This document discusses a financial strategy called Infinite Banking that allows individuals to become their own bank. It summarizes how using a specially designed whole life insurance policy can allow people to access tax-deferred and tax-free earnings, borrow from their own policy at favorable rates, and get back every dollar spent on major purchases like cars, college, and homes. The strategy aims to eliminate interest payments to banks and recapture lost opportunity costs by putting individuals in control of their own money through a "triple play" that makes them the banker, borrower, and depositor.

1. INFINITE BANKINGBECOME YOUR OWN BANKThe New 200 YEAR OLD Life Changing Secret to Growing and Protecting Your Financial Future

2. You Need To Know…This presentation will discuss certain financial strategies. Any information obtained during the course of this meeting may be used for the solicitation of life insurance and/or annuity products by a properly licensed insurance professional. Any discussion of the tax treatment of products and services discussed within this presentation are based on our current understanding of tax laws and regulations, which are subject to change. Such information is presented for educational purposes only, and should not be relied upon as professional tax advice.You should always consult your personal tax advisor or attorney

3. CAN THIS HAPPEN TO YOU? Suppose what you thought to be true regarding paying off debt and saving for retirementturned out not to be true.WHEN WOULD YOU WANT TO KNOW???

4. DISCOVER HOW You CAN... Have a rock-solid financial plan and a predictableretirement income.

5. Turn your back on the stomach-churning twists and turnsof the stock and real estate markets.

6. Get back every penny you pay for your cars, vacations, college education, and other major purchases, so you can enjoy more of your life.

7. Become your own source of financing and recapture the interest and principal you pay to banks.

8. Take advantage of current U.S. tax laws to earn money Tax Deferred and Tax Free. “The problem in America isn’t so much what people don’t know; the problem is what people think they know that just ain’t so.” -Will Rogers

9. THE ROAD WE ARE ON… The individual savings rate in the U.S. is close to zero percent. The average household now spends more money than they make.

10. Consumer debt now tops $3.5 Trillion.

11. Will future tax rates likely be:LOWERSAMEHIGHER What should you do to protect YOUR WEALTH?

12. Tax BRACKET HISTORYTop Marginal RateWhat do you think that$13+ trillion of govt. debt will do to our future tax rates?

13. IS YOUR 401(k) UNDER WATER? “The ugly truth, is that the 401(k) is a lousy product, a financial flop, a rotten repository for our retirement reserves. In what must seem like a cruel joke to many, the accounts proved the most dangerous for those closest to retirement. This isn’t how retirement was supposed to be.”- October 19, 2009

14. Stomach-Churning Twists & Turns of the Stock Market$100,000 Invested in the S&P 500 1-1-2000to 12-31-2009 (10 Years) Value $ 91,000 -0.99% 1-1-2002 to 12-31-2009 (7 Years) Value $113,000 +1.56% 1-1-2006 to 12-31-2009 (3 Years) Value $ 97,000 -0.66% 1-1-2008 to 12-31-2008 (1 Year) Value $ 63,000 -37.0% 1-1-2009 to 12-31-2009 (1 Year) Value $ 127,000 +27.0%“I feel like I was closer to retirement at age 40 than I do now at age 50.” Major Brokerage Company Advertisement October, 2009*Figures from www.moneychimp.com

15. Stomach-Churning Twists &Turns of the Stock Market*Figures from www.moneychimp.com

16. $100,000 Invested in the S&P 500 1-1-2000to 12-31-2009 (10 Years) Value $ 91,000 -0.99% 1-1-2002 to 12-31-2009 (7 Years) Value $113,000 -1.56% 1-1-2006 to 12-31-2009 (3 Years) Value $ 97,000 -0.66% 1-1-2008 to 12-31-2008 (1 Year) Value $ 63,000 -37.0%1-1-2008 to 12-31-2009 (2 Years) Value $ 80,000 -10.7%Q1: With regard to your $100k invested in 2008, what return would you need to get back to even? 59%Q2: Do you think the next 10 years will perform better or worse than the last 10 years? *Figures from www.moneychimp.com

17. So…What’s the Number One Problem Keeping Us From Attaining the “Great American Dream?”THE INTEREST VOLUME WE PAYON OUR DEBT!

18. “You finance everything you buy. You either payinterest to someone else, or you give up interest you couldhave earned somewhere else. There are no exceptions.” -Nelson Nash-

19. KEY CONCEPTInterest Volume: Finance a purchase; you pay interest to a bank. That money is gone forever and will never earn you anything.2. Lost Opportunity Cost: You give up interest or investment returns you have earned could somewhere else, even if you pay cash.

