plan
Investment Grade Insurance Contract
Indexed Universal Life
40. The typical mutual fund investor
has actually been
losing one percent a year for the
past 20 years, after adjusting for
3 DALBAR’s 2008 Quantitative Analysis of Investor Behavior
For Agent Training
41. Protection & Potential
Many people sacrifice return for safety, and other people sacrifice
safety for return. Indexing combines the best of both.
Indexed AccountLarge Company Stocks
8/97 8/98 8/99 8/00 8/01 8/02 8/03 8/04 8/05 8/06 8/07 8/08 8/09 8/10
$100,000 Invested in 1997
42. Actual Performance
401(k) Vs. IUL
$398,724 (1.5% fee)
43. Why have I not heard about this
Several Bestselling books
Time Magazine Cover Story
Major news publication
60 minutes and 20/20
44. I don’t have any money!
1. Redirect other Money
2. Spend Less
3. Keep More
Tax Deductible Business
4. Make More
Do referrals with us
45. People Moving…Money Moving
Huge Talent Transfer and a Multi Trillion Market
A Silver Tsunami
• $2.2 trillion in inheritances
• $17 trillion in qualified plans
• $12.3 trillion in money markets, CDs
• $2 trillion in rollovers in next 5 years
46. “Old” Way Vs “New” Way
Virtual - e Agent
• Time and Planning
• Travel Miles, Gas, Meals etc
• Weekly “live” Meetings
• People have to be with 30
• Office Hotel and Wardrobe
• No shows
• Virtual- e Agent
• Work where you want
• Work when you want
Presentations, Training, App
• Have a trainer with you
• 50 States
• More Family Time, No
• More Time, Money, Lifestyle
Online is Bigger, Better, Faster
47. Refer 3 per year & earn $ 7,200/yr.
That’s 1 every 4 months
Where else can you make this kind of money part-time?
Build a team:
Open 4 a month personally…
Build 5 Associates who each
open 2 LSA’s a month... $ 8,160/mo.
Associate Associate Associate Associate Associate
49. Training Program
• Our Training Program
–Designed for someone that’s never been in
–Can begin on a part-time, or referral basis
–On-line, conference calls and personal
• No cost to get started.