Wealth<br />The Richness of Life<br />FINANCIAL GROUP<br />
About Your Presenter<br />Jim Kipp<br />	Financial Strategist<br />	Kipp Wealth Management<br />	Eagle, WI<br />	262-646-4...
Kipp Wealth Management<br />Jim Kipp<br />Pam Kipp<br />Jenni Teschendorf<br />
What If …<br />What You Thought To Be True<br />Turned Out NOT To Be True<br />When Would You Want To Know?<br />Especiall...
A New Approach <br />To Building Wealth<br />
Could Traditional Financial<br />Advice Be Out of Touch Today?<br />We’ll Be In A Lower Tax Bracket<br />Excessive Risk fo...
Greatest Threats To               Your Wealth         <br />WealthTransfers<br />Taxes<br />Inflation<br />Market Risk<br />
   The Silent Thief - Inflation<br />
Actual Income Needs Projection<br />10 Years<br />15 Years<br />5 Years<br />Now<br />Income adjusted for a 3.3% estimated...
Inflation Undermines           Life and Legacy<br />
The Mathematics of Losing Money in the Market<br />When does    -40  +  66  =  0 ?<br />
It’s Easier To Lose Money Than to Make It Back<br />Break Even<br />$100,000<br />+25%<br />-20%<br />+66.6%<br />$80,000<...
III.  Safe Strategies That May Help You<br />
The Oracle of Omaha<br />Warren Buffet’s Rules for Investing<br />Rule #1: Never Lose Money<br />Rule #2: Never Forget Rul...
Asset Allocation Made Simple<br />
Red Money vs. Green Money<br />Red Money is Risk Money<br />Green Money is Safe Money <br />Distribution Years<br />Accumu...
The Rule of 100<br />100 – Age = % Red Money<br />100 – 65 = 35% Red Money<br />Red Money<br />35%<br />Red Money<br />Gre...
Upside Down Planning<br />Red Money<br />Green Money<br />
Example  $200,000  Age 65<br />100-65 = 35%<br />$ 70,000<br />$130,000<br />$180,000<br />Reposition <br />$110,000<br />...
Product Allocation<br />
Money Market<br />FixedIndexed Annuities<br />CD’s Treasuries Fixed Annuities<br />Variable Annuities<br />REITs<br />Stoc...
Typical Product Allocations<br />Seeking Greater Safety<br />Seeking Higher Return<br />Stock  Bonds Mutual Funds<br />CD’...
Three Worlds of Investing<br />Safety/<br />Guarantees<br />Risk/<br />Market<br />Hybrid/<br />Indexed<br />Fixed Indexed...
Who Owns Annuities?<br />Federal Reserve Chairman Ben Bernanke<br />Keeps Personal Finance Portfolio Simple<br />Tuesday ,...
$100,000 In Market                                        Compared To Fixed Indexed Strategy<br />15.0%<br />9.85%<br />6....
Will Rogers Said …..<br />“It’s not the return ON my investment that I’m concerned about…<br />“It is the return OF my inv...
Income for Life Strategies<br />Asset Allocation<br />
Personal Pension                 Lifetime Income Benefit Riders<br />8%<br />Positive Gain<br />8%<br />8%<br />10% Bonus<...
Personal Pension                                                                              Laddered Vision Income Progr...
Will Future Tax Rates <br />Likely Be<br />Lower?<br />Same?<br />3. Higher?<br />
A <br />Wake Up Call<br />60 Minutes Interview <br />2007<br />“We are heading to a future where we’ll have to double fede...
U.S. Bailouts!<br />$700+ Billion!<br />$3Billion<br />$11 Trillion<br />
One Trillion<br />Dollars<br />Double Stacked Pallets of $100 Bills<br />
Sudden<br />Impact<br />“As a country, we’ve hit an iceberg, we’re taking on water, and the band plays on as if nothing ha...
IRA Tax Strategies<br />
Is Postponing Tax<br /> Really The Best Idea?<br />Your IRA, pension and 401(k) benefits will be taxable at retirement, pr...
