7702 Private Retirement Plans

United Life Financial LLC

Improving Life Strategies



“We know ‘The Banks’ have all of the money, so why aren’t we all in the banking business?”

Rodney Gilbert (1971-?) CEO, United Life Financial LLC

Question 1:

Answer 1: We don’t know how!



Answer 2: "Banks lend by creating credit.They create the means of payment out of nothing."

Ralph M. Hawtrey (1879-1975) Former Secretary of British Treasury

Question 2: How did ‘The Banks’ get all

of the money?



““Financing”Financing” as a as a Wealth Creation StrategyWealth Creation Strategy

Creating Your Creating Your Personal Personal

Banking/Retirement SystemBanking/Retirement System



When was the last time you had When was the last time you had to take a loan from the bank? to take a loan from the bank?

How much did you need How much did you need to borrow? to borrow?

What was the Interest Rate?What was the Interest Rate?

How much paper work did youHow much paper work did you have to fill out? have to fill out?

How long did you have to pay How long did you have to pay it back? it back?

What happens if you miss aWhat happens if you miss a payment or two? payment or two?

These are nagging questions but…These are nagging questions but…



WHAT IF…WHAT IF…

You controlled the interest rate?You controlled the interest rate?

You determined the payment schedule?You determined the payment schedule?

You borrowed because it actually madeYou borrowed because it actually made your retirement better and bigger? your retirement better and bigger?

You recaptured the principle and interestYou recaptured the principle and interest instead of giving it to financial institutions? instead of giving it to financial institutions?

Your capital grew on a tax free basis?Your capital grew on a tax free basis?

You had total asset protection?You had total asset protection?

You could reduce your tax liability?You could reduce your tax liability?

Your bank could provide for your familyYour bank could provide for your family for generations to come? for generations to come?



Welcome Home to the Benefits ofWelcome Home to the Benefits of “Infinite Banking”“Infinite Banking”

We will teach you We will teach you financial literacyfinancial literacy and emphasize and emphasize Liquidity, Use and ControlLiquidity, Use and Control of your of your MoneyMoney. .

You will learn how to You will learn how to Think and ActThink and Act like a like a BankerBanker in order to recapture money that was in order to recapture money that was

unknowingly or unnecessarily being lost. unknowingly or unnecessarily being lost.

Most Americans Borrow Because They Most Americans Borrow Because They HAVEHAVE to, to,

Wealth Creators Borrow Because they Wealth Creators Borrow Because they WANTWANT to. to.



TheThe WAYWAY You Finance You Finance Your Life Your Life AlwaysAlways Impacts Impacts

Your Wealth.Your Wealth.

For For BetterBetter… or For … or For WorseWorse..



The The First PrincipleFirst Principle To Increasing Your Wealth Is To Increasing Your Wealth Is To Understand The To Understand The Power Of YourPower Of Your Cash Flow.Cash Flow.

Everything we buy involvesEverything we buy involves financingfinancing..

1.We either 1.We either borrow moneyborrow money and pay interest to someone and pay interest to someone else to use else to use THEIRTHEIR money or, money or,

2.We 2.We pay cashpay cash and give up the interest we could have and give up the interest we could have earned had we used that money somewhere elseearned had we used that money somewhere else (“Lost Opportunity Cost”).(“Lost Opportunity Cost”).

Every financial decision we make, impacts every other Every financial decision we make, impacts every other financial decision. They are all tied together.financial decision. They are all tied together.



“ “ Those who understand Those who understand interest interest earn itearn it, those who , those who don’t don’t pay itpay it.”.”

““Be the Bank.” Be the Bank.”

-Robert Kiyosaki-Robert Kiyosaki

The The Second PrincipleSecond Principle is is Interest.Interest.



How Banks Work: How Banks Work: The 3 Major PlayersThe 3 Major Players

DepositorDepositor

BankBank

BorrowerBorrowerEarns 0 - 3% Earns 0 - 3% Interest from Interest from Bank.Bank.

Loans out depositor’s Loans out depositor’s money charging money charging greater interest to greater interest to borrower, keeping the borrower, keeping the difference.difference.

Gets loan from Bank Gets loan from Bank and pays Bank back and pays Bank back principle and interest.principle and interest.



Most people unfortunately are either the…Most people unfortunately are either the…

DepositorDepositor

BankBank

BorrowerBorrower



Learn how toLearn how to RecaptureRecapture, , ReuseReuse and and

RecycleRecycle Your Your Money!Money!

BankBank

DepositorDepositor BorrowerBorrower



““How to Finance a CarHow to Finance a Car,,The Tale of Two Brothers”The Tale of Two Brothers”

MichaelMichael JohnJohn



Both brothers decide to buy a new SUV and Both brothers decide to buy a new SUV and finance with the same terms.finance with the same terms.

$30,000 Loan, 6% Rate, $580 for 60 Months. $30,000 Loan, 6% Rate, $580 for 60 Months.

MichaelMichael uses his uses his local banklocal bank to to finance the SUV,finance the SUV,John John howeverhowever uses his uses his IRC 7702.IRC 7702.



Michael is left Michael is left with only a with only a depreciated depreciated car.car.

The Local Bank The Local Bank keeps all his keeps all his Principle & Principle & Interest.Interest.



John keeps the John keeps the car & all his car & all his

money!money!

