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People who are tired of losing money in the stock market. People who are looking to do better on their CD’s and Money Market funds. People who are concerned.

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Presentation on theme: "People who are tired of losing money in the stock market. People who are looking to do better on their CD’s and Money Market funds. People who are concerned."— Presentation transcript:

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2 People who are tired of losing money in the stock market. People who are looking to do better on their CD’s and Money Market funds. People who are concerned that they might outlive their income. People who would like to preserve their assets for future generations. People who would like to have more income to spend. √ √ √ √ √ Who Will Benefit From This Seminar?

3 This presentation contains basic general information and is provided with the understanding that it is for educational purposes only and simply reflects our understanding of retirement issues in effect at the time of publication. Individual situations vary and the personal impact of various estate and retirement strategies should be carefully considered. Therefore, it is always recommended that you seek the advice of a certified professional regarding your specific needs. This guidebook is made available with the understanding that the publisher, its employees, representatives, partners, officers, agents or associates do not give legal or tax advice. Tarkenton Financial LLC does not practice law, and nothing in this guidebook is ever to be viewed as legal counsel. Please be aware that laws, regulations and procedures are constantly changing and are subject to local variations and diverse interpretations. Therefore, if legal advice is required, it is always recommended that you seek the advice of a qualified attorney who is familiar with the laws of your state of residence. No specific investment advice is ever intended. Annuities and other financial products can vary significantly. Therefore, some of the information provided in the guidebook may not apply to every insurance or financial product that is listed or available. Always examine the details of any financial product under consideration for its exact structure and provisions. The U.S. Securities and Exchange Commission (SEC) require that only a registered representative licensed with a registered broker/dealer may sell securities. The Department of Insurance in each state require that only qualified licensed individuals may sell insurance products. Any mention of interest rates or rates of return are purely hypothetical and not intended to represent any assurances or guarantees. Tarkenton Financial seminars are intended to give basic general information on retirement issues and all efforts have been made to provide useful and accurate information concerning the subject matter covered herein. COPYRIGHT © 2004-2007 TARKENTON FINANCIAL LLC. Use or reproduction without prior written consent is prohibited by law. This material is provided for educational purposes only and no legal, tax or investment advice is intended. Please consult a certified professional advisor regarding your specific needs. See Disclaimer page. 29 EXPLANATORY DISCLAIMER This is an Educational Workshop Only

4 Please turn off your pagers and cell phones for the courtesy of others Restrooms are …… Seminar Will Last About 90 Minutes Some Housekeeping Rules

5 The Five Key Money Questions How do I keep it? How do I grow it? How do I spend it? How do I pass it on? How do I get it back? Seniors Tell Us… “That Makes a Lot of Sense”

6 Who Can You Trust? Insurance Professionals Estate and Financial Planners Stock Brokers and Money Managers Annuity Salespeople Attorneys and Accountants Mutual Fund Professionals Real Estate Dealers Hard Earned Lots of Choices Lots of Information Lots of Opinions Lots of Uncertainty Lots of Promises Tarkenton Financial We’d Like for You to Believe in Us Industry Trusted Name Highly Trained Representatives Highest Levels of Integrity Multiple Product Information and Offerings State of the Art Planning Ideas and Technology 100% Focus on Seniors and Retirement

7 A Message from Fran Tarkenton

8 Your Money Didn’t Grow on a Tree … Did It? Work Assets Basic Needs Money Tax Money Quality of Life Money Accumulation Stage of Life Work Harder InflationTaxes Illness Market Losses You Built a Financial House One Day of Work at a Time

9 Then You Retired! Assets Quality of Life Money Illness Market Losses InflationTaxes Tax Money Basic Needs Money The Big Cloud Preservation and Distribution Stage And Managing Your Money Took On a Whole New Meaning

10 Age Became a Big Factor Preservation and Distribution Stage Pre-Retirement Years are Weighted Towards Accumulation Retirement Years are Weighted Towards Preservation and Distribution Accumulation Stage Preservation and Distribution Stage

11 The Impact of Taxes SOCIAL SECURITY TAX CAPITAL GAINS TAX INTEREST TAX DIVIDENDS TAX STATE/LOCAL TAX SALES TAX PROPERTY TAX Federal Income Tax Estate Tax Luxury Tax 37.6% 49.2% Today 1976