Whose Retirement Are You Planning Yours or Uncle Sam’s?<br />$ 350,000 IRA<br />                                       Age...
IRA/401k  Tax Time Bomb! <br />“The Front 9 is where you position your<br />lead by building up your assets and the<br />b...
The Four Tax Buckets<br />Roth IRA Income Tax Free Investments<br />Maximum <br />Insurance<br />Plan<br />SDLI<br />Ordin...
Get Your Confidential IRA Tax Recovery Analysis and Report<br />
Creating <br />Generational Wealth<br />
The Family Legacy<br /> They May Need Your Help<br />
Wealth & Wisdom Institute<br />Three Basic Rules For Investing<br />Use the least amount of money to create the greatest a...
Creating Generational Wealth<br />Fair Market Value<br />$350,000<br />Couple <br />Ages 65/64<br />$36,800<br />$36,800<b...
Emergency Fund
Vacation Fund
Education Fund
Legacy Planning</li></ul>At Death         $ 609,260<br />Tax Free to Heirs       $ 184,000   To Pay Off Mortgage<br />   L...
Insurance Mortality and Expense Charges<br />TEFRA 1982<br />Corridor dictates the minimum death benefit required based up...
What If<br />You Could Create An Asset<br /><ul><li>Tax Free Growth & Tax Free Withdrawals
Has Liquidity
No Market Risk To Principal – Growth S&P 500
Protected From Creditors
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Could Traditional Financial Advice Be Outdated?

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  • Welcome to our seminar. Before we start let’s go through some housekeeping. First of all, you know that I’m going to ask you to turn off your cell phones. You should all have a package. If you would be kind enough to take it out and make sure that you have your notes pages inside. Does anyone need a pen? By the way, if anyone needs to use the facility it is down the hall. I also want you to know that today’s seminar will take about 9 hours (pause), that’s right just 9 hours. If you get tired they’ll bring the cots in in about 3 hours, so don’t worry. Just kidding. But we will take about 90 minutes and then we’ll have a nice meal together. By the way, if you would like to ask questions, please do. I’ll probably ask you a lot of questions to. At the end of the day this seminar is for you, so the more questions you ask the better I can tailor my answers to your needs. OK. Let’s get started.
  • Welcome to our seminar. Before we start let’s go through some housekeeping. First of all, you know that I’m going to ask you to turn off your cell phones. You should all have a package. If you would be kind enough to take it out and make sure that you have your notes pages inside. Does anyone need a pen? By the way, if anyone needs to use the facility it is down the hall. I also want you to know that today’s seminar will take about 9 hours (pause), that’s right just 9 hours. If you get tired they’ll bring the cots in in about 3 hours, so don’t worry. Just kidding. But we will take about 90 minutes and then we’ll have a nice meal together. By the way, if you would like to ask questions, please do. I’ll probably ask you a lot of questions to. At the end of the day this seminar is for you, so the more questions you ask the better I can tailor my answers to your needs. OK. Let’s get started.
  • The Silent Thief. Does anyone know what it is?
  • The Silent Thief. Does anyone know what it is?
  • (Discuss Videos) Folks, prices are rising everywhere it seems. But, ask yourself this question. Are most retirees on a fixed income or a growing income. That’s right, a fixed income. So, if you need income from your IRA, inflation puts more pressure on it to perform, to not lose value to the inflation, taxes or anything else.
  • If your income does not increase, here are the four alternatives that you are facing (Read Slide)
  • Here is another alternative for developing a personal pension for you and your spouse. Here, the insurance companies, understanding your need for income, added another component to the FIA’s we looked at earlier. It is called a Lifetime Income Rider. This benefit guarantees, no matter the performance of the underlying indexes, that your money will grow at a specified rate – anywhere from 4% to 8% guaranteed. The value of this account may then be used to determine the amount of lifetime income you will receive and are guaranteed at a future date. What makes these Lifetime Income Riders appealing is that once the income stream is begun, that income is guaranteed for life, regardless of the performance of the underlying indexes. While Fixed Index Annuities typically have no out of pocket operating charges, this annuity charges a fee for the Lifetime Income Benefit Riders are usually about .45 to .5%, which comes out of the index account value. Another feature of using the Lifetime Income Benefit Rider is that although it guarantees a lifetime of income, unlike the immediate annuities we looked at earlier, you are not exchanging your principal for the income. In other words, at some point in time in the future, if you pass away, there may still be funds remaining in the annuity that could be passed as a lump sum to your beneficiaries.
