Creating Your Own Pension“How to Retire Without Going Broke”THETHENEXTSTEP
The word “Pension” defined…1. A fixed amount, other than wages, paid at regularintervals to a person or to the person’s su...
California State Pension Funds UpdateAlmost two years ago, a Stanford study stirred updiscussion statewide with the predic...
California State Pension Funds UpdateThe unfunded liabilities of the pension funds haveincreased by15 to 20 percent.-Stanf...
California State Pension Funds UpdateThe big state pension funds at the center of the hugefinancial problem are the Califo...
California State Pension Funds UpdateThe combined unfunded liability for the three fundsis $290.6 billion, presuming that ...
California State Pension Funds UpdateThe governing board of the California State TeachersRetirement System (CalSTRS) today...
To Be… Ornot toBe…Healthcare (Medical & Dental)?Distributions?Increase in Retirement age?Decreased in benefits for spo...
401(k),403(b), & TSA PlansDo they Work?The Good…Contributions can be pre-tax or post-taxMoney grows tax deferredThe Bad…...
401(k),403(b), & TSA PlansDo they Work?
3 Most Common Ways to Save for Retirement0.5% to 3%(Low InterestRates)FIXEDPRODUCTSSafety ofPrincipal
3 Most Common Ways to Save for RetirementUpside PotentialVARIABLEPRODUCTSRisk ofPrincipal0.5% to 3%(Low InterestRates)FIXE...
Safety ofSafety ofPrincipalPrincipalEARNINGS ANDGROWTHUpside PotentialUpside PotentialIndexedIndexedProductsProducts3 Most...
Our Strategies for Creating a PensionIndex Universal Life & Index Annuity InsuranceLife Insurance Products that Offer: In...
Our Strategies for Creating a PensionGeneral Characteristics of an Index Universal Life Insurance• Death benefit• Cash Acc...
Our Strategies for Creating a PensionGeneral Characteristics of an Index Universal Life Insurance• No impact on existing q...
Our Strategies for Creating a PensionIUL vs. 401(K)Indexing COMBINES Safety and Potential$115,563$124,230$124,230$143,563$...
Our Strategies for Creating a PensionIndex Annuities Typically used to transfer or “rollover” from riskier or lowerintere...
Our Strategies for Creating a PensionCharacteristics of Index Annuity Insurance• Death benefit• Beneficiaries can receive ...
Our Strategies for Creating a PensionCharacteristics of Index Annuity Insurance*Tax penalties are applicable for withdrawa...
Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid a...
Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid a...
Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid a...
Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid a...
Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid a...
Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid a...
Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid a...
Creating Your Own Pension“How to Retire Without Going Broke”THETHENEXTSTEPAct Now!!!Make an Appointment
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Creating Your Own Pension Plan

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This presentation explains how to create a tax free retirement for Civil employees.

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  • My name is Walter Hines and I’m with Bison Business & Technology Solutions. Our presentation today is called “Creating Your Own Pension Plan”.
  • How many of you think that you deserve a pension for shaping the minds of America’s youth when you retire? Do you think that the County of Low Angeles will be able to provide that for you?
  • Two year ago, a Stanford study stirred debate when it predicted that the pensions funds covering most of California’s state workers was underfunded and would not have enough money to pay all of the money owed to its retirees.
  • Two year ago, a Stanford study stirred debate when it predicted that the pensions funds covering most of California’s state workers was underfunded and would not have enough money to pay all of the money owed to its retirees.
  • Two year ago, a Stanford study stirred debate when it predicted that the pensions funds covering most of California’s state workers was underfunded and would not have enough money to pay all of the money owed to its retirees.
  • Two year ago, a Stanford study stirred debate when it predicted that the pensions funds covering most of California’s state workers was underfunded and would not have enough money to pay all of the money owed to its retirees.
  • Two year ago, a Stanford study stirred debate when it predicted that the pensions funds covering most of California’s state workers was underfunded and would not have enough money to pay all of the money owed to its retirees.
  • How will these deficits affect my retirement? No one really knows. But, you can bet that there will be deductions in health care benefits which will include medical and dental. Reductions in your monetary distributions at retirement. Perhaps an increase in the minimum retirement age, and decreased benefits for your spouse after death. Now is the time to act!
  • How many of you have elected to save money for retirement in alterative investment plans such as 403(b) and 401(k) plans? Good. But, I want you to pay close attention to this short video.
  • There are three reasons why the Crabbs went broke. The first was they didn’t put enough money away for retirement. Second, they didn’t know that their 401(k) money would be taxed, and by the way that goes for 403(b) money as well. Third, they didn’t understand that their money as at risk in the stock market. How many of you lost money in the crash of 2008? Have you been able to break even, yet?
  • There are many was to save for retirement. The three most common are Fixed products that offer safety of principal, but low interest rates.
  • Variable products, with upside potential for growth, but you could lose everything in the stock market.