12 Capital Gains Tax Rate is 15% (exception of 0% for taxpayers at 15% regular rate) Capital Gains and Federal Estate Taxes 18% to 45% Tax on Taxable Estate Paid at Death of Surviving Spouse Paid Nine (9) months after passing Everything over $2,000,000 “Laughter is the right response …..2010 is going to be a great year to die.” - Jane Bryant Quinn Capital Gains Tax Federal Estate Tax

13 Avoiding Tax on Social Security Gives You More Money to Spend 1935 - Social Security Established 1984 - Started to Tax, Congress Exempt 1994 - OBRA – Raised Tax to 85% Single - $25,000 *Married - $32,000 50% Single - $34,000 *Married - $44,000 85% * Married Filing Jointly *IRS Publication 915 Pgs. 3,5 IRS Code Section 86 ( c ) ( 1 ) Code Section 86 ( a ) ( 2 )

14 Triple Exemption Federal Tax State Tax Tax on Social Security Benefits Compounding Earn Interest on Principal Earn Interest on Interest Earn Interest on Dollars Not Paid in Taxes Get Maximum Growth With Tax Deferred Compounding Get Maximum Growth With Tax Deferred Compounding Put Your Money To Work Don’t Give It to Uncle Sam in Taxes Money Accumulates Totally Tax Deferred

15 In 1492...the Year Columbus Sailed the Ocean Blue… 5% $858 Million With Interest Taxed Each Year at 33% $242,219 Sailing Along With Triple Compounding “Compound interest is the greatest discovery in the universe.” Albert Einstein

16 You Can Make Your Money Do More Than You Ever Imagined Multi-Generational IRA’s – The Newest Tax Option Without Multi-Generational IRA $157,424 With Multi-Generational IRA $1,782,009 Lump Sum (Without Stretch) Benefits of Tax Deferral Lost Estate Taxes Due Income Taxes Due Multi-Generational IRA Benefits of Tax Deferral Continue Income Taxes On Distributions Only Lifetime Income Provided to Children $200,000 to Heirs Hypothetical Illustration assuming stretch for two generations @ 5.5% interest. Assumes assets are passed at age 70 and the children disclaim the IRA to the grandchildren. Grandchildren are 8 years old at the time of the grandparents death.

17 Joe - 71 Sally - 65 “My accountant tells me he’s taking advantage of every deduction. “ $5235 Before $2516 After Tax Savings $2719

18 Money Pit Lawyers Fees Grantors Heirs Probate Takes Money From Your Children and Grandchildren Probate Costs Estate Taxes Public Notice Creditors *This information is for educational purposes only and should not be construed as legal advice. Always consult an attorney about your individual circumstances.

19 Grantors Heirs Money Pit LawyersProbate Costs Estate Taxes Public Notice Creditors Public Notice Trusts Put That Money Back in Their Pockets *This information is for educational purposes only and should not be construed as legal advice. Always consult an attorney about your individual circumstances.

20 Living Trust A – B I.L.I.T. – Irrevocable Life Insurance Trust C.R.T. – Charitable Remainder Trust Other Common Planning Vehicles F.L.P. – Family Limited Partnership Additional “Must Have” Documents Financial Power of Attorney Healthcare Power of Attorney Living Will Document Different Kinds of Trusts *This information is for educational purposes only and should not be construed as legal advice. Always consult an attorney about your individual circumstances.

21 Name ___________________________________________ Address _________________________________________ City ____________________________ Zip_____________ Phone __________________________________________ How Did You Like Our Workshop? □ Excellent □ Fantastic □ Wonderful □ Magnificent Best Day and Time to Meet – Please Select Two Choices Circle DayMondayTuesdayWednesdayThursdayFriday Put Time in Box □ Tax Savings and Shelters □ Estate Planning Using Trusts □ Protecting Assets from Catastrophic Loss □ Rule of 100 Asset Allocation Analysis □ Lifetime of Income Compass Program □ Market Growth – No Loss FIA’s I Would Like More Information About: Give us one hour and we’ll give you years of experience! Registration and Information Request Card

22 Catastrophic Illness Options to Consider Out of Pocket Medicaid Planning Children Care Long Term Care Insurance You Know That Everything Can Be Lost to Illness OK Deary, Hand That Egg Over, Or Else!

