Last Chance Retirement and why conventional retirement plans have been a failure.

2. Presented by
PETER LANGELIER
Tax Advantaged and “Safe”
Retirement Savings Advisor

3. "New Knowledge is the most
valuable commodity on earth.

4. "New Knowledge is the most
valuable commodity on earth.
The more truth we
have to work with,
the richer we become."
Kurt Vonnegut

5. Just Say “NO!”
to a
401(k), 403(b), 457,
IRA, SEP or ROTH!

6. Truth #1
IRS Qualified
Retirement Savings Plans
403b / 457 / IRA / SEP / 401k
Are a Failure!

7. 5 Reasons You Shouldn‟t
Contribute to a 401(k)
March 16, 2011
1) If there is no employer match.
2) High Fees.
3) Higher Tax Rate (at withdrawal) in Qualified Plan.
4) Larger Tax Bill at Withdrawal (larger balance).
5) (Likely) Future Tax Rate Increases.

8. October 19,2009

9. “Why It‟s Time to Retire the 401(k)”
“The ugly truth is that the
401(k) is a lousy idea,
a rotten repository for
our retirement reserves …”

10. “…The biggest factor in whether the 401(k) works as designed has
to do with when you retire. If the market rises that year, you're fine.
If you retired last year, you're toast.

11. “…The biggest factor in whether the 401(k) works as designed has
to do with when you retire. If the market rises that year, you're fine.
If you retired last year, you're toast. And the chances of your
becoming a victim of this huge flaw in the 401(k) plan are pretty high.

12. “…The biggest factor in whether the 401(k) works as designed has
to do with when you retire. If the market rises that year, you're fine.
If you retired last year, you're toast. And the chances of your
becoming a victim of this huge flaw in the 401(k) plan are pretty high.
The market fell in four of the nine years since the beginning of the
decade. That means anyone retiring this decade had a nearly 50%
chance of leaving work in a down market.

13. “…The biggest factor in whether the 401(k) works as designed has
to do with when you retire. If the market rises that year, you're fine.
If you retired last year, you're toast. And the chances of your
becoming a victim of this huge flaw in the 401(k) plan are pretty high.
The market fell in four of the nine years since the beginning of the
decade. That means anyone retiring this decade had a nearly 50%
chance of leaving work in a down market. In fact, your chances of
retiring into a down market are even greater than that: forced
retirements spike in recessions just as the stock market is tanking.”

14. “Guaranteed accounts don't have to be run by the
government. The ERISA Industry Committee that
represents the nation's largest employers, has proposed
a system that would allow individuals the ability to buy
a guaranteed retirement account on their own. Some
government regulation would be needed, but it would be a
„Private Plan‟ .”

15. “But the policy would be portable. Contribute for 30 years
and you would be guaranteed income in retirement, no
matter how many employers you worked for.

16. “But the policy would be portable. Contribute for 30 years
and you would be guaranteed income in retirement, no
matter how many employers you worked for.
Combine your retirement-insurance check with the
money you get from Social Security, which can equal as
much as 50% of final pay, and presto: you have something
approaching retirement security.”

17. “But the policy would be portable. Contribute for 30 years
and you would be guaranteed income in retirement, no
matter how many employers you worked for.
Combine your retirement-insurance check with the
money you get from Social Security, which can equal as
much as 50% of final pay, and presto: you have something
approaching retirement security.”
We need a NEW, Safer way to save for retirement because …

18. * 52% of workers (not including home
equity) have savings less than $25,000.

19. * 52% of workers (not including home
equity) have savings less than $25,000.
* 75% have savings less than $10,000.

20. * 52% of workers (not including home
equity) have savings less than $25,000.
* 75% have savings less than $10,000.
* 36% of those over 55 have saved
less than …
$10,000!

22. Most Americans will be too poor to retire at 65!
Nov. 1, 2009 / Center for Retirement Research at Boston College
51% are at high risk of falling short of
having enough money in retirement.

23. Most Americans will be too poor to retire at 65!
Nov. 1, 2009 / Center for Retirement Research at Boston College
51% are at high risk of falling short of
having enough money in retirement.
“The disappearance of pension plans, as well as troubles with the Social
Security system, place younger Americans at a higher risk of being unable
to hold on to their standards of living during retirement. The cradle-to-the-
grave relationship with the employer is severed…

24. Most Americans will be too poor to retire at 65!
Nov. 1, 2009 / Center for Retirement Research at Boston College
51% are at high risk of falling short of
having enough money in retirement.
“The disappearance of pension plans, as well as troubles with the Social
Security system, place younger Americans at a higher risk of being unable
to hold on to their standards of living during retirement. The cradle-to-the-
grave relationship with the employer is severed…
Younger people have to be responsible for their own retirement.”

25. Most Americans will be too poor to retire at 65!
Nov. 1, 2009 / Center for Retirement Research at Boston College
51% are at high risk of falling short of
having enough money in retirement.
“The disappearance of pension plans, as well as troubles with the Social
Security system, place younger Americans at a higher risk of being unable
to hold on to their standards of living during retirement. The cradle-to-the-
grave relationship with the employer is severed…
Younger people have to be responsible for their own retirement.”
“Retiring won‟t become impossible, but it will require some thoughtful
planning. Many workers will need to save and invest more, reduce
debt and work longer to maintain their standard of living in retirement.”

26. Truth #2
Stock Investment Gains
– for Investors –
are LOUSY!

27. "There are two times when a
man shouldn't speculate:

28. "There are two times when a
man shouldn't speculate:
when he can't afford it,
and when he can."
Mark Twain

29. Morningstar &
Harvard Business School
BCT Study
4000 Mutual Funds
1996-2002
Investor ROI Net
Fees = 2.924%

30. Bear Market Losses
November 29, 1968 to May 26, 1970 - 36.06%
January 11,1973 to October 3, 1974 - 48.20%
November 28, 1980 to August 12, 1982 - 27.11%
August 25, 1987 to December 4, 1987 - 33.54%
March 27, 2000 to July 18, 2002 - 42.29%
October 9, 2007 to March 9, 2009 - 56.77%

31. Bear Market Losses
November 29, 1968 to May 26, 1970 - 36.06%
January 11,1973 to October 3, 1974 - 48.20%
November 28, 1980 to August 12, 1982 - 27.11%
August 25, 1987 to December 4, 1987 - 33.54%
March 27, 2000 to July 18, 2002 - 42.29%
October 9, 2007 to March 9, 2009 - 56.77%
The Market (since 1946) has an average loss of -33.21% EVERY 6 YEARS!