  • And there are index products, which offer the best of both worlds. You have safety of principal and great upside potential. A little 20 years ago, these products were introduced and they have become one of the fastest selling financial products available. Why? Because they combined safety of principal and upside potential for growth.
  • Index Universal Life insurance and Index Annuities are life products that offer a death benefit and cash value accumulation. Each product uses an interest credit strategy that is based on the movement of specific market indexes such as the S&P 500, NASDAQ-100, and the Dow Jones Industrial Average. So, instead of investing in a specific stock, bond, treasure note, or portfolio, each product uses a strategy that allows the owner to participate in the growth of the entire market up to a cap rate. However, since these are not investment products, the policy holder’s money is protected from losses due to declines in the market.
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  • Here is an example of $100,000 invested in the stock market from 1997 – 2010. As you can see there were a lot of ups and downs in the market represented here in red, and after 13 years, there was a modest $20,000 gain. With the index product, marked in blue, the value increase along with the stock market, until it reached it’s cap rate. When the market crashed during in during what was called the “dot.com” bust of 2002, the value remained the same. It increased again during the boom years of the 2000’s and when the market crashed again in 2008, once again, the value remained the same and policy holders lost nothing. And, as you can see there was an additional $63,000 dollar gain. Once again, Indexing combines safety and potential!
  • Typically, an annuity owner is between the ages of 45 and up. In some cases, carriers may not sell Annuities to individuals younger than 35 and older than 85 years of age. However, there are always exceptions to the rules.
  • Read the Text
  • Read the Text
  • A recap of the definition of a pension. (Read Text) Did our IUL product meet the criteria for a fixed amount of income made payable to the owner or their beneficiaries?
  • Did our IA product meet the criteria for a fixed amount of income made payable to the owner or their beneficiaries?
  • Where the payments made payable to the owner or their beneficiaries at regular intervals?
  • How about or IA?
  • Was there an allowance or subsidy with IUL product?
  • How about the IA?
  • With our products, you receive a pension and an estate planning tool in which you can provide tax free income to your spouse our beneficiaries after death. So do our products meet the literal and figurative definition of a Pension?
  • My business partner is now going to pass out appointment slips for those of you who are interested in setting appointments. Please remember that there is no obligation to begin your personal pension right now, but you’ll want to act now because time is of the essence.
  • Creating Your Own Pension Plan

    1. 1. Creating Your Own Pension“How to Retire Without Going Broke”THETHENEXTSTEP
    2. 2. The word “Pension” defined…1. A fixed amount, other than wages, paid at regularintervals to a person or to the person’s survivingdependents in consideration of past services, age, meritpoverty, injury or loss sustained, etc.: a retirementpension2. An allowance, annuity, or subsidy.- Dictionary.com
    3. 3. California State Pension Funds UpdateAlmost two years ago, a Stanford study stirred updiscussion statewide with the prediction that the pensionfunds of Californias state workers were headed for a trainwreck. The retirement system would eventually not haveenough money to pay all that it owes to its retirees.-Stanford Report, Dec. 14, 2011
    4. 4. California State Pension Funds UpdateThe unfunded liabilities of the pension funds haveincreased by15 to 20 percent.-Stanford Report, Dec. 14, 2011
    5. 5. California State Pension Funds UpdateThe big state pension funds at the center of the hugefinancial problem are the California Public EmployeesRetirement System (CalPERS), the California StateTeachers Retirement System (CalSTRS), and theUniversity of California Retirement Plan (UCRP).-Stanford Report, Dec. 14, 2011
    6. 6. California State Pension Funds UpdateThe combined unfunded liability for the three fundsis $290.6 billion, presuming that the funds earn a 6.2percent return from investments. That figure represents anunfunded amount per California household of nearly$24,000.-Stanford Report, Dec. 14, 2011
    7. 7. California State Pension Funds UpdateThe governing board of the California State TeachersRetirement System (CalSTRS) today adopted a new set ofaccrual assumptions, including the investment returnsassumption from 7.75 percent to 7.5 percent.-February 2, 2012CalSTRSwww.calstrs.com/newsroom/2012/news020212.aspx
    8. 8. To Be… Ornot toBe…Healthcare (Medical & Dental)?Distributions?Increase in Retirement age?Decreased in benefits for spouse?Will these deficits affect My Retirement?Now is the time to Act!!!
    9. 9. 401(k),403(b), & TSA PlansDo they Work?The Good…Contributions can be pre-tax or post-taxMoney grows tax deferredThe Bad…Contribution limits for employees ($16,5000)*Early withdrawals subjected to Federal & State taxes*Tax on Retirement distributionsThe Ugly…Money at risk in the Stock Market!!!
    10. 10. 401(k),403(b), & TSA PlansDo they Work?
