1. INFINITE BANKING BECOME YOUR OWN BANK The New 200 YEAR OLD Life Changing Secret to Growing and Protecting Your Financial Future
2. You Need To Know… This presentation will discuss certain financial strategies. Any information obtained during the course of this meeting may be used for the solicitation of life insurance and/or annuity products by a properly licensed insurance professional. Any discussion of the tax treatment of products and services discussed within this presentation are based on our current understanding of tax laws and regulations, which are subject to change. Such information is presented for educational purposes only, and should not be relied upon as professional tax advice. You should always consult your personal tax advisor or attorney
3. CAN THIS HAPPEN TO YOU? Suppose what you thought to be true regarding paying off debt and saving for retirementturned out not to be true. WHEN WOULD YOU WANT TO KNOW???
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5. Turn your back on the stomach-churning twists and turnsof the stock and real estate markets.
6. Get back every penny you pay for your cars, vacations, college education, and other major purchases, so you can enjoy more of your life.
7. Become your own source of financing and recapture the interest and principal you pay to banks.
11. Will future tax rates likely be:LOWER SAME HIGHER What should you do to protect YOUR WEALTH?
12. Tax BRACKET HISTORY Top Marginal Rate What do you think that$13+ trillion of govt. debt will do to our future tax rates?
13. IS YOUR 401(k) UNDER WATER? “The ugly truth, is that the 401(k) is a lousy product, a financial flop, a rotten repository for our retirement reserves. In what must seem like a cruel joke to many, the accounts proved the most dangerous for those closest to retirement. This isn’t how retirement was supposed to be.” - October 19, 2009
14. Stomach-Churning Twists & Turns of the Stock Market $100,000 Invested in the S&P 500 1-1-2000to 12-31-2009 (10 Years) Value $ 91,000 -0.99% 1-1-2002 to 12-31-2009 (7 Years) Value $113,000 +1.56% 1-1-2006 to 12-31-2009 (3 Years) Value $ 97,000 -0.66% 1-1-2008 to 12-31-2008 (1 Year) Value $ 63,000 -37.0% 1-1-2009 to 12-31-2009 (1 Year) Value $ 127,000 +27.0% “I feel like I was closer to retirement at age 40 than I do now at age 50.” Major Brokerage Company Advertisement October, 2009 *Figures from www.moneychimp.com
16. $100,000 Invested in the S&P 500 1-1-2000to 12-31-2009 (10 Years) Value $ 91,000 -0.99% 1-1-2002 to 12-31-2009 (7 Years) Value $113,000 -1.56% 1-1-2006 to 12-31-2009 (3 Years) Value $ 97,000 -0.66% 1-1-2008 to 12-31-2008 (1 Year) Value $ 63,000 -37.0% 1-1-2008 to 12-31-2009 (2 Years) Value $ 80,000 -10.7% Q1: With regard to your $100k invested in 2008, what return would you need to get back to even? 59% Q2: Do you think the next 10 years will perform better or worse than the last 10 years? *Figures from www.moneychimp.com
17. So…What’s the Number One Problem Keeping Us From Attaining the “Great American Dream?” THE INTEREST VOLUME WE PAY ON OUR DEBT!
18. “You finance everything you buy. You either payinterest to someone else, or you give up interest you couldhave earned somewhere else. There are no exceptions.” -Nelson Nash-
19. KEY CONCEPT Interest Volume: Finance a purchase; you pay interest to a bank. That money is gone forever and will never earn you anything. 2. Lost Opportunity Cost: You give up interest or investment returns you have earned could somewhere else, even if you pay cash.
20. Family Income $100,000 - $30,000 (income tax) = $70,000 after tax $70,000/12 months = $5,833/month $2,046/$5,833 = 35% The average family spends 34.5% of after tax dollars in Interest payments! It’s Not the Annual Percentage Rate… It’s the VOLUME of Interest
21. INTEREST VOLUME HURTS $70,000 After Tax Income $34,500 Interest Volume $30,500 Living Expenses $5,000 Savings What rate of return does your $5,000 Savings have to earn to make up for the $34,500 spent on Interest?