23 Long Term Care Insurance May Be a Solution Long Term Care Insurance? That’ll Be About $1000 Per Year* Great, I’ll Take It! Wisdom at 60 $20,000 Age 80 20 Years Penny Wise Age 60 No Way! I’ll Wait 10 Years Pound Foolish Age 70 $40,000 Age 80 50% Chance of Entering a Nursing Home or Needing Home Health Care Over 10 Year Period If You Are Going to Buy Long Term Care Insurance…. Do It Now! *Actual rates for Male- Age 60. Allianz ‘Term Long Term Care’. Covers 150 per day for 5 years with simple interest rider attached. $1000 $4000 Ugh!!!!!!!

24 Real Life Issue Specially Designed Life Insurance Policy John, 63 and Cathy, 61 Death Benefit *$175,912 Long Term Care *$87,948 for 4 Years Living Benefit @ 4.0% “I don’t want to throw money out the window on Long Term Care Insurance! I probably won’t need it.” $50,000 per person *Combined Benefits Lincoln National Life MoneyGuard Reserve Policy *$100,000 Minimum Return of Premium

25 Death Benefits $250,000 Cash Value $81,994 Cash Value to New Policy $81,994 Death Benefit $394, 021 Good News: Life Insurance has become less expensive! Old PolicyNew Policy Review Current Life Insurance Policies

26 Name ___________________________________________ Address _________________________________________ City ____________________________ Zip_____________ Phone __________________________________________ How Did You Like Our Workshop? □ Excellent □ Fantastic □ Wonderful □ Magnificent Best Day and Time to Meet – Please Select Two Choices Circle DayMondayTuesdayWednesdayThursdayFriday Put Time in Box □ Tax Savings and Shelters □ Estate Planning Using Trusts □ Protecting Assets from Catastrophic Loss □ Rule of 100 Asset Allocation Analysis □ Lifetime of Income Compass Program □ Market Growth – No Loss FIA’s I Would Like More Information About: Give us one hour and we’ll give you years of experience! Registration and Information Request Card

27 500% -500% 1,500% 1,000% 2,500% 2,000% 3,000% 3,500% 4,000% 4,500% 0% 1954 197019801985197519951990 2006 20001960 1965 5,000% 5,500% 6,000% 6,500% 7,000% The Lure of the Stock Market S&P 500 Index Dow Jones Industrial Index +5,700%+4,400%+10,000%+8,000% 9 The Dow at 30,000 Is It Possible? Yes!

28 But, What If the Market Goes Down? $100,000 $60,000 $80,000 +25%-20% -40% +66.6% $50,000 -50% +100% Have You Discovered Money Lost is Hard to Recoup? Break Even

29 Financial Snapshot – Risk Ratio Analysis ___% -4- You Now Have a Money Management Balancing Act Risk No Loss CD’s FIA Annuities Variable Annuities Mutual Funds Stocks LOSS No Risk Fixed Annuities

30 Financial Snapshot – Risk Ratio Analysis ___% -4- High Risk No Market Risk* Fixed Annuities; Fixed Indexed Annuities; Other Annuities with Minimum Guarantees; Emergency Cash Reserves Preferred Stocks; Bonds; Bond and Income Funds; Cash; CD’s; Treasuries ** Certain Variable Annuities Mutual Funds Common Stocks Variable Annuities Moderate Risk 100 – Your Age = % in High and Moderate Risk 100 – 65 = 35% 65% Age Based Asset Allocation Provides the Freedom to Take Advantage of the Market No Risk * Based on claims paying ability of the issuer. Always review financial strength of insurance company. ** CD’s are FDIC insured. Treasuries are insured by the US Government. Both CD’s and Treasuries are subject to inflation risk. The Rule of 100

31 Financial Snapshot – Risk Ratio Analysis ___% -4- Upside Down Asset Allocation The Biggest Cause of Outliving Income No Risk Preferred Stocks; Bonds, Bond and Income Funds; Cash; CD’s, Treasuries, Certain Variable Annuities Mutual Funds, Common Stocks, Variable Annuities High Risk Moderate Risk Fixed Annuities; Fixed Indexed Annuities; Other Annuities with Minimum Guarantees; Emergency Cash Reserves

32 Financial Snapshot – Risk Ratio Analysis ___% -4- Real Life Issue Total Money Assets $454,000 Fixed Annuity VA CD’s Stocks/Bonds Mutual Funds Tom, 68 and Cynthia, 68 No Risk 10% Moderate/Low Risk 28% High Risk 62% No Risk 68% = $308,720 Moderate/Low Risk 15% High Risk 17% Strong Financial Foundation Take Advantage of Market Growth Less Stress About Potential Losses “I like having money in the market, but the ups and downs are driving me nuts.”