  • Here is another option for generating income. This is called a Laddered Income Program. Let me explain how it works. Suppose you came to me and said that you had $125,000 and that you wanted income over the next 15 years but you wanted to return your of your original deposit. If that were the case, here is one possible solution where we would purchase four different annuities.So, for the first five years you would receive income in the amount of $518 per month and then, at end of the five year period, that annuity would be exhausted.When the first annuity runs out of money at the end of the first five years, we would then begin to draw income from the second annuity for the next five years. That amount of income would be $600 per month. At the end of this five year period the second annuity would be exhausted.When the second annuity runs out of money at the end of the second five year period, we would then being to draw income from the third annuity for the next five years. That amount of income would be $695 per month. At the end of this five year period the third annuity would be exhausted. Now during this fifteen year period the fourth annuity is just sitting there. At an assumed rate of growth of 6% that annuity would grow back to the original $125,000 that was deposited. You can then start the program all over again.
  • (Go through the list)Let me walk you through our process (read slide). When we work with our clients, we like to take a look at what we call the Seven Step Retirement Checklist.Although we only focused on a few specific topics today, the Seven Step Retirement Checklist is something we like to do with all our clients because it really helps ensure that you’ve got all your bases covered.
  • We’ll provide you with a number of important reports, including your Wealth Index report (show sample), we’ll walk through what we call our “Wealth Experience” workbook which helps ensure you have a solid foundation, and we’ll even provide you with some invaluable planning ideas, timetables and graphs that show you how you’re doing.Let me tell you a bit more about the Wealth Index.This is a cornerstone of our planning process, and really integrates with our philosophy of tying your money into your wealth. I’d really like you all to take the Index, right now if you’d like, so that you can get your unique results.(Show results book. Explain why they should get the results)
  • Thank you for coming tonight. It was great speaking with you and I look forward to meeting with each and every one of you. And with that, let’s have a great meal!
  • Thank you for coming tonight. It was great speaking with you and I look forward to meeting with each and every one of you. And with that, let’s have a great meal!
  • Could Traditional Financial Advice Be Outdated?

    1. 1. Wealth<br />The Richness of Life<br />FINANCIAL GROUP<br />
    2. 2. About Your Presenter<br />Jim Kipp<br /> Financial Strategist<br /> Kipp Wealth Management<br /> Eagle, WI<br /> 262-646-4443<br />www.kippwealthmanagement.com<br />www.jim@kippwealthmanagement.com <br />Jim Kipp<br />Since 1985<br />Over 24 Years<br /> of<br /> Experience!<br />Milwaukee Magazine<br />
    3. 3. Kipp Wealth Management<br />Jim Kipp<br />Pam Kipp<br />Jenni Teschendorf<br />
    4. 4. What If …<br />What You Thought To Be True<br />Turned Out NOT To Be True<br />When Would You Want To Know?<br />Especially When It Comes to Your Money & Investments!<br />
    5. 5. A New Approach <br />To Building Wealth<br />
