TRUE ASSET OPTIMIZATION THE QUICKEST PATH  TO EARLY FINANCIAL INDEPENDENCE
<ul><li>“ A sudden manifestation or  perception of the essential nature  or meaning of something.” </li></ul>Epiphany “ Ah...
Different Isn’t always better… but, Better Is always different!
“ Remember… Today is the first day of the rest of your life!” Withhold Justifying Suspend Your Disbelief Be Open-Minded
Isn’t it Time You Became Wealthy?
Wisdom Financial Contribution Core •  House •  Cash •  Other Real Estate •  Stocks •  Bonds Material Possessions •  Family...
Core Wisdom Financial Contribution (Live) (Learn) (Give) ( Earn )
“ It is more  important that values are understood before assets are valued.”
What If …   What You Thought To Be True Turned Out Not To Be True, When Would You Want To Know? Especially  When It Comes ...
What If … Contributions To Your 401(k) or IRA Were Actually Robbing You of Retirement Income? Paying Off Your Mortgage Wit...
An American Wealth Crisis ! Worst Savings Rate Since Depression www.thebigpicture.com 1933-1934 2005-2006 1929 - 2006
Is postponing tax a good idea? IRAs and 401(k)s After Tax
Qualified Plans {IRAs, 401(k)s, etc.} <ul><li>Fully taxed as  you use it </li></ul><ul><li>Penalties </li></ul><ul><li>Mus...
A. Lower? Will future tax rates likely be: B. Same? C. Higher?
Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(...
The IRA/401(k) Story 35 years @ 8% ROR   $6,000/year   -$2,000   (33% combined tax bracket x 35 yrs =  $70,000 tax savings...
Are you planning YOUR Retirement or Uncle Sam’s?
Growth & Tax of Deductible Plans 7.5% Return  33% Tax Rate Deferred Taxes   = Increased Taxes Investment Growth (No Tax)
Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(...
True Asset Optimization The World of Successful Equity Management
How much would you invest? You determine the amount and length of time for monthly contributions to continue.
How much would you invest? You can pay more than  the minimum monthly contribution,  but not less.
How much would you invest? If you attempt to pay less, the financial institution  keeps all of the previous contributions.
How much would you invest? The money deposited in the account is  not safe  from loss of principal.
How much would you invest? Each contribution made to the account results in  less safety.
How much would you invest? The money in the account is  not liquid.
How much would you invest? The money in the account earns  a 0% rate of return.
How much would you invest? Your income-  tax liability increases  with each contribution.
How much would you invest? When the plan  is fully funded, there is  no income paid out.
Equity Management is the Key to Enhancing your Net Worth
Home Equity 101 $ 350,000  Value -200,000   Loans $ 150,000  Equity The difference between fair market value and all loans...
BUT I CAN’T AFFORD TO BUY  A HOME!   <ul><li>FHA Loan </li></ul><ul><li>down payment as low as 3% of the purchase price   ...
<ul><li>EXCHANGE YOUR RENT FOR HOME OWNERSHIP </li></ul><ul><li>7 PERCENT INTEREST MORTGAGE WITH MONTHLY RENT EQUIVALENT <...
-2 x -2 = What do you get  when you multiply one negative by another? +4 A POSITIVE
Preferred vs. Non-Preferred Interest Expense Income $72,000  $72,000 Non-Preferred Interest   -12,000   0   60,000  72,000...
30-Year  Amortized Mortgage
Amortization Schedule
Equity Development
Equity Management
Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(...
Equity Management <ul><li>Primary elements for determining a wise and prudent investment are: </li></ul>L iquidity S afety...
WHAT IS THE #1 REASON FOR FORECLOSURES? DISABILITY! NEED FOR LIQUID CAPITAL
NEED FOR LIQUID CAPITAL YOU’RE FIRED. JOB LAYOFF
Fat Chance!
NEED FOR SAFETY HURRICANE KATRINA
NEED FOR SAFETY PROTECT YOUR EQUITY FROM LAW SUITS! Property Search includes a report with information pertaining to sales...
Fat Chance!
5 Years @ 6% $ 255,256 5 Years @ 6% $ 255,256 $ 510,512! RETURN ON EQUITY Separate Equity HOME EQUITY HAS   NO   RATE OF R...
