Mindful test readonly

TurbochargeTurbocharge Your Wealth

Presented by: Kim DeBroux

Live Debt Free & Retire Wealthy

• NOTNOT tell you to skip a cappuccino-a-day!

• NOTNOT teach you to buy no-money down investment real estate and flip it!

• NOTNOT tell you to search for undervalued properties and become a landlord!

• NOTNOT teach you to trade in the stock or futures markets!

• NOT NOT tell you to quit your job, create legal entities and open a business that could fail!

Tonight At This Seminar I will:

Workshop Objective…

Dispel common myth’s by learning the New Rules of MoneyTeach you 3 strategies millionaires use to create wealthHow to accumulate, access and transfer your money TAX FREE!Increase your net spendable retirement income by as much as 50%

Know The Facts

The Facts…

Out Of Control Consumer Debt

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01

Consumer Credit

1945-2001

Source: Federal Reserve Statistical Release, 2001

The Facts…

Out Of Control Consumer Debt

Minimal Savings

1970 1980 1990 2000

U.S. Personal Savings Rate%

of

Dis

posa

l Per

sona

l Inc

ome

1970 - 2000

Source: Bureau of Economic Analysis, 2000

11

10

9

8

7

6

5

4

3

2

1

0

9.4%

7.8%

10.2%

.3%

Retirement Savings

Retirement Savings

All age groups

25-34 35-44 45-54 55+

Less than $25,000

52% 70% 50% 41% 39%

$25,000-$49,999

13% 12% 15% 14% 12%

$50,000-$99,000

11% 9% 14% 13% 7%

$100,000-$249,999

12% 5% 10% 17% 23%

$250,000 or more

11% 4% 10% 16% 19%

Currently 52% of Americans stated that they were worried about outliving their retirement*.

The average worker in the US between age 45 and 60 has $1,844 in personal savings outside their house, and 23% have negative net worth.

58% Don’t have $100,000 in savings by retirement

Source: Retirement Confidence Survey (2005)

America’s Wealth 31% of 31% of

America’s America’s wealth is now wealth is now in the house.in the house.

67% of Americans have more wealth in their house 67% of Americans have more wealth in their house than in all other investments combined.than in all other investments combined.

PreferredPreferred Non-PreferredNon-Preferred

Key Findings:

We have a society of homeowners who will accomplish the goal of owning their home free and clear, but without the savings they needed for retirement.

Strategy #1:Use Your Home To Turbocharge Your Wealth

True False

1. A large down payment will save you more money on your mortgage over time than a small down payment.

2. A 15-year mortgage will save more money over time than a 30-year mortgage.

3. Making extra principal payments saves you money.

4. The interest rate is the main factor in determining the cost of a mortgage.

5. You are more secure having your home paid off than financed 100%

Mortgage Quiz!

XX

XX

XXXX

XX

True or False?

Wealth Vision

““The real voyage of The real voyage of discovery consists notdiscovery consists notin seeking new landscapes in seeking new landscapes but in having new eyes.”but in having new eyes.”--Marcel ProustMarcel ProustFrench novelist andFrench novelist andAuthor, 1871-1922Author, 1871-1922

We grew up hearing:– Get the lowest-rate mortgage...– Then, start a bi-weekly mortgage program...

– And, send in additional money whenever possible to reduce the principal balance...

ALL so you can pay off the mortgage as soon as possible.

This Depression Era mindset has been burned into the American psyche by our parents and

grandparents.

But, is it possible this is exactly what you should NOT be doing?

The New Rules Of Money

The rules have changed. Now... – Choose the best mortgage, not necessarily

the one with the lowest rate.

– Stay away from bi-weekly mortgage plans.

– Never send extra money to your mortgage company.

– Paying off your loan is like putting money under your mattress.

The New Rules Of Money

New Millennium Brings 3 Opportunities Turbocharge Your Wealth1. Huge Source of tax-free money now available

in your home2. New lending programs that:

Accesses more equity Lowers your payment Increases your tax deduction

3. Investment vehicles that have: stock market gains No Risk of principle Tax Free Growth Tax Free Withdraws

New Rules:Tale of Two Brothers

Tale of Two Brothers

Our story begins with two brothers:

Each earn $70,000 a year. They each have $40,000 in savings Both are buying $200,000 homes.

