Seeking A Tax-Free Retirement Educational Workshop A Discussion of Retirement Vehicles and Taxes Making The Most of Your Retirement Dollars Presented By:

Seeking A Tax-Free Retirement Educational WorkshopA Discussion of Retirement Vehicles and Taxes

Making The Most of Your Retirement Dollars

Presented By:Todd Ensing

©2009 Tax Free Retirement, Inc. Used by permission License #10011

TC49238(0508)

• $11,273,059,048,264.84 – “Official” US Debt as of 5/12/091

• $9,381,368,108,595.10 – “Official” US Debt as of 3/6/081

• 1.9 trillion “Official” increase in 14 months

• Real National Debt is $61,173,829,000,000.002

- What’s the difference between the “Real” and “Official”?

• Your share of the real US debt is: $200,000.002

Facts About National Debt1

1. US National Debt Clock www.brilling.com/debt_clock

2. Truth in 2008 http://www.truthin2008.org/

1. Social Security Administration sample statement from www.ssa.gov

Facts About National Debt1

1. Spend Less2. Tax More

There are only two ways to combat the growing debt…

Are we spending less as a government?

We are spending more than we ever have in the

history of our country.

So the only solution seems to be…

Higher TAXES

History of Federal Individual IncomeTop Marginal Tax Rates

Source: truthandpolitics.org, referencing IRS Statistics of Income Bulletin Pub 1136

1. Free Money- Inherited - Matching 401(k) Money

2. Tax-Free Money

3. Taxed Deferred Money

4. Taxable Money

Smart Retirement Money Order

1. Free Money

2. Tax-Free Money- Roth IRA- Life Insurance Cash Value*

3. Taxed Deferred Money

4. Taxable Money

Smart Retirement Money Order

*Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years.

1. Free Money

2. Tax-Free Money

3. Taxed Deferred Money- Annuities- Tax-Qualified Plans such as

401(k), IRA, etc.

4. Taxable Money

Smart Retirement Money Order

Smart Retirement Money Order

1. Free Money

2. Tax-Free Money

3. Taxed Deferred Money

4. Taxable Money– Wages– Capital Gains– 1099 Interest

Smart Retirement Money Order

1. Free Money

2. Tax-Free Money

3. Taxed Deferred Money

4. Taxable Money

Any contribution above the match of your 401(k) becomes tax-

deferred money, and skips over #2 completely.

Let’s take a look at the difference between a Tax-Deferred plan

and a Tax-Free plan.

Would you rather pay tax on this…

Traditional IRA

Tax-deferred

0 Tax on Deposits

Tax Deferre

d Growth

Roth IRA

Tax Free

After-Tax

Deposits

Example

Tax Deferre

d Growth

Taxed AsOrdinary Income On Withdrawal

$0 Federal Tax For QualifiedDistributions

Or this?

Traditional IRA

Tax-deferred

0 Tax on Deposits

Tax Deferre

d Growth

Roth IRA

Tax Free

After-Tax

Deposits

Example

Tax Deferre

d Growth

Taxed AsOrdinary Income On Withdrawal

$0 Federal Tax For QualifiedDistributions

When you put your money into an IRA or 401(k) are you

really saving tax?

No. Simply delaying tax - which actually compounds

the tax problem.

If you were a farmer would you rather pay tax on the seed…

or the harvest?

How It Works with Universal Life Insurance

Premium$

- fees

UL Life Insurance Policy

$MinimumCompanyRequires

Maximum IRS Allows

Death Benefit

What’s Best for You?

Roth IRA?

What’s Best for You?

Universal Life Insurance?

What’s Best for You?

Both?

Next Steps