32. Bear Market Losses
November 29, 1968 to May 26, 1970 - 36.06%
January 11,1973 to October 3, 1974 - 48.20%
November 28, 1980 to August 12, 1982 - 27.11%
August 25, 1987 to December 4, 1987 - 33.54%
March 27, 2000 to July 18, 2002 - 42.29%
October 9, 2007 to March 9, 2009 - 56.77%
The Market (since 1946) has an average loss of -33.21% EVERY 6 YEARS!
It Takes 22.5 months for the Index to Return to Prior High Value.

33. Is this Anxiety Roller Coaster how you
want to live 20 - 30 years of Retirement?

34. Wall Street Always Wins!
Even when you lose Wall Street always
wins with fees you ALWAYS pay –
when the market goes up –
AND when it goes down!

35. Morningstar
Management Fee [8-17-09]: Average domestic fee is 1.39%.
International is 1.56%.

36. Morningstar
Management Fee [8-17-09]: Average domestic fee is 1.39%.
International is 1.56%.
Transaction Fee [6-19-09]: This annual fee is 1.64%.
For Small Cap Fund it’s 2.80%.

37. Morningstar
Management Fee [8-17-09]: Average domestic fee is 1.39%.
International is 1.56%.
Transaction Fee [6-19-09]: This annual fee is 1.64%.
For Small Cap Fund it’s 2.80%.
“Vastly more important than expense ratios and no one‟s talking about it.”
These are in ADDITION to Fund fees. You don’t control a fund’s transaction
costs. That’s determined in part by how often the fund manager trades the
securities in the fund’s portfolio, and how costly those trades are.

38. Morningstar
Management Fee [8-17-09]: Average domestic fee is 1.39%.
International is 1.56%.
Transaction Fee [6-19-09]: This annual fee is 1.64%.
For Small Cap Fund it’s 2.80%.
“Vastly more important than expense ratios and no one‟s talking about it.”
These are in ADDITION to Fund fees. You don’t control a fund’s transaction
costs. That’s determined in part by how often the fund manager trades the
securities in the fund’s portfolio, and how costly those trades are.
The Minimum Average TOTAL Actual Annual Fund Fees = 3.03%!

39. Morningstar
Management Fee [8-17-09]: Average domestic fee is 1.39%.
International is 1.56%.
Transaction Fee [6-19-09]: This annual fee is 1.64%.
For Small Cap Fund it’s 2.80%.
“Vastly more important than expense ratios and no one‟s talking about it.”
These are in ADDITION to Fund fees. You don’t control a fund’s transaction
costs. That’s determined in part by how often the fund manager trades the
securities in the fund’s portfolio, and how costly those trades are.
The Minimum Average TOTAL Actual Annual Fund Fees = 3.03%!
Investment News
ERISA Costs [10-15-09]:
“It's fair to say that in many cases the total ERISA
(401k) drag is close to about 1% of plan assets.”

40. Morningstar
Management Fee [8-17-09]: Average domestic fee is 1.39%.
International is 1.56%.
Transaction Fee [6-19-09]: This annual fee is 1.64%.
For Small Cap Fund it’s 2.80%.
“Vastly more important than expense ratios and no one‟s talking about it.”
These are in ADDITION to Fund fees. You don’t control a fund’s transaction
costs. That’s determined in part by how often the fund manager trades the
securities in the fund’s portfolio, and how costly those trades are.
The Minimum Average TOTAL Actual Annual Fund Fees = 3.03%!
Investment News
ERISA Costs [10-15-09]:
“It's fair to say that in many cases the total ERISA
(401k) drag is close to about 1% of plan assets.”
Summary: Many plans are in the range of 4% to 5% in TOTAL
yearly costs – the worst plans charge even more. After all the fees …

41. Is Your 401(k) more like a 201(k)?!

42. Putnam Investments
President and Chief Executive Officer Robert L. Reynolds
calls for a “ New Generation” of Workplace Savings Plans
with Lower Volatility and Lifetime Income Solutions
October 1, 2009
“After Market Meltdown, Better Plan Design
Needed to Secure Reliable Lifetime Income”
“Index funds and other passive investments that track benchmarks
are guaranteed to lose value when the markets they track
sink.

43. Putnam Investments
President and Chief Executive Officer Robert L. Reynolds
calls for a “ New Generation” of Workplace Savings Plans
with Lower Volatility and Lifetime Income Solutions
October 1, 2009
“After Market Meltdown, Better Plan Design
Needed to Secure Reliable Lifetime Income”
“Index funds and other passive investments that track benchmarks
are guaranteed to lose value when the markets they track
sink. People in or near retirement are not well served by too-great a
concentration of passive (index) investments, thinking they are a
protection against a downturn …”

44. “(Retirement) plans should be made much
more resistant to market downturns …
The next challenge in workplace savings
plans will be to offer guidelines, even
guardrails, to ensure that worker‟s savings
are Protected as they reach retirement age.”

45. BECAUSE …

46. THE WALL STREET JOURNAL
October 15, 2009
The Lost Decade of Stock Investing
“Advisers sold us a bill of goods
about the lasting value
of real estate and stocks.”

47. THE WALL STREET JOURNAL
October 15, 2009
The Lost Decade of Stock Investing
“Advisers sold us a bill of goods
about the lasting value
of real estate and stocks.”
“If you invested $100 in the S&P 500 at the end of the last decade,
you're happy with Dow 10,000 but still hoping for a
34.5% rally before year end -- just to break even.

48. THE WALL STREET JOURNAL
October 15, 2009
The Lost Decade of Stock Investing
“Advisers sold us a bill of goods
about the lasting value
of real estate and stocks.”
“If you invested $100 in the S&P 500 at the end of the last decade,
you're happy with Dow 10,000 but still hoping for a
34.5% rally before year end -- just to break even.
You'll need a staggering 72% rally when adjusting for inflation.”

50. “Quantitative Analysis of Investor Behavior”
March 9, 2009
DALBAR Study Reveals Carnage for
Equity, Bond and Asset Allocation Shareholders
The reality is that investors are not rational, and make
buy and sell decisions at the worst possible moments.

