Tracking 100 Americans from age 25 to 65 … 36 will be dead…54 will be DEAD BROKE… 5 will still be working…4 will be financially secure and 1 will be Financially

Tracking 100 Americans from age 25 to 65 …

36 will be dead…54 will be DEAD BROKE…5 will still be working…4 will be financially secure and

1 will be Financially Independent

Where does your money go?

What did the 5 financially successful Americans do differently?

THE FACTS OF LIFE

401(k) / 403(b) IN THE NEWS

it's painfully obvious that something is wrong

with the way we save. The tax-deferred 401(k) plan, and others like it, such as the 403(b) and the IRA, has become

our nation's go-to retirement piggy bank. Time Magazine - Oct 2009



If you were doing the wrong thing to prepare for your

retirement, when would you like to know about it? Now, or when you

retire?


Why Now?

Time Magazine - Oct 2009

It isn’t working for the first retirees!

2010 Tax Brackets

Rate Single Married Filing Jointly

10% Not over $8,375 Not over $16,750

15% 8,375 – 34,000 16,750 – 68,000

25% 34,000 – 82,400 68,000 – 137,300

28% 82,400 – 171,850 137,300 – 209,250

33% 171,850 – 373,650 209,250 – 373,650

35% Over 373,650 Over 373,650

Source: Internal Revenue Service

CalSTRS and CalPERS are TAXABLE INCOME

TAXABLE INCOME

TAX PLANNING STRATEGIES

Tax Deferred

Accumulation

TaxFree

Distribution

Tax Deductible

Contribution

Which would you choose?

You can only take two of the three!

QUALIFIED PLANS

TAX HISTORY

Source: Internal Revenue Service

Tax BracketsCurrentRates

2011Rates

IncreasedPercentage

10% 15% +50%

15% 28% +87%

25% 31% +24%

33% 36% +9%

35% 39.6% +13%

Source: Internal Revenue Service/ CNN Money

TAXABLE INCOME

Bush tax cuts expire in 2011 !

Where does your money go?

Insurance

Savings/ Investments

Living Expenses

Consumer Debt Mortgage

Taxes

THE FACTS OF LIFE

In 1976A First Class Stamp

.13 cents1

In 2009A First Class Stamp

.44 cents1

4% Inflation will double prices every 18 years.

In 1976A Gallon of Gasoline

.59 cents2

In 2009A Gallon of Gasoline

$2.95

1 US Postal Service2 Flashback 1970’s

HOW MONEY WORKS

INFLATION

Protection and Potential TIC-TAC-TOE

Safety ofPrincipal

Fixed Products

3% to 5%

Risk ofPrincipal

VariableProducts

UpsidePotential

IndexedProducts

HOW MONEY WORKS

EARNINGS AND GROWTH

3% to 5%

Fixed Products

VariableProducts

Risk ofPrincipal

Safety ofPrincipal

UpsidePotential

$150,000

$140,000

$130,000

$120,000

$100,000

$160,000

$170,000

$90,000

$110,000

$100,000 Invested in 1997

8/1997 8/1998 8/1999 8/2000 8/2001 8/2002 8/2003 8/2004 8/2005 8/2006 8/2007

Indexed AccountLarge Company Stocks

Many people sacrifice return for safety, and other people sacrifice safety for return. Indexing brings together the best of both.