Brother “A”Believes in “The Old Way” – paying off the mortgage as

soon as possible

Brother “B”Believes in “The New Way” – carrying a big, long

mortgage and never paying it off

Who made the right decision?

• $40,000 big down payment• $0 left to invest• $1,275 monthly payment

(56% is tax deductible first year/28% average)• $1,153 average monthly net after-tax cost2

• Sends $100 monthly to lender in effort to eliminate mortgage sooner

• $10,000 small down payment• $30,000 remaining to invest• $967 monthly payment

(100% is tax-deductible first 15 years/59% average)• $657 monthly net after-tax cost3

• Adds $100 monthly to investments, plus $496 saved from lower mortgage payment, where account earns 8% rate of return4

• 15-year mortgage at 5.12% (5.44% APR) • 30-year interest-only loan at 6.11% (6.29% APR1)

The above hypothetical examples are for illustrative purposes only. Plans vary based on the needs and wants of the customer. Illustrated interestrates compiled by Freddie Mac for April 2003.1 This example is based on a Fannie Mae Interest First loan fixed at6.11% APR. Interest only for 15 years, then the first loan converts to a 15-year

amortizing loan on the 15th anniversary with a mo. payment of $1,753.2 Assumes combined federal/state income tax rate of 32%.3 Assumes combined federal/state income tax rate of 32%. Net after-tax cost shown is for years 1-15; average for years 16-30 is $1,470.4 Assumes 8% rate of return. Rate of return may vary based on type of investment.


The above hypothetical examples are for illustrative purposes only. Plans vary based on the needs and wants of the customer.1 Assumes combined federal/state income tax rate of 32%.2 Assumes 8% rate of return. Rate of return may vary based on type of investment.

• Received $11,286 in tax savings1 • Received $18,574 in tax savings1

What if both brothers suddenly lose their jobs?

• Has no savings to get through crisis • Has $88,428 in savings to tide him over2

How ironic: Brother “A”, who never wanted a mortgage in the first place, is now in financial jeopardy because he was trying to get rid of his loan too quickly!


soon as possible


mortgage and never paying it off

Results After Just 5 Years

• Has $0 in savings and investments2 • Has $88,428 in savings and investments2

• Can’t get a loan–even though he has $87,247 more in equity than his brother – because he has no job

• Must sell his home or face foreclosure because he can’t make payments

• At this point, it’s a fire sale, so he must sell at a discount, then pay real estate commissions (6-7%)

• Doesn’t need a loan

• Can easily make his mortgage payment even if he’s unemployed for years

• Has no reason to panic since he’s still in control — remember … Cash is King!


Now...which do you think is the right course of action


soon as possible


mortgage and never paying it off• Received $19,702 in tax savings1 • Received $55,723 in tax savings1

• Received $19,702 in tax savings1 • Received $87,927 in tax savings1

• Has $27,592 in savings and investments2

• Owns home outright• Has $305,154 in savings and investments2

• Remaining mortgage balance is $190,000 – and he has enough savings to pay it off and still have $115,154 left over, free and clear.

• Has $567,148 in savings and investments2

• Owns home outright• Has $1,215,069 in savings and investments2

• Owns home outright – so starts fresh and enjoys the same benefits once again.

The above hypothetical examples are for illustrative purposes only. Plans vary based on the needs and wants of the customer.1 Assumed combined federal/state income tax rate of 32%.2 Assumes 8% rate of return. Rate of return may vary based on type of investment.

Results After 15 Years

Brother “A” Brother “B”Results After 30 Years


Value of Money

$0

$50,000

$100,000

$150,000

$200,000

$250,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30Years

Traditional AmortizationTraditional AmortizationL

oan

Ba

lan

ce

Lo

an B

ala

nc

e

$234,027

30 year fixed at 6.50%30 year fixed at 6.50%

$140,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

Loan Bal 8% Side Fund

$32,101$32,101

Hypothetical 8% Rate of Return on $434 Paying 5.00%


Interest Only Loan Investing The Difference:

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30


$32,101$32,101



$250,000$250,000


$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30


$32,101$32,101



$250,000$250,000

$651,128$651,128


Understanding Home Equity…

If You Build Up Equity In Your Home, Is It Going To Help Your Home To Appreciate In Value?

