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3/31/2017 How to Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future Special Presentation by Pamela Yellen, President of.

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Presentation on theme: "3/31/2017 How to Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future Special Presentation by Pamela Yellen, President of."— Presentation transcript:

1 3/31/2017 How to Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future Special Presentation by Pamela Yellen, President of Bank On Yourself, for © 2008–2014 The Hayward-Yellen 100 Ltd Partnership

2 Speaker Disclosure Pamela Yellen is President of Bank On Yourself
3/31/2017 Speaker Disclosure Pamela Yellen is President of Bank On Yourself Programming offered by Pamela Yellen entitled “How to Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future” shall exhibit fair content balance, providing the audience with information of different perspectives from which to develop an informed professional opinion. Pamela Yellen has no actual or potential conflict of interest in relation to this program.

3 3/31/2017 The Institute for Wellness and Education is accredited by the Accreditation Council for Pharmacy Education as a provider of continuing pharmacy education. Attendees who participate in the interactive portion and submit the completed evaluation form at the conclusion of the program will have credit for 1.0 hour(s) of continuing pharmacy education (0.10 CEU(s)) uploaded to CPE Monitor within 60 days after the program date. ACPE program number is L04-P. Initial release date is 02/28/2014.

4 3/31/2017 Learning Objectives At the completion of this activity, the participant will be able to: Describe the advantages and disadvantages of various retirement plan accounts to determine which one will allow them to best reach their financial goals and objectives Explain the three steps to becoming their own source of financing for major business and personal expenses Discuss a plan for constructing a retirement strategy which allows them to know what their retirement account will be worth on the day they plan to tap into it Identify the differences between “paper” wealth and “real” wealth, and provide examples of each Outline the tax consequences of common retirement planning methods

5 What Will Your Retirement Account Be Worth
3/31/2017 What Will Your Retirement Account Be Worth On the day you plan to tap into it? Would it be helpful to know? Is it even possible to know? Will tax rates go up? … or down? How long does your money need to last?

6 It’s based on things you can’t predict or control
3/31/2017 The Problem with Conventional Planning It’s based on things you can’t predict or control

7 3/31/2017 Result More than half of all boomers won’t have enough money for basic living expenses in retirement Food Heating Medical care Source: “The National Retirement Risk Index: An Update.” Center for Retirement Research at Boston College, Oct. 2012

8 Result Three in four boomers expect to postpone retirement
3/31/2017 Result Three in four boomers expect to postpone retirement Half think they may never retire Source: 2012 AARP survey, Boomers’ “Anxiety Index” High

9 3/31/2017 Work Till You Drop? Almost half of all retirees were forced out of work earlier than planned Layoffs Poor health Need to take care of a loved one Source: Employee Benefit Research Institute

10 “After a lifetime of hard work, many seniors will find themselves forced to choose between putting food on the table and buying their medication.” —U.S. Senate Committee on Health, Education, Labor, and Pensions, July 2012

11 I have enough money to live comfortably for the rest of my life …
if I die by next Tuesday

12 3/31/2017 Test Your Money IQ Q: $20 stock … goes up by 40 percent—how much money did you make? A: None—unless you sold your stock and locked in your gain

13 Paper wealth is meaningless
when it comes to financial certainty and security

14 Stock Market Facts S&P 500: Lost 49% from March 2000—October 2002
3/31/2017 Stock Market Facts S&P 500: Lost 49% from March 2000—October 2002 Recovered by October 2007 Lost 57% from October 2007—March 2009 That’s two losses of 49%+ in just one decade

15 Two Losses of 49%+ Just Since the Year 2000
Are you confident there won’t be another crash in the next 5-10 years … or even tomorrow?

