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This document discusses retirement planning and savings options. It begins by asking where most people save for retirement, such as 401(k) plans. It then discusses concerns with 401(k)s like fees, market risk, taxes, and not having guaranteed lifetime income. The document presents alternative options like index universal life insurance that can provide tax-free growth, living benefits like chronic illness payouts, and guaranteed lifetime retirement income. It argues these benefits make index universal life insurance a better savings vehicle than traditional 401(k)s for retirement planning.
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- 1. RETIREMENT: HOW IT WORKS Where do most people save for Retirement?
- 2. You Need to Know… The tax treatment of the products discussed within this presentation are based on our current understanding of tax laws, which are subject to change. Such information is presented for educational purposes only, and should not be relied upon as professional tax advice. WE DO NOT GIVE TAX OR LEGAL ADVISE.
- 3. WHEN CAN YOU AFFORD TO SAVE FOR RETIREMENT? You CAN NEVER Afford To SAVE UNLESS You WANT TO! 20 - Party 25 - Diapers 30 - Car 35 - House Midlife Crisis- 40 45 - Kid’s College 50 - Vacation 55 - Not Too Late The Time To SAVE is NOW!!!
- 4. WHAT IS YOUR NUMBER? 20 YEARS OF MONTHLY RETIREMENT INCOME FROM AGE 66 - 85 @ 8% ASSUMED RATE Age $3,000 $5,000 $7,000 20 $68.00 $113.33 $158.66 30 $156.36 $260.59 $364.83 40 $377.13 $628.55 $879.98 50 $1,036.48 $1,727.47 $2,418.46 60 $4,881.30 $8,135.51 $11,389.71 REQUIRED MONTHLY $AVING$ TO AGE 65...
- 5. THE FIVE RETIREMENT GOTCHA’S • PROCRASTINATION : ENEMY#1 • FEE’S : ARE EXCESSIVE AND HIDDEN FEE’S ACCEPTABLE ? • MARKET RISK : ASSETS AT RISK…DOES IT MAKE SENSE ? • HEALTH RISK : FULLY FUNDED ? • TAXES : 16 TRILLION ON DEBT, WHO IS GOING TO PAY FOR IT? 8
- 6. IS THE 401K REALY THE BEST PLACE TO THE SECRET OF THE ULTRA-RICH... PUT YOUR RETIREMENT NEST EGG? “The ugly truth, is that the 401(k) is a LOUSY PRODUCT, a FINANCIAL FLOP...” October 19, 2009 HIGH RISK! HIGH TAXES!!! HIGH FEES!! What if you have a way to "OPT OUT" of the Tax System, PAY LOWER FEES & NEVER EVER LOSE money again?
- 8. Four Phases of RETIREMENT PLANNING Contribution Accumulation Withdrawal Transfer Tax Tax Favored Favored Taxed Taxed Income Income After Tax Tax Tax Tax Favored Free Free DOES IT MAKE SENSE TO DEFER TAXES, AND POSSIBLY PAY MORE LATER?
- 9. WHAT IF YOU LIVE LIFE INSURANCE INDEX UNIVERSAL Life Insurance You Don’t Need to Die to Use!
- 10. WHY DO YOU BUY LIFE INSURANCE? In case you die! In case you LIVE! LIVING BENEFITS FEG INSURANCE SERVICES
- 11. LIVING BENEFITS: Does your life insurance policy do this? Critical Illness Heart Attack, Stroke, Cancer, Major Organ Transplant, Blindness, Lou Gehrig's Disease, End Stage Renal Failure Chronic Illness Unable to perform 2 of the 6 daily living activities or Cognitive Impaired Lifetime Income Once activated, GURANTEED INCOME FOR LIFE & POLICY WILL NEVER LAPSE!!! ( not available with all insurance companies ) At NO ADDITIONAL PREMIUM
- 12. Living Benefits…Critical Illness The Average Age of a Heart Attack, Stroke or Cancer is 43. Most WILL SURVIVE AND MANY WILL GO BANKRUPT!!! Over 62.1% of all BK’s are due to Medical Expenses , 78% of them had Health Insurance. Million’s American’s will SURVIVE a Heart Attack Stroke or Cancer and CANT EARN INCOME! Most American’s will experience a Heart Attack, Stroke or Cancer by the age of 65. ARE YOU COVERED? Why Should YOUR FAMILY Wait UNTIL IT IS TOO LATE?
- 13. Living Benefits…Chronic Illness Most American’s cannot afford, or don’t want to afford Long Term Care Insurance ( 90% ). 70% of people will require at least some type of Long Term Care. Over 40% will need care in a Nursing Home, and the average stay is now 2.9 years. At an average cost of $219 per day, that’s$6,570.00 / MONTH…where’s the money going to come from? ARE YOU COVERED? Why Should YOUR FAMILY Wait UNTIL IT IS TOO LATE?
