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Agent power-point-

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Agent Client Presentation for IUL

Published in: Economy & Finance
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Agent power-point-

  1. 1. Judge Learned Hand 1872-1961 U.S. Federal Courts of Appeals In America there are two tax systems One for the Informed (lower taxes) And one for the Under-Informed (higher taxes) Qualified Plans (401k’s, IRA’s 403b’s) are for the Under-Informed It’s time to become informed
  2. 2. Personal You Have Two Basic Choices Corporate Pension Plansx Qualified Non-Qualified
  3. 3. Primary Risks of Qualified Plans 1. Market Losses 2. High Management Fees 3. Future Tax Rate Increases 4. Longevity Risk There Is A Better Plan
  4. 4. How Many More Market Crashes In Your Lifetime?
  5. 5. Primary Risks of Qualified Plans 1. Market Losses 2. High Management Fees 3. Future Tax Rate Increases 4. Longevity Risk There Is A Better Plan
  6. 6. The Real Cost of Owning a Mutual Fund: Disclosed and/or hidden fees can easily eat up 30% or more . com Non taxable account 0.90% Expense Ratio 1.44% Transaction Costs 0.83% Cash Drag 1.00% Tax Cost 4.17% Average Costs Ty A. Bernicke - 04.04.11 How Much Do You Pay?
  7. 7. thus facilitating “apples-to apples "comparisons among their plan’s investment options; and a new level of fee and expense transparency
  8. 8. FACT SHEET February 2012 Final Rule to Improve Transparency of Fees and Expenses to Workers in 401(k)-Type Retirement Plans …thus facilitating “apples-to-apples” comparison of fees and expense transparency
  9. 9. Primary Risks of Qualified Plans 1. Market Losses 2. High Management Fees 3. Future Tax Rate Increases 4. Longevity Risk There Is A Better Plan
  10. 10. Which Way Do You Think Taxes Will Go?
  11. 11. Did You Just Say Taxes Will Probably Go Up? Your Current Tax Rate Your Future Tax Rate Tax Deferral Isn’t Good For You. But it’s GREAT for Uncle Sam
  12. 12. How will the Government make up for the shortage? Raise Taxes Change Tax Brackets or Eliminate Tax Deductions
  13. 13. Primary Risk of Qualified Plans 1. Market Losses 2. High Management Fees 3. Future Tax Rate Increases 4. Will I Outlive My Money And the Safer Alternative
  14. 14. Primary Risk of Qualified Plans AARP Quote… (61 percent) said they fear depleting their assets more than they fear dying. And the Safer Alternative
  15. 15. There Is a Better Way!
  16. 16. According to the Federal Reserve 22% of this investment is owned by the wealthiest 1% of U.S. 55% of this asset is owned by the wealthiest 10%. Source: http://online.wsj.com/news/articles/ SB10001424052748703435104575421411449555240 What do advisors to the wealthiest 10% know that your CPA doesn’t? Wall Street Journal October 2010
  17. 17. Tax Free Retirement Savings & A Tax Free Death Benefit Rolled Into One Plan Tax Free Income For Now or Retirement & A Tax Free Death Benefit To Protect Your Family
  18. 18. Created by 3 Congressional Acts TEFRA - DEFRA - TAMRA Tax Free Under Internal Revenue Codes 7702 & 72(e)
  19. 19. Superior Attributes of a Tax Free Plan 1. No Market Losses 2. 30% - 50% Lower Management Fees 3. Tax Free Income for LIFE 4. Income for Life The Safer Alternative
  20. 20. Losses Are Controlled By A Cap & A Floor What is a Cap & Floor?
  21. 21. No Market Loss - The Cap & Floor You Give Up Some of the Gain 22% 10% To 15% 8.5% .8.5% . -25% 0% Cap Floor You Give Up Some of the Gain To Guarantee Zero Loss
  22. 22. S&P With Loss IUL with Cap & Floor Year S&P Returns Account Value IUL Returns Account Value 2000 -10.14% $89,860 0.00% $100,000 2001 -13.04% $78,142 0.00% $100,000 2002 -23.37% $59,880 0.00% $100,000 2003 26.38% $75,677 13.00% $113,000 2004 8.99% $82,480 8.99% $123,159 2005 3.00% $84,955 3.00% $126,853 2006 13.62% $96,526 13.00% $143,344 2007 3.50% $99,933 3.50% $148,404 2008 -38.49% $61,469 0.00% $148,404 2009 23.45% $75,883 13.00% $167697 2010 12.78% $85,581 12.78% $189,129 2011 0.00% $85,581 0.00% $189129 2012 13.29% $96,955 13% $213,715 2013 29.60% $125,653 13.00% $241,498 16 Yrs. 3.54% Taxable $125,653 7.92% Tax Free $241,498 Guarantee: Zero Market Loss $241,498 7.92% Tax Free $125,653 3.54% Taxable Cap Floor $100k Initial Investment Apples to Apples Comparison Actual S&P Performance
  23. 23. 2 Year “Average Return” According to Wall Street Year #1 $100,000 + 100% = $200,000 #2 $200,000 - 50% = $100,000 100% + -50% +50% divided by 2 years = "Average Gain of 25%” ???
  24. 24. Benefits of a Tax Free Plan 1. No Market Losses 2. 30% - 50% Lower Management Fees 3. Tax Free Income 4. Life Time Income 5. Flexible Contributions The Safer Alternative
  25. 25. Far Less Fees 53% Less
  26. 26. Benefits of a Tax Free Plan 1. No Market Losses 2. 30% - 50% Lower Management Fees 3. Tax Free Income 4. Life Time Income 5. Flexible Contributions The Safer Alternative
  27. 27. Tax Free Income
  28. 28. Benefits of a Tax Free Plan 1. No Market Losses 2. 30% - 50% Lower Management Fees 3. Tax Free Income 4. Life Time Income 5. Flexible Contributions The Safer Alternative
  29. 29. Income For Life
  30. 30. Benefits of a Tax Free Plan 1. No Market Losses 2. 30% - 50% Lower Management Fees 3. Tax Free Income 4. Life Time Income 5. Flexible Contributions The Safer Alternative
  31. 31. This portion pays for the insurance Tax Free Savings and Tax Free Death Benefit . Tax Free Plan
  32. 32. Borrow $$$ Cash Value / Savings Continues to Grow How Is That Possible? Borrow $$$ Borrow $$$ Age 65 100 Even As You Take Home Retirement Income
  33. 33. The Cash Value / Savings COLLATERAL Against Any Loans You Take The Cash Value continues to grow even when you borrow money
  34. 34. $200,000 Value House has No mortgage Borrow $100k from home Plus Interest Why a Loan Does Not Lower The Cash Value $200,000 $200,000 X 10% $220,000
  35. 35. Cash Value Savings Subtract Retirement Income Loan & Interest Balance Is A Tax Free Death Benefit to Heirs _ = The Income You Borrow Is Not Repaid Until After You Pass On.
  36. 36. Guaranteed 100% at risk of loss Guaranteed you’ll pay Guaranteed not locked in Guaranteed taxable Not fully disclosed Guaranteed 0% risk of market loss Guaranteed Tax Free Guaranteed locked-in Guaranteed tax free Fully disclosed Risk Taxes Gains Death Benefit Fees Taxable 401k/Qualified Tax Free Plan Compare the Guarantees

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