$30,000 Principle $30,000 Principle +$4,799 Interest+$4,799 Interest

+$5,000 Car +$5,000 Car $39,799 Total!$39,799 Total!

Why…Why…because hebecause he

OWNSOWNS the Bank! the Bank!



So When You Finance Your Next Car, So When You Finance Your Next Car, You Will Either… You Will Either…

IncreaseIncrease Your Net Worth or Your Net Worth or DecreaseDecrease It. It.

You You Have Have

A ChoiceA Choice!!



Most Americans have been Most Americans have been Trained, Taught, and Educated Trained, Taught, and Educated to to build wealth through government build wealth through government

promoted promoted Qualified IRC plansQualified IRC plans like: like: 401(k)s, 403(b)s, 412(i)s, 457s, 401(k)s, 403(b)s, 412(i)s, 457s,

IRAs, Seps, Keoghs, etc.IRAs, Seps, Keoghs, etc.



BENEFITS IRC 400 Plans IRC 7702

1. Creditor Proof YES* YES*2. Contributions: Tax Deferred YES YES*3. Growth: Tax Deferred YES YES4. Withdrawal: Tax Free NO YES5. Transfer: Tax Free NO YES6. Guaranteed Returns/Growth NO YES7. Competitive IRR NO YES8. Unlimited Investment Options NO YES9. Enhanced IRR Through Self-Management NO YES10. Collateral NO YES11. Virtually Unlimited Contributions NO YES12.Accessible- Provides Velocitization Opportunities NO YES13. Liquidity, Use and Control NO YES14. Disability Provision NO YES15. Self-Completion Provision (Disability & Death) NO YES16. Banking Purposes Allowed NO YES



YEAR

Growth No TAX

Growth Taxed at 17%

Growth Taxed at 27%

0 1.00$ 1.00$ 1.00$ 1 2.00$ 1.83$ 1.73$ 2 4.00$ 3.35$ 2.99$ 3 8.00$ 6.13$ 5.18$ 4 16.00$ 11.22$ 8.96$ 5 32.00$ 20.52$ 15.50$ 6 64.00$ 37.56$ 26.81$ 7 128.00$ 68.73$ 46.38$ 8 256.00$ 125.78$ 80.24$ 9 512.00$ 230.18$ 138.81$ 10 1,024.00$ 421.22$ 240.14$ 11 2,048.00$ 770.84$ 415.44$ 12 4,096.00$ 1,410.63$ 718.71$ 13 8,192.00$ 2,581.45$ 1,243.37$ 14 16,384.00$ 4,724.06$ 2,151.02$ 15 32,768.00$ 8,645.03$ 3,721.27$ 16 65,536.00$ 15,820.40$ 6,437.80$ 17 131,072.00$ 28,951.33$ 11,137.40$ 18 262,144.00$ 52,980.93$ 19,267.70$ 19 524,288.00$ 96,955.11$ 33,333.12$

20 $ 1,048,576.00 $ 177,427.85 $ 57,666.30 Loss due to Tax $ 871,148.15 $ 990,909.70

100% ROI in a 100% ROI in a Tax FreeTax Free vs vs

TaxableTaxable Environment.Environment.



U.S. Supreme Court Justice Louis D. Brandeis (1916-1939)

Understanding Taxes

“I live in Alexandria, Virginia. Near the Court Chambers is a toll bridge across the Potomac.

When in a rush, I pay the dollar toll and get home early. However, I usually drive outside the downtown section of the city and cross the Potomac on a free bridge.

The bridge was placed outside the downtown Washington, D.C. area to serve a useful social service – getting drivers to drive the extra mile and help alleviate congestion during the rush hour.

If I went over the toll bridge and through the barrier without paying a toll, I would be committing tax evasion.

If I drive the extra mile and drive outside the city of Washington to the free bridge, I am using a legitimate, logical and suitable method of tax avoidance, and I am performing a useful social service by doing so.

For my tax evasion, I should be punished. For my tax avoidance, I should be commended.

The tragedy of life today is that so few people know that the free bridge even exists.”

“... few people know that the free bridge exists”



Sample #1 IRC 7702Sample #1 IRC 7702



Sample #2 IRC 7702Sample #2 IRC 7702



(Qualified Savings & retirement plans: 403(b), 457, 401(k), IRA, SEP IRA are NOT TAX FREE!)

The IRS 7702(a) Private Plan is a retirement savings plan.

The savings earned in this plan – your retirement income - can be withdrawn totally tax-free, and it can be left to your heirs tax-free.

This plan is IRS approved IRS Code Title 26 Section 7702 (a).



This is a unique plan giving your retirement savings safety and

market returns on a tax-free basis.

There are no contribution limits, no early IRS withdrawal penalties, no withdrawal requirements and

no employer oversight.



Problem:Problem:Many Baby Boomers are having trouble

planning for retirement. Most have almost no savings.

Current qualified retirement plans are a failure

and time is running out.

Solution:Solution:A Private Plan 7702(a) may be the Last

Chance for Retirement.

Please contact us for more information on how a Private Plan can help you.



Thank You!Thank You!



Rodney Gilbert, CLTC, MBA


1-888-583-5070

[email protected]

www.unitedlifefinancial.net

7702 Private Retirement Plans

Economy & Finance

Transcript of 7702 Private Retirement Plans