Your Home Is Going To

Appreciate The Same Amount, Whether You Have Equity

Built Up Or Not!

The Truth Is…

Consider…

If Having Equity In Your Home Isn’t

Helping It To Appreciate In

Value, …Then What Is Your

Equity Doing?

It Is Just Sitting There Earning

ZERO, ZILCH, NADA!

And Worse Yet, It’s Losing You Money!

From A Financial Or Business Perspective Does That Make Any

Sense?

It’s A Missed Opportunity…

Value of Money:Future value of $100 earning 8% compounded

until age 80

$149$331$734

$1,629

$8,027$3,616

$17,817

$0.00 $5,000.00 $10,000.00 $15,000.00 $20,000.00

1

Age 75 Age 65 Age 55 Age 45

Age 35 Age 25 Age 15

Value of Money

““Time is the greatest ally when Time is the greatest ally when it comes to saving for it comes to saving for retirement. A worker who saves retirement. A worker who saves $1,000 a year from age 20 $1,000 a year from age 20 through age through age 30 through age through age 30 then stops, will have more at then stops, will have more at retirement than someone that retirement than someone that starts a age 30 and saves the starts a age 30 and saves the amount for 35 years Straight.”amount for 35 years Straight.”

--Elaine L. Chao,Elaine L. Chao,

U.S. Secretary of LaborU.S. Secretary of Labor

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30


$32,101$32,101



$250,000$250,000

$651,128$651,128


$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30


$146,933$146,933

Hypothetical 8% Rate of Return $100,000 Equity Liberated

Hypothetical 8% Rate of Return $100,000 Equity Liberated $1,006,266$1,006,266

$250,000$250,000

Idle Equity LiberatedAnd Invested at 8%:

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30


$146,933$146,933

Hypothetical 8% Rate of Return $100,000 Equity Liberated

Hypothetical 8% Rate of Return $100,000 Equity Liberated $1,006,266$1,006,266

$250,000$250,000

Idle Equity LiberatedAnd Invested at 8%:

Home Insecurity““That was my nest egg. It was about half my That was my nest egg. It was about half my net worth. I have a $400,000 loss after the net worth. I have a $400,000 loss after the flood insurance. Itsflood insurance. Itsappraised value was probably $600,000 to appraised value was probably $600,000 to $700,000, but I had been offered more to sell it.$700,000, but I had been offered more to sell it.That house was the first thing I ever had that That house was the first thing I ever had that was paid for. The hurricane certainly was paid for. The hurricane certainly complicated my decision across the board. complicated my decision across the board. From a personal standpoint, I need a little more From a personal standpoint, I need a little more income.”-income.”-

Trent Lott, U.S. Senator, Trent Lott, U.S. Senator, SunHerald.comSunHerald.com

Answer: False Equity in your home does not enhance your net worth at all. Separated from your home, however, it has the ability to dramatically enhance your net worth over time."

Question: True or FalseEquity in your home enhances your net worth.

Why Wouldn’t You Do This?More Advantages…

You Would Have A Greater Income Tax Write Off During The Entire 30 Years…

If You Are Laid-Off or Injured You Always Have The Money To Make The Mortgage Payments…

You Are In A Better Position To Take Advantage Of Other Money Making Opportunities…

You Can Always Pay Off The Mortgage Early, If You Ever Want To…

Best Of All…

In Most Cases…

All Of This Can Be Accomplished Without You

Spending A Penny More Than You Are Spending Today!

You Can Work To Pay Your You Can Work To Pay Your Mortgage!Mortgage!

ororYou Can Make Your Mortgage Work You Can Make Your Mortgage Work

For You!For You!

You Have The Choice…

How long will it take for your money to double?• 72 divided by 8% Interest= 9 years• 72 divided by 6% Interest= 12 years• 72 divided by 4% Interest= 18 years*With an 8% compounded interest rate earned, it will Take about 9 years for you money to double.