51. “Quantitative Analysis of Investor Behavior”
March 9, 2009
DALBAR Study Reveals Carnage for
Equity, Bond and Asset Allocation Shareholders
The reality is that investors are not rational, and make
buy and sell decisions at the worst possible moments.
For the 20 years ended December 31, 2008, equity
and asset allocation fund investors had average
annual returns of 1.87% and 1.67%, respectively.

52. “Quantitative Analysis of Investor Behavior”
March 9, 2009
DALBAR Study Reveals Carnage for
Equity, Bond and Asset Allocation Shareholders
The reality is that investors are not rational, and make
buy and sell decisions at the worst possible moments.
For the 20 years ended December 31, 2008, equity
and asset allocation fund investors had average
annual returns of 1.87% and 1.67%, respectively.
The inflation rate averaged 2.89% over that same time period.

53. What About the Future?

54. What About the Future?
Market Watch – Wall Street Journal / 12-7-10
„10 reasons to shun stocks till banks crash‟
“Do not buy stocks. Not for retirement.
Not in the coming decade. Don‟t. Huge risks.”
“Wall Street is a loser. Stocks are Wall Street’s
ultimate sucker bet. And it’ll sucker you again.
You’ll lose, worse than in the last decade. Wake
up before Wall Street banks trigger the next
meltdown, igniting mass bankruptcy.”

55. What About the Future?
Market Watch – Wall Street Journal / 12-7-10
“Adjusted for inflation, Wall Street has
lost 20% of your money in the past decade.
Wall Street‟s a loser. And, worse, Wall
Street will do it again by 2020.”

56. What About the Future?
Market Watch – Wall Street Journal / 12-7-10
“Adjusted for inflation, Wall Street has
lost 20% of your money in the past decade.
Wall Street‟s a loser. And, worse, Wall
Street will do it again by 2020.”
“That‟s right: It will lose another
20% of your retirement money.”

57. With Retirement Savings,
It‟s a Sprint to the Finish
21 January 2011
“What would you do if your financial
planner prescribed the following advice?
„Save and invest diligently for 30 years,
then cross your fingers and pray your
investments will double over the last
decade before you retire‟.”

58. With Retirement Savings,
It‟s a Sprint to the Finish
21 January 2011
“What would you do if your financial
planner prescribed the following advice?
„Save and invest diligently for 30 years,
then cross your fingers and pray your
investments will double over the last
decade before you retire‟.”
“You might as well go to Las Vegas.”

59. With Retirement Savings,
It‟s a Sprint to the Finish
21 January 2011
“The problem is that even if you do everything
right and save at a respectable rate, you‟re still
relying on the market to push you to the finish
line in the last decade before retirement. Why?

60. With Retirement Savings,
It‟s a Sprint to the Finish
21 January 2011
“The problem is that even if you do everything
right and save at a respectable rate, you‟re still
relying on the market to push you to the finish
line in the last decade before retirement. Why?
Reaching your goal is highly dependent on the
power of compounding.”

61. With Retirement Savings,
It‟s a Sprint to the Finish
21 January 2011
“But if you‟re dealt a bad set of returns during
an extended period of time just before you retire
or shortly thereafter, your plan could be thrown
wildly off track. Many baby boomers know the
feeling all too well, given the stock market‟s
weak showing during the last decade.”

62. 21 January 2011
“The homestretch before retirement is
often the most anxiety-inducing because
workers have neither the time nor the
financial capacity to recover before they
begin taking withdrawals.”
“When the bad returns come in the
final 10 years, no reasonable amount
of savings will make up the shortfall.”

63. LOST DECADE
The Stock Market Roller Coaster of 2000 – 2009
left these years known as the “Lost Decade”.
.
After average costs $1 after 10 years
was worth 55 cents!

64. LOST DECADE
The Stock Market Roller Coaster of 2000 – 2009
left these years known as the “Lost Decade”.
.
After average costs $1 after 10 years
was worth 55 cents!
.
The ROI was – 44.96%!

66. Albert Einstein
Insanity:
"Doing the same thing
over and over

67. Albert Einstein
Insanity:
"Doing the same thing
over and over and
expecting different results."

68. Truth #3
Taxes MUST go UP!

69. August 19,2009
Don't put any more money in your
tax-deferred retirement savings

70. August 19,2009
Don't put any more money in your
tax-deferred retirement savings
“This is heresy in a world where people hate taxes … (but) things
have changed in the past year … The old thinking was that you
should defer tax bills until „you are in a lower bracket at retirement‟.

71. August 19,2009
Don't put any more money in your
tax-deferred retirement savings
“This is heresy in a world where people hate taxes … (but) things
have changed in the past year … The old thinking was that you
should defer tax bills until „you are in a lower bracket at retirement‟.
Higher bracket is more like it.

72. August 19,2009
Don't put any more money in your
tax-deferred retirement savings
“This is heresy in a world where people hate taxes … (but) things
have changed in the past year … The old thinking was that you
should defer tax bills until „you are in a lower bracket at retirement‟.
Higher bracket is more like it.
If you are 45 and prosperous, plan on big federal deficits
and higher income taxes when you retire in 2031.

73. August 19,2009
Don't put any more money in your
tax-deferred retirement savings
“This is heresy in a world where people hate taxes … (but) things
have changed in the past year … The old thinking was that you
should defer tax bills until „you are in a lower bracket at retirement‟.
Higher bracket is more like it.
If you are 45 and prosperous, plan on big federal deficits
and higher income taxes when you retire in 2031.
You might be better off skipping the 401(k).

74. August 19,2009
Don't put any more money in your
tax-deferred retirement savings
“This is heresy in a world where people hate taxes … (but) things
have changed in the past year … The old thinking was that you
should defer tax bills until „you are in a lower bracket at retirement‟.
Higher bracket is more like it.
If you are 45 and prosperous, plan on big federal deficits
and higher income taxes when you retire in 2031.
You might be better off skipping the 401(k).
Maybe you should pay tax on your salary now!”

75. 2011 Deficit $1.5 Trillion
That's 10% GDP / largest since WWII

76. 2011 Deficit $1.5 Trillion
That's 10% GDP / largest since WWII
Total National Debt = $14 Trillion

77. 2011 Deficit $1.5 Trillion
That's 10% GDP / largest since WWII
Total National Debt = $14 Trillion
Total with SS & Medicare = 70% GDP

78. 2011 Deficit $1.5 Trillion
That's 10% GDP / largest since WWII
Total National Debt = $14 Trillion
Total with SS & Medicare = 70% GDP
With SS, Prescription and Medicare
= $60 Trillion+ (to 2084)

79. 2011 Deficit $1.5 Trillion
That's 10% GDP / largest since WWII
Total National Debt = $14 Trillion
Total with SS & Medicare = 70% GDP
With SS, Prescription and Medicare
= $60 Trillion+ (to 2084)
That = $500,000 Each!

