People do not plan to fail, they just fail to plan! Unknown

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1 Tax Free Retirement Income Planning People do not plan to fail, they just fail to plan! Unknown Advisor: Client: Initial:

2 Tax Free Retirement Income Planning Major Planning Goals: Reduce or remove investment risk Safely receive the highest rate of return on your savings Reduce or eliminate income taxes* Increase your Retirement Income by 25% to 40% *Past investments in qualified plans may be required to stay in a qualified plan until age 59 1/2. Financial Scenarios LLC nor the Advisor providing this information is engaged in rendering legal and accounting services or legal and accounting advice. This information is intended to present only an overview of one aspect of certain financial planning advantages and alternatives and to serve as a reference for further discussion with qualified legal counsel, accountants and professional advisors. Information, illustrations, calculations and assumptions are for information purposes only and will change based on different assumptions and laws and are not guaranteed. We do not represent, warrant or guarantee financial or retirement planning performance or results that may be illustrated, nor does it represent, warrant, or guarantee that analysis of past financial performance can predict or is any indication of future financial performance. The information does not recommend any particular asset allocation, security or investment method nor do we provide customized tax, legal or investment advice or strategies. Rates of return and calculations are for illustration purposes only and do not represent any specific investment results. Before taking any action, you should seek the advice of qualified legal counsel, accountants and professional advisors. Initial:

3 2010 Tax Federal Income Tax Rates The goal is to provide you with a income tax free retirement income that will be approximately, 25% to 40% more, than you would have received otherwise. Initial:

4 Taxes Currently the Federal State and Local Governments take about 25% to 40% of everything we earn through Taxation. This is the major reason why your future retirement income needs to be... Do you think taxes are going to be higher or lower in the future? 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. 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! To maximize income, we uses the tax laws, known as use DEFRA, TEFRA, & TAMRA and the guidelines they put forth to create a life insurance policy, with the least amount of life insurance and the maximum amount of tax free savings. The goal is to provide you with a income tax free retirement income that will be approximately, 25% to 40% more, than you would have received otherwise. Initial:

5 Annual Reset Annual Reset Allows your money to grow and only grow along with the market up to a certain percentage CAP. % The graph shows a simulation of having $100,000 over a 3 year period in the saving element of the IUL tied to a major stock market index using Annual Reset and how it can work to your advantage. Initially $100,000 in Index Account $100,000 in the Stock Market Index Both Accounts =$100,000 End of year one the Market Index is up 10% Both Accounts worth $110,000 End of Year 3 the Market Index is down 10% IUL Account = $110,00 loses no value Index Account loses 10%= $99,000 End of year 3 the Market Index is up 5% IUL Account goes up 5% to $115,655 Index Account goes up 5% to $103,950 IUL Account has 11% More Money Ten Year History of S&P 500 and North American Builder IUL with a 14% Cap ending January 1, 2011 Initial:

6 Planning Data Client Name: _ Date of Birth: Age: Retirement Age: Annual Income: $_ Spouse Name: Date of Birth: Age: Retirement Age: Annual Income: $_ Date: Current Retirement Savings Programs: (Complete all that apply) IRA: Annual Contribution $ 401K: Annual Contribution $ Less Match Requirements $ 403b: Annual Contribution $ SEP: Annual Contribution $ Other: Annual Contribution $ Total Tax Deductible $ ROTH-IRA: Annual Contribution $ Spouse Retirement Savings Programs: (Complete all that apply) IRA: Annual Contribution $ 401K: Annual Contribution $ Less Match Requirements $_( )_ 403b: Annual Contribution $ SEP: Annual Contribution $ Other: Annual Contribution $ Total Tax Deductible $ ROTH-IRA: Annual Contribution $ Total Income $_ Tax Bracket _% (See next page) Total Tax Deductible Savings $_ Total After Tax Amount Available $ (1-Tax%) X Total Tax Deductible Savings Add in Annual Roth Contributions $ Total Available for Tax Free Program $ Initial:

7 Planning Data Client Name: _ Spouse Name: Date: Current Qualified Retirement Savings Programs: (Complete all that apply) IRA: Balance $ 401K: Balance $ 403b: Balance $ SEP: Balance $ Other: $ Total Tax Qualified $ ROTH-IRA: Balance $ Stocks, Bonds, Mutual Funds, CD s: Emergency Fund $ $ $ $ Total $ ROI% Current Qualified Retirement Savings Programs: (Complete all that apply) ROI% IRA: Balance $ 401K: Balance $ 403b: Balance $ SEP: Balance $ Other: $ Total Tax Qualified $ ROTH-IRA: Balance $ Life Insurance: Insured Amount Type $ $ $ $ Will? Y N Umbrella Insurance? Y N Notes: Initial:

8 Tax Free Retirement Income Planning Indexed Universal Life Insurance that: is not your Father s Universal Life Insurance Contract! uses recent life expectancy tables with competitive low cost insurance rates! provides an immediate Income Tax Free Death Benefit! provides access to the Savings Element of the policy without any government penalties before age 59 1/2 and can also be available Income Tax Free! all or part of the saving element can be tied to the growth and only the growth of major stock market indexes. If you choose to participate in the growth of the market, you will do so, without any downside risk! all of the internal growth in the policy is Tax Deferred and available on an Income Tax free basis when you take money out through the use of policy loans! allows you to get access to the money through Tax Free Loans using the policies preferred or what some call wash loans feature so that you have access to the money in the policy on an Income Tax Free Basis at little or no cost! also has over-loan protection riders that make sure the policy does not lapse which could create a taxable event. is the best and safest platform available to use to build your Tax Free Retirement Program! Attached is a sample illustration for you to evaluate: In the illustration you will be Annually Saving: $_ per year* For: years It is projected that you can then take as policy loans out of the policy $ Annually Income Tax Free For:_ years starting in year You will also have an immediate additional death benefit of: $ The projections are based on: Overall projected growth in the policy, of % Not valid without illustration. *There are no government limitations on the annual contribution amount For Illustrative purposes only Initial:

9 Tax Free Retirement Income Planning Referrals Mission Statement: Show the savers in America how they can stop throwing their hard earned money down the drain, safely increase their retirement income by 25% to 40%, and pass on a income tax free legacy to their families. Name Relationship Age Cell or Business Phone Referred by: _ Please provide the names of any of your relative, friends, or co-workers that you feel would benefit from a 25% to 40% increase in their retirement income. (Their numbers are usually in your cell phone) Initial: