2. How do you think most people are
doing financially?
• Do you think the stock market is going toDo you think the stock market is going to
consistently go up for the next 30 years?consistently go up for the next 30 years?
• How would it affect your retirement if halfHow would it affect your retirement if half
your money disappeared?your money disappeared?
• What is your plan to protect your money?What is your plan to protect your money?
3. Team of independent
agents representing
100’s of different
companies not just
one to the consumer
Who Are We?
5. First step is getting back
to the fundamentals of
saving!
Saving America
6. Tragic Reality
• We live in the wealthiest and most educated
country in the world and yet…
− The median household income reported by
retired Americans in 2011 was only $29,000
− Only 4 percent of retirees have saved
enough to have achieved financial
independence
7. Saving America
In your monthly budget does savings fall
near the top or the bottom of your list?
““One for the MoneyOne for the Money””
Listed in order of importance:
1. Church Donations 5. Utilities
2. Personal Savings 6. Transportation
3. Food 7. Credit Cards
4. Mortgage/Rent
8. What are you doing now?
1)Saving Accounts at Bank?
2)Children Accounts?
3)Home Mortgage?
4)Life Insurance?
5)Mutual Funds?
6)CD’s?
7)401k?
8)Annuities?
9)IRA/Roth?
10) Stocks?
11) Other?
9. Things You Must Know
1. Time
– The time we allow our money to grow
2. Rate of Return
– The rate of return we get on our money
3. Taxes
– How our money is being taxed
10. TIME IS MONEY
Mr. Wait LongerMr. Start Early
Over a $900,000 difference!
* Assumes an average 10% return per year
11. Things You Must Know
2. Rate of Return
– The rate of return we get on our money
3. Taxes
– How our money is being taxed
1. Time
– The time we allow our money to grow
12. Importance of Good Returns
• $500 a month for 40 yrs @ 10%
• $500 a month for 40 yrs @ 6%
Almost a $2,000,000 Difference!
$2,845,836
$896,170
But At What
Risk?
13.
14. What We Know Isn’t Working
73 of the115 years in this chart
are in the middle of a flat
market, 63% of the time
15. What We Know Isn’t Working
If your 25-30 year working life was in one of these flat
markets, when did you make any money in your
retirement plan or other investments?
17. But When The Market Goes Down…
Your Money Doesn’t!!!
You Keep The Gains...
What if...
18. 2 Friends Invested $10,000 in
October of 1999.
Friend A
Put $10,000 into
the S&P 500
Friend B
Put $10,000 into
this Strategy
What were the results by
October 2012?
19. Live Your Dreams
S&P 500 Oct 1, 1999 to Oct 1, 2012
Friend A Friend B
$24,382.20
$11,260.36
$4,000.00
$9,000.00
$14,000.00
$19,000.00
$24,000.00
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Losing money hurts you more
than making money helps you
20. Know The Risks
Lets do some Math.
Mr. A and Mr. B both have $100 to invest.
In the following scenario, who ends up better?
Scenario 1 Mr. A Mr. B
Year 1 +40% +10%
Year 2 -20% +10%
Net Gain: +20% +20%
Result: Mr. A Mr. B
Year 1 $140 $110
Year 2 $112 $121
Net Gain: $112 $121
Scenario 2 Mr. A Mr. B
Year 1 +50% +0%
Year 2 -50% +0%
Net Gain: +0% +0%
Result: Mr. A Mr. B
Year 1 $150 $100
Year 2 $75 $100
Net Gain: $75 $100
21. Things you must know
3. Taxes
– How our money is being taxed
1. Time
– The time we allow our money to grow
2. Rate of Return
– The rate of return we get on our money
22. Taxes & Inflation
You save … $100
The account grows by 3%… $103
Pay tax @ 25% -$ .75
After tax you net… $102.25
Add Inflation @ 3% -$3.00
Your Actual result is… $99.25
For every $100 you “save”, you actually
lose $.75
You need 5% to beat taxes and inflationDalbar study shows average equity
investor has received 3.8%, over the
last 20 years!!!
23. Taxes
Taxed
Annually
$500 invested monthly for
40 years at 10% growth/yr
Assumes a 10% tax after
deductions (net $450 a month) and
20% Capital Gains
$1,570,953
Tax
Deferred
Assumes a 35% tax
No deductions at retirement
$2,055,325
Tax
Free
Assumes a 10% tax after
deductions (net $450 a month)
$2,845,836
24. What If You Could Have...
• Market based returns
• Guaranteed no loss of money
• Tax deferred growth
• Tax free access
• Liquidity
Can you see a need for a plan
like this in your life?
Do you think others would need a
plan like this as well?