Which costs are you incurring? <ul><li>Opportunity Cost? </li></ul>
<ul><ul><ul><li>Opportunity Cost  -  “the benefits you could have received by taking an alternative action.” </li></ul></u...
Which costs are you incurring? <ul><li>Employment Cost? </li></ul>
5 Years @ 6% $ 255,256 5 Years @ 6% $ 255,256 $ 510,512! RETURN ON EQUITY Separate Equity HOME EQUITY HAS   NO   RATE OF R...
Tax Deductible  Interest Expense
Tax Deductible Interest Expense Interest Expense  $12,000 Dollar Analysis Tax Savings  $4,000 Real Cost of Interest $8,000
BANKS AREN’T AFRAID TO PAY INTEREST!
Your Family Bank Separate  $100,000 of Equity Borrowing at 9% Investing at 7.5% $90,000 $195,888 Year 15 $105,888 $180,000...
Three Ways to Stack Up  a Million or More Separate  $100,000 of Equity Borrowing at 6.5% Investing at 8.5% 1 Example $65,0...
Three Ways to Stack Up  a Million or More Separate  $175,000 of Equity Borrowing at 7% Investing at 8% 2 Example $122,500 ...
Three Ways to Stack Up  a Million or More Separate  $260,000 of Equity Borrowing at 7.5% Investing at 7.5% 3 Example $195,...
L IQUIDITY R ETURN S AFETY
Private  Retirement Plan
Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(...
The IRA/401(k) Story 35 years @ 8% ROR   $6,000/year   -$2,000   (33% combined tax bracket x 35 yrs =  $70,000 tax savings...
The Home Equity Retirement Plan Home Value $270,000 Home Equity Loan  $100,000 x  6.0 % Employment Cost   $ 6,000 Interest...
<ul><li>WINNER </li></ul><ul><li>Home Equity </li></ul><ul><li>Retirement Plan </li></ul>
A. Liquidity B. Safety C. Rate of Return D. Tax Favored E. All of the Above
The Risk-Return Paradigm 1.  Commodities 2.  Business Ventures 3.  Limited Partnerships 4.  Raw Land 5.  Speculative Commo...
 
Passes On Tax Free Accumulation Tax Free Withdrawals Tax Free Properly Structured Tax Favored  Investment Grade Insurance ...
Year 5 Year 4 Year 3 Year 2 Year 1 New Cash Contributions Compound Interest Total Premiums Allowed: $____________________ ...
Year 1 Year 2 Year 3 Year 4 Year 5
THE SWING AND THE CLUBS…
New Math: <ul><li>When does: -30 + 43 = 0? </li></ul><ul><ul><li>When it involves placing your retirement dollars directly...
BACKWARDS DON’T GO END YEAR HYPOTHETICAL RETURN   YEAR-END VALUE   $100,000 1 10%   $110,000 2 10%   $121,000 3   -10%   $...
BACKWARDS DON’T GO END YEAR HYPOTHETICAL RETURN   YEAR-END VALUE   $100,000 1 3.25%   $103,250 2 3.25%   $106,606 3   3.25...
96  97  98  99  00  01  02  03  04  05  06  1600 1500 1400 1300 1200 1000 800 600 400 1433 1274 1144 895 1088 1205 1202 94...
1996   $100,000  $100,000    1997  $126,400  +26%   $115,000  +15% 1998  $160,528  +27%  $132,325  +15%    1999  $191,349 ...
Coast or Risk Crashing
“ There is something that is more powerful than all the armies in the world, and that is an idea whose time has come.”
True Wealth Transformer
MILLIONAIRE BY THIRTIES THE QUICKEST PATH  TO EARLY FINANCIAL INDEPENDENCE
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Millionaire By Thirty Seminar

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Millionaire By Thirty Seminar

  1. 1. TRUE ASSET OPTIMIZATION THE QUICKEST PATH TO EARLY FINANCIAL INDEPENDENCE
  2. 2. <ul><li>“ A sudden manifestation or perception of the essential nature or meaning of something.” </li></ul>Epiphany “ Aha!”
  3. 3. Different Isn’t always better… but, Better Is always different!
  4. 4. “ Remember… Today is the first day of the rest of your life!” Withhold Justifying Suspend Your Disbelief Be Open-Minded
  5. 5. Isn’t it Time You Became Wealthy?