8/2008 8/2009

$149,937

$126,925

$139,237

$95,529

$115,449

$117,435

$129,330

$152,488

$133,977

$103,775

$134,631

$114,490

$122,504 $122,504

$140,255

$155,476

$166,359

$150,073

$131,080

$107,000

HOW MONEY WORKS

EARNINGS AND GROWTH

Protection and Potential

$166,359

$105,012

The Solution: A new type of insurance. Retirement savings, it turns out, are exactly the type of asset we need insurance for. We need insurance to protect against risks we can't predict (when the market collapses) and can't afford to recover from on our own (Time Magazine Oct 2009)

IUL (AKA LIFE SAVINGS PLAN)

DEFERRED STRATEGY

DEFERRED STRATEGY

DEFERRED STRATEGY

DEFERRED STRATEGY

DEFERRED STRATEGY

$150,725 After Taxes

$400

TAX-FREE STRATEGY

$353,677

TAX-FREE STRATEGY

2% Chronic Illness Income = $7,074 per Month

TAX-FREE STRATEGY

Cash Value at Year 15 = $96,334

TAX-FREE STRATEGY

$37,497

TAX-FREE STRATEGY

DEFERRED STRATEGY

DEFERRED STRATEGY

DEFERRED STRATEGY

DEFERRED STRATEGY

DEFERRED STRATEGY

$233,119 After Taxes

TAX-FREE STRATEGY

$300

TAX-FREE STRATEGY$393,679

TAX-FREE STRATEGY


TAX-FREE STRATEGY


TAX-FREE STRATEGY

$95,470

$300

TAX-FREE STRATEGY

$224,348

TAX-FREE STRATEGY


TAX-FREE STRATEGY


TAX-FREE STRATEGY

$257,509

TAX-FREE STRATEGY

$16,570

$300

TAX-FREE STRATEGY

$272,570

TAX-FREE STRATEGY


TAX-FREE STRATEGY


TAX-FREE STRATEGY

$374,335

TAX-FREE STRATEGY

$16,214

TAX-FREE STRATEGY

$300

TAX-FREE STRATEGY$342,826

TAX-FREE STRATEGY


TAX-FREE STRATEGY


TAX-FREE STRATEGY

$613,288

$15,968

$300

TAX-FREE STRATEGY

$512,006

TAX-FREE STRATEGY


TAX-FREE STRATEGY


TAX-FREE STRATEGY

$853,826

TAX-FREE STRATEGY

$18,092

INDEXED ANNUITYEarns interest based on the performance of the market with safety of principal with upside potential.

FIXED ANNUITYLike a bank CD it is currently paying 3% to 5%

VARIABLE ANNUITYLike a mutual fund there are fees, commissions and risk of loss associated.

WHICH 403(b)/TSA IS RIGHT FOR YOU?

FIXED ANNUITYLike a bank CD it is currently paying 3% to 5%

VARIABLE ANNUITYLike a mutual fund there are fees, commissions and risk of loss associated.

Single Premium 195,300.00$ Annual Contribution 0Accumulation Period 10 Beginning Income Age 72(Enter 1 For Single or

2 for Joint Income) 1 Interest Rate 5.60%Age at Issue 62

Beginning Year of Retirement Cash Value Interest Earned

Guaranteed Income Ending Balance

Year 1 336,776.23$ 18,859.47$ 23,820.04$ 331,815.66$ Year 2 331,815.66$ 18,581.68$ 23,820.04$ 326,577.30$ Year 3 326,577.30$ 18,288.33$ 23,820.04$ 321,045.59$ Year 4 321,045.59$ 17,978.55$ 23,820.04$ 315,204.10$ Year 5 315,204.10$ 17,651.43$ 23,820.04$ 309,035.49$ Year 6 309,035.49$ 17,305.99$ 23,820.04$ 302,521.44$ Year 7 302,521.44$ 16,941.20$ 23,820.04$ 295,642.60$ Year 8 295,642.60$ 16,555.99$ 23,820.04$ 288,378.55$ Year 9 288,378.55$ 16,149.20$ 23,820.04$ 280,707.71$ Year 10 280,707.71$ 15,719.63$ 23,820.04$ 272,607.31$

238,200.38$ Year 10 Total Income

TSA Balance with Guaranteed Lifetime Income Rider






















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Tracking 100 Americans from age 25 to 65 … 36 will be dead…54 will be DEAD BROKE… 5 will still be working…4 will be financially secure and 1 will be Financially