Rule of 72

“Rule of 72” Applied To Future Cost of LivingYour Living Cost Today $2,500 per month

72 divided by 5 = 14.4* Doubles every 15 years

Cost of living in 15 years $5,000 per month

Cost of living in 30 years $10,000*rounded up to 15

Life Stages

Linear Lifeplan

0 10 20 30 40 50 60 70Age

Education Work Leisure

Linear Lifeplan

0 10 20 30 40 50 60 70Age


Cyclic Lifeplan


0 10 20 30 40 50 60 70Age

80

Caregiving

Empty Nesting

Singlehood

Grandparenthood

Six Generations

Source: New York Times, 2001

Sara Knauss, 118

Bob ButzGrandson, 73 Kathy Jacoby

Great-granddaughter, 49

Kitty SullivanDaughter, 95

Kristina PattonGreat-great granddaughter, 27

Bradley PattonGreat-great-great grandson, 3

Retirement

Webster's Definition of Retirement to disappear

Source: Webster's New Twentieth Century Dictionary

to go away

to withdraw

Idle Equity Liberated and Invested at 8%:

$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$146,933

$215,893$317,218

$466,097

$684,849

$1,006,267

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

5 10 15 20 25 30

$100,000 Interest-Only Mortgage

$100,000 Removed compounds at 8%

“What about the additional mortgage payment I have to make to get this $100,000 mortgage?”

“What if I invested that same amount every month instead?”

Common Question:

Market Risk Evaluation

Investment Safety Liquidity Rate of Return

Commodities X

Business Ventures

Limited Partnerships

Raw Land

Speculative Common Stocks X

Lower Quality Bonds X

Investment Real Estate

Blue Chip Stocks X

High Grade Bonds X

Mutual Funds X

CD’s

Investment Grade Life Insurance

Money Market Funds

U.S. Treasury Bills

Annuities

Equity in House X



Commodities X

Business Ventures X

Limited Partnerships X

Raw Land X



Investment Real Estate X

Blue Chip Stocks X

High Grade Bonds X

Mutual Funds X

CD’s


Money Market Funds

U.S. Treasury Bills

Annuities

Equity in House X X



Commodities X

Business Ventures X


Raw Land X




Blue Chip Stocks X

High Grade Bonds X

Mutual Funds X

CD’s


Money Market Funds X

U.S. Treasury Bills X

Annuities

Equity in House X X X

Equity Liberated vs. Saving Monthly Earning 8%:

$100,000$34,284

$146,933$100,000$84,659

$215,893

$100,000$158,677

$317,218

$100,000

$267,432

$466,097

$100,000

$427,230

$684,849

$100,000

$662,025

$1,006,267

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

$1,100,000

5 10 15 20 25 30

$100,000 Interest-Only Mortgage

Investing $467 per month compounding at 8% ($662,025 in 30 Years)

$100,000 Removed compounds at 8% ($1,006,267 in 30 Years)

Secret #2The Ultimate Investment

Risk and ReturnBefore a single dime of your critical cash

is invested, 3 factors need to be considered:

Risk and Return

Safety

the risk of loss of your investment

Before a single dime of your critical cash


Risk and Return

Safety Liquidity


the use and control of your investment



Risk and Return

Safety Liquidity Return


the use and control of your investment

the earnings on your investment





Commodities

Business Ventures


Raw Land

Speculative Common Stocks

Lower Quality Bonds


Blue Chip Stocks

High Grade Bonds

Mutual Funds

CD’s


Money Market Funds

U.S. Treasury Bills

Annuities

Equity in House



Commodities X

Business Ventures


Raw Land




Blue Chip Stocks X

High Grade Bonds X

Mutual Funds X

CD’s


Money Market Funds

U.S. Treasury Bills

Annuities

Equity in House X



Commodities X

Business Ventures X


Raw Land X




Blue Chip Stocks X

High Grade Bonds X

Mutual Funds X

CD’s


Money Market Funds

U.S. Treasury Bills

Annuities

Equity in House X X



Commodities X

Business Ventures X


Raw Land X




Blue Chip Stocks X

High Grade Bonds X

Mutual Funds X

CD’s


Money Market Funds X

U.S. Treasury Bills X

Annuities

Equity in House X X X

Investment Taxation Range of Return Average

CD As Earned 1-18% 5%

Annuity LIFO 5 to 9.3% 7%


FIFO 7.45-13.75% 9.61%

Test For Conservative Long-Term Accumulation





FIFO 7.45-13.75% 9.61%


Earned Income Tax





FIFO 7.45-13.75% 9.61%


Income Taxes Due On Interest Earned10% early withdrawal similar to a IRA or 401(k) prior to 59 ½





