Foundational Asset Management™
Breakthrough Anti-Tax Money Strategy!End Taxes on Non-IRA Savings & Investments and. . .
Be Able to Spend 25 to 46 Percent More Income When You Retire,
Tax-Free!
MISSION STATEMENT
We are dedicated to helping you grow your wealth and stay wealthy through the application of cutting edge Foundational Asset Strategies™ that will enhance your estate, improve your lifestyle and provide a safe, comfortable and rewarding retirement.
Foundational Asset Management™
SecurityPredictabilityChoiceControl
SOUND PRINCIPLES TO FOLLOW
Foundational Asset Management™
FOUR PHASES OFRETIREMENT PLANNING
IRA / 401(k)
TaxFavoredCONTRIBUTION
TaxedWITHDRAWAL
TaxedTRANSFER
TaxFavoredACCUMULATION
Your benefits will be taxable at retirement,
and probably at a higher tax rate.
Foundational Asset Management™
12/09/2009
After $787 billion in stimulus spending and $700 billion in bank bailouts, 2010 is fast shaping up to be the year of the federal budget diet
The Nation's Bulging Debt is now $12 Trillion
Bipartisan support is growing in Congress for action to stabilize the nation's debt
The Congressional Budget Office projects annual interest on the public debt would be about $800 billion by 2019, but the Heritage Foundation's Brian Riedl and other analysts estimate it could surpass $1 trillion by then.
$1 Trillion in justInterest per Year
Who is going to payall this interest?
THE ONLY SOLUTION SEEMS TO BE…
HigherTaxes!
Foundational Asset Management™
DEFERRED TAX RETIREMENT PLANS
There is currently $3.7 trillion in IRA’s in the US today that have not been taxed.
Taxes on these funds have only one logical direction, and that is to increase!
Foundational Asset Management™
Ours or Uncle Sam’s?
Whose Retirement Are We Really Planning?
Withdraw a net $75,000 per year
from a $1 million IRA earning 7.5%
in a 35% tax bracket
$1,000,000 Account Value
7.50% Rate of Return
35% Tax Bracket
$115,385 Total Withdrawal
$75,000 Net Foundational Asset Management™
Age Retirement Acct Withdrawal Interest Acct Value
64 1,000,000 75,000 1,075,000
65 115,385 71,971 1,031,587
66 115,385 68,715 984,917
67 115,385 65,215 934,747
68 115,385 61,452 880,815
69 115,385 57,407 822,838
70 115,385 53,059 760,512
71 115,385 48,385 693,512
72 115,385 43,360 621,487
73 115,385 37,958 544,060
74 115,385 32,151 460,826
75 115,385 25,908 371,349
76 115,385 19,197 275,162
77 115,385 11,983 171,761
78 115,385 4,228 60,605
79 60,605 0 0
Withdraw a net $75,000 per year
from $1 million earning 7.5%
in a 0% tax bracket $1,000,000 Account Value
7.50% Rate of Return
0% Tax Bracket
$75,000 Total Withdrawal
$75,000 Net Foundational Asset Management™
Age Retirement Acct Withdrawal Interest Acct Value
64 1,000,000 75,000 1,075,000
65 75,000 75,000 1,075,000
66 75,000 75,000 1,075,000
67 75,000 75,000 1,075,000
68 75,000 75,000 1,075,000
69 75,000 75,000 1,075,000
70 75,000 75,000 1,075,000
71 75,000 75,000 1,075,000
72 75,000 75,000 1,075,000
73 75,000 75,000 1,075,000
74 75,000 75,000 1,075,000
75 75,000 75,000 1,075,000
76 75,000 75,000 1,075,000
77 75,000 75,000 1,075,000
78 75,000 75,000 1,075,000
79 75,000 75,000 1,075,000
TAX FREE ALTERNATIVES
Roth IRA
Roth 401(k)
Municipal Bonds
Equity Index Life Insurance
Foundational Asset Management™
TAX-FREE OPTIONS
Roth IRA: Good…but with limitations$5,000 max contribution per year < 50 years old$6,000 per year > 50 years old$0 per year if income > $116k (single) or $169k (married &
filing jointly)
Roth 401(k): better…if you can get oneNo income restrictions to contributeExisting 401(k) contribution limits remain
$16,500 annually total <50$22,500 annually total >50
Foundational Asset Management™
TAX-FREE OPTIONS
Equity Index Life insurance:No age or income restrictionsGuaranteed safety, exceptional liquidityOutstanding, TAX-FREE rates of return Section 7702 and 72(e)
Foundational Asset Management™
SECTION 72(E) AND 7702
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.
Hence, the beauty and magic of life insurance: 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!
Foundational Asset Management™
Floor
2.00%
• Have the potential for market gain without risk of principal
Ceiling
14.00 %
“Cap”
• Use of an index like Standard and Poor’s 500 or the DOW
• Guarantee of principal
Equity Index Life Policy
Goals
Foundational Asset Management™
$100,000
Gains BecomePrincipal
That is a $14,850 difference because of the annual lock in and reset.
10%
$110,000
$99,000
-10%
2%$112,200
$126,225
$111,375
12.5%
12.5%
12%
The Powerful Advantage of Locking in Annual Gains
Foundational Asset Management™
J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SON J FMAM J J A SOND J FMA550
600
650
700
750
800
850
900
950
1000
1050
1100
S&P 500
$117,810
14%Cap
940
How Index Reset Works
650
920
$120,166
2%Floor
$136,989
Average Tax equivalent is
11.23 %
AverageTax equivalent is
2.49 %
RECOVERY OF LOSSES
Edward Winslow, Author of, Blind Faith,
“96% of professional money managers do worse than the S&P 500 index”.