20. Family Income$100,000 - $30,000 (income tax) = $70,000 after tax$70,000/12 months = $5,833/month $2,046/$5,833 = 35%The average family spends 34.5% of after tax dollars in Interest payments! It’s Not the Annual Percentage Rate… It’s the VOLUME of Interest

21. INTEREST VOLUME HURTS$70,000 After Tax Income$34,500 Interest Volume$30,500 Living Expenses$5,000 SavingsWhat rate of return does your $5,000 Savings have to earn to make up for the $34,500 spent on Interest?

22. INTEREST VOLUME HURTS$70,000 After Tax IncomeMost advisors focus on getting a higher Return on Money$34,500 Interest Volume$30,500 Living Expenses$5,000 SavingsFixing the 34.5% Interest Volume ProblemWill Allow More Money For Retirement690% Return needed on $5,000 Savings to make up for $34,500 Spent on Interest!

23. THE UNIVERSAL PROBLEMTypical Solution: Borrow money from financial institutions.Result: BetweenInterest Volume and Lost Opportunity Cost, the average family is in a Modern Day Financial Prison.Better Solution: Reduce Interest Volume and Recapture Lost Opportunity Cost by:BECOMING YOUR OWN FAMILY BANK!!!

24. Do banks make money?Bauer Financial, Inc. BANK GROSS PROFIT:BANK NET PROFIT:DEFAULT RATE:

25. CREATING YOUR OWN BANKMAKE YOURMONEY WORK FOR YOU!Get MoneyFlowing to YOU… Not AWAY from you!

26. INFINITEBANKING… Bank Funding Choices?INFINITEBANKING… A process, not a productSavings Account/ Money Market/ CD’s

27. 401(k) Government Plans/ 403B /IRA /ROTH

28. Stock Portfolio / Mutual Funds

29. Home Equity Line of Credit (HELOC)

30. A Specially Designed Mutual Whole Life Insurance Policy, with paid up addition ridersWHICH FUNDING VEHICLE PERFORMS THE BEST?

31. Why a properly structured whole life insurance contract is the best vehicle to fund your family bank We use a specially designed, very specific type of policy.

32. Do what banks doBauer Financial, Inc.

33. Hereis Your Chance to be ALL THREEThe BankerThe BorrowerThe Depositor Thistriple play ELIMINATES RISK and turns liabilities into ASSETS.Most importantly, it puts YOU in control of YOUR MONEY!

34. The Infinite BankingWhole Life Concept Sound / Timeless Economic Principals Guaranteed Earnings and Predictable Growth Non-Guaranteed Annual Dividends Current U.S. Tax Laws Interest & Dividends Grow Tax Deferred Earnings Can be Accessed Tax FreeBenefits Creditor Proof; Liquidity of Funds Death Benefit is Tax Free Can be Estate Tax Free

35. The Infinite BankingWhole Life Concept Whole Life Insurance stays in force for your “whole life” Tax Free benefits require that the policy must stay in force. Universal Life policies can lapse before death, losing this tax free feature.

36. Paid Up Additions – Turbo Charged Growth Accelerates Cash Value Growth Increases the Death Benefit Amount Provides Inflation Protection The Infinite BankingWhole Life Concept When you borrow from your cash value, they credit you the exact same dividend regardless of taking a policy loan. They simply ‘don’t recognize’ that you’ve borrowed from your plan. Ex: $50,000 - cash value$30,000 - loan$20,000 –balanceAll the money you borrowed continues earning for you in your plan at the exact same pace, as though you never touched a dime of it!

37. How To Get Back Every Penny You Pay For Major PurchasesCARS BOATS COLLEGEVACATIONSEVEN YOUR HOME

38. Automobile PurchasesLongRange Picture (40 Years)$25,000 Car, Every 4 Years4 ways to purchase the car: Lease the Car

39. Buy / Finance the Car

40. Pay Cash (Capital)

41. The INFINITE BANKER WAYFar more money will leave your home just to buy cars over your lifetime than most people ever manage to save up for retirement!

42. OPTION1: LEASE Monthly Payment $416.00 Interest $57.57 Loan Rate 7.5% 40 years, New Car, Every 4 yearsTotal Cash Paid $199,680Lost Opportunity Cost @6% $832,602TOTAL COST $1,032,282 -$1,032,282 $0.00 ($200,000) ($400,000) ($600,000) ($800,000)($1,000,000)($1,200,000)($1,400,000)($1,600,000)($1,800,000)Total Cash PaidLostOpportunityCost$103,228 Ave. Cost Per Car Over 40 Years!