FIFO 7.45-13.75% 9.61%


TAX FREE

Equity Index Life1. A Universal Life contract where the funds in the

accumulation account are linked to the growth of an Equity Index. (S&P, NASDAQ, Dow)

2. Principal Guarantee.

3. Annual lock in of index gains, annual reset of index.

4. Minimum rate of return combined with maximum cap on gains.

5. Contractual “No Cost Loans”

Section 72(e) and 7702• The most unique feature of permanent life insurance is that

under Section 72(e) and 7702 of the Internal Revenue Code the accumulation of cash inside the insurance contract is tax advantaged. Not only can the cash value accumulate tax free, but the cash can also be accessed tax free.

• Hence, the beauty and magic of life insurance: It is a unique vehicle that allows tax free account value accumulation, allows you to access your money tax free, and, when you die, blossoms in value and transfers income tax free!

Floor

1%

Goal: To have some potential for market gain without risk of principal

Ceiling

13%“MaximumCap”

• Use of index like Standard and Poor’s 500

• Principal guaranteed against loss

• Annual Lock in of index gains, annual reset of index.

• Contractual “No Cost Loans”

“MinimumRate of Return”

Equity Index Universal Life

$100,000$100,000

Gains BecomePrincipal

That is a $12,750$12,750 difference because of the annual lock in and reset.

10%10%

The Powerful Advantage of Annual Lock in and Reset of the S&P Index

$110,000$110,000

$99,000$99,000

-10%-10%

1%1%$111,100$111,100

$116,655$116,655

$103,950$103,950

5%5%

5%5%

13%13%

Year S&P500 Index $100,000 Basis EIUL Contract $100,000 Basis

1999 12.99% $112,990 12.99% $112,990

S&P 500 Index vs. EIUL Contract1999-2005


1999 12.99% $112,990 12.99% $112,990

2000 -6.14% $106,050 1.00% $114,120



1999 12.99% $112,990 12.99% $112,990

2000 -6.14% $106,050 1.00% $114,120

2001 -15.84% $89,252 1.00% $115,261



1999 12.99% $112,990 12.99% $112,990

2000 -6.14% $106,050 1.00% $114,120

2001 -15.84% $89,252 1.00% $115,261

2002 -24.39% $67,485 1.00% $116,414



1999 12.99% $112,990 12.99% $112,990

2000 -6.14% $106,050 1.00% $114,120

2001 -15.84% $89,252 1.00% $115,261

2002 -24.39% $67,485 1.00% $116,414

2003 37.24% $92,617 17% $136,204



1999 12.99% $112,990 12.99% $112,990

2000 -6.14% $106,050 1.00% $114,120

2001 -15.84% $89,252 1.00% $115,261

2002 -24.39% $67,485 1.00% $116,414

2003 37.24% $92,617 17% $136,204

2004 5.27% $97,494 5.27% $143,382



1999 12.99% $112,990 12.99% $112,990

2000 -6.14% $106,050 1.00% $114,120

2001 -15.84% $89,252 1.00% $115,261

2002 -24.39% $67,485 1.00% $116,414

2003 37.24% $92,617 17% $136,204

2004 5.27% $97,494 5.27% $143,382

2005 5.98% $103,320 5.98% $151,956



1999 12.99% $112,990 12.99% $112,990

2000 -6.14% $106,050 1.00% $114,120

2001 -15.84% $89,252 1.00% $115,261

2002 -24.39% $67,485 1.00% $116,414

2003 37.24% $92,617 17% $136,204

2004 5.27% $97,494 5.27% $143,382

2005 5.98% $103,320 5.98% $151,956



1999 12.99% $112,990 12.99% $112,990

2000 -6.14% $106,050 1.00% $114,120

2001 -15.84% $89,252 1.00% $115,261

2002 -24.39% $67,485 1.00% $116,414

2003 37.24% $92,617 17% $136,204

2004 5.27% $97,494 5.27% $143,382

2005 5.98% $103,320 5.98% $151,956


$48,636 Difference

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Initial $100,000Deposit

1999 2000 2001 2002 2003 2004 2005

S&P 500 Index EIUL

S&P 500 vs. EIULS&P 500 vs. EIUL

Strategy #3:Recycle And Explode Into Millions!