“It will take the average household over thirty years to recover the wealth lost in 2000 and 2001 from market declines”.
Foundational Asset Management™
PROTECTED INVESTMENT
Edward Winslow, Author of, Blind Faith,
“If unprotected against loss, an investment in stock or an equity mutual fund is nothing more than a gamble”.
“The primary objective of an intelligent investment strategy should be to preserve capital and build on it at a consistent, moderate rate in both bull and bear markets”.
Foundational Asset Management™
THE ADVANTAGES OF EQUITY INDEX LIFE
Distributions from an Equity Index Life Contract are NOT included in income calculations for Social Security Taxation
Principal guarantees
Annual lock-in of index gains, annual reset of index
Minimum rate of return combined with maximum cap on gains
Tax free distributions
Foundational Asset Management™
NATIONAL DEBT AND SOCIAL SECURITY
In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2037 The Social Security Trust Fund will be exhausted*
and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits. We need to resolve these issues soon to make sure
Social Security continues to provide a foundation of protection for future generations.
1. Social Security Administration sample statement from www.ssa.govFoundational Asset Management™
HOW CAN YOU REDUCE YOUR SOCIAL SECURITY TAXATION?
Distributions from
Equity Index Life contracts
are NOT included in
income calculations for Social
Security Taxation!
Foundational Asset Management™
EQUITY INDEX LIFE POLICYA Tax-Free, Non-Qualified Retirement
Plan
Mortality & ExpenseCharges
Premium Contributions Compound Interest
Maximum Premiums
Minimum Death Benefit
TEFRA 1982
DEFRA 1984
TAMRA 1988
Dictates the minimum death benefit required based upon the insured’s age and sex to accommodate the desired premium.
Grandfathering provision
RESOURCES TO FUND AN EQUITY INDEX LIFE POLICY
LifestyleMoney
AccumulatedMoney
WealthTransfers
Under performing assetsSavingsExcess 401(k) contributionsOld 401(k) and IRA’sReal Estate equity
Credit Card PaymentsExcess Mortgage PaymentsOld Life Insurance PremiumsTaxes on Social Security
Foundational Asset Management™
TOP FAQ’S
1. What is the risk of the insurance company going bankrupt?
Foundational Asset Management™
A life insurance company that maintains reserves at least equal to the minimum prescribed by law or regulation in the state in which it does business. These reserves are based on actuarial formulas and are designed to allow the company to meet all of its financial obligations.
Legal Reserve Life Insurance Company
Foundational Asset Management™
TOP FAQ’S
1. What is the risk of the insurance company going bankrupt?
2. With the government needing so much money these days, won’t it take away the tax exemption of life insurance?
Foundational Asset Management™
• Our government knows that most people will be shortsighted and not take advantage of this opportunity people tend to focus on the short-term cost and not the tax-free windfall they will receive later.
Foundational Asset Management™
• Our government is broke. This is why they encourage us through tax deductions to give to charity, the more we give the less burden put on Uncle Sam. It’s the same with life insurance. The government wants us to use life insurance to help take care of our families so they don’t have to. Foundational Asset Management™
• 80% of our senators and representatives use the life insurance exemption themselves. It is unlikely our legislators would wipe out a perk that benefits them.
Foundational Asset Management™
TOP FAQ’S
1. What is the risk of the insurance company going bankrupt?
2. With the government needing so much money these days, won’t it take away the tax exemption of life insurance?
3. Can I move my 401(k) or IRA into an Equity Index Policy?
Foundational Asset Management™
If your over 59 ½ years old you can move money from a qualified plan into an equity index life contract. You will be required to pay the tax on the funds using the current tax rates in the year the premiums are paid.
Foundational Asset Management™
If your under 59 ½ years old you can utilizing IRS code 72(t) to transfer funds into the policy. This is a structured distribution I rarely recommend. A better strategies is to redirect annual contributions going into a qualified plan above your employer’s match to fund the policy.
Foundational Asset Management™
TOP FAQ’S
1. What is the risk of the insurance company going bankrupt?
2. With the government needing so much money these days, won’t it take away the tax exemption of life insurance?
3. Can I move my 401(k) or IRA into an Equity Index Policy?
4. If I have health issues can I still utilize this strategy?
Foundational Asset Management™
There are 3 components to a life insurance policy
• The owner • The insured • The beneficiary All three of these components can be held by different people. You do not have to be the insured to be the owner of the policy. Many of our clients are not the insured, but own and control the cash distributions of the equity index life contract.Foundational Asset Management™
“AMERINSUR” SEMINAR EVALUATION
Foundational Asset Management
I wish to take advantage of a FREE CONSULTATION and ANALYSIS[ ] Yes [ ] No
I would like to meet in your office concerning: ( all that apply)
A comprehensive analysis of my current life insurance portfolio and advantages of converting to an Index Universal Life Contract.
Tax-free retirement alternatives to IRA’s, 401 K’s, etc.
Convert my IRA to a Tax-Free Roth IRA.
Tax-free college funding
Using the Index Universal Life Contract to build a Tax-Free Retirement
Foundational Asset Management™
SCHEDULE A CONSULTATION
With This Breakthrough Strategy You Have
Thousands of Dollars of Tax-Free Income to Gain and Nothing but
Taxes to Lose!Foundational Asset Management™
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