22. INTEREST VOLUME HURTS $70,000 After Tax Income Most advisors focus on getting a higher Return on Money $34,500 Interest Volume $30,500 Living Expenses $5,000 Savings Fixing the 34.5% Interest Volume Problem Will Allow More Money For Retirement 690% Return needed on $5,000 Savings to make up for $34,500 Spent on Interest!
23. THE UNIVERSAL PROBLEM Typical Solution: Borrow money from financial institutions. Result: BetweenInterest Volume and Lost Opportunity Cost, the average family is in a Modern Day Financial Prison. Better Solution: Reduce Interest Volume and Recapture Lost Opportunity Cost by: BECOMING YOUR OWN FAMILY BANK!!!
24. Do banks make money? Bauer Financial, Inc. BANK GROSS PROFIT: BANK NET PROFIT: DEFAULT RATE:
25. CREATING YOUR OWN BANK MAKE YOURMONEY WORK FOR YOU! Get Money Flowing to YOU… Not AWAY from you!
30. A Specially Designed Mutual Whole Life Insurance Policy, with paid up addition ridersWHICH FUNDING VEHICLE PERFORMS THE BEST?
31. Why a properly structured whole life insurance contract is the best vehicle to fund your family bank We use a specially designed, very specific type of policy.
33. Hereis Your Chance to be ALL THREE The Banker The Borrower The Depositor Thistriple play ELIMINATES RISK and turns liabilities into ASSETS. Most importantly, it puts YOU in control of YOUR MONEY!
34. The Infinite BankingWhole Life Concept Sound / Timeless Economic Principals Guaranteed Earnings and Predictable Growth Non-Guaranteed Annual Dividends Current U.S. Tax Laws Interest & Dividends Grow Tax Deferred Earnings Can be Accessed Tax Free Benefits Creditor Proof; Liquidity of Funds Death Benefit is Tax Free Can be Estate Tax Free
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37. How To Get Back Every Penny You Pay For Major Purchases CARS BOATS COLLEGE VACATIONS EVEN YOUR HOME
41. The INFINITE BANKER WAYFar more money will leave your home just to buy cars over your lifetime than most people ever manage to save up for retirement!
42. OPTION1: LEASE Monthly Payment $416.00 Interest $57.57 Loan Rate 7.5% 40 years, New Car, Every 4 years Total Cash Paid $199,680 Lost Opportunity Cost @6% $832,602 TOTAL COST $1,032,282 -$1,032,282 $0.00 ($200,000) ($400,000) ($600,000) ($800,000) ($1,000,000) ($1,200,000) ($1,400,000) ($1,600,000) ($1,800,000) Total Cash Paid Lost Opportunity Cost $103,228 Ave. Cost Per Car Over 40 Years!
43. OPTION 2: FINANCE Monthly Payment $604.00 Interest $84.00 Loan Rate 7.5% 40 years, New Car, Every 4 years Total Cash Paid $289,920 Lost Opportunity Cost @6% $1,208,874 TOTAL COST $1,498,794 -$1,498,794 $0.00 ($200,000) ($400,000) ($600,000) ($800,000) ($1,000,000) ($1,200,000) ($1,400,000) ($1,600,000) ($1,800,000) Total Cash Paid Lost Opportunity Cost $149,879 Ave. Cost Per Car Over 40 Years!
44. OPTION 3: PAY CASH $0.00 ($200,000) ($400,000) ($600,000) ($800,000) ($1,000,000) ($1,200,000) ($1,400,000) ($1,600,000) ($1,800,000) YOUR CAPITAL 40 years, New Car, Every 4 years Total Capital Paid $250,000 Lost Opportunity Cost @6% $1,116,575 TOTAL COST $1,366,575 -$1,366,575 Total Cash Paid Lost Opportunity Cost $136,657 Ave. Cost Per Car Over 40 Years!