- 14. IT’S YOUR CHOICE Up to $1,500,000 will vary by insurance carrier CRIT ICALCH / RONIC IL NE L SS 200,000 Two hundred thousand dollars Heart Attack, Stroke or Cancer A CARD OR A CH CK E
- 15. OUR SOLUTION... Critical Illness - Heart Attack, Stroke, Cancer, Blindness... Chronic Illness - Unable to perform 2 of 6 ADL’S: Bathing, Continence, Dressing, Eating, Toileting, Transferring. This LIVING BENEFIT CHECK Saved this Family from Financial Devastation...
- 16. 401K/IRA DISASTER $100,000 401K Retirement Average Qualified Plan Our INDEX U/L Alternative Market Drops 50% = $50,000 Market Drops 50% = $100,000 Real Estate Values Drop 30% Real Estate Values Drop 30% Need $30,000 for Income Take $30,000 for Income = $70,000 Take $45,000 before Tax $250,000 Taxes 33 1/3% $15,000 = $5,000 TaxesLiving Benefit 0% = $70,000 10% Penalty of $4,500 = $500 No Penalty = $70,000 $500 Left (before state penalty) $70,000 left
- 17. IT’S YOUR CHOICE Up to $1,500,000 will vary by insurance carrier CRITICALCH / RONIC IL NE L SS 200,000 Two hundred thousand dollars Heart Attack, Stroke or Cancer IS YOUR IRA/ 401K or CURRENT L E INSURANCE P ICY GOING T IF OL O T E CARE OF YOU? AK
- 18. THE ULTIMATE LIVING BENEFIT Retirement Income Are you Concerned about OUTLIVING YOUR INCOME, 401K FEE’s, and MARKET RISK DURING DISTRIBUTION? YOU SHOULD BE! Will Social Security be there? What will the MULTI TRILLION DOLLAR DEFICIT DO TO OUR ECONOMY? Are you interested in an Income THAT YOU CANNOT OUTLIVE…GUARANTEED? Retirement Income Security
- 19. IT’S YOUR CHOICE Retirement Income Check…Guaranteed? YOUR… RE IRE E T M NT ?????? L E T E INCOM GUARANT E IF IM E ED Your Income… FULLY TAXED at Retirement?
- 20. THE POWER OF INDEXING INDEX UNIVERSAL LIFE… GAINS LINKED TO THE S&P, WITHOUT THE RISK…TOO GOOD TO BE TRUE? Revolutionary Life Insurance You Don’t Need to Die to Use!
- 21. ARE YOU WILLING TO TAKE A RISK WITH YOUR RETIREMENT? Safety Guaranteed not to Lose Annual Compounding, No Downside Risk Return on Investment Subject to Gain or Loss Risk of Loss for the hope of High Rate of Return WHAT IF YOU COULD HAVE THE BEST OF BOTH WORLDS?
- 23. TAX DEFERRED VS. TAX-FREE (35 YEAR OLD MALE $500/MONTH...) IRA / 401K Cumulative INDEX UL Contributions to Age 65 $459,490 $180,000 $180,000 not $2,879,030 tax deductible tax deductible To Age 72 To Age 100 Cumulative After Tax Account is Depleted Yearly Income of $82,258 Cash Flow Continue in 6 Short Years Beginning Age 66 to Age 120 0 Account Value $2,061,259 $2,151,926 @ Age 100 Death Benefit to Beneficiary
- 24. INDEX UNIVERSAL LIFE: “STOP THINKING OF LIFE INSURANCE AS AN EXPENSE AND START THINKING OF IT AS A PORTFOLIO ASSET, JUST LIKE REAL ESTATE, STOCKS AND
- 25. A SOLUTION FOR EVERY FAMILY A Solution to Fit any Budget!!! Index U/L GUL Term Income Tax Free D/B Income Tax Free D/B Income Tax Free D/B Critical Illness Critical Illness Critical Illness Chronic Illness Chronic Illness Chronic Illness CONVERTIBLE INCOME AT RETIREMENT NO INCOME YOU RENT IT YOU OWN IT/OVERFUND YOU OWN IT
- 26. FEG INSURANCE SERVICES DISCLOSURES Withdrawals may be subject to surrender penalties imposed by the company. Amounts withdrawn may also be subject to tax liability or tax penalties. Partial surrenders and loans may affect policy values and death benefits. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Life insurance products are products of the insurance industry and are not guaranteed by any bank, federal agency, nor insured by the FDIC.
Editor's Notes
- #22: Let ’s consider the differences between savings and investments. Savings involves a discipline and regular deposit of your hard earned money into a guaranteed account that is earning compound interest. We have lost site of the value and importance of saving. Not only do we need to save money, but we need to save money in accounts that do not suffer from the risk and volatility associated with today ’s investment markets. Investment involves putting money at risk in hopes for high rates of return. To do this intelligently we need to reframe our perspective before we invest. Remember if there is a 70% chance you will do well, then there is a 30% chance you will fail. If you can absorb the consequences of failure without it affecting your core lifestyle then go for it; otherwise put your money into a savings vehicle.