INTEGRITY with GFD | Re re Your Worries A New Wealth Accumulation and Protection Solution For Business Owners Business Owners GuidePOWER UP + GROW + PROTECT
The Need For Better Options Main Challenges: Integrity Solution: Not having enough money to last you Accelerated Wealth Accumulation and your family for the rest of your life. Additional Life Insurance Protection Having to pay more taxes as your business grows and succeeds. Significant Tax Advantages Realizing the true value you deserve Multiple Exit Strategies from your business. Financial Legacy for Your Chosen Heirs Rewarding your family in the event of your premature passing.
Current Retirement Planning Options May Fall Short
Limitations of Current Retirement Plans Limits to Maximum Contribution Limits to Maximum Discretionary Contribution Matching Costs Expenses 100% Funding Annual by the Employer Administration401K Costs SEP Expenses Need to Watch Fiduciary Trustee Fees Exposure Tax Liabilities upon Withdrawal in Retirement Tax Liabilities upon Withdrawal in Retirement
Integrity with Global Financial Distributors® (GFD) Make Future Contribu ons Work Today • designed for a business owner:Whom is It For? u zes the business en y as the founda on for wealth accumula on and growth • to provide substan al funding right from the start What is Its Goal? to kick-start wealth accumula on • to maximize life insurance beneﬁts • uses aHow Does It Work? • deposits the loan proceeds into a universal life insurance policy to • a weal • an eﬃcient and cost-eﬀec ve way of purchasing or How is It Used? consolida ng life insurance • a powerful combina on of wealth accumula on and protec on .What is the Process? • aﬀordable, transparent and simple to implement • may be used as an add on to exis ng re rement plansFootnote: Global Financial Distributors® is a registered trademark of Entaire Global Intellectual Property Inc.
Integrity with GFD® – How It Works 1. POWER UP 2. GROW + PROTECT 3. ENJOY UP-FRONT FINANCING WEALTH ACCUMULATION EXIT STRATEGIESThe Business receives a loan The loan principal is deposited into a You create mul ple exit strategies Universal Life Policy The Loan: Life Insurance Policy: Flexible Exit Strategies: Interest-Only Sale of the Business No Personal Guarantee methods available Re rement Income May or May Not Require Collateral Has limited downside risk to the Renewable * principal Genera onal Transfer Call Protec on* Signiﬁcant life insurance coverage Death Beneﬁt The interest payments on the The cash value of the policy loan may b Tax- grows tax-deferred. to the business*Consult Integrity contract rider regarding renewability and call protection. Riders are subject to state availability, certain limitations, andmay require additional charges. See terms of the rider for full details. **(See “Disclaimer” page at the end of this presentation.) Eachcustomer should make an independent evaluation or assessment of the transaction and should consult with his/her legal and/or tax advisor.
1. Power Up: Up-Front Financing Get a Signiﬁcant Capital Infusion Business Owner Case Study: 50 year old Male, rated standard Re rement: 70 years old Integrity with Leveraged Planning® Loan - Conversion Chart Business Owner’s The 20-Year Loan Amount Available Current Annual Contribu on Through Integrity with Entaire* 25,000 = 455,000 45,000 = 818,000 65,000 = 1,182,000 85,000 = 1,545,000 100,000 = 2,000,000 Advantages:•You start with 15-20 times more funds than a traditional retirement plan participant•You only spend more if you wish to make more• Keep in mind that this is a loan and is encumbered until such time as the loan is repaid, which can be through generational transfer, death or sale of the business. Footnote: Leveraged Planning® is a registered trademark of Entaire Global Intellectual Property Inc.
Integrity with GFD® Retirement Program Business Owner Case Study: Age: 50 years old Male, rated standard Retirement: 70 years old 401K Integrity Annual Contribu 16,500 0 (Salary Deferrals and Proﬁt Sharing) Contribu n to “IRP” 0 685,000 Annual administra n expenses 8,500 Annual Net Contribu n/Cost 25,000 25,002 20-Year Total Contribu 330,000 685,000 20-Year Cost at Current Rates 500,000 500,040 20-Year Value 768,111 1,794,210 (at 7.5% compounding rate of return on the Annual Net Contribu n) Taxa n at 30% 230,433 N/A Total 20-Year Value 537,678 1,794,210 Integrity Business Owners initial contribution is equivalent to more than two times the 401k cumulative 20 year contribution.•Minnesota Life Eclipse Indexed Life Product. Includes full funding of death beneﬁts. This example is based on assump s and is being provided for informa al purposes only. The amount of life insurance purchased aﬀects the cash accumul on and dividend rates and therefore may not cover the interest on the loan.
2. Grow and Protect: The Equity Indexed Universal Life Products* The cash value of the policy will increase with the market without essentially any downside risk to principal and prior period earnings. Annual Crediting $1,134,000 Annual Crediting 5% 0% Annual $1,080,000 Crediting Needed to 8% Catch Up Market Down Turn 14.12%$1,000,000 $993,660 - 8%*This is a hypothetical example. Past performance is not indicative of future results.