    6. 6. Could Traditional Financial<br />Advice Be Out of Touch Today?<br />We’ll Be In A Lower Tax Bracket<br />Excessive Risk for Higher Returns<br />Diversify – Large Cap, Small Cap Etc.<br />Your Pension Is Sacred<br />Maximize Contributions To 401(k) Plans, SEP Plans & IRA’s<br />Get Your House Paid Off By Retirement<br />
    7. 7. Greatest Threats To Your Wealth <br />WealthTransfers<br />Taxes<br />Inflation<br />Market Risk<br />
    8. 8. The Silent Thief - Inflation<br />
    9. 9. Actual Income Needs Projection<br />10 Years<br />15 Years<br />5 Years<br />Now<br />Income adjusted for a 3.3% estimated rate of inflation<br />
    10. 10. Inflation Undermines Life and Legacy<br />
    11. 11. The Mathematics of Losing Money in the Market<br />When does -40 + 66 = 0 ?<br />
    12. 12. It’s Easier To Lose Money Than to Make It Back<br />Break Even<br />$100,000<br />+25%<br />-20%<br />+66.6%<br />$80,000<br />+100%<br />-40%<br />$60,000<br />-50%<br />$50,000<br />
    13. 13. III. Safe Strategies That May Help You<br />
    14. 14. The Oracle of Omaha<br />Warren Buffet’s Rules for Investing<br />Rule #1: Never Lose Money<br />Rule #2: Never Forget Rule #1<br />Source: http://www.wordpower.ws/quotations/warren-buffet-quotes.html<br />
    15. 15. Asset Allocation Made Simple<br />
    16. 16. Red Money vs. Green Money<br />Red Money is Risk Money<br />Green Money is Safe Money <br />Distribution Years<br />Accumulation Years<br />Green Money is Safe Money <br />Red Money is Risk Money<br />Red Money is Risk Money<br />Green Money is Safe Money <br />
    17. 17. The Rule of 100<br />100 – Age = % Red Money<br />100 – 65 = 35% Red Money<br />Red Money<br />35%<br />Red Money<br />Green Money<br />65%<br />Green Money<br />This is just a general guideline and individual situations vary<br />
    18. 18. Upside Down Planning<br />Red Money<br />Green Money<br />
    19. 19. Example $200,000 Age 65<br />100-65 = 35%<br />$ 70,000<br />$130,000<br />$180,000<br />Reposition <br />$110,000<br />Asset Allocation in a volatile market is critical for efficient money management<br />$20,000<br />
    20. 20. Product Allocation<br />
    21. 21. Money Market<br />FixedIndexed Annuities<br />CD’s Treasuries Fixed Annuities<br />Variable Annuities<br />REITs<br />Stock Bonds Mutual Funds<br />Derivatives<br />Basic Product Class Options<br />Lower Risk<br />Higher Risk<br />Every product has plusses & minuses and a proper use in your planning!<br />
    22. 22. Typical Product Allocations<br />Seeking Greater Safety<br />Seeking Higher Return<br />Stock Bonds Mutual Funds<br />CD’s Treasuries Municipals<br />CD’s<br />Market<br />
    23. 23. Three Worlds of Investing<br />Safety/<br />Guarantees<br />Risk/<br />Market<br />Hybrid/<br />Indexed<br />Fixed Indexed<br />Insurance<br />Annuities<br />Personal Protected Pension Plans<br />Bank CD’s <br />Govt. Bonds<br />Insurance<br />Fixed Annuities<br />Mutual Funds<br />Brokerage Account<br />Variable<br />Annuities<br />Insurance<br />Principal is guaranteed<br />Interest is guaranteed<br />Short term & liquid<br />Starts with the guarantees <br /> from the world of safety<br />Links growth of the world of<br /> the stock market as an index<br />Principal is NOT guaranteed<br />Interest is NOT guaranteed<br />Need TIME on your side<br />Potential Return: <br />.5% to 2%<br />Potential Return: <br />0% to 30%<br />Potential Return: <br />-40% to +40%<br />
    24. 24. Who Owns Annuities?<br />Federal Reserve Chairman Ben Bernanke<br />Keeps Personal Finance Portfolio Simple<br />Tuesday , July 31, 2007<br />WASHINGTON —<br />The Fed chief&apos;s largest assets last year were two annuities <br />$1,000,000<br />