81. RECENT High TAX RATES
1944-45 94%
1958-64 91%
1965-81 70%
1982-86 50%

82. RECENT High TAX RATES
1944-45 94%
1958-64 91%
1965-81 70%
1982-86 50%
Current 35%

83. RECENT High TAX RATES
1944-45 94%
1958-64 91%
1965-81 70%
1982-86 50%
Current 35%
The last time taxes were this low was 1931!
(pre Increasing National Debt Era since 1980)

84. RECENT High TAX RATES
1944-45 94%
1958-64 91%
1965-81 70%
1982-86 50%
Current 35%
The last time taxes were this low was 1931!
(pre Increasing National Debt Era since 1980)
The last time the “low” rate was today's
10% was 1941 – 70 years ago!

85. Future Taxes Make 401(k) Less Advantageous
November 6, 2009
Since 401(k)s were created in the early 1980s, the general assumption was
that a saver would pay lower taxes in retirement, when their income was
certain to be lower. So saving pretax dollars and delaying taxes made sense.

86. Future Taxes Make 401(k) Less Advantageous
November 6, 2009
Since 401(k)s were created in the early 1980s, the general assumption was
that a saver would pay lower taxes in retirement, when their income was
certain to be lower. So saving pretax dollars and delaying taxes made sense.
Now, particularly for higher earners with the largest 401(k) balances,
that assumption is fading as hikes in tax rates seem likely.

87. Future Taxes Make 401(k) Less Advantageous
November 6, 2009
Since 401(k)s were created in the early 1980s, the general assumption was
that a saver would pay lower taxes in retirement, when their income was
certain to be lower. So saving pretax dollars and delaying taxes made sense.
Now, particularly for higher earners with the largest 401(k) balances,
that assumption is fading as hikes in tax rates seem likely.
(Another) problem high earners may face by saving only in a pretax 401(k)
is that, years later, large withdrawals could trigger the tax on Social Security.

88. Future Taxes Make 401(k) Less Advantageous
November 6, 2009
Since 401(k)s were created in the early 1980s, the general assumption was
that a saver would pay lower taxes in retirement, when their income was
certain to be lower. So saving pretax dollars and delaying taxes made sense.
Now, particularly for higher earners with the largest 401(k) balances,
that assumption is fading as hikes in tax rates seem likely.
(Another) problem high earners may face by saving only in a pretax 401(k)
is that, years later, large withdrawals could trigger the tax on Social Security.
(Not deferring taxes) is a good choice for higher earners whose income
isn't likely to fall in retirement and for young investors, who will likely see
their salaries and taxes increase.

89. / 22 October 2008
"It's Time for Young Voters to Get Mad!"
To Voters under 35:
"You have a heavily mortgaged future.
You'll pay for Social Security and
Medicare for aging baby boomers ...

90. / 22 October 2008
"It's Time for Young Voters to Get Mad!"
To Voters under 35:
"You have a heavily mortgaged future.
You'll pay for Social Security and
Medicare for aging baby boomers ...
the needed federal tax increase might
total 50% over the next 25 years."

92. Truth #4
Social Security is NOT Secure!

93. Social Security is going BROKE!
2008
- 65% Rely on SS for 50%
of their income!

94. Social Security is going BROKE!
2008
- 65% Rely on SS for 50%
of their income!
- 33% Rely on SS for 90% of their income!

95. Social Security is going BROKE!
2008
- 65% Rely on SS for 50%
of their income!
- 33% Rely on SS for 90% of their income!
- Accounts for 1/3 of discretionary income
for couples earning over $500,000 year!

96. Social Security is going BROKE!
2008
- 65% Rely on SS for 50%
of their income!
- 33% Rely on SS for 90% of their income!
- Accounts for 1/3 of discretionary income
for couples earning over $500,000 year!
- 1 in 7 Americans receive a check from SS!

97. Social Security is going BROKE!
2008
- 65% Rely on SS for 50%
of their income!
- 33% Rely on SS for 90% of their income!
- Accounts for 1/3 of discretionary income
for couples earning over $500,000 year!
- 1 in 7 Americans receive a check from SS!
- # Workers per Retiree:
1960 = 5 2009 = 3.3 2020 = 2!

98. 2010: SS Outlays exceed
Revenues!
The likely solution
say most experts
is MORE Taxes!

99. 2010: SS Outlays exceed
Revenues!
2012: - SS Benefit check:
- $1,229 mo. Average
The likely solution
say most experts
is MORE Taxes!

100. 2010: SS Outlays exceed
Revenues!
2012: - SS Benefit check:
- $1,229 mo. Average
- $1,994 (Couple)
The likely solution
say most experts
is MORE Taxes!

101. 2010: SS Outlays exceed
Revenues!
2012: - SS Benefit check:
- $1,229 mo. Average
- $1,994 (Couple)
- Up to 85% of Benefits
are Taxed!
The likely solution
say most experts
is MORE Taxes!

102. 2010: SS Outlays exceed
Revenues!
2012: - SS Benefit check:
- $1,229 mo. Average
- $1,994 (Couple)
- Up to 85% of Benefits
are Taxed!
2030: Medicare Trust Fund
is Broke!
The likely solution
say most experts
is MORE Taxes!

103. 2010: SS Outlays exceed
Revenues!
2012: - SS Benefit check:
- $1,229 mo. Average
- $1,994 (Couple)
- Up to 85% of Benefits
are Taxed!
2030: Medicare Trust Fund
is Broke!
2037: Social Security Trust
Fund is Broke! The likely solution
say most experts
is MORE Taxes!

105. But What Else is Left?

106. But What Else is Left?
What Possible Investment is There?!

107. "The Difficulty lies
not in the new ideas,

108. "The Difficulty lies
not in the new ideas,
but in escaping
from the old ones."
John Maynard Keynes
20th Century Economist
"The General Theory of Employment, Interest and Money"

109. “The solution: a new type of „insurance‟.

