Presentation Transcript

1. INFINITE BANKING BECOME YOUR OWN BANK The New 200 YEAR OLD Life Changing Secret to Growing and Protecting Your Financial Future
2. You should always consult your personal tax advisor or attorney 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 Need To Know…

3. Suppose what you thought to be true regarding paying off debt and saving for retirementturned out not to be true.

   CAN THIS HAPPEN TO YOU?

   WHEN WOULD YOU WANT TO KNOW???
4. Have a rock-solid financial plan and a predictableretirement income. Turn your back on the stomach-churning twists and turnsof the stock and real estate markets. Become your own source of financing andlearn how to recover interest you have been paying to banks. Take advantage of current U.S. tax laws to earn money Tax Deferred and Tax Free.

   DISCOVER HOW You CAN...

5. “The problem in America isn’t so much what people don’t know; the problem is what people think they know that just ain’t so.” -Will Rogers
6. The individual savings rate in the U.S. is less than zero percent. The average household now spends more money than they make. Consumer debt now tops $3.5 Trillion. Will future tax rates likely be: LOWER SAME HIGHER “This is a Road to a Rocky Ending “

   THE ROAD WE ARE ON…

7. Tax BRACKET HISTORY Top Marginal Rate
8. “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

   IS YOUR 401(k) UNDER WATER?

9. $100,000 Invested in the S&P 500 1-1-2000 to 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%

   Stomach-Churning Twists & Turns of the Stock Market

   “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 http://www.moneychimp.com/features/market_cagr.htm
10. Stomach-Churning Twists & Turns of the Stock Market *Figures from http://www.moneychimp.com/ features/market_cagr.htm
11. Q1: With regard to your $100k invested in 2008, what return would you need to get back to even? +59% $100K (2008) -37% = $63K $ 63K (2009) +27%= $80K $63K at +59% = $ 37K $63K + $37K = $100K Q2: Do you think the next 10 years will perform better or worse than the last 10 years?
12. THE INTEREST VOLUME WE PAY ON OUR DEBT!

    So…What’s the Number One Problem Keeping Us From Attaining the “Great American Dream?”

13. “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-
14. 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 could have earned somewhere else, even if you pay cash.

    KEY CONCEPT

15. 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
16. Interest Volume Hurts $70,000 After Tax Income $5,000 Savings $30,500 Living Expenses Interest Volume $34,500 What rate of return does $5,000 Savings have to earn to make up for the $34,500 spent on Interest?
17. Interest Volume Hurts 690% Return needed on $5,000 Savings to make up for $34,500 Spent on Interest! $5,000 Savings Most advisors focus on getting a higher Return on Money $30,500 Living Expenses Interest Volume $34,500 Fixing the 34.5% Interest Volume Problem Will Allow More Money For Retirement
18. Current Solution: Borrow money from a financial institution. 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:

    “THE UNIVERSAL PROBLEM”

    BECOMING YOUR OWN FAMILY BANK!!!
19. Do banks make money? Bauer Financial, Inc. BANK GROSS PROFIT: BANK NET PROFIT: DEFAULT RATE:
20. Get Money Flowing to YOU… Not AWAY from you! MAKE YOURMONEY WORK FOR YOU!

    CREATING YOUR OWN BANK

21. Savings Account/ Money Market/ CD’s 401(k) Government Plans/ 403B /IRA /ROTH Stock Portfolio / Mutual Funds Home Equity Line of Credit (HELOC) A Properly Structured Whole Life Insurance Contract

    INFINITEBANKING… Bank Funding Choices?

    WHICH FUNDING VEHICLE PERFORMS THE BEST?
22. 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.
23. Cash Treasury Bills Precious Metals Whole Life Insurance (BOLI) Do What The Banks D0 Tier One Assets (Core Reserves)
24. Do what The banks do Bauer Financial, Inc.
25. The Banker The Borrower The Depositor This triple play ELIMINATES RISK and turns liabilities into ASSETS. Most importantly, it puts YOU in control of YOUR MONEY!