    25. 25. $100,000 In Market Compared To Fixed Indexed Strategy<br />15.0%<br />9.85%<br />6.40%<br />5.12%<br />15.0%<br />$110,030<br />9.85%<br />10.03%<br />6.40%<br />-5.42%<br />-9.26%<br />5.12%<br />-10.74%<br />36.12%<br />35.15%<br />-24.0%<br />-40.86%<br />
    26. 26. Will Rogers Said …..<br />“It’s not the return ON my investment that I’m concerned about…<br />“It is the return OF my investment.”<br />Will Rogers<br />
    27. 27. Income for Life Strategies<br />Asset Allocation<br />
    28. 28. Personal Pension Lifetime Income Benefit Riders<br />8%<br />Positive Gain<br />8%<br />8%<br />10% Bonus<br />Linked to an Index like the S&P 500<br />8%<br />8%<br />Break Even<br />$110,000<br />Index at 1000<br />$100,000<br />Index at 900<br />All income guarantees are based on the claims paying ability of the insurance company.<br />1<br />2<br />3<br />4<br />5<br />6<br />Income Rider must be selected at time of application for withdrawal benefits feature, of “Life Only” annuitization option must be implemented by annuity contract owner. Life Only payout option may offer limited or no flexibility after implementation. Annuity contracts can provide long term streams of income payments based on the annuitant’s age and o f amount of premium applied to the contract. <br />
    29. 29. Personal Pension Laddered Vision Income Programs<br />Leg 1: Immediate Annuity @ 1.5% annuitization rate; Leg 2: Fixed interest annuity @ 4.25% guaranteed for 5 years; Leg 3: Deferred Fixed Index Annuity estimated @ 5.5% Leg 4: Deferred Fixed Index Annuity estimated 2 6%.<br />
    30. 30.
    31. 31. Will Future Tax Rates <br />Likely Be<br />Lower?<br />Same?<br />3. Higher?<br />
    32. 32. A <br />Wake Up Call<br />60 Minutes Interview <br />2007<br />“We are heading to a future where we’ll have to double federal taxes or cut federal spending by 60%.”<br />Former Comptroller General: David Walker<br />http://www.youtube.com/watch?v=QxoP_9W6FC8<br />Single Click on Link Above – 8 minutes<br />
    33. 33. U.S. Bailouts!<br />$700+ Billion!<br />$3Billion<br />$11 Trillion<br />
    34. 34. One Trillion<br />Dollars<br />Double Stacked Pallets of $100 Bills<br />
    35. 35. Sudden<br />Impact<br />“As a country, we’ve hit an iceberg, we’re taking on water, and the band plays on as if nothing has happened!<br />
    36. 36. IRA Tax Strategies<br />
    37. 37. Is Postponing Tax<br /> Really The Best Idea?<br />Your IRA, pension and 401(k) benefits will be taxable at retirement, probably at a higher tax rate.<br />MF p.236<br />
    38. 38. Whose Retirement Are You Planning Yours or Uncle Sam’s?<br />$ 350,000 IRA<br /> Age 61 <br />Over 20 Yrs RMD’s<br />You Pay Uncle Sam<br /> $ 280,852 <br />Total Tax Paid To <br />Uncle Sam<br /> $ 609,120 <br />At Your Death<br />Uncle Sam <br />Receives Another<br />$ 328,268 <br />Congratulations<br />You’ve Become The Perfect <br />Tax Payer!<br />But, What About …<br />Future Taxes &<br />Estate Taxes?<br />Assumes Growth Rate Averaging 6% Annually<br /> IRA Balance Age 90 is $713,626<br />
    39. 39. IRA/401k Tax Time Bomb! <br />“The Front 9 is where you position your<br />lead by building up your assets and the<br />back 9 is where you protect your assets<br />from excessive taxationand where you<br />win or lose!”<br />“What good is making evena 50% rate of return on an investment if, at the time of withdrawal taxes will step in to claim70, 80, or maybe even 90% of it?”<br />--Ed Slott, America’s IRA Expert “The Tax Savings Time Bomb”<br />