$300K House

Appreciating at 5%

By

Age

Mortgage

Balance

After Tax

Payment

At

Year

Side Fund

Cash Value

$380,000 40 $240,000 $1,020 5 $165,438

$488,000 45 $240,000 $1,020 10 $264,763

$625,000 50 $240,000 $1,020 15 $414,742

$800,000 55 $240,000 $1,020 20 $635,583

$1,015,000 60 $240,000 $1,020 25 $956,531

$1,300,000 65 $240,000 $1,020 30 $1,433,962

One-Time Effects On $100K Liberated at 7.5%:

If Once Is Great, Why Stop There?

Tax Bracket: 32%Appreciation Rate: 5%

Earning Rate: 7.5%Initial Mortgage Balance:$140,000

$300K House

Appreciating at 5%

By

Age

Mortgage

Balance

After Tax

Payment

At

Year

Side Fund

Cash Value

$380,000 40 $240,000 $1,020 5 $165,438

$488,000 45 $306,300 $1,300 10 $367,315

$625,000 50 $390,900 $1,660 15 $702,380

$800,000 55 $520,000 $2,225 20 $1,280,911

$1,015,000 60 $668,600 $2,840 25 $2,163,108

$1,300,000 65 $850,000 $3,625 30 $3,500,532

Stair-Stepped Effects: Liberating Equity Every 5 Years at 7.5%:

Tax Bracket: 32%Appreciation Rate: 5%

Earning Rate: 7.5%Initial Mortgage Balance:$140,000

Side Fund More Than Doubled!

One-Time vs. a Stair Stepped Plan:

$700,000$1,016,070

$1,422,962$1,964,252

$2,596,373$2,242,163

$2,932,790

$3,500,532

$5,004,672

$6,385,927

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$50K $75K $100K $150K $200K

One-Time Stair-Stepped

How are our solutions superior to IRAs

S

Would You Rather Pay Tax On Would You Rather Pay Tax On The Seed Or The Harvest?The Seed Or The Harvest?

vs.

Pay Tax on the seed now and Pay Tax on the seed now and Get all the corn TAX FREE!!!Get all the corn TAX FREE!!!

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

5 10 15 30

Regular IRA

Contribution:$667Assumptions:30% tax bracket7.5% earnings

Final Results:$904,363 Pre-Tax

Contribution:$667Assumptions:30% tax bracket7.5% earnings

Final Results:$904,363 Pre-Tax

Regular Pre-tax IRA:

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

5 10 15 30


Our Solution:

Contribution:$667 Assumptions:30% tax bracket7.5% earnings

Final Results:$960,055 ($1074,055 -$114,000)

Contribution:$667 Assumptions:30% tax bracket7.5% earnings

Final Results:$960,055 ($1074,055 -$114,000)

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

5 10 15 30

Loan Bal Roth IRA Regular IRA 8% Side Fund

Our Solution Compared To IRA Deposits:

Investment Balance Rate of Return

Annual Withdrawal

Tax Bracket

Net Monthly Income

Regular IRA $904,363 7.5% $67,827 30% $3,956



Annual Withdrawal

Tax Bracket

Net Monthly Income

Regular IRA $904,363 7.5% $67,827 30% $3,956

Roth IRA $633,054 7.5% $47,497 30% $3,958



Annual Withdrawal

Tax Bracket

Net Monthly Income

Regular IRA $904,363 7.5% $67,827 30% $3,956

Roth IRA $633,054 7.5% $47,497 30% $3,958

Our Solution $960,055 7.5% $72,004 30% $6,000

50% More Income For Life!