  6. 6. Wisdom Financial Contribution Core • House • Cash • Other Real Estate • Stocks • Bonds Material Possessions • Family • Health • Values • Knowledge • Experiences • Education • Reputation • Taxes • Charities • Time/Talents • Wisdom/Experience • Family Foundations Re-direct (Things) (Civic/Social) (Intellectual) (Human) • Well Being • Spirituality • Heritage • Character • Talents • Habits • Future • Methods • Ideas • Traditions • Alliances • Skills • Systems
  7. 7. Core Wisdom Financial Contribution (Live) (Learn) (Give) ( Earn )
  8. 8. “ It is more important that values are understood before assets are valued.”
  9. 9. What If … What You Thought To Be True Turned Out Not To Be True, When Would You Want To Know? Especially When It Comes To Your Money & Financial Planning
  10. 10. What If … Contributions To Your 401(k) or IRA Were Actually Robbing You of Retirement Income? Paying Off Your Mortgage With Extra Principal Payments Was Wasting Your Home’s Value? Much of What You’ve Been Taught About Financial Planning Was Flat Out Wrong? When Would You Want To Know?
  11. 11. An American Wealth Crisis ! Worst Savings Rate Since Depression www.thebigpicture.com 1933-1934 2005-2006 1929 - 2006
  12. 12. Is postponing tax a good idea? IRAs and 401(k)s After Tax
  13. 13. Qualified Plans {IRAs, 401(k)s, etc.} <ul><li>Fully taxed as you use it </li></ul><ul><li>Penalties </li></ul><ul><li>Must use it up </li></ul><ul><li>Remainder potentially taxed twice upon passing to non-spousal heirs </li></ul><ul><li>Tax deductible funding </li></ul><ul><li>Tax deferred growth </li></ul><ul><li>Possible matching </li></ul>Cons Pros
  14. 14. A. Lower? Will future tax rates likely be: B. Same? C. Higher?
  15. 15. Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(k)s
  16. 16. The IRA/401(k) Story 35 years @ 8% ROR $6,000/year -$2,000 (33% combined tax bracket x 35 yrs = $70,000 tax savings ) $4,000 Net Cost $1,000,000 Nest Egg 8% interest $80,000/yr -$26,400 (33% tax) 20 year retirement Over $500,000 in taxes ! 30 year retirement Over $800,000 in taxes ! “ Why Didn’t Somebody Tell Us The Rest of The Story?!?” Non Qualified Retirement Plan 35 years @ 8% ROR $6,000/year - $0 (33% combined tax bracket x 35 yrs = $ 0 tax savings) $6,000 Net Cost $1,000,000 Nest Egg $80,000/yr 8% interest - $0 (tax free) $80,000 Net Spendable Income Spendable Income $53,600 Net Nearly 50% Increase from the first scenario! Which Would You Prefer? 20 year retirement Over $500,000 in additional income ! 30 year retirement Over $800,000 in additional income !
  17. 17. Are you planning YOUR Retirement or Uncle Sam’s?
  18. 18. Growth & Tax of Deductible Plans 7.5% Return 33% Tax Rate Deferred Taxes = Increased Taxes Investment Growth (No Tax)
  19. 19. Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(k)s Non-Qualified Alternative Home Equity Retirement Planning
  20. 20. True Asset Optimization The World of Successful Equity Management
  21. 21. How much would you invest? You determine the amount and length of time for monthly contributions to continue.
  22. 22. How much would you invest? You can pay more than the minimum monthly contribution, but not less.
  23. 23. How much would you invest? If you attempt to pay less, the financial institution keeps all of the previous contributions.
  24. 24. How much would you invest? The money deposited in the account is not safe from loss of principal.
  25. 25. How much would you invest? Each contribution made to the account results in less safety.
  26. 26. How much would you invest? The money in the account is not liquid.
  27. 27. How much would you invest? The money in the account earns a 0% rate of return.
  28. 28. How much would you invest? Your income- tax liability increases with each contribution.
  29. 29. How much would you invest? When the plan is fully funded, there is no income paid out.
  30. 30. Equity Management is the Key to Enhancing your Net Worth
  31. 31. Home Equity 101 $ 350,000 Value -200,000 Loans $ 150,000 Equity The difference between fair market value and all loans against the property is your equity.