    11. 11. 3 Most Common Ways to Save for Retirement0.5% to 3%(Low InterestRates)FIXEDPRODUCTSSafety ofPrincipal
    12. 12. 3 Most Common Ways to Save for RetirementUpside PotentialVARIABLEPRODUCTSRisk ofPrincipal0.5% to 3%(Low InterestRates)FIXEDPRODUCTSSafety ofPrincipal
    13. 13. Safety ofSafety ofPrincipalPrincipalEARNINGS ANDGROWTHUpside PotentialUpside PotentialIndexedIndexedProductsProducts3 Most Common Ways to Save for Retirement0.5% to 3%(Low InterestRates)FIXEDPRODUCTSVARIABLEPRODUCTSRisk ofPrincipalIndexing COMBINES Safety and Potential
    14. 14. Our Strategies for Creating a PensionIndex Universal Life & Index Annuity InsuranceLife Insurance Products that Offer: Index Universal Life insurance and Index Annuities are lifeproducts that offer a death benefit and cash value accumulation Each product uses an interest credit strategy that is based onthe movement of specific market indexes such as the S&P 500,NASDAQ-100, and the Dow Jones Industrial Average
    15. 15. Our Strategies for Creating a PensionGeneral Characteristics of an Index Universal Life Insurance• Death benefit• Cash Accumulation (Cap rates up to 14%*)• Protection from stock market crashes (0% floor with a 3% lookback**)• Tax Deferred cash accumulation• Tax Free income during retirement• Tax Free income for life (or until policy holder reaches the age 120*)• No contribution limits (currently $16,500 for employees & $49,500 forcertain business owners in qualified retirement plans)
    16. 16. Our Strategies for Creating a PensionGeneral Characteristics of an Index Universal Life Insurance• No impact on existing qualified plans (policy holder may set asidemore money for retirement without fear of IRS penalties)• 0% Floor (with 3% look back)• 12-14% Cape Rate• Terminal Illness Protection**• Critical Illness Protection**• Long Term Care Protection**Represents riders that can be attached to specific IUL policies.**Represents FREE riders attached to specific IUL policies.
    17. 17. Our Strategies for Creating a PensionIUL vs. 401(K)Indexing COMBINES Safety and Potential$115,563$124,230$124,230$143,563$158,775$170,683$154,330$133,547$107,500$170,683$183,484$150,000$140,000$130,000$120,000$100,000$160,000$170,000$90,000$110,000$100,000 Invested in 1997Indexed AccountLarge Company Stocks8/1/97 8/3/98 8/2/99 8/1/00 8/1/01 8/1/02 8/1/03 8/2/04 8/1/05 8/1/06 8/1/07 8/1/08 8/3/09$151,836$128,379$140,217$93,403$116,838$117,453$130,430$134,185$103,485$133,065$109,673$120,396$154,7628/2/10$180,000$190,000$63,088Difference!
    18. 18. Our Strategies for Creating a PensionIndex Annuities Typically used to transfer or “rollover” from riskier or lowerinterest baring accountsIndividuals must meet suitable age requirements for productMoney must remain in account for several years (unlesscreating a Single Premium Index Annuity “SPIA”) aka“Surrender Period”Surrender Period can last for up to 12 years (typically 5/10)
    19. 19. Our Strategies for Creating a PensionCharacteristics of Index Annuity Insurance• Death benefit• Beneficiaries can receive a lump sum upon death of owner orcontinue to receive distributions• Protection from stock market crashes• Tax Deferred cash accumulation (cap rates are much lowerthan IULs)• Tax Free income for life (if funded with AFTERTAX MONEYONLY)
    20. 20. Our Strategies for Creating a PensionCharacteristics of Index Annuity Insurance*Tax penalties are applicable for withdrawals from money received fromqualified PRE-TAXED retirement plans
    21. 21. Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid at regular intervals to a person orto the persons surviving dependents An allowance, annuity, or subsidyIUL Index Annuity
    22. 22. Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid at regular intervals to a person orto the persons surviving dependents An allowance, annuity, or subsidyIUL Index Annuity
    23. 23. Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid at regular intervals to a person orto the persons surviving dependents An allowance, annuity, or subsidyIUL Index Annuity
    24. 24. Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid at regular intervals to a person orto the persons surviving dependents An allowance, annuity, or subsidyIUL Index Annuity
    25. 25. Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid at regular intervals to a person orto the persons surviving dependents An allowance, annuity, or subsidyIUL Index Annuity
    26. 26. Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid at regular intervals to a person orto the persons surviving dependents An allowance, annuity, or subsidyIUL Index Annuity
    27. 27. Our Strategies for Creating a PensionRecap of the definition of a Pension A fixed amount (income) other thanwages Paid at regular intervals to a person orto the persons surviving dependents An allowance, annuity, or subsidyIUL Index Annuity
    28. 28. Creating Your Own Pension“How to Retire Without Going Broke”THETHENEXTSTEPAct Now!!!Make an Appointment
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