33 Name ___________________________________________ Address _________________________________________ City ____________________________ Zip_____________ Phone __________________________________________ How Did You Like Our Workshop? □ Excellent □ Fantastic □ Wonderful □ Magnificent Best Day and Time to Meet – Please Select Two Choices Circle DayMondayTuesdayWednesdayThursdayFriday Put Time in Box □ Tax Savings and Shelters □ Estate Planning Using Trusts □ Protecting Assets from Catastrophic Loss □ Rule of 100 Asset Allocation Analysis □ Lifetime of Income Compass Program □ Market Growth – No Loss FIA’s I Would Like More Information About: Give us one hour and we’ll give you years of experience! Registration and Information Request Card

34 Year ‘93‘94‘95‘96‘97‘98‘99‘00‘01‘02‘03‘04‘05‘06’07 CD Rate 3.35.06.05.55.75.45.56.63.71.81.21.83.75.2 Inflation 3.22.83.03.22.51.72.43.73.11.72.52.93.73.22.8 Real Rate of Return.10.501.0.501.32.01.3.76.60.501.7 1.2.27.65 Real Rate of Return is CD Rate Adjusted for Inflation Less 33% Tax Over the Past 15 Years CD’s Lost Money for Their Owners 40% of the Time CD’s and Money Market Funds The Slow Leak You Can’t See Creditors? Taxes? Lawsuits? *Source: Inflationdata.com; Federalreserve.gov Inflation and Market Risk

35 Year 2534 Market Linked Products Fixed Index Annuities (FIA’s) Annual Lock In Annuities are insurance products and are subject to limitations, including withdrawal charges, caps, fees, and market value adjustments, that may affect contract values. Withdrawals prior to age 59 1/2 may be subject to an IRS penalty. Availability of products and features may vary by state. 16 Index at 1000 Index at 900 Index at 1000 Index at 900 Index at 1000 Current Value Principal $ Annual Reset *Hypothetical Illustration.. Always consult with an insurance professional about your individual circumstances. Annuity guarantees only extend to the claims paying ability of the insurer. No Market Losses

36 Insurance company invests 79% of your dollars in Treasuries, 6% in Mortgage Loans, 5% Stocks, 3% Real Estate, 3% Cash and 2% in S&P 500 Institutional Options. For each dollar you invest, approximately $1.00 of the insurance company’s Capital & Surplus is put into Reserve (Banks Reserve typically 3 to 10%)! Because of this, they are able to insure 100% of your principal against loss and guarantee a minimum rate of return (due to the yield on the Treasuries). And if the market is positive, you are credited with a interest at a rate linked to the return on the S&P 500 or NASDAQ 100 (Fixed Index Annuities)* ** Lost Money is defined as any loss from a fixed annuity of Principal or Guaranteed Interest. Principal is the amount initially invested in the annuity; Guaranteed Interest is interest rate guaranteed specified in the annuity contract as guaranteed to be paid either throughout the term of the contract, or for a specific elected year – whichever applies. Proof of loss required including: Specific Annuity Contract for the Annuity in question and support documentation demonstrating that loss was the result of non-payment by the underwriting insurance company. FIA’s Are Historically 100% Risk Free *For illustration and educational purposes only. Different insurance companies use different formulas to manage their portfolios and structure reserves. *Up to specified cap, if any.

37 Monthly Income: $427 Start $24,866 $20,438 $15,814 $38,883 5th Year $0 $26,060 $20,668 $53,273 10th Year $0 $27,012 $72,988 15th Year $0 $100,000* 1234 Tax Free 97.01% Tax Free 73.65% Tax Free 55.67% * Illustration Purposes Only. Leg 1 – Immediate Annuity; Leg 2 – Deferred Annuity 4.98%; Leg 3 – Deferred Annuity 5.5%; Leg 4 – Deferred Annuity 6.5%. Results will vary based on market conditions. Principal is guaranteed against loss. $462 $473 Real Life Issue Real Life Issue Compass Income Plan Chris, 71 Margaret, 70 $100,000 “I’d like to have more income, but I’m so afraid of running out of money.”