    Hereis Your Chance to be ALL THREE

26. 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

    The Infinite BankingWhole Life Concept

27. Whole Life Insurance stays in force for your “whole life” Tax Free benefits require that the policy must stay in force. Universal Life policies can lapse before death, losing this tax free feature. Paid Up Additions – Turbo Charged Growth Accelerates Cash Value Growth Increases the Death Benefit Amount Provides Inflation Protection

    The Infinite BankingWhole Life Concept

28. CARS BOATS COLLEGE VACATIONS EVEN YOUR HOME

    How To Get Back the interestYou Pay For Major Purchases

29. 4 ways to purchase the car: Lease the Car Buy / Finance the Car Pay Cash (Capital) The INFINITE BANKER WAY Far more money will leave your home just to buy cars over your lifetime than most people ever manage to save up for retirement!

    Automobile PurchasesLongRange Picture (40 Years)$25,000 Car, Every 4 Years

30. $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 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

    OPTION1: LEASE

    $103,228 Ave. Cost Per Car Over 40 Years!
31. $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 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

    OPTION 2: FINANCE

    $149,879 Ave. Cost Per Car Over 40 Years!
32. $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 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

    OPTION 3: PAY CASH

    $136,657 Ave. Cost Per Car Over 40 Years!
33. The power of Compound Interest *From Dwayne Burnell’s “A Path to Financial Peace of Mind” pg. 9
34. See How Policy Loans Do Not Affect Cash Value Cash Value With No Loan $ 116,571 #’s stay the same Cash Value With Loan $ 116,571 #’s stay the same
35. ASSUMPTIONS Male: Age 25, Non-Smoker / Paid Up Additions Monthly Premium: $700 or $8,400 Annually Lump Sum Contribution: $5,000 Car Loans: $25,000 / car, starting in year 5 (10 cars over a 40 year period) Retirement Income: Begins age 70 & continues for 21 years Life Insurance Benefit: Paid at death at assumed age of 90