Annual Withdrawal

Tax Bracket

Net Monthly Income

Regular IRA $904,363 7.5% $67,827 30% $3,956

Roth IRA $633,054 7.5% $47,497 30% $3,958

Our Solution $960,055 7.5% $72,004 30% $6,000


How long will $1 million last?C

ompa

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A/4

01K

120

115

110

105

100

95

90

85

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75

70

65


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01K

120

115

110

105

100

95

90

85

80

75

70

65

Age 81

35%

Tax Bracket


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01K

120

115

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100

95

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85

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65

Age 81Age 82

35%

Tax Bracket30%

Tax Bracket


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01K

120

115

110

105

100

95

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75

70

65

Age 81Age 84Age 82

35%

Tax Bracket30%

Tax Bracket25%

Tax Bracket


ompa

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A/4

01K

120

115

110

105

100

95

90

85

80

75

70

65

Age 81Age 84Age 82

35%

Tax Bracket30%

Tax Bracket25%

Tax Bracket

Provides $75K annually into perpetuity

35%

Tax Bracket

1. Blind Men who were presented with the head answered: “Sir, an elephant like a pot.”

2. The men who observed the side replied: “An elephant is like a wall.”

3. Those who had been presented with the tusk said it was a ploughshare.

4. Those who knew only the trunk said it was a snake5. Others said the foot was a pillar; the ear, a fan; the tail, a

rope the tuft of the tail, a brush…

Parable Of The Blind Men And The Elephant:

If you do a good job saving for retirement ,

Will you be in a higher or lower tax bracket?

Answer : Most of us will be in the same tax bracket or possibly higher.

More ‘Smart Money’ Choices…Now Imagine What Could Happen, If You…

Increased the Deductibles On Your Home Owners Insurance, Auto Insurance, Health Insurance, Disability Insurance, etc…

Positioned Your Assets And Income To Qualify For College Financial Aid…

Took Advantage Of The Free Money In A 401K…

Reduced Your Income Taxes…

And, It Gets Even Better…

Become Your Own Banker! How About The Next Time You Decide To Buy A Car, Make A Major Purchase or Need Money For A Business Opportunity…

You Borrow The Money From Yourself Instead Of A Bank! Then You Pay Yourself The Principal And Interest You Would Have Paid The Bank!

How Much Better Off Would You How Much Better Off Would You Be?Be?

The ‘Found Money Management’ System Is Ideal For…

People With Heavy Consumer Debt… People Who Are Concerned About Funding

Their Retirement… Families Who Are Concerned About Funding

College And Qualifying For Financial Aid… Commissioned and Self Employed People… People Who Want The Better Things In Life…

New Millennium Brings 3 Opportunities Turbocharge Your Wealth1. Huge Source of tax-free money now available

in your home2. New lending programs that:

Accesses more equity Lowers your payment Increases your tax deduction

3. Investment vehicles that have: stock market gains No Risk of principle Tax Free Growth Tax Free Withdraws

Needed:Financial Wake-Up Call

Is It Worth 40 Minutes Of Your Time To See If You Can… Reduce or Eliminate Your Debt!

Reduce Your Income Taxes!

Increase Your Net Worth!

And

Have The Better Things In Life!

So, What’s The Next Step?

homeequity

line

Consider the amount borrowed and the tax preferences of that money.

credit cards

car loans

student loans

installment loans

A smart loan amount when used to shelter bad debt can increase Safety, Liquidity and Return.

Step 1

A simple rule of thumb, multiply current gross income by 4 for an availability estimate.

Consider what portion of the wealth might be available to you.

liquidity – liquidity – liquiditylocation – location – location

Step 2

Consider that wealth in the house, is only safe if you have use and control.

lawsuit divorce

disabilityjob loss

foreclosure

depreciation

A smart protection strategy is to have a 100% HELOC that is updated when equity increases by 5%.

Step 3

Net Gross

Internest Paid* Interest Earned

Year 10$46,200 $96,715Year 20$92,400 $286,968 Year 30$138,600 $761,226

*Assumes a 27% marginal tax bracket and 7% state tax rate, after deducting applicable interest for tax purposes

30 year Interest Only vs. 30 year fixed:

Equity Removed:$100,000

Interest-Only Payment:$583

Tax Bracket: 34%

Net Earned

$46,200$92,400$138,60

0

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