  32. 32. BUT I CAN’T AFFORD TO BUY A HOME! <ul><li>FHA Loan </li></ul><ul><li>down payment as low as 3% of the purchase price </li></ul><ul><li>most of your closing costs and fees can be included in the loan </li></ul><ul><li>The borrower is eligible for approximately 97% financing </li></ul><ul><li>Max loan amount $ 315,000 a one family unit (in Milwaukee) </li></ul><ul><li>borrow up to 110% of the value of the home AFTER the repairs and rehabilitation of the home </li></ul><ul><li>www.hud.gov /buying/ loans </li></ul><ul><li>http://fha.mortgageloanplace.com/ </li></ul><ul><li>VA Loan </li></ul><ul><li>No down payment required </li></ul><ul><li>The VA allows the borrower financing at 100% of the purchase price </li></ul><ul><li>No mortgage insurance </li></ul><ul><li>Easier qualification standards </li></ul><ul><li>Credit and income standards are not as strict </li></ul><ul><li>If you have a Certificate of Eligibility, you can pre-qualify for a VA home purchase now for a home of up to $417,000 </li></ul><ul><li>www.vamortgagecenter.com </li></ul>NOT ^
  33. 33. <ul><li>EXCHANGE YOUR RENT FOR HOME OWNERSHIP </li></ul><ul><li>7 PERCENT INTEREST MORTGAGE WITH MONTHLY RENT EQUIVALENT </li></ul><ul><ul><li> 15-YEAR 30-YEAR INTEREST-ONLY </li></ul></ul><ul><li>MONTHLY RENT MORTGAGE MORTGAGE MORTGAGE </li></ul><ul><li> $550 $76,488 $103,336 $117,857 </li></ul><ul><li> $650 $90,396 $122,125 $139,286 </li></ul><ul><li> $750 $104,302 $140,913 $160,714 </li></ul><ul><li> $850 $118,209 $159,702 $182,143 </li></ul><ul><li> $950 $132,116 $178,490 $203,571 </li></ul><ul><li> $1,050 $146,023 $197,279 $225,000 </li></ul><ul><li> $1,150 $159,930 $216,067 $246,429 </li></ul><ul><li> $1,250 $173,837 $234,856 $267,857 </li></ul>
  34. 34. -2 x -2 = What do you get when you multiply one negative by another? +4 A POSITIVE
  35. 35. Preferred vs. Non-Preferred Interest Expense Income $72,000 $72,000 Non-Preferred Interest -12,000 0 60,000 72,000 Preferred Interest 0 -12,000 Available Before Taxes 60,000 60,000 (TAX SAVINGS) $4,000 $72,000 $60,000 Taxable Income Difference $12,000
  36. 36. 30-Year Amortized Mortgage
  37. 37. Amortization Schedule
  38. 38. Equity Development
  39. 39. Equity Management
  40. 40. Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(k)s Non-Qualified Alternative Home Equity Retirement Planning
  41. 41. Equity Management <ul><li>Primary elements for determining a wise and prudent investment are: </li></ul>L iquidity S afety R ate of Return
  42. 42. WHAT IS THE #1 REASON FOR FORECLOSURES? DISABILITY! NEED FOR LIQUID CAPITAL
  43. 43. NEED FOR LIQUID CAPITAL YOU’RE FIRED. JOB LAYOFF
  44. 44. Fat Chance!
  45. 45. NEED FOR SAFETY HURRICANE KATRINA
  46. 46. NEED FOR SAFETY PROTECT YOUR EQUITY FROM LAW SUITS! Property Search includes a report with information pertaining to sales history, current value, lot size, property details, owner(s) information, current mortgage, l egal information, and other information that is part of public records, including county records.
  47. 47. Fat Chance!
  48. 48. 5 Years @ 6% $ 255,256 5 Years @ 6% $ 255,256 $ 510,512! RETURN ON EQUITY Separate Equity HOME EQUITY HAS NO RATE OF RETURN $ 200,000 $ 200,000 BUT… BUT THERE’S A COST!
  49. 49. Which costs are you incurring? <ul><li>Opportunity Cost? </li></ul>
  50. 50. <ul><ul><ul><li>Opportunity Cost - “the benefits you could have received by taking an alternative action.” </li></ul></ul></ul><ul><li>- investopedia.com </li></ul>
  51. 51. Which costs are you incurring? <ul><li>Employment Cost? </li></ul>
  52. 52. 5 Years @ 6% $ 255,256 5 Years @ 6% $ 255,256 $ 510,512! RETURN ON EQUITY Separate Equity HOME EQUITY HAS NO RATE OF RETURN $ 200,000 $ 200,000
  53. 53. Tax Deductible Interest Expense
  54. 54. Tax Deductible Interest Expense Interest Expense $12,000 Dollar Analysis Tax Savings $4,000 Real Cost of Interest $8,000
  55. 55. BANKS AREN’T AFRAID TO PAY INTEREST!
