2. 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? T HE F ACTS OF L IFE

3. 401 (k) / 403 (b) IN T HE N EWS 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

4. 401 (k) / 403 (b) IN T HE N EWS

5. 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?

6. 401 (k) / 403 (b) IN T HE N EWS Why Now? Time Magazine - Oct 2009 It isn’t working for the first retirees!

7. 2010 Tax Brackets RateSingleMarried Filing Jointly 10%Not over $8,375Not over $16,750 15%8,375 – 34,00016,750 – 68,000 25%34,000 – 82,40068,000 – 137,300 28%82,400 – 171,850137,300 – 209,250 33%171,850 – 373,650209,250 – 373,650 35%Over 373,650 Source: Internal Revenue Service CalSTRS and CalPERS are TAXABLE INCOME T AXABLE I NCOME

8. T AX P LANNING S TRATEGIES Tax Deferred Accumulation Tax Free Distribution Tax Deductible Contribution Which would you choose? You can only take two of the three!

9. Q UALIFIED P LANS T AX H ISTORY Source: Internal Revenue Service

10. Tax Brackets Current Rates 2011 Rates Increased Percentage 10%15%+50% 15%28%+87% 25%31%+24% 33%36%+9% 35%39.6%+13% Source: Internal Revenue Service/ CNN Money T AXABLE I NCOME Bush tax cuts expire in 2011 !

11. Where does your money go? Insurance Savings/ Investments Living Expenses Consumer Debt Mortgage Taxes T HE F ACTS OF L IFE

12. In 1976 A First Class Stamp.13 cents 1 In 2009 A First Class Stamp.44 cents 1 4% Inflation will double prices every 18 years. In 1976 A Gallon of Gasoline.59 cents 2 In 2009 A Gallon of Gasoline $2.95 1 US Postal Service 2 Flashback 1970’s H OW M ONEY W ORKS I NFLATION

13. Protection and Potential TIC-TAC-TOE Safety of Principal Fixed Products 3% to 5% Risk of Principal Variable Products Upside Potential Indexed Products H OW M ONEY W ORKS E ARNINGS AND G ROWTH 3% to 5% Fixed Products Variable Products Risk of Principal Safety of Principal Upside Potential

14. $ 150,000 $ 140,000 $ 130,000 $ 120,000 $ 100,000 $ 160,000 $170,000 $ 90,000 $ 110,000 $100,000 Invested in 1997 8/19978/19988/19998/20008/20018/20028/20038/20048/20058/20068/2007 Indexed AccountLarge Company Stocks Many people sacrifice return for safety, and other people sacrifice safety for return. Indexing brings together the best of both. 8/20088/2009 $ 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 $ 140,255 $ 155,476 $ 166,359 $ 150,073 $131,080 $ 107,000 H OW M ONEY W ORKS E ARNINGS AND G ROWTH Protection and Potential $166,359 $105,012

15. 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 L IFE S AVINGS P LAN )

16. D EFERRED S TRATEGY

20. $150,725 After Taxes

21. $400 T AX- F REE S TRATEGY

22. $353,677 T AX- F REE S TRATEGY

23. 2% Chronic Illness Income = $7,074 per Month T AX- F REE S TRATEGY

24. Cash Value at Year 15 = $96,334 T AX- F REE S TRATEGY

25. $37,497 T AX- F REE S TRATEGY

26. D EFERRED S TRATEGY

30. $233,119 After Taxes

31. T AX- F REE S TRATEGY $300

32. T AX- F REE S TRATEGY $393,679

33. T AX- F REE S TRATEGY 2% Chronic Illness Income = $7,874 per Month

34. T AX- F REE S TRATEGY Cash Value at Year 15 = $70,565

35. T AX- F REE S TRATEGY $95,470

36. $300 T AX- F REE S TRATEGY

37. $224,348 T AX- F REE S TRATEGY

38. 2% Chronic Illness Income = $5,886 per Month T AX- F REE S TRATEGY

39. Cash Value at Year 15 = $80,767 T AX- F REE S TRATEGY

40. $257,509 T AX- F REE S TRATEGY $16,570

41. $300 T AX- F REE S TRATEGY

42. $272,570 T AX- F REE S TRATEGY

43. 2% Chronic Illness Income = $5,451 per Month T AX- F REE S TRATEGY

44. Cash Value at Year 15 = $81,464 T AX- F REE S TRATEGY

45. $374,335 T AX- F REE S TRATEGY $16,214

46. T AX- F REE S TRATEGY $300

47. T AX- F REE S TRATEGY $342,826

48. T AX- F REE S TRATEGY 2% Chronic Illness Income = $6,856 per Month

49. T AX- F REE S TRATEGY Cash Value at Year 15 = $81,867

50. T AX- F REE S TRATEGY $613,288 $15,968

51. $300 T AX- F REE S TRATEGY

52. $512,006 T AX- F REE S TRATEGY

53. 2% Chronic Illness Income = $10,240 per Month T AX- F REE S TRATEGY

54. Cash Value at Year 15 = $77,002 T AX- F REE S TRATEGY

55. $853,826 T AX- F REE S TRATEGY $18,092

56.  INDEXED ANNUITY Earns interest based on the performance of the market with safety of principal with upside potential.  FIXED ANNUITY Like a bank CD it is currently paying 3% to 5%  VARIABLE ANNUITY Like a mutual fund there are fees, commissions and risk of loss associated. W HICH 403 (b) /TSA IS R IGHT F OR Y OU ?  FIXED ANNUITY Like a bank CD it is currently paying 3% to 5%  VARIABLE ANNUITY Like a mutual fund there are fees, commissions and risk of loss associated.

61. T HE N EXT S TEP