110. “The solution: a new type of „insurance‟.
Retirement savings, it turns out, are exactly
the type of asset we need insurance for.

111. “The solution: a new type of „insurance‟.
Retirement savings, it turns out, are exactly
the type of asset we need insurance for.
We need insurance to protect against risks we
can't predict (when the market collapses)
and can't afford to recover from on our own.”

112. Fortunately,
there IS a
“NEW” Solution!

113. With all these benefits, today it is called …
"The 'NEW' Asset Class Investment"
March 26, 2008
"This is a safe bet, long term
investment with high interest,
almost no volatility and liquid.

114. With all these benefits, today it is called …
"The 'NEW' Asset Class Investment"
March 26, 2008
"This is a safe bet, long term
investment with high interest,
almost no volatility and liquid.
You do not have to die to enjoy
these returns (and) it can
work like a Roth ...

115. “It‟s dramatic advantage is that
you pay no tax on the gains
ever, and you can spend them
while you are alive tax free.”

116. WHAT IS IT?!

117. Permanent Life Insurance

118. For Retirement Savings
it’s often called a
“Private Plan”

119. For Retirement Savings
it’s often called a
“Private Plan”
It IS Approved by Congress
and Regulated by the IRS
with IRC 7702(a)

120. "It ain't what you don't know
that gets you into trouble.

121. "It ain't what you don't know
that gets you into trouble.
It's what you know for sure
that just ain't so."
Mark Twain

122. April 2009
Myth. Life Insurance is not a good investment.

123. April 2009
Myth. Life Insurance is not a good investment.
“This canard spread as 401(k)s and IRA's supplanted
Life Insurance as Americans' most popular ways to build
Savings while deferring taxes. But two factors point to
a revival of Life insurance as an investment:

124. April 2009
Myth. Life Insurance is not a good investment.
“This canard spread as 401(k)s and IRA's supplanted
Life Insurance as Americans' most popular ways to build
Savings while deferring taxes. But two factors point to
a revival of Life insurance as an investment:
One is guaranteed credits on cash values,
which means if you pay the premiums, you
cannot lose money unless the company fails.
(The other is if you are over 65, you can
often sell it for several times its cash value)!”

125. April 2009
Myth. Life Insurance is not a good investment.
“This canard spread as 401(k)s and IRA's supplanted
Life Insurance as Americans' most popular ways to build
Savings while deferring taxes. But two factors point to
a revival of Life insurance as an investment:
One is guaranteed credits on cash values,
which means if you pay the premiums, you
cannot lose money unless the company fails.
(The other is if you are over 65, you can
often sell it for several times its cash value)!”
TRUTH: “A good investment is one in which you put money
away now and have more later. Checked your 401(k) lately?”

126. BUT this is NOT your
Grandparents Life Insurance!

127. Returns can be
LINKED
to the S&P 500
(or other index)

128. Returns can be
LINKED
to the S&P 500
(or other index)
You are
NOT
IN the
stock market!

129. Returns can be
LINKED
to the S&P 500
(or other index)
You are
NOT
IN the
stock market!
This means
you
KEEP
ALL
Annual
gains!

130. Your Principal
and Gains
CANNOT
go down in value
because of
the market --
they can only go
UP!

131. Juicing Your Life Insurance
5 June 2010
This year's hottest life-insurance product
is well-suited to an era of sudden "flash
crashes" and overall uncertainty: It appeals
to people eager to capture stock-market
gains while avoiding undue risk. The
product (is) "indexed universal life”.

132. Juicing Your Life Insurance
5 June 2010
The twist in these new policies is the use of a
stock-market index to help determine the interest
rate for the cash-value account. In many versions,
insurers link to the Standard & Poor's 500-stock
index, but cap the annual interest rate …

133. Juicing Your Life Insurance
5 June 2010
The twist in these new policies is the use of a
stock-market index to help determine the interest
rate for the cash-value account. In many versions,
insurers link to the Standard & Poor's 500-stock
index, but cap the annual interest rate … For
downside protection, some policies promise a
minimum interest rate of as much as 2%, even in
losing years for stocks, while others simply
protect against losses.

134. Juicing Your Life Insurance
5 June 2010
The product "resonates with people"
says the chief actuary (for one co.).
“It has a guarantee so
people can sleep at night,
and it has upside potential”.

135. For Retirement Savings…
ZERO IS HERO!

136. How well can this 'solution' work?
Hypothetical Past 20 years to 12/31/10
(Age 40 to 59)
Based on ACTUAL S&P 500 Index gains
using
Current Crediting Formula & Expenses
(including zero gain years)
7 – 8% NET per year!

137. This is
Indexed Life!
THE Retirement Savings
Investment for the Future!

138. Thanks to IRS IRC: 7702(a)
Indexed Universal Life (IUL)
is the ONLY Investment
approved by Congress
and the IRS to provide
you ALL of these
Benefits and Features ...

139. TAX FREE Income!

140. TAX FREE to Heirs!

141. Putnam Investment Retirement Survey 2005
“A majority of retirees said their
BIGGEST MISTAKE
in planning for Retirement
was failing to invest in
TAX FREE Accounts.”

142. Putnam Investment Retirement Survey 2005
“A majority of retirees said their
BIGGEST MISTAKE
in planning for Retirement
was failing to invest in
TAX FREE Accounts.”
With Indexed Life …

143. ... it's OTHER dramatic
advantage is that you pay
NO tax on the gains ever –
Your Retirement Income
is Tax Free!

144. 7 - 8% IUL NET 1991-2010
vs.
DALBAR Report 20 Year Investor Behavior to 2010
4-1-11

145. 7 - 8% IUL NET 1991-2010
vs.
DALBAR Report 20 Year Investor Behavior to 2010
4-1-11
"Market" S&P 500 = 9.14% gross

146. 7 - 8% IUL NET 1991-2010
vs.
DALBAR Report 20 Year Investor Behavior to 2010
4-1-11
"Market" S&P 500 = 9.14% gross
NET Investor ROI = 3.83% ACTUAL!

147. 7 - 8% IUL NET 1991-2010
vs.
DALBAR Report 20 Year Investor Behavior to 2010
4-1-11
"Market" S&P 500 = 9.14% gross
NET Investor ROI = 3.83% ACTUAL!
RESULT: 20 Year IUL Net > Market!