Integrity with GFD® Insurance Flagship ProductMinnesota Life Eclipse IndexedLife – Historical Perspec ve* Business Owner Case Study: 50 year old Male, rated standard Re rement: 70 years old Look-Back Periods Annual Return 15 years 8.85% 20 years 8.34% 25 years 8.95% 30 years 8.86% * Source: Hallett Financial Group, Inc., a Field Marketing Organization for Minnesota Life. Based on Minnesota Life Historical Compound Averages of S&P 500, using Dec.1980 through Dec. 2009 timeframes. The attainment of the presented rates of return is not guaranteed or implied. Past performance is not indicative of future results.
Maximize Life Insurance Benefits Personal Business Survivorship Income Key Person Life Insurance Paying Off Buy-Sell Agreements Financial Liabilities Retirement Income Succession Planning Estate PlanningAdditional Benefits:1. The opportunity to consolidate your current life insurance policies and expenses.2. The ability to lock-in the initial life insurance benefits regardless of the changes in your health conditions down the road.3. A more efficient and cost effective way to take care of your insurance needs.
Enjoy: EXIT Strategies 1. Sale of Business to a Third Party 2. Generational Transfer 3. Retirement4. Life Insurance Death Benefit
Integrity’s Unparalleled EXIT Strategies 1. SALE OF BUSINESS TO A THIRD PARTY 2. RETIREMENT Flexible treatments for repayment of commercial The loan can be paid oﬀ from the cash value of the loan to limit taxable impact to Business Owner.* policy or external funds. The remaining policy cash value can be used in the The original Business Owner now has access to life form of loans with full access. insurance cash value to borrow against and full use of the entire death beneﬁt. There is no penalty for accessing this option prior to 59.5 or after 70.5 years of age. 3. GENERATIONAL TRANSFER 4. DEATH/DISABILITY OF THE BUSINESS OWNER The transaction may be considered a sale to a third Death Beneﬁt is used to retire the commercial loan. party and enjoys the same treatment. The remainder is usually a tax-free beneﬁt to the Business Owner’s beneﬁciary of choice.* The plan can be structured to be self-completing.* (See “Disclaimer” page at the end of this presentation.)
Integrity with GFD® Beneﬁt SummaryProvides up-front funding to kick- • Your ini al contribu on is equivalent to almost 20 years of start your wealth accelera on = contribu on in a tradi onal plan. process… • Has the poten al to increase the value of your assets greatly. Maximizes your life insurance • Protects your assets from market risks. beneﬁts… = • A more eﬃcient and cost-eﬀec ve way of buying life insurance. • Has the poten al to drama cally increase the value of businessProvides beneﬁts on both business = upon its sale. and personal levels… • May be used as supplemental re rement income and/or ﬁnancial legacy for your beneﬁciaries. Provides signiﬁcant • Has poten al opportunity for tax deduc bility, tax deferral and tax advantages…* = tax-free withdrawals. Organized as a turn-key solu on… = • Requires minimum work on your part – we do the rest. * (See “Disclaimer” page at the end of this presentation.)
Is This The Right Fit For You?A Typical Integrity with GFD® Client Needs an eﬃcient and cost-eﬀec ve life insurance policy. Has an average of a 15-20 year wealth accumula on me horizon. Has a steady revenue stream and cash ﬂow. Has substan al tax planning concerns May have the need for succession planning; buy-sell agreements and/or using the business to fund estate planning. May have lending restric ons in the current credit environment and limited ﬂexibility to acquire money to ﬁnance growth.
Integrity with GFD® Easy Turn-Key Implementa on 1 2 3 To pre-qualify for the Apply for a life Receive a formal loanloan, ﬁll out a standard insurance policy and oﬀer with closing Personal Informa on complete underwri ng documents. Form. documents. The Lender Automatically Sends Funds to the Life Insurance Policy Carrier to Fund Your Policy.
DisclaimerThe information contained herein has been prepared to assist interested parties in makingtheir own evaluation and does not purport to contain all of the information that aninterested party may desire. Information in this piece may be updated at any time withoutprior notice. Should there be any inconsistencies between this piece and the informationproduced by Integrity Business Solutions, LLC, the product’s architect, please refer to theIntegrity Business Solutions’ material as the source copy. Past performance does notguarantee future returns.Please be advised that this content is based on our general understanding of federalincome tax rules for U.S. individuals and businesses and may not be relied upon. Clientsshould consult and rely exclusively upon their own tax and legal advisors. Integrity BusinessSolutions Provider LLC does not provide any legal or tax advice of any nature, nor is thisdocument intended to do so. Accordingly, any tax information provided in this content is notintended or written to be used, and cannot be used, by any taxpayer for the purpose ofavoiding penalties that may be imposed on the taxpayer. The tax information was written tosupport the promotion or marketing of the transaction(s) or matter(s) addressed and youshould seek advice based on your particular circumstances from an independent tax advisor.