Bill of Rights and Rights to Bills San Francisco Chamber of Commerce November 15, 2010
Power of Compounding “ The most powerful force in the universe is compounding” Albert Einstein (1879-1955)
Penny Power (1 to 15)  1 $0.02  2 $0.04  3 $0.08  4 $0.16  5 $0.32  6 $0.64  7 $1.28  8 $2.56  9 $5.12  10 $10.24  11 $20....
Penny Power (15 to 30)
How to benefit from the Power of Compounding
Traditional IRA vs. Taxable account (years 1 to 15)
Traditional IRA vs. Taxable account (years 15 to 30)
GIVE or TAKE
Roth IRA vs. Traditional IRA (years 30 to 44)
Roth IRA vs. Traditional IRA (years 45 to 60)
Value in expert advice
Summary of Savings <ul><ul><ul><li>IRA vs. Taxable Account = $110k tax savings </li></ul></ul></ul><ul><ul><ul><li>Roth IR...
Independent and Trusted Advisors
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Bill Of Rights And Rights To Bills

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ill of Rights and Rights to Bills

Freedom of speech, due process, trial by jury, powers of states and people are among the many important Bill of Rights.

But what about your Rights to U.S. Bills? Washington ($1), Jefferson($2), Lincoln($5), Hamilton ($10), Grant ($50), Franklin ($100), MiKinley ($500), Cleveland ($1,000), and Madison ($5,000). All these Presidents are waiting for you. Through a coordinated effort with your CPA and investment adviser, these can be yours with little action needed by you.

More about this opportunity can be found in the presentation to the San Francisco Chamber of Commerce on October 20, 2010.

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  • This dude knew what was up. Start small and think BIG!
  • You see the power of compounding at it’s best when you start real small. Take 2 pennies and double them every day for 30 days. After 15 days, it’s a good chunk of change.
  • Continue to double the result another 15 days, it’s a huge amount of money. Over 1 billion pennies. That’s the power of compounding.
  • You could join the Irish Republican Army and perhaps do it with force. Or you can use an Individual Retirement Account (the magic egg shell) to grow your money without the drag of a tax burden.
  • Here’s an example comparing a non-taxable account in the IRA egg vs. a taxable account in a broken egg. Non-deductible contributions of $5k per year, earning 7.2% annually, and income taxes of 20%.
  • After 30 years, the non-taxable IRA is worth over $100 thousand more than taxable account.
  • You probably thinking it’s too good to be true. Well you’re right. Uncle Sam will get his taxes from you if you don’t take the next step. This is the value of coordating finances between a CPA, financial advisor and investment manager. The next step is making your IRA into a Roth IRA. The next two slides will show you why.
  • This compares the growth of a Roth IRA and a Traditional IRA over the next 30 years. Similar assumptions as in the first 30 years, except now the contributions stop and distributions can begin. The Roth IRA distributions are optional and the IRA distributions are mandatory. In addition, the Roth IRA distributions are not taxed and the IRA distributions are taxed.
  • So at year 60 with the Roth IRA, assuming you took no distributions, your account would worth $3.5 million more than the traditional IRA. Assuming you did take optional distributions from your Roth IRA, your would have saved over $226 thousand in taxes than with the traditional IRA.
  • How do you get a Roth? You can contribute directly or you can convert from another IRA. But you need experts - CPAs, financial advisor and investment managers to get your eggs right to get the best after-tax result.
  • Bill Of Rights And Rights To Bills

    1. 1. Bill of Rights and Rights to Bills San Francisco Chamber of Commerce November 15, 2010
    2. 2. Power of Compounding “ The most powerful force in the universe is compounding” Albert Einstein (1879-1955)
    3. 3. Penny Power (1 to 15) 1 $0.02 2 $0.04 3 $0.08 4 $0.16 5 $0.32 6 $0.64 7 $1.28 8 $2.56 9 $5.12 10 $10.24 11 $20.48 12 $40.96 13 $81.92 14 $163.84 15 $327.68
    4. 4. Penny Power (15 to 30)
    5. 5. How to benefit from the Power of Compounding
    6. 6. Traditional IRA vs. Taxable account (years 1 to 15)
    7. 7. Traditional IRA vs. Taxable account (years 15 to 30)
    8. 8. GIVE or TAKE
    9. 9. Roth IRA vs. Traditional IRA (years 30 to 44)
    10. 10. Roth IRA vs. Traditional IRA (years 45 to 60)
    11. 11. Value in expert advice
    12. 12. Summary of Savings <ul><ul><ul><li>IRA vs. Taxable Account = $110k tax savings </li></ul></ul></ul><ul><ul><ul><li>Roth IRA vs. Traditional IRA ending balance = $3.5m difference </li></ul></ul></ul><ul><ul><ul><li>Roth IRA vs. Traditional IRA = $226k tax savings </li></ul></ul></ul>
    13. 13. Independent and Trusted Advisors

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