16 Leo Cullum, The New Yorker, used with permission

17 Your Retirement “Plan” Powered by Wall Street:
14 Years of the S&P 500 Index The S&P 500 would need to be at 2,077 in today’s depreciated dollars, just to equal its year 2000 high of 1,527 2,077 The S&P 500 has had only 0.95% annual growth over 14 years! March 24, 2000: S&P 500 closes at record high of 1,527 February 3, 2014: S&P closes at 1,742 The S&P 500 closed only 14% higher on February 3, 2014, than it did on March 24, During those 14 years, we experienced 36% inflation. Sources: Yahoo Finance, InflationData.com

18 Real Life Experience The picture that’s making everyone’s jaw drop
“If I can help a few people start Bank On Yourself this year instead of next year—or instead of never— it’s worth it.” Dan Proskauer Vice President of Technology

19 Real Life Experience

20 Real Life Experience

21 How Is This Possible? Volatility is removed Saving becomes fun
You have flexibility and control, because your money isn’t locked up in a government-controlled plan Your confidence is restored, so you can enjoy more of life’s luxuries

22 Bank On Yourself Isn’t a Magic Pill
Your plan value won’t equal your contribution in the early years But because the volatility is removed, you’ll quickly see your net worth go in just one direction – UP!

23 Real Life Experience Would you like your net worth to grow like this?

24 Your Paper Wealth IS Your Real Wealth!
With Bank On Yourself … Your Paper Wealth IS Your Real Wealth!

25 You can’t eat a number on paper

26 What Is Bank On Yourself?
3/31/2017 What Is Bank On Yourself? An asset that has … Increased in value … Every single year … For more than 160 years Dividend-paying whole life insurance

27 Dividend-Paying Whole Life Insurance
3/31/2017 Dividend-Paying Whole Life Insurance Not the kind Suze Orman and Dave Ramsey love to hate Options (riders) to supercharge the growth Commissions are reduced by 50–70% Can be a powerful financial management tool from day one Plans available for people up to age 85 Don’t rule yourself out due to health problems

28 Provides an Unbeatable Combination
3/31/2017 Provides an Unbeatable Combination Predictability and guarantees Control Liquidity Safety Tax Advantages

29 Predictability and Guarantees
3/31/2017 Predictability and Guarantees Guaranteed Growth Cash value (money you can use now) Death benefit (money for your family and charity, later) Potential for dividends No luck, skill, or guesswork required Know the value of your account the day you plan to tap into it … And at any point along the way

30 3/31/2017 Control Putting your money in a government-blessed-and- controlled retirement plan is like putting it in prison You don’t control the money in your 401(k) or IRA, or any similar plan The government controls your money They change the rules any time they want!

31 Control The prison warden has your money under lock and key
3/31/2017 Control The prison warden has your money under lock and key While your money’s in the slammer, they can arbitrarily impose any new restrictions or regulations they come up with You have no recourse

32 Who Controls Your Money in a Bank On Yourself Plan?
You Do!

33 You Control Your Money in a Bank On Yourself Plan
3/31/2017 You Control Your Money in a Bank On Yourself Plan Life insurance policies are private, unilateral contracts The company can’t change the rules without your consent That’s the law

34 You Control Your Money in a Bank On Yourself Plan
3/31/2017 You Control Your Money in a Bank On Yourself Plan No government-imposed limits on how much you can put in No government restrictions or penalties for “early” withdrawal or waiting “too long” No penalties for taking “too little” each year No Required Minimum Distributions Retirement income when and how you want it

35 You Control Your Money in a Bank On Yourself Plan
3/31/2017 You Control Your Money in a Bank On Yourself Plan You can borrow against your cash value any time you want No rules requiring you to pay it back on a certain schedule

36 —David Shelton, healthcare company vice president
“I had very limited control of my money in my 401(k). I couldn’t put in as much as I wanted, and I needed permission to borrow my own money if necessary. Bank On Yourself gives me control over my money.” —David Shelton, healthcare company vice president

37 Liquidity: Fire Your Banker
3/31/2017 Liquidity: Fire Your Banker Financing through Bank On Yourself beats financing, leasing, and even directly paying cash! You finance everything you buy Either you pay interest when you finance or lease Or you lose interest and investment income when you pay cash

38 Liquidity: Fire Your Banker
3/31/2017 Liquidity: Fire Your Banker Fund a Bank On Yourself plan first, then … Use the money in your policy whenever you want For any purpose at all Set your own repayment schedule Your plan continues growing as though you never touched a dime of it!