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39 Over $25 billion of index annuities were purchased in 2006. “Index Annuities may be the Perfect Product.” “Index Annuities are a Poor Choice for Seniors.” True False True Maybe Annuities are appropriate for all seniors. FIA in general have become more consumer friendly. Work with someone you trust and top rated companies. FIAs should be part of a long-term retirement strategy. There are good and bad types of annuities. True What is the Real Truth About Annuities?

40 “I have to admit I like the concept for the right investor. In fact, for those who do not want to take any downside risk, the index annuity can be a good option … If you are willing to give up some upside potential, an index annuity can help you protect yourself against downside risk, both in the short term and the long term … If you do not want to take any risks but still want to play the stock market, a good index annuity may be right for you.” Fixed Index Annuities are long term, safe money financial products that are not suitable for everyone. Read all product disclosures, consult your advisors and the NAIC “Buyer’s Guide to Fixed Annuities with Appendix for Equity Index Annuities”. Guarantees are contingent upon you abiding by the terms of the annuity contract. -- Excerpted from The Road to Wealth, Pages 506-507. Fixed Indexed Annuities Are Not For Everyone!

41 You can generate immediate cash from: Income payments from an annuity. Income payments from an annuity. Structured settlement payments. Structured settlement payments. Inherited annuities. Inherited annuities. Existing annuities. Existing annuities. Yesterday’s decisions may not be suitable for today: Eliminate debt. Eliminate debt. Home improvement. Home improvement. Helping children buy a house or starting a business. Helping children buy a house or starting a business. Assisting family in times of need. Assisting family in times of need. When Financial Needs Change

42 Name ___________________________________________ Address _________________________________________ City ____________________________ Zip_____________ Phone __________________________________________ How Did You Like Our Workshop? □ Excellent □ Fantastic □ Wonderful □ Magnificent Best Day and Time to Meet – Please Select Two Choices Circle DayMondayTuesdayWednesdayThursdayFriday Put Time in Box □ Tax Savings and Shelters □ Estate Planning Using Trusts □ Protecting Assets from Catastrophic Loss □ Rule of 100 Asset Allocation Analysis □ Lifetime of Income Compass Program □ Market Growth – No Loss FIA’s I Would Like More Information About: Give us one hour and we’ll give you years of experience! Registration and Information Request Card

43 Having less money to spend due to tax increases and inflation 12345 Losing on investments 12345 Getting extremely low interest rates on CD’s and Money Market accounts 12345 Outliving income or running out of money 12345 Losing home and assets to the nursing home 12345 What’s Your Worry Level? LowHigh My Score Today ______ 19 My Score Tomorrow ______

44 Under 5 6 - 1011 - 1516 - 20 20 & Over How’s Your Retirement Looking? Peace of Mind Some Concern Fear of the Future Feeling Very Vulnerable Sustained Disappointment My Score Today ___________ My Score Tomorrow ___________ 194 Would You Like to Do Better?

45 Fear of the Unknown Too Emotional Embarrassed Cannot Admit Mistakes Feels Obligation to Another Does Not Want to be Pressured Overly Optimistic Overly Pessimistic Procrastination Never Helped Anyone When?

46 Who Can You Trust? Insurance Professionals Estate and Financial Planners Stock Brokers and Money Managers Annuity Salespeople Attorneys and Accountants Mutual Fund Professionals Real Estate Dealers Hard Earned Lots of Choices Lots of Information Lots of Opinions Lots of Uncertainty Lots of Promises Tarkenton Financial We’d Like for You to Believe in Us Spend one hour with us for a ‘no obligation’ visit We will give you a candid second opinion We will give you a personally designed, mathematically based plan Give us one hour of your time and we will give you years of our experience

47 Closing Thoughts From Fran Tarkenton

48 Name ___________________________________________ Address _________________________________________ City ____________________________ Zip_____________ Phone __________________________________________ How Did You Like Our Workshop? □ Excellent □ Fantastic □ Wonderful □ Magnificent Best Day and Time to Meet – Please Select Two Choices Circle DayMondayTuesdayWednesdayThursdayFriday Put Time in Box □ Tax Savings and Shelters □ Estate Planning Using Trusts □ Protecting Assets from Catastrophic Loss □ Rule of 100 Asset Allocation Analysis □ Lifetime of Income Compass Program □ Market Growth – No Loss FIA’s I Would Like More Information About: Give us one hour and we’ll give you years of experience! Registration and Information Request Card

49 All About Money Wow! He’s done. I never thought he’d finish It’s really …. All About Eating!!!!


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