148. Indexed Life also does NOT have the Restrictive
Qualified Plan Contribution, Access and Loan Rules!

149. 2012 403b/457/401k IUL
Contribution Limit $17,000 NONE
Pre 59.5 Penalty 10% Federal NONE
Plus State

150. 2012 403b/457/401k IUL
Contribution Limit $17,000 NONE
Pre 59.5 Penalty 10% Federal NONE
Plus State
Mandatory Distribution 70.5 NONE

151. 2012 403b/457/401k IUL
Contribution Limit $17,000 NONE
Pre 59.5 Penalty 10% Federal NONE
Plus State
Mandatory Distribution 70.5 NONE
Accelerated Terminal no to $1 million
Illness Advance

152. Plan LOAN 403b/457/401k IUL
Amount 50% to $50k NO Limit

153. Plan LOAN 403b/457/401k IUL
Amount 50% to $50k NO Limit
Loan Repayment mandatory Optional

154. Plan LOAN 403b/457/401k IUL
Amount 50% to $50k NO Limit
Loan Repayment mandatory Optional
Quit/Fired/Co. 'broke' 90 days N/A
repay in full

155. Plan LOAN 403b/457/401k IUL
Amount 50% to $50k NO Limit
Loan Repayment mandatory Optional
Quit/Fired/Co. 'broke' 90 days N/A
repay in full
Late with payment 30 day grace N/A
or ALL Taxable

156. Indexed Life also includes:
Lifetime Life Insurance
(may guarantee Retirement Plan
completion for Survivor Spouse)

157. The Life Insurance can also be used for
PENSION MAX
to Increase Your Pension Income
$hundreds or $thousands per month!
Popular for Teacher & Government Pension Plans:
STRS [State Teachers Retirement System]
PERS [Public Employees Retirement System]

158. Accelerated “Living” Benefit
With 1 or 2 year terminal diagnosis
up to $1 million Advance Benefit!

159. Accelerated “Living” Benefit
With 1 or 2 year terminal diagnosis
up to $1 million Advance Benefit!
Money can be used for ANY purpose -
including treatment that could
SAVE YOUR LIFE!

160. With Indexed Life
You can also …
Be Your
OWN
Banker!
(Great Financial
Strategy for those in
their 20's & 30's!)
You can use your savings to
finance your life while on
your journey to retirement!

161. AND Finance Your
Retirement TOO
While You D0!
Age 40
Save $1,000 Month
to Age 65

162. AND Finance Your
Retirement TOO
While You D0!
Age 65 Cash Value
= $857,000

163. AND Finance Your
Retirement TOO
While You D0!
Age 65 Cash Value
= $857,000
Tax Free Retirement
Income = $50,000 Yr!

164. AND Finance Your
Retirement TOO
While You D0!
Age 65 Cash Value
= $857,000
Tax Free Retirement
Income = $50,000 Yr!
Age 85 Cash Value
= $2,229,000!

165. AND Finance Your
Retirement TOO
While You D0!
Age 65 Cash Value
= $857,000
Tax Free Retirement
Income = $50,000 Yr!
Age 85 Cash Value
= $2,229,000!
(Or give
Yourself
a Raise!)

166. The BEST COLLEGE SAVINGS Plan!
* Can take out “Tuition” Tax/Penalty Free!

167. The BEST COLLEGE SAVINGS Plan!
* Can take out “Tuition” Tax/Penalty Free!
* NOT included in college aid formulas!

168. The BEST COLLEGE SAVINGS Plan!
* Can take out “Tuition” Tax/Penalty Free!
* NOT included in college aid formulas!
* CV Remains the Parents Savings!

169. The BEST COLLEGE SAVINGS Plan!
* Can take out “Tuition” Tax/Penalty Free!
* NOT included in college aid formulas!
* CV Remains the Parents Savings!
* Balance can continue to grow to provide
Tax FREE Retirement Income!

170. The BEST COLLEGE SAVINGS Plan!
* Can take out “Tuition” Tax/Penalty Free!
* NOT included in college aid formulas!
* CV Remains the Parents Savings!
* Balance can continue to grow to provide
Tax FREE Retirement Income!
* Life Insurance on Parent to guarantee
College paid for if premature death.

171. Or You Can Keep “Saving” in Mutual Funds!

172. BONUS!
The Tax Free Income
from Indexed Life
(unlike Municipal Bonds
and Qualified Savings
withdrawals)

173. BONUS!
The Tax Free Income
from Indexed Life
(unlike Municipal Bonds
and Qualified Savings
withdrawals)
is NOT included in
the formula to tax
up to 85% of your
Social Security!

174. BONUS!
The Tax Free Income
from Indexed Life
(unlike Municipal Bonds
and Qualified Savings
withdrawals)
is NOT included in
the formula to tax
up to 85% of your
Social Security!
An IUL plan
may be the
easiest,
'cheapest' and
BEST way to
Save for
Retirement
AND Avoid
this Tax!

175. November 2007
BEST ALL-AROUND
RETIREMENT ACCOUNT
is the Roth IRA:
“There's no up-front tax break [IUL],
but decades of tax-free growth [IUL],
plus tax-free income in retirement [IUL].”

176. November 2007
BEST ALL-AROUND
RETIREMENT ACCOUNT
is the Roth IRA:
“There's no up-front tax break [IUL],
but decades of tax-free growth [IUL],
plus tax-free income in retirement [IUL].”
Why Stop There?! Even BETTER is ...

177. An IUL "SUPER ROTH"!
Unlike a Roth ...
* NO Contribution Limits.

178. An IUL "SUPER ROTH"!
Unlike a Roth ...
* NO Contribution Limits.
* NO Income Restrictions.

179. An IUL "SUPER ROTH"!
Unlike a Roth ...
* NO Contribution Limits.
* NO Income Restrictions.
* Includes Hundreds of Thousands $'s
(or more) in Life Insurance from Day 1
[NOT Allowed in Roth! Use it to Pension Max!]

180. An IUL "SUPER ROTH"!
Unlike a Roth ...
* NO Contribution Limits.
* NO Income Restrictions.
* Includes Hundreds of Thousands $'s
(or more) in Life Insurance from Day 1
[NOT Allowed in Roth! Use it to Pension Max!]
* NO IRS or State Penalties
for pre 59.5 access to gains.

181. * NO 5 Year wait for Tax Free Access!

182. * NO 5 Year wait for Tax Free Access!
* Loans Allowed (payments not required!)
Can USE the savings to ...