  56. 56. Your Family Bank Separate $100,000 of Equity Borrowing at 9% Investing at 7.5% $90,000 $195,888 Year 15 $105,888 $180,000 $775,495 Year 30 $595,495 $6,000 Year 1 Net Cost $7,500 Net Growth $1,500 Difference
  57. 57. Three Ways to Stack Up a Million or More Separate $100,000 of Equity Borrowing at 6.5% Investing at 8.5% 1 Example $65,000 $239,974 Year 15 $174,974 $130,000 $1,055,825 Year 30 $925,825 $4,333 Year 1 Net Cost $8,500 Net Growth $4,167 Difference
  58. 58. Three Ways to Stack Up a Million or More Separate $175,000 of Equity Borrowing at 7% Investing at 8% 2 Example $122,500 $380,130 Year 15 $257,630 $245,000 $1,585,965 Year 30 $1,340,965 $8,167 Year 1 Net Cost $14,000 Net Growth $5,833 Difference
  59. 59. Three Ways to Stack Up a Million or More Separate $260,000 of Equity Borrowing at 7.5% Investing at 7.5% 3 Example $195,000 $509,308 Year 15 $314,308 $390,000 $2,016,288 Year 30 $1,626,288 $13,000 Year 1 Net Cost $19,500 Net Growth $6,500 Difference
  60. 60. L IQUIDITY R ETURN S AFETY
  61. 61. Private Retirement Plan
  62. 62. Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(k)s Non-Qualified Alternative Home Equity Retirement Planning
  63. 63. The IRA/401(k) Story 35 years @ 8% ROR $6,000/year -$2,000 (33% combined tax bracket x 35 yrs = $70,000 tax savings ) $4,000 Net Cost $1,000,000 Nest Egg 8% interest $80,000/yr -$26,400 (33% tax) 20 year retirement Over $500,000 in taxes ! 30 year retirement Over $800,000 in taxes ! “ Why Didn’t Somebody Tell Us The Rest of The Story?!?” Non Qualified Retirement Plan 35 years @ 8% ROR $6,000/year - $0 (33% combined tax bracket x 35 yrs = $ 0 tax savings) $6,000 Net Cost $1,000,000 Nest Egg $80,000/yr 8% interest - $0 (tax free) $80,000 Net Spendable Income Spendable Income $53,600 Net Nearly 50% Increase from the first scenario! Which Would You Prefer? 20 year retirement Over $500,000 in additional income ! 30 year retirement Over $800,000 in additional income !
  64. 64. The Home Equity Retirement Plan Home Value $270,000 Home Equity Loan $100,000 x 6.0 % Employment Cost $ 6,000 Interest-Only You have the same up-front tax advantage as an IRA/401k: $6,000 Deductible Interest 33.3% $2,000 Taxes Saved 4,000 Net Outlay A $100,000 pre-funded alternative retirement account @8% = $1,475,000 @ 35 yrs 8 % Interest-only Withdrawals $ 118,000 Net Income Is there a way to “ HAVE MY CAKE and EAT IT TOO?” Which Net Income Would You Prefer: $118,000 or $53,600 /year?