39 Liquidity: Fire Your Banker
3/31/2017 Liquidity: Fire Your Banker The Bank On Yourself strategy solves the problem of having to constantly interrupt the growth of your money, whenever you spend or invest it!

40 3/31/2017 Safety Life insurance companies are audited regularly by the state insurance commissioner’s office to ensure they maintain sufficient reserves to pay future claims They’re audited regularly by several independent rating companies

41 3/31/2017 Safety State insurance commissioner’s office can take over and run the company in the interests of policyholders Historically, a failed insurer’s business is taken over by another company, according to the National Organization of Life and Health Insurance Guaranty Associations Additional protections are available in each state

42 Extra Benefit: Asset Protection
3/31/2017 Extra Benefit: Asset Protection May be protected from creditors and lawsuits Rules vary from state to state

43 Does having money safe and available to you take away any of your options?

44 You Are Not Putting Your Money in a Straitjacket
3/31/2017 You Are Not Putting Your Money in a Straitjacket You have safety, liquidity, and control Greater growth than savings or money market accounts, without the risk or volatility of traditional investments Access to your money when and how you want—for purchases or investments Get continuous growth, even on the money you’re using More options and flexibility, not less

45 Independent Pharmacy Owner Michael Bemis of Bemis Drug:
“My Bank On Yourself plan gives me easy access to capital, and I’m receiving a dividend even on the money I borrowed. It works great for purchasing equipment for my pharmacy, such as a new counting machine. “Why borrow from a bank, when you can borrow from yourself? “I get to pay myself interest on the money I loan to the pharmacy for purchases, and it grows my Bank On Yourself plan.”

46 Tax Advantages Of Bank On Yourself
3/31/2017 Tax Advantages Of Bank On Yourself Can give you a retirement income with no taxes due Reduce the taxes you may have to pay on your Social Security benefits Extra tax breaks for pharmacy owners and other business owners Death benefit passes to your loved ones income tax-free … and avoids probate

47 Tax Advantages Of Bank On Yourself
3/31/2017 Tax Advantages Of Bank On Yourself You pay your taxes up front while you know what they are No taxes due on your gains in retirement* Avoid unwelcome surprises Both Roth plans and Bank On Yourself plans offer that strategy But only Bank On Yourself has all the additional advantages and guarantees we’re talking about today * Under current tax laws

48 But everyone knows it’s better to defer taxes with a 401(k), IRA, etc.
… Isn’t it?

49 Quick Case Study You need $70,000 per year in retirement
3/31/2017 Quick Case Study You need $70,000 per year in retirement You retire with an average tax rate of 25% Tax Deferred Plan You need $93,333 You pay taxes ($23,333) You net $70,000 Bank On Yourself Plan $70,000 ($ )

50 How Would You Prefer to Spend That Extra $23,000 Per Year?
3/31/2017 How Would You Prefer to Spend That Extra $23,000 Per Year? Paying more taxes? Enjoying life more?

51 3/31/2017 And … if tax rates go up and you’re successful growing your nest egg in a tax-deferred plan, you’ll only end up paying higher taxes on a bigger number

52 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Give you guaranteed growth?

53 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Lock in your principal and growth?

54 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Give you control of your money?

55 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Give you tax-free retirement income?

56 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Let you use your money without penalties?

57 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Let your money grow while you use it?

58 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Let you access your money without liquidating?

59 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Let you fund it every year with no government limits?

60 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Finish funding itself if you die prematurely?

61 Does Your Retirement Plan …
Checklist Does Your Retirement Plan … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Tell you the plan value on the day you plan to tap it?

62 Does the Retirement Plan You Currently Have or Are Considering …
Summary Does the Retirement Plan You Currently Have or Are Considering … 401(k)s and 403(b)s IRAs Roth Plans Bank On Yourself Plans Give you guaranteed, predictable growth? Lock in your principal and growth, even when the market crashes? Give you control of your money without government restrictions and penalties? Give you tax-free retirement income? Let you use your money in the plan without penalties, however and whenever you want? Let you use your money in the plan yet still have it grow as though you didn’t touch it? Let you access your money without liquidating your investments? Allow you to fund it every year, without limits imposed by the government? Finish funding itself if you die prematurely? Tell you the minimum guaranteed value of the plan on the day you expect to tap into it, and at any point along the way?