    LET’S CREATE OUR AUTOMOBILE POLICY

36. Male, Age 25, Preferred Non-Smoker (For Illustrative Purposes Only) Cumulative Cash Outlay Net Death Benefit Loan Amount Age Year Premium Net Cash Value 26 1 13,400 13,400 0 13,400 8,723 528,502 27 2 8,400 8,400 0 21,800 15,275 555,069 28 3 8,400 0 30,200 22,361 582,608 29 4 8,400 0 38,600 30,027 30,027 611,041 30 5 8,400 25,000 25,000 54,500 19,837 621,898 31 6 8,400 -7,500 70,400 35,651 658,930 32 7 8,400 -7,500 86,300 52,500 696,999 33 8 11,611 11,611 -4,289 102,200 70,200 748,985 34 9 8,400 25,000 25,000 118,100 62,894 762,939 35 10 8,400 -7,500 134,000 81,683 802,695 36 11 8,400 -7,500 149,900 101,901 694,010 37 12 11,611 11,611 -4,289 165,800 123,086 746,822 38 13 8,400 25,000 25,000 181,700 119,413 763,517 39 14 8,400 -7,500 197,600 142,005 806,023 40 15 8,400 -7,500 213,500 165,939 849,378 41 16 11,611 11,611 -4,289 229,400 190,992 902,327 42 17 8,400 25,000 25,000 245,300 191,347 920,924 43 18 8,400 -7,500 261,200 218,086 965,171 44 19 8,400 7,500 277,100 246,283 1,010,153 45 20 11,611 11,611 -4,289 293,000 275,767 1,063,253 46 21 8,400 25,000 25,000 308,900 280,502 1,083,610 47 22 8,400 -7,500 324,800 311,838 1,129,793 48 23 8,400 -7,500 340,700 344,899 1,176,798 49 24 11,611 11,611 -4,289 356,600 379,563 1,230,617
37. Male, Age 25, Preferred Non-Smoker (For Illustrative Purposes Only) Cumulative Cash Outlay Net Death Benefit Age Year Premium Loan Amount Net Cash Value 50 25 8,400 25,000 25,000 372,500 390,021 1,253,010 51 26 8,400 -7,500 388,400 427,414 1,301,330 52 27 8,400 -7,500 404,300 466,841 1,350,733 53 28 11,611 11,611 -4,289 420,200 508,125 1,406,119 54 29 8,400 25,000 25,000 436,100 525,486 1,431,617 55 30 8,400 -7,500 452,000 570,031 1,483,464 56 31 8,400 -7,500 467,900 616,889 1,536,800 57 32 11,611 11,611 -4,289 483,800 665,932 1,595,542 58 33 8,400 25,000 25,000 499,700 691,412 1,625,588 59 34 8,400 -7,500 515,600 744,545 1,682,111 60 35 8,400 -7,500 531,500 800,445 1,740,256 61 36 11,611 11,611 -4,289 547,400 858,943 1,803,240 62 37 8,400 25,000 25,000 563,300 894,241 1,838,772 63 38 8,400 -7,500 579,200 957,463 1,901,427 64 39 8,400 -7,500 595,100 1,023,782 1,966,324 65 40 11,611 11,611 -4,289 611,000 1,093,069 2,035,886 66 41 8,400 25,000 25,000 626,900 1,139,615 2,078,999 67 42 8,400 -7,500 642,800 1,214,661 2,149,364 68 43 8,400 -7,500 658,700 1,293,453 2,222,047 69 44 11,611 11,611 -4,289 674,600 674,600 1,375,923 1,375,923 2,298,936 2,298,936 70 45 0 0 80,000 80,000 1,365,271 2,260,397 71 46 0 80,000 80,000 1,353,560 2,238,083 72 47 0 80,000 80,000 1,340,576 2,213,498 73 48 0 80,000 80,000 1,326,043 2,186,579
38. 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 0 80,000 80,000 674,600 674,600 1,309,899 2,157,111 75 50 0 80,000 80,000 1,292,023 2,124,821 76 51 0 80,000 80,000 1,272,259 2,089,503 77 52 0 80,000 80,000 1,250,354 2,050,981 78 53 0 80,000 80,000 1,226,038 2,009,197 79 54 0 80,000 80,000 1,198,878 1,964,065 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 80,000 1,168,564 1,915,468 81 56 0 80,000 80,000 1,134,737 1,863,164 82 57 0 80,000 80,000 1,097,043 1,806,908 83 58 0 80,000 80,000 1,055,235 1,746,266 84 59 0 80,000 80,000 1,008,977 1,680,952 85 60 0 80,000 80,000 674,600 957,730 1,610,669 90 65 0 80,000 80,000 674,600 674,600 605,959 605,959 1,175,250 1,175,250 95 70 0 0 674,600 515,411 1,023,167 100 75 0 0 674,600 277,367 737,402 ALL INCOME TAX FREE!
39. IT’S YOUR CHOICE! $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 Life Insurance Benefit At Age 90 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! Retirement Income For 21 Years

    OPTION 4: BE YOUR OWN BANK

40. IRAs/ 401(k)s / 403B / Government Plans Lazy Money / Savings Insurance Premiums / Deductibles Tax- Refunds Restructure Debt / Equity Current Insurance Cash Value

    WE WILL HELP YOU FIND THE MONEY!

    FUNDING YOUR FAMILY BANK With After-Tax Dollars
41. and get all the corn TAX FREE!!!

    PayTax on the seed now…

42. QuestionstoCONSIDER If you are age 50, on a scale of 1 – 10 (10 being the highest) where are you now with your financial security?
43. 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?
44. 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…

    CAUTION:

    SET YOU FREE!
45. 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.

    TAKETHE NEXT STEP

46. HERE IS YOUR CHANCE TO FREE YOURSELF FROM FINANCIAL PRISON! FAMILY? or BANK?

47. For Additional Education…

48. THANK YOUANY QUESTIONS?