2. Financial Strategy
Protection from crashes
Potential for double digit growth in good years
Cash flow that lasts
Tax advantaged growth
Access to money while you are alive
Death Benefit
Chronic and critical illness benefits
Growth to outpace inflation
Low Fees
3. PLEASE WRITE THIS DOWN
1. Right Protection
2. Right Category
3. Right ROI
4. Right Budget
5. Right Decision
7. 2. Geopolitics
• Geopolitical power plays: China devaluing currency
In August 2015 Dow Jones Industrial Dropped 6.6% Source: Yahoo Finance
8. 3. Asset Bubbles
• Real Estate, Dot-Com, Dollar, Student Loans…
“Every major economic shock in recent
decades has been preceded by an asset
bubble: housing and stocks both before
Japan’s meltdown in 1990 and before the
Asian financial crisis in 1998; stocks before the
U.S. dot-com bust in 2000; housing again
before the crisis in 2008.”
-Ruchir Sharma, head of emerging markets at
Morgan Stanley
SOURCE: http://www.wsj.com/articles/the-federal-reserve-asset-bubble-machine-1431386994
9. “My research team’s composite
valuation for the three major financial
assets in America—stocks, bonds and
houses—is currently well above levels
reached during the bubbles of 2000
and 2007.”
-Mr. Sharma, Head of Emerging
Markets and Global Macro at Morgan
Stanley Investment Managements
SOURCE: http://www.wsj.com/articles/the-federal-reserve-
asset-bubble-machine-1431386994
13. “Taxes Are Your
Single Biggest
Retirement Risk.”
Ed Slott,
CPA, Best Selling Author,
National Tax Expert
14. David M. Walker
“Based on the current fiscal
path, future tax will have to
double or our country will
go bankrupt.”
Former Comptroller General of the
United States and head of the
Government Accountability Office
SOURCE: http://www.cnn.com/2009/POLITICS/04/15/walker.tax.debt/
16. What is the highest tax bracket in the history of our country? Worst it has
ever been?
94%
What was the highest marginal tax bracket during the 1970’s?
70%
What was the highest marginal tax bracket on January 1st 2012?
35%
What was the highest marginal tax bracket in 2013?
39.6%
17. “If Social Security, Medicare and
Medicaid go unchanged, the lowest tax
bracket would increase from 10% to
25%… (2.5X) "
Congressional Budget Office, "Long Term Economic Effects of Some Alternative Budget Policies," May 19, 2008, 8-9,
http://www.cbo.gov/ftpdocs/92xx/doc9216/05-19-LongtermBudget_Letter-to-Ryan.pdf
18. “the 25% bracket would rise to 63%
(2.5X),
and the highest bracket would
go from 39% to 88% (2.25X).”
Congressional Budget Office, "Long Term Economic Effects of Some Alternative Budget Policies," May 19, 2008, 8-9,
http://www.cbo.gov/ftpdocs/92xx/doc9216/05-19-LongtermBudget_Letter-to-Ryan.pdf
26. "IUL premium grew 36 percent in the fourth quarter and 23
percent in 2014. IUL experienced the strongest growth in
absolute dollars for both the quarter and the year. IUL now
represents the majority of all UL premium at 52 percent
and represents 20 percent of all individual life premium.”
Ashley Durham, senior research analyst,
LIMRA Insurance Research.
SOURCE:
http://www.limra.com/Posts/PR/News_Releases/LIMRA__Individual_Life_Insurance_Sales_Experience_Strong_Fourth_Quarter_Growth.aspx
28. Best Financial Strategy?
Protection from crashes
Access to money
Tax deferred growth
Lifetime Tax free income
Death Benefit
Protection from creditors
Chronic / Critical Illness protection
Decent return
Keeps up with inflation
Low Fees
Editor's Notes
I love this picture because it reminds me of the good old days. When the life was a little simpler, and the world wasn’t so crazy. What does this picture remind you of?
3 lines chart for 20 years, worst periods of market volatility, lets look at the options
It’s not just the top tax bracket!
Medicare is at risk in the same way. Since 2012 the government spends over $500 BILLION on this program.
Medicare is 5x More Expensive Than Social Security
THIS IS ONE I THINK WE CAN DO WITHOUT
Over the past 4 years it’s done over 1 billion, now closing in on 2 billion this year.
Every year hundreds of millions of dollars are going into these policies.
