The document compares saving money in a regular savings account versus a Tax-Sheltered Annuity (TSA) over different time periods. It shows that with a $100 monthly raise, saving in a TSA results in $10 monthly interest that is not taxed, while the same amount saved in a regular account generates only $6.60 in monthly interest due to taxes. This tax-free compounding results in much higher balances in a TSA compared to a regular savings account over long periods, such as $155,798 in a regular account after 40 years versus $637,678 in a TSA.

1. How a TSA Works This series demonstrates a TSA in Action!

2. How a TSA Works... You are about to receive a $100.00 per month raise. You can either save what is left after taxes in a regular bank savings plan or in a TSA... Assume you are earning $2,000.00 per month and claim no deductions.

3. How is Income Taxed Normally? $100.00 Gross Additional Income $66.00 in NET Income Less -$34.00 in Taxes

4. How is Income Taxed Normally? $100.00 Gross Additional Income Less -$34.00 in Taxes $100.00 in Gross Income is equal to only $66.00 in NET Income

5. How Does a TSA Compare: In Deposits? $100.00 Gross Additional Income $66.00 in NET Income $66.00 to Savings Less -$34.00 in Taxes

6. How Does a TSA Compare: In Deposits? $100.00 Gross Additional Income $66.00 in NET Income $66.00 to Savings $100.00 to TSA Or, Less -$34.00 in Taxes

7. How Does a TSA Compare: In Taxation? $66.00 to Savings $100.00 to TSA at 10% interest at 10% interest $6.60 $10.00 Less Fed/State Taxes $1.68 -0.00 $10.00 $4.32 Interest Earnings After Tax Interest Earnings

8. How Does a TSA Compare: In Taxation? After Tax Interest Earnings $66.00 to Savings $100.00 to TSA Less Fed/State Taxes $1.68 -0.00 $10.00 $4.32 That’s NO Comparison!

9. How Does a TSA Compare: In Taxation? So, what does this mean over say, 20 years? After Tax Interest Earnings $66.00 to Savings $100.00 to TSA Less Fed/State Taxes $1.68 -0.00 $10.00 $4.32 That’s NO Comparison!

10. A 20 Year Example... $6.60 $10.00 Interest Earnings Less Fed/State Taxes $1.68 -0.00 $10.00 $4.32 $32,939.00 $76,569.00 20 Years Later

11. How ’bout a 30 Year Example... $6.60 $10.00 Interest Earnings Less Fed/State Taxes $1.68 -0.00 $10.00 $4.32 30 Years Later $74,852.00 $227,932.00

12. How ’bout a 35 Year Example... $6.60 $10.00 Interest Earnings Less Fed/State Taxes $1.68 -0.00 $10.00 $4.32 35 Years Later $107,725.00 $382,827.00

13. How ’bout a 40 Year Example... $6.60 $10.00 Interest Earnings Less Fed/State Taxes $1.68 -0.00 $10.00 $4.32 40 Years Later $155,798.00 $637,678.00 Now That’s Tax Leverage!

14. Question is: “How Long Will You Be Here?”