63 As Texas Bix Bender once noted, “Just cuz you’re following a well-marked trail don’t mean whoever made it knew where they were goin’.”

64 Case Study Joe and Jane Pharmacist They’re both 45 years old
3/31/2017 Case Study Joe and Jane Pharmacist They’re both 45 years old Have $25,000 in credit card debt Have $135,000 in other personal and business debt Want a new $35,000 car every four years Want $100,000 for … pharmacy automation … kids’ college … or motor home

65 Joe and Jane’s Personalized Solution

66 You indicated your biggest financial concerns are:
Putting $$$ into traditional retirement plans that have been going backwards for 15 years Lack of savings Lack of liquidity Current and future taxes You said your top financial goals are: Secure retirement Help pay for kids’ college Buy automation for the pharmacy Pharmacy renovation

67 Approximately $675,692 in interest payments could leave your home over the next 10 years—never to
be seen again—if you keep doing what you’ve been doing. … And you could lose more than that, if you take on additional debt.

68 3/31/2017 Funding Joe’s Plan Moves $50,000 from money market account earning 0.2% to Bank On Yourself plan Commits $2,500 monthly from current resources Redirects $1,000 monthly to build his personal, private Bank On Yourself plan, instead of a government-controlled plan No more premiums after age 70

69 Instant life insurance coverage of $1,900,000
Liquid emergency fund of $154,000 in three years Credit cards paid off in one year Retirement income of $80,000 per year from age 71 to 99 (little or no taxes due) Death benefit remaining at age 95: $660,000 Total potential retirement income: $2,320,000

70 No Two Bank On Yourself Plans Are Alike
3/31/2017 4:39 PM No Two Bank On Yourself Plans Are Alike Your plan would be custom-tailored to your unique situation and your short-term and long-term goals and dreams

71 Top Seven Ways Pharmacists Use the Bank On Yourself Method
3/31/2017 Top Seven Ways Pharmacists Use the Bank On Yourself Method As a safe, predictable retirement plan alternative To self-finance business and personal purchases, recapturing interest they’re now paying to banks and leasing companies As a better way to save and pay for college For investment opportunities (real estate, pharmacy acquisition, etc.)

72 Top Seven Ways Pharmacists Use the Bank On Yourself Method
3/31/2017 Top Seven Ways Pharmacists Use the Bank On Yourself Method To provide safe and liquid cash reserves that earn far more than CDs and money markets To fund buy-sell agreements and for business succession planning To take back control of their money and finances

73 Pitfalls to Watch Out For
3/31/2017 Pitfalls to Watch Out For Beware of untrained advisors: If your plan isn’t structured properly, it could grow much more slowly, lose the tax advantages, or both A different life insurance policy type may be recommended – No other product comes with as many guarantees as dividend- paying whole life insurance

74 Pitfalls to Watch Out For
3/31/2017 Pitfalls to Watch Out For If your current financial advisor or insurance agent tells you he knows how to implement this, ask him: “If you could have done this for me … why didn’t you?”

75 Only a Handful of Life Insurance Companies Offer the Right Policies
3/31/2017 Only a Handful of Life Insurance Companies Offer the Right Policies What to look for: Must offer dividend-paying whole life policies Must have paid dividends every year for at least 100 years

76 Only a Handful of Life Insurance Companies Offer the Right Policies
3/31/2017 Only a Handful of Life Insurance Companies Offer the Right Policies What to look for: Must offer “non-direct recognition” policy loans Must be among the financially- strongest companies in the country (Comdex rating of at least 95)

77 You Can Take Back Control of Your Financial Future!
The time may never be perfect to start. – We can always find a reason to put it off There’s an old African proverb: “The best time to plant a tree is twenty years ago. The second best time is today.”


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