183. * NO 5 Year wait for Tax Free Access!
* Loans Allowed (payments not required!)
Can USE the savings to ...
* Be Your "Own Banker"!

184. * NO 5 Year wait for Tax Free Access!
* Loans Allowed (payments not required!)
Can USE the savings to ...
* Be Your "Own Banker"!
* Children (or Grandchildren's) College Fund!

185. * NO 5 Year wait for Tax Free Access!
* Loans Allowed (payments not required!)
Can USE the savings to ...
* Be Your "Own Banker"!
* Children (or Grandchildren's) College Fund!
* Tax Benefits Grandfathered ...
so NO Tax Change Risk!

186. * NO 5 Year wait for Tax Free Access!
* Loans Allowed (payments not required!)
Can USE the savings to ...
* Be Your "Own Banker"!
* Children (or Grandchildren's) College Fund!
* Tax Benefits Grandfathered ...
so NO Tax Change Risk!
* NO MARKET RISK – You KEEP the Gains!

187. * NO 5 Year wait for Tax Free Access!
* Loans Allowed (payments not required!)
Can USE the savings to ...
* Be Your "Own Banker"!
* Children (or Grandchildren's) College Fund!
* Tax Benefits Grandfathered ...
so NO Tax Change Risk!
* NO MARKET RISK – You KEEP the Gains!
Roth OR IUL "Super Roth"? IUL!

188. In case you were wondering,
many of the companies who
offer IUL are among the oldest
(over 100 to 150 years old),
most stable, best rated,
AND
largest financial services
companies in the world!

189. In case you were wondering,
many of the companies who
offer IUL are among the oldest
(over 100 to 150 years old),
most stable, best rated,
AND
largest financial services
companies in the world!
[Checks from Ins. Co.’s are a major reason
why many survived the Great Depression!]

190. FINAL TRUTH
Indexed Life may be YOUR
LAST Chance Retirement!

192. NET CASH VALUE – Saving Stage
[NET Fees, Pre 59.5 Penalties and Taxes]
Age 45 PNT / Save $1,000 mo. for 20 years
[Average Past 25, Thirty Year Periods (since 1953)]
Year Qualified IUL
5 60,918 57,747
6 74,989 74,913
10 138,667 164,919
15 271,882 324,799
20 416,619 569,405

193. NET Retirement - Income Stage
Starting Age 66 / 35% MTR (pre/post retirement)
Year Qualified IUL
(66) 21 54,000 54,000 NET
25 54,000 54,000

194. NET Retirement - Income Stage
Starting Age 66 / 35% MTR (pre/post retirement)
Year Qualified IUL
(66) 21 54,000 54,000 NET
25 54,000 54,000
30 BROKE! 54,000
40 0 54,000
45 0 54,000
50 0 54,000
(100) 55 0 54,000

195. NET Cash Value and IRR
Year Qualified IRR IUL IRR
20 416,619 5.00% 569,405 7.66%
25 177,518 4.44% 547,239 8.13%
30 BROKE! 0% 551,109 8.48%
35 0 0% 609,981 8.79%
40 0 0% 759,719 9.03%
45 0 0% 1,053,434 9.21%
50 0 0% 1,645,896 9.37%
55 0 0% 2,909,552 9.54%

196. 10 Year S&P 500 IUL
Gains NO Cap 16% Cap
(per year) Actual 100% PR*
1983 5.06% 7.45%
1982 1.40% 5.97%
1981 2.86% 6.59%
1980 3.87% 7.17%
1979 1.34% 6.10%
Past 5 Yrs 2.91% 6.65%
1978 0.11% 5.40%
1977 0.87% 5.82%
1976 2.90% 6.84%
1975 0.48% 5.52%
1974 - 0.31% 5.17%
Past 10 Yrs 1.86% 6.20%
* Participation Rate
What IF the Stock Market / S&P
“Tanks” for Years in a Row?

197. 10 Year S&P 500 IUL
Gains NO Cap 16% Cap
(per year) Actual 100% PR*
1983 5.06% 7.45%
1982 1.40% 5.97%
1981 2.86% 6.59%
1980 3.87% 7.17%
1979 1.34% 6.10%
Past 5 Yrs 2.91% 6.65%
1978 0.11% 5.40%
1977 0.87% 5.82%
1976 2.90% 6.84%
1975 0.48% 5.52%
1974 - 0.31% 5.17%
Past 10 Yrs 1.86% 6.20%
* Participation Rate
What IF the Stock Market / S&P
“Tanks” for Years in a Row?
The average 10 year gain of the S&P
in an IUL the past 65 years is 9.05%.
[18% historical average cap]

198. 10 Year S&P 500 IUL
Gains NO Cap 16% Cap
(per year) Actual 100% PR*
1983 5.06% 7.45%
1982 1.40% 5.97%
1981 2.86% 6.59%
1980 3.87% 7.17%
1979 1.34% 6.10%
Past 5 Yrs 2.91% 6.65%
1978 0.11% 5.40%
1977 0.87% 5.82%
1976 2.90% 6.84%
1975 0.48% 5.52%
1974 - 0.31% 5.17%
Past 10 Yrs 1.86% 6.20%
* Participation Rate
What IF the Stock Market / S&P
“Tanks” for Years in a Row?
The average 10 year gain of the S&P
in an IUL the past 65 years is 9.05%.
[18% historical average cap]
The worst stretch during that time
was 1974 to 1983 when the S&P
10 year gains averaged 1.86% per yr.

199. 10 Year S&P 500 IUL
Gains NO Cap 16% Cap
(per year) Actual 100% PR*
1983 5.06% 7.45%
1982 1.40% 5.97%
1981 2.86% 6.59%
1980 3.87% 7.17%
1979 1.34% 6.10%
Past 5 Yrs 2.91% 6.65%
1978 0.11% 5.40%
1977 0.87% 5.82%
1976 2.90% 6.84%
1975 0.48% 5.52%
1974 - 0.31% 5.17%
Past 10 Yrs 1.86% 6.20%
* Participation Rate
What IF the Stock Market / S&P
“Tanks” for Years in a Row?
The average 10 year gain of the S&P
in an IUL the past 65 years is 9.05%.
[18% historical average cap]
The worst stretch during that time
was 1974 to 1983 when the S&P
10 year gains averaged 1.86% per yr.
But at an average (low) cap of 16%
IUL would of averaged 6.20% per year
– a gain that is 233% MORE!