45. The power of Compound Interest *From Dwayne Burnell’s “A Path to Financial Peace of Mind” pg. 9
50. Male, Age 25, Preferred Non-Smoker (For Illustrative Purposes Only) Cumulative Cash Outlay Net Death Benefit Age Year Premium Loan Amount Net Cash Value Total Premiums Paid: $374,600 Total Car Payments Paid: $300,000 Cumulative Cash Outlay: $674,600 74 49 0 80,000 2,157,111 1,309,899 674,600 0 674,600 80,000 75 50 0 80,000 2,124,821 1,292,023 80,000 76 51 0 80,000 2,089,503 1,272,259 80,000 77 52 0 80,000 2,050,981 1,250,354 80,000 78 53 0 80,000 2,009,197 1,226,038 80,000 79 54 0 80,000 1,964,065 1,198,878 80,000 Total Car Loans: $250,000 ($25,000 x 10 Cars) Cash Value at Age 70: $1,375,923 Retirement Income to Age 90: $1,680,000 ($80,000 x 21 Years) Cash Value at Age 90: $605,959 Death Benefit at Age 90: $1,175,250 80 55 0 80,000 1,915,468 1,168,564 80,000 81 56 0 80,000 1,863,164 1,134,737 80,000 82 57 0 80,000 1,806,908 1,097,043 80,000 83 58 0 80,000 1,746,266 1,055,235 80,000 84 59 0 80,000 1,680,952 1,008,977 80,000 85 60 0 80,000 1,610,669 957,730 674,600 80,000 90 65 0 80,000 1,175,250 605,959 674,600 80,000 605,959 1,175,250 674,600 95 70 0 0 674,600 515,411 1,023,167 100 75 0 0 737,402 277,367 674,600 ALL INCOME TAX FREE!
51. OPTION 4: BE YOUR OWN BANK $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,250,000 $1,000.000 $ 750,000 $ 500,000 $ 250,000 IT’S YOUR CHOICE! Lease -$1,032,282 Finance -$1,498,794 Pay Cash -$1,366,575 4. INFINITE BANKER Cash Outlay $674,600 Total Retirement: $1,680,000 Insurance Benefit: $1,175,250 Total Benefit: $2,855,250 Plus the use of 10 cars for 40 years! Life Insurance Benefit At Age 90 Retirement Income For 21 Years
52. Teaching Example #1 C/D vs. IBC Method Page 45 DEPOSITS: $5,000yr for 7yrs = $35,000 BORROW: $10,550 every 4yrs & repay with interest at 8.5% C/D at 5.5% IBC Method Cash at Retirement $258,927 $964,638 Retirement Income $50,000 for 5.75 years Retirement Income $50,000 TAX FREE for LIFE
53. Teaching Example #2 Equipment Financing Illustration Page 54-62 Deposit $40,000/yr for 4 years THE POWER OF BANKING!
54. Teaching Example #3 Million Dollar BabyPage 73 Fund $2,000/yr for 22 yrs at birth Tax-Free income for life at age 70, $225,000! This is WITHOUT BANKING!
55. How To Get Back Every Penny You Pay For Major Purchases CARS BOATS COLLEGE VACATIONS EVEN YOUR HOME
63. PayTax on the seed now… and get all the corn TAX FREE!!!
64. QuestionstoCONSIDER On a scale of 1 – 10 (10 being the highest) where are you now with your financial security?
65. QuestionstoCONSIDER 2. What are you going to do in the next 15 years, that you haven’t done in the past 30 years, that is going to get you to a 10?
66. CAUTION: The Infinite Banking Concept is about building a solid financial foundation and a secure future. You’re not going to see those thrilling spikes, but you’re also not going to have those unpredictable, heart-stopping losses that inevitably follow. It is notfor everyone and is a long term strategy that requiresdisciplineand patience, but it will… SET YOU FREE!
67. TAKETHE NEXT STEP Review your Personal Situation. Create a Funding Strategy…we help with a Free Initial Analysis. Create your Personal Strategy. See if you Qualify. Open your Family Bank.
68. HERE IS YOUR CHANCE TO FREE YOURSELF FROM FINANCIAL PRISON! FAMILY?orBANK?
New Asset Class – Life Insurance, “Who Woulda Thought?”This is a new phenomenon in the investment world. Life Insurance has been added as a new asset class and should be a part of your portfolio.
New Asset Class – Life Insurance, “Who Woulda Thought?”This is a new phenomenon in the investment world. Life Insurance has been added as a new asset class and should be a part of your portfolio.
