PREMIER FINANCIAL ALLIANCE FINANCIAL PLANNING PRESENTATION
THREE ENEMIES OF YOUR MONEY T I P 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 TAXES
THREE ENEMIES OF YOUR MONEY INFLATION THE SILENT KILLER OF YOUR MONEY
THREE ENEMIES OF YOUR MONEY PROCASTINATION HIGH COST OF WAITING
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 72 Divide 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, LOTTER Y TAX FREE MONEY ROTH IRA LIFE INSURANCE TAX DEFFERE D MONEY 401K IRA TAXABLE MONEY EVERYTHIN G ELSE
INSURANCE MARKET TEMPORARY LIFE INSURANCE (RENTING) PERMANENT LIFE INSURANCE (BUYING) EXPIRES AFTER CERTAIN TIME TERM 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 STOCKS VARIABLE UNIVERSAL LIFE RATE OF RETURN 2%-12% AVERAGE 7.3%- 8.3% EQUITY INDEX UNIVERSAL LIFE
THREATS TO YOUR FINANCIAL SECURITY PREMATURE DEATH Households saying they own enough life insurance to replace their income for only 2.8 years. ILLNESS Every 40 seconds someone in the US suffers a stroke. Every minute an American will die from a coronary event 1.. DISABILITY One in 5 working Americans suffers the effects of a disability for more than six months during his/her working career 2. LONG-TERM CARE The U.S. Bureau of Census estimates that by 2060 as many as 24 million people will need long term care services. OUTLIVING YOUR MONEY People 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 year 3. 1.American Heart Association, American Stroke Association, Heart Disease and Stroke Statistics, 2008 2.Commissioners Group disability table and U.S. Bureau of Census 3.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 Gehrigs 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 DONT According to the Federal Reserve, the richest 10% Americans own over half of the tax-free investment gains built up in life insurance 1. Families in bottom half of net-worth percentiles own just 6.5% of these tax-free assets! 1. Federal Reserve, 2007 Has Life Insurance Top 10% own 55.1% 50 th to 90 th percentile Own 38.4%
THE EQUITY INDEX CONCEPT WHOSE TIME HAS COME UPSIDE POTENTIAL When the stock market is up, an equity indexed product will return to you a portion of the stock market gain. DOWNSIDE PROTECTION However, during the years when the stock market is down, your equity indexed account will not lose any money. 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 1 st year via loans