    40. 40. The Four Tax Buckets<br />Roth IRA Income Tax Free Investments<br />Maximum <br />Insurance<br />Plan<br />SDLI<br />Ordinary Assets and Income<br />IRA, 401k, TSA, 403b<br />Taxable<br />Tax-Deferred<br />Income Tax Free<br />Estate Taxable<br />Income Tax Free<br />Estate Tax Free<br />For greater tax efficiency <br />Move money further to the right<br />
    41. 41. Get Your Confidential IRA Tax Recovery Analysis and Report<br />
    42. 42. Creating <br />Generational Wealth<br />
    43. 43. The Family Legacy<br /> They May Need Your Help<br />
    44. 44. Wealth & Wisdom Institute<br />Three Basic Rules For Investing<br />Use the least amount of money to create the greatest amount of wealth.<br />Guarantee that the wealth will occur & transfer tax free.<br />Create multiples of wealth immediately using safe leverage.<br />
    45. 45. Creating Generational Wealth<br />Fair Market Value<br />$350,000<br />Couple <br />Ages 65/64<br />$36,800<br />$36,800<br />$36,800<br />$36,800<br />$36,800<br /> $184,000<br />Into Bucket<br />Over 5 Yrs.<br />Reverse <br />Mortgage<br />$ 184,000<br />(No Monthly Payments)<br />Survivor Indexed Life<br />Tax Friendly Tax Free Asset <br />$ 184,000<br /> Can Provide<br /><ul><li>Tax Free Income
    46. 46. Emergency Fund
    47. 47. Vacation Fund
    48. 48. Education Fund
    49. 49. Legacy Planning</li></ul>At Death $ 609,260<br />Tax Free to Heirs $ 184,000 To Pay Off Mortgage<br /> LeavesThem$ 425,260 Net + Sale of House<br />$ 609,260 Death Benefit<br />
    50. 50. Insurance Mortality and Expense Charges<br />TEFRA 1982<br />Corridor dictates the minimum death benefit required based upon the insured’s age and gender to accommodate the ultimate desired aggregate premium basis.<br />DEFRA 1984<br />TAMRA 1986<br />New Cash Contributions<br />Compound Interest<br />IRA’s, CD’s, Investments,<br />Annuities,<br />Home Equity<br />7.00%<br />Ages 66 & 64<br />Total Premiums Allowed:<br />$ 180,000GSP<br />Year 5<br />$36,000<br />Year 4<br />$36,000<br />Minimum <br />Death Benefits <br />Required:$ 609,260_<br />Year 3<br />$36,000<br />Year 2<br />$36,000<br />1.5%<br />Year 1<br />$36,000<br />
    51. 51. What If<br />You Could Create An Asset<br /><ul><li>Tax Free Growth & Tax Free Withdrawals
    52. 52. Has Liquidity
    53. 53. No Market Risk To Principal – Growth S&P 500
    54. 54. Protected From Creditors
    55. 55. Complete Control of Asset
    56. 56. Can Avoid Estate Tax – Avoids Probate
    57. 57. Passes Tax Free To Family Members</li></li></ul><li>Ed Slott<br />“Life Insurance, is not only the single biggest benefit in the tax code, but it is also the most cost effective way to protect a large IRA!”<br />“Life Insurance and Income for Life, a perfect Estate Plan!”<br /> --Ed Slott, America’s IRA Expert<br />
    58. 58. III. The Wealth Experience Method<br />
    59. 59. Key Question:<br />Is there a good step by step process through which I can make better financial decisions? <br />
    60. 60. The Seven Step Retirement Checklist <br />
    61. 61. Helpful Decision Making Reports <br />1. Take Your Wealth Index<br />3. Receive valuable planning ideas and timetables<br />2. Walk through our Wealth Experience Workbook<br />
    62. 62. Take Your Free Wealth Index Survey Now<br />Log On To …<br />www.wfgnetwork.com/jimkipp<br />
    63. 63. Thank You!<br />See You Soon<br />

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