PREMIER FINANCIAL ALLIANCEFINANCIAL PLANNING PRESENTATION

THREE ENEMIES OF YOUR MONEY “ T I P ”

HOW MONEY WORKS

TYPES OF MONEY

INSURANCE MARKET

THREATS TO YOUR FINANCIAL SECURITY

THE REVOLUTIONARY SOLUTION

THE SECRET OF MONEY

The Road To Financial Freedom

THREE ENEMIES OF YOUR MONEY

TAXES

INCOME TAXES

SALES TAXES

CAPITAL GAINS TAXES

ESTATE TAXES

THREE ENEMIES OF YOUR MONEY

INFLATION

THE SILENT KILLER OF YOUR MONEY

THREE ENEMIES OF YOUR MONEY

PROCASTINATION

HIGH COSTOFWAITING

HOW MONEY WORKS

Age 4%Money Doubles Every 18 Years

29 $10,000

47 $20,000

65 $40,000

* These hypothetical examples are for illustrative purposes only and do not represent any particular investment vehicle.

The Rule of 72 is a mathematical concept that approximates the number of years it would take to double the principal at a constant rate of return.

The performance of investments fluctuates over time, and as a result, the actual time it will take an investment to double in value cannot be predicted with any certainty.

Rule of 72Divide 72 by the interest rate to estimate the number of years it

takes for your money to double.

Age 8%Money Doubles Every 9 Years

29 $10,000

38 $20,000

47 $40,000

56 $80,000

65 $160,000

Age 12%Money Doubles Every 6 Years

29 $10,000

35 $20,000

41 $40,000

47 $80,000

53 $160,000

59 $320,000

65 $640,000

The person with the most “doubles” wins.

TYPES OF MONEY

FREE MONEY

• 401K, LOTTERY

TAX FREE MONEY

• ROTH IRA• LIFE INSURANCE

TAX DEFFERED

MONEY

• 401K• IRA

TAXABLE MONEY

• EVERYTHING ELSE

INSURANCE MARKETTEMPORARY LIFE INSURANCE

(RENTING)PERMANENT LIFE INSURANCE

(BUYING)

• EXPIRES AFTER CERTAIN TIMETERM LIFE

• EXPIRES AFTER CERTAIN TIME

RETURN OF PREMIUM

• RATE OF RETURN 3%-3.5%WHOLE LIFE

• RATE OF RETURN 4%-5%UNIVERSAL

LIFE

• TIED WITH STOCKSVARIABLE UNIVERSAL

LIFE

• RATE OF RETURN 2%-12%

• AVERAGE 7.3%-8.3%

EQUITY INDEX UNIVERSAL

LIFE

THREATS TO YOUR FINANCIAL SECURITY

PREMATURE DEATHHouseholds saying they own enough life insurance to replace their income for only 2.8 years.

ILLNESSEvery 40 seconds someone in the US suffers a stroke. Every minute an American will die from a coronary event1. .

DISABILITYOne in 5 working Americans suffers the effects of a disability for more than six months during his/her working career2.

LONG-TERM CAREThe U.S. Bureau of Census estimates that by 2060 as many as 24 million people will need long term care services.

OUTLIVING YOUR MONEYPeople are living longer and longer, but they are saving less and less. Most Americans retire in poverty. 73.8% of Americans 65 and older retire on a combined income of private pension and Social Security of $10,000 less a year3.

1. American Heart Association, American Stroke Association, Heart Disease and Stroke Statistics, 20082. Commissioners Group disability table and U.S. Bureau of Census3. Social Security Administration, 1996

ACCELERATED BENEFITS RIDERS

• ABR 1- Terminal Illness

• Resulting in death within two years

• (1 year in VT and PA)

• Lump-sum distribution (discounted from death benefit)

• Funds can be used for anything

• No additional cost

• No elimination period

ACCELERATED BENEFITS RIDERS

• ABR 2 - Chronically ill• Unable to perform 2 of 6 ADLs• Activities of Daily Living

• Bathing• Continence• Dressing• Eating• Toileting• Transferring

• Cognitive Impairment• Short-term or long-term memory impairment• Loss of orientation to people, places or time• Deductive or abstract reasoning impairment

Max. benefit calculated as 24% of the net death benefit (actual payment is discounted) in any calendar year• Funds can be used for anything• No additional cost• Policy must be I/F for 2 years

ACCELERATED BENEFITS RIDERS

• ABR 3 - Critical Illness

• Heart Attack

• Stroke

• Cancer

• End stage renal failure

• Major organ transplant

• ALS (Lou Gehrig’s disease)

• Blindness

• Lump-sum distribution (discounted from death benefit) after 30 days

• Funds can be used for anything

• No additional cost

Form series 8165(0703)

Life Event Story

WHAT THE WEALTHY KNOW THAT MANY PEOPLE DON’T

According to the Federal Reserve, the richest 10% Americans own over half of the tax-free investment gains built up in life insurance1.

Families in bottom half of net-worth percentiles own just 6.5% of these tax-free assets! 1. Federal Reserve, 2007

Has Life InsuranceHas Life Insurance

Top 10% own 55.1%

50th to 90th

percentile Own 38.4%

THE EQUITY INDEX CONCEPTWHOSE TIME HAS COME

UPSIDE POTENTIALWhen the stock market is up, an equity indexed product will return to you a portion of the stock market gain.

DOWNSIDE PROTECTIONHowever, during the years when the stock market is down, your equity indexed account will not lose any money.

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010$70,000

$90,000

$110,000

$130,000

$150,000

$170,000

$120,909

$136,937

$99,228

$78,869

$95,952

$106,268

$117,033

$127,344

$145,542

$111,033

$100,770

$108,789

$100,000

$115,090

$125,080 $125,080

$125,155$134,091

$140,930

$145,749

$149,160

$156,857 $156,857

$156,867

$160,747

S&P500

09/1998-09/2010.

• The graph is based on actual S&P 500 data and actual credited rates for the period shown on one of our indexed annuity products. These results should not be an indication that Indexed Annuities will outperform the S&P 500. This simply demonstrates the effectiveness of Indexed Annuities in years when the S&P 500 was negative.

.

CASH VALUE

Upside growth potential- Interest credit is tied to the S&P 500 Index- S&P 500 Index – A dynamic index that consists of the 500 largest

companies in the US such as Exxon, Disney World, Walt Mart, Citigroup, Microsoft, McDonalds… etc.

Downside protection- Equity Index concept guarantees you could never lose your cash

value due to a decline in the index

Accessibility - Tax free access after the 1st year via loans