200. 10 Year S&P 500 IUL
Gains NO Cap 16% Cap
(per year) Actual 100% PR*
1983 5.06% 7.45%
1982 1.40% 5.97%
1981 2.86% 6.59%
1980 3.87% 7.17%
1979 1.34% 6.10%
Past 5 Yrs 2.91% 6.65%
1978 0.11% 5.40%
1977 0.87% 5.82%
1976 2.90% 6.84%
1975 0.48% 5.52%
1974 - 0.31% 5.17%
Past 10 Yrs 1.86% 6.20%
* Participation Rate
What IF the Stock Market / S&P
“Tanks” for Years in a Row?
The average 10 year gain of the S&P
in an IUL the past 65 years is 9.05%.
[18% historical average cap]
The worst stretch during that time
was 1974 to 1983 when the S&P
10 year gains averaged 1.86% per yr.
But at an average (low) cap of 16%
IUL would of averaged 6.20% per year
– a gain that is 233% MORE!
This is because IUL KEEPS
its prior annual gains so when
the market goes up again it
BUILDS on those gains
instead of having to recover 1st!

201. 10 Year S&P 500 IUL
Gains NO Cap 16% Cap
(per year) Actual 100% PR*
1983 5.06% 7.45%
1982 1.40% 5.97%
1981 2.86% 6.59%
1980 3.87% 7.17%
1979 1.34% 6.10%
Past 5 Yrs 2.91% 6.65%
1978 0.11% 5.40%
1977 0.87% 5.82%
1976 2.90% 6.84%
1975 0.48% 5.52%
1974 - 0.31% 5.17%
Past 10 Yrs 1.86% 6.20%
* Participation Rate
What IF the Stock Market / S&P
“Tanks” for Years in a Row?
The average 10 year gain of the S&P
in an IUL the past 65 years is 9.05%.
[18% historical average cap]
The worst stretch during that time
was 1974 to 1983 when the S&P
10 year gains averaged 1.86% per yr.
But at an average (low) cap of 16%
IUL would of averaged 6.20% per year
– a gain that is 233% MORE!
This is because IUL KEEPS
its prior annual gains so when
the market goes up again it
BUILDS on those gains
instead of having to recover 1st!
Indexed Life =
Retirement Security!

202. Indexed Life – KEEP the GAINS!

203. Retirement: Secure Pension = Better Sleep
November 2, 2009
Study of 14,714 participants over 16
years found a sharp decrease in sleep
disturbances in financially secure retirees.
“Where there is no proper pension level to guarantee
financial security beyond working age, retirement may
be followed by severe stress disturbing sleep even
more than before retirement.”

204. Qualified Plans
(403b/401k/457/
IRA/SEP/Roth)

205. Qualified Plans
(403b/401k/457/
IRA/SEP/Roth)
- Market Risk

206. Qualified Plans
(403b/401k/457/
IRA/SEP/Roth)
- Market Risk
- Future Tax Increases

207. Qualified Plans
(403b/401k/457/
IRA/SEP/Roth)
- Market Risk
- Future Tax Increases
- Taxes on Social Security

208. Qualified Plans
(403b/401k/457/
IRA/SEP/Roth)
- Market Risk
- Future Tax Increases
- Taxes on Social Security
= Sinking / Broke Retirement!

209. Indexed Life =
Retirement Peace of Mind!

210. Indexed Life =
Retirement Peace of Mind!
* Eliminate ALL Future ...
- Increased Tax Rate Risk!
- Stock Roller Coaster Anxiety!

211. Indexed Life =
Retirement Peace of Mind!
* Eliminate ALL Future ...
- Increased Tax Rate Risk!
- Stock Roller Coaster Anxiety!
* Feel confident about earning - and
KEEPING – most Future Market Gains!

212. Indexed Life =
Retirement Peace of Mind!
* Eliminate ALL Future ...
- Increased Tax Rate Risk!
- Stock Roller Coaster Anxiety!
* Feel confident about earning - and
KEEPING – most Future Market Gains!
* Enjoy Steady, Tax Free Income!

213. This is the "tip of the iceberg" about
the MANY Indexed Life Benefits!

214. "Twenty years from now
you will be more
disappointed by the
things you didn't do than
by the ones you did do."
Mark Twain

215. Indexed Life Private Plan
Is it Right for You?

216. Indexed Life Private Plan
Is it Right for You?
If you are saving in a 401k, 403b, 457,
SEP, Roth or IRA the answer is likely
YES!

217. Indexed Life Private Plan
Is it Right for You?
If you are saving in a 401k, 403b, 457,
SEP, Roth or IRA the answer is likely
YES!
Let us help you answer that question and
show you the difference in Pre Retirement
and Retirement Benefits and Income!

218. Many Retirees Cannot Meet Basic Needs!
Brandeis University Study / February 2009
"78% of retiring Americans may not
be able to meet basic expenses for
the remainder of their lives, ...

219. Many Retirees Cannot Meet Basic Needs!
Brandeis University Study / February 2009
"78% of retiring Americans may not
be able to meet basic expenses for
the remainder of their lives, ...
...today 1/3 have no money left over
after meeting essential expenses,...

220. Many Retirees Cannot Meet Basic Needs!
Brandeis University Study / February 2009
"78% of retiring Americans may not
be able to meet basic expenses for
the remainder of their lives, ...
and younger people may be facing
an even bleaker financial future
for their retirement years.”
...today 1/3 have no money left over
after meeting essential expenses,...

224. YOU HAVE A CHOICE!
DON'T Become a Casualty
of the Looming Boomer
Retirement (& TAX) Catastrophe!

225. YOU HAVE A CHOICE!
DON'T Become a Casualty
of the Looming Boomer
Retirement (& TAX) Catastrophe!
It IS time to Save a
SMARTER, BETTER Way!

226. YOU HAVE A CHOICE!
DON'T Become a Casualty
of the Looming Boomer
Retirement (& TAX) Catastrophe!
It IS time to Save a
SMARTER, BETTER Way!
TAX FREE Indexed Life!

227. "Even if you're on
the right track,

228. "Even if you're on
the right track,
You'll get run over if
you just sit there."
Will Rogers

230. The Time is NOW to
Save a BETTER Way!
Peter Langelier
207 740 0827
plangelier
@langelierinsurance.com
Norway ME