investment where do most people deposit or save money? b ank _______ (hypothetical rate of return)...
TRANSCRIPT
INVESTMENT
Where do most people deposit or save money?
BANK _______ (Hypothetical Rate of Return)
Deposit $ _______
$ _______$ _______1st year
2nd year
72 ÷ =____ ____ RULE OF _____ years it takes for____ to DOUBLE
When is your money going to DOUBLE?
Money Doubles Every ____ Years
29
47
65
$ 10,000
$ 20,000
$ 40,000
____ %Money Doubles Every ____ Years
29
35
41
$ 10,000
$ 20,000
$ 40,000
53
47
59
65
$ 80,000
$ 160,000
$ 320,000
$ 640,000
The Impact of TAXES
& INFLATION
$ 100
4
$ 104
1
4
$ 99
____ %____ %
(deposit)
+
=
-=
-=
$ 103
3 Ways we Serve People
1. Save2. Make3. Both
Difference:$ 600,000
1%100101102
72 % # $
418
126 4
(taxes)
(inflation)_________
(interest)
INSURANCE DEBT ELIMINATION
Tax StrategiesTaxable (Tax Now) Tax Deferred (Tax Later) Tax Advantage (Tax Never)
Bank Products- Fixed CD-Money Market-Real Estate Funds- Mutual Funds- Stocks
Advantages:- Easy access- Flexible Contributions
Disadvantages:-1099 EVERY YEAR- Taxable on capitalgains, dividends andinterests
Retirement Plans- IRA- 401K/403B- SEP IRA- Pension- Annuities
Advantages:- Tax deductible- Tax deferred growth- Company match- May reduce tax bracket
Disadvantages:- Long term plan- 10% penalty if withdrawn before 59 ½ years old-Taxable upon withdrawal- RMD at age 70 ½
-7702 Plan (GIUL/VUL/ FFIUL)-Roth IRA- 529 College Savings Plan(Affects Financial Aid andStudent loan applications)
Advantages:- Tax deferred growth- Tax free withdrawal(if properly structured for 7702 Plan)- No penalty if withdrawn before 59 ½ years old(except for Roth IRA)
Disadvantages:- Long term plan
?
Dying too soon Living too long
Insurance Wealth
Invest Responsibility
Debt: $ 50,000
Income: $ 400,000 (40,000 x 10)
Mortgage: $ 300,000
Education: $ 250,000
Total: $1,000,000
Discipline
Retirement
$ 0
Young Older
$
$
$$ $
Mutual FundStocks
S & P 500
Average 10-12%
7702 Plan (Index Universal Life)
$
$$$
$$
$
Index Flexible Permanent
Insurance SavingsCost of Insurance Cash Value
S&P 500Euro Stoxx 50Hang Seng
Guaranteed 0.75%
Cap 15.0%
o Permanento Indexo No Risk
o Terminal Illness Death Benefito Flexibleo Freedom
Index You 401k10% 10% 10%
20% 15% 20%
-20% 0.75% -20%Cumulative Return 10% 25.75% 10%
o Long Term Care Benefit (FFIUL)
Tax Free Distribution
Tax Free Distribution
Tax Deferred Growth
Tax Deductible Contribution
7702 Plan
401KTSP 403B
$40k x 25% = $10,000$37k x 25% = $ 9,250$3k to 401k = $750 in TAX savings
$3k x 30 Yrs x 12% = $900K in 401k x 10%
distribution$90kX 25%
TAXx 30 Yrs at work
$22,500 Total Tax Savings
for 30 Years!
Would you rather forego the $22,500 in savings or pay $225,000 tax in the end?
$22,500 Tax in just 1 YEAR!X 10 Yrs of Income
$225,000 goes to TAXES
Which would you rather have? Insurance
Protection
401k or Mutual Fund
12% - Gross
- 4% - Tax
8% - Net
Using the Rule of 72: 72/8 = 9 years
29 – 3,000
38 – 6,000
47 – 12,000
56 – 24,000
65 – 48,000 After Tax
7702 Plan – Index Universal Life
12% - Net (Tax Free Distribution)
Assuming 25% is COI
3,000 – 750 = 2,250
Using the Rule of 72: 72/12 = 6 years
29 – 2,250
35 – 4,500
41 – 9,000
47 – 18,000
53 – 36,00059 – 72,000
65 – 144,000TAX FREE
You
1
2
3
Trainee Associate
30%
Senior Associate
55% 25
%
$2,400 x
55%= $1,320
TA
30%$720
$600
TA
30% $720
SA
55% $1,320$60
0
$600
TA
30%$720
$1,320+ $1,800= $3,120 x 2
= $6,240 x 12
= $74,880
Part Time !!!
THE TIC TAC TOE OF THE BUSINESS:
REFERRAL ONLY(MUST BE LICENSED)
4-6 CLIENTS/MONTH
UP TO 45%ASSOCIATE CONTRACT
$2000-$3000INCOME/MONTH
SPLIT INCOME
PART TIME (12-20 HRS/WK)
4-6 CLIENTS/MONTH - MEETINGS - FIELD TRAINING - ELITE CIRCLE - CONVENTIONS
UP TO 55%SENIOR ASSOCIATE CONTRACT
$3000-$5000INCOME/MONTH
SAVE AGGRESSIVELY (50%)PAY OFF DEBTSSAVE $50K - $100K FOR OWNOFFICE (3-5 YEARS)DEBT FREE
FULL TIME (40-60 HRS/WK)
10-15 LICENSED IN THE TEAM(MINIMUM)
UP TO 81%SENIOR MARKETING DIRECTOR CONTRACT
4 PERSONAL CLIENTS (MINIMUM)10 BASE SHOP – ALL NON MD25 IN ENTIRE HIERARCHY
$10000-$15000INCOME/MONTH
BONUSESFIELD TRAININGOPPORTUNITIESSTOCK OPTIONSEXPANSION