43. OPTION 2: FINANCE Monthly Payment $604.00 Interest $84.00 Loan Rate 7.5% 40 years, New Car, Every 4 yearsTotal Cash Paid $289,920Lost Opportunity Cost @6% $1,208,874TOTAL COST $1,498,794 -$1,498,794 $0.00 ($200,000) ($400,000) ($600,000) ($800,000)($1,000,000)($1,200,000)($1,400,000)($1,600,000)($1,800,000)Total Cash PaidLost OpportunityCost$149,879 Ave. Cost Per Car Over 40 Years!

44. OPTION 3: PAY CASH $0.00 ($200,000) ($400,000) ($600,000) ($800,000)($1,000,000)($1,200,000)($1,400,000)($1,600,000)($1,800,000)YOUR CAPITAL40 years, New Car, Every 4 yearsTotal Capital Paid $250,000Lost Opportunity Cost @6% $1,116,575TOTAL COST $1,366,575-$1,366,575Total Cash PaidLost OpportunityCost$136,657 Ave. Cost Per Car Over 40 Years!

45. The power of Compound Interest*From Dwayne Burnell’s “A Path to Financial Peace of Mind” pg. 9

46. PURCHASING YOUR CARS: SPEND MONEY and GROW WEALTHYBy borrowing from your Family Bank policy to pay cash for cars and other big-ticket items andmaking loan payments back to the policy, you can get back the money you pay for those items and recapture interest you now pay to banks.

47. When the loan is paid off, you have the car and all the money you paid for itright back in your Family Bank plan, and then some, because your plan has been earning money for you the entire timeon every single penny you borrowed from it!LET’S CREATE OUR AUTOMOBILE POLICYASSUMPTIONSMale: Age 25, Non-Smoker / Paid Up AdditionsMonthly Premium: $700 or $8,400 AnnuallyLump Sum Contribution: $5,000Car Loans: $25,000 / car, starting in year 5 (10 cars over a 40 year period)Retirement Income: Begins age 70 & continues for 21 yearsLife Insurance Benefit: Paid at death at assumed age of 90

48. Male, Age 25, Preferred Non-Smoker (For Illustrative Purposes Only) CumulativeCash OutlayNetDeath BenefitLoan AmountAgeYearPremiumNet Cash Value 26113,400013,4008,723528,50213,400 2728,400021,80015,275555,0698,400 2838,400030,20022,361582,608 2948,400038,60030,027611,04130,027 3058,40025,00054,50019,837621,89825,000 3168,400-7,50070,40035,651658,930 3278,400-7,50086,30052,500696,999 33811,611-4,289102,20070,200748,98511,611 3498,40025,00062,894762,939118,10025,000 35108,400-7,500134,00081,683802,695 36118,400-7,500149,900101,901694,010 3712-4,28911,611165,800123,086746,82211,611 38138,40025,000181,700119,413763,51725,000 39148,400-7,500197,600142,005806,023 40158,400-7,500213,500165,939849,378411611,611-4,289229,400190,992902,32711,611 421725,0008,400245,300191,347920,92425,000 4318-7,5008,400261,200218,086965,171 44197,5008,400277,100246,2831,010,153 4520-4,28911,611293,000275,7671,063,25311,611 462125,0008,400308,900280,5021,083,61025,000 4722-7,5008,400324,800311,8381,129,793 4823-7,5008,400340,700344,8991,176,798 4924-4,28911,611356,600379,5631,230,61711,611

49. Male, Age 25, Preferred Non-Smoker (For Illustrative Purposes Only) CumulativeCash OutlayNetDeath BenefitAgeYearPremiumLoan AmountNet Cash Value 50258,40025,000372,500390,0211,253,01025,00051268,400-7,500388,400427,4141,301,33052278,400-7,500404,300466,8411,350,733532811,611-4,289420,200508,1251,406,11911,61154298,40025,000436,100525,4861,431,61725,00055308,400-7,500452,000570,0311,483,46456318,400-7,500467,900616,8891,536,800573211,611-4,289483,800665,9321,595,54211,61158338,40025,000499,700691,4121,625,58825,00059348,400-7,500515,600744,5451,682,11160358,400-7,500531,500800,4451,740,256613611,611-4,289547,400858,9431,803,24011,61162378,40025,000563,300894,2411,838,77225,00063388,400-7,500579,200957,4631,901,42764398,400-7,500595,1001,023,7821,966,324654011,611-4,289611,000 1,093,0692,035,88611,61166418,40025,000626,9001,139,6152,078,99925,00067428,400-7,500642,8001,214,6612,149,364 68 438,400-7,500658,7001,293,4532,222,047 69 4411,611-4,289674,6001,375,9232,298,93611,6111,375,9232,298,936674,600 70 45080,0001,365,2712,260,397080,00071 46080,0001,353,5602,238,08380,000 72 47080,0001,340,5762,213,49880,0007348080,0001,326,0432,186,57980,000