  65. 65. <ul><li>WINNER </li></ul><ul><li>Home Equity </li></ul><ul><li>Retirement Plan </li></ul>
  66. 66. A. Liquidity B. Safety C. Rate of Return D. Tax Favored E. All of the Above
  67. 67. The Risk-Return Paradigm 1. Commodities 2. Business Ventures 3. Limited Partnerships 4. Raw Land 5. Speculative Common Stocks 6. Lower Quality Bonds 7. Investment Real Estate 8. Blue Chip Stocks 9. High Grade Bonds 10. Mutual Funds 11. CD’s 12. Maximum-Funded Insurance 13. Money Market Funds 14. U.S. Treasury Bills 15. Annuities 16. Equity in House • Liquidity • Safety • Rate of Return • Tax Favored Harvest 1. Commodities 2. Business Ventures 3. Limited Partnerships 4. Raw Land 5. Speculative Common Stocks 6. Lower Quality Bonds 7. Investment Real Estate 8. Blue Chip Stocks 9. High Grade Bonds 10. Mutual Funds 11. CD’s 12. Maximum-Funded Insurance 13. Money Market Funds 14. U.S. Treasury Bills 15. Annuities 16. Equity in House
  68. 69. Passes On Tax Free Accumulation Tax Free Withdrawals Tax Free Properly Structured Tax Favored Investment Grade Insurance Plans Where is the Answer? IRS Tax Codes
  69. 70. Year 5 Year 4 Year 3 Year 2 Year 1 New Cash Contributions Compound Interest Total Premiums Allowed: $____________________ Minimum Death Benefits Required: $__________ Insurance Mortality and Expense Charges TEFRA 1982 DEFRA 1984 TAMRA 1986 Corridor dictates the minimum death benefit required based upon the insured’s age and gender to accommodate the ultimate desired aggregate premium basis.
  70. 71. Year 1 Year 2 Year 3 Year 4 Year 5
  71. 72. THE SWING AND THE CLUBS…
  72. 73. New Math: <ul><li>When does: -30 + 43 = 0? </li></ul><ul><ul><li>When it involves placing your retirement dollars directly into the market! </li></ul></ul><ul><ul><ul><li>If during the first year you LOST 30% , it would take a 43% GAIN the following year just to get you back to where you started! </li></ul></ul></ul>
  73. 74. BACKWARDS DON’T GO END YEAR HYPOTHETICAL RETURN YEAR-END VALUE $100,000 1 10% $110,000 2 10% $121,000 3 -10% $108,900 NEXT LET’S LOOK AT A FIXED ANNUITY WITH A RATE OF 3.25%
  74. 75. BACKWARDS DON’T GO END YEAR HYPOTHETICAL RETURN YEAR-END VALUE $100,000 1 3.25% $103,250 2 3.25% $106,606 3 3.25% $110,070 THE FIXED ANNUITY YIELDING JUST 3.25% HAS A HIGHER ACCUMULATION OVER A THREE YEAR PERIOD! $108,900 VS $110,070 Volatile Safe, Guaranteed
  75. 76. 96 97 98 99 00 01 02 03 04 05 06 1600 1500 1400 1300 1200 1000 800 600 400 1433 1274 1144 895 1088 1205 1202 946 748 Linked S&P 500 Index $119,458 Equity Indexed Investing Annual Lock-In & Reset 1262 $170,110 $ 188,930 * This is a hypothetical illustration and assumes a 15% cap and a 1% floor. S&P 500 from December 21, 1996 to December, 2006 $191,349 $152,759 1418 $100,000 $145,141 $160,671 $168,222 $100,000 $115,000 $156,771 $180,286 $199,576 $234,678 +19% Better! $126,400 $160,528 $132,325 $152,162 $153,683 $155,219 $208,956 A difference of $45,748!
  76. 77. 1996 $100,000 $100,000 1997 $126,400 +26% $115,000 +15% 1998 $160,528 +27% $132,325 +15% 1999 $191,349 +19% $152,162 +15% 2000 $170,110 -11% $153,683 +01% 2001 $152,759 -10% $155,219 +01% 2002 $119,458 -22% $156,771 +01% 2003 $145,141 +21% $180,286 +15% 2004 $160,671 +11% $199,576 +11% 2005 $168,222 +05% $208,956 +05% 2006 $188,930 +12% $234,678 +12% +7.89% Ave +9.07% Ave TAXABLE SERIES 1 fund value at the end of 10 years = $188,930 TAX-FREE SERIES 2 fund value at the end of 10 years = $234,678 Year SERIES 1 SERIES 2 Taxable Tax-Free *Based Upon The S&P 500 From Dec. 21, 1996 To Dec. 21, 2006 Monthly Average Index With 15% Cap and 1% Floor 19% Better! Starting with $100,000
  77. 78. Coast or Risk Crashing
  78. 79. “ There is something that is more powerful than all the armies in the world, and that is an idea whose time has come.”
  79. 80. True Wealth Transformer
  80. 81. MILLIONAIRE BY THIRTIES THE QUICKEST PATH TO EARLY FINANCIAL INDEPENDENCE

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