More than Just Lines on a Map: Best Practices for U.S Bike Routes
Is Saving Money Through A 401k or IRA The Best Way To Save For Retirement?
1. We Are Part of a Unique Network of Financial Professionals With a Different Philosophy We Are Deeply Concerned About The Direction America is Headed The Information We Have To Share With You Is Critical To Your Financial Future! Since 1985 Over 24 Years of Experience! We Feel That Educated Client’s Make Better Financial Decisions Milwaukee Magazine http://consumerist.com/consumer/clips/snl-skit-dont-buy-stuff-you-cant-afford-252491.php Single Click On Link Above To View SNL Skit About Credit Card Debt – 2 minutes
3. Sudden Impact “As a country, we’ve hit an iceberg, we’re taking on water, and the band plays on as if nothing has happened!
4. CouldTraditional Financial Advice Be Out-of-Touch Today? Pay Less Taxes In Retirement Focus on Higher Returns Diversify Your Investments Maximize Contributions To 401(k) Plans, SEP Plans & IRA’s Make Extra Payments To Your Mortgage Company
5. Demographics Baby-Boomers, Gen X, Gen Y 78 Million Baby Boomers Are Turning 60 Every 7 Seconds For The Next 19 Years Stress On Social Security System Medicare & Medicaid Transferring Money Out Of Stock Market Into Conservative Investments Life Expectancy Increase Plan Living 25 Years In Retirement Average Boomer Has Less Than $50,000 In Retirement Account
6. Government Spending $11 Trillion in U.S. Government Debt $41 Million in interest on U.S. Gov Debt/Hour $11,500 Interest on U.S. Gov Debt/Second
8. A Wake Up Call “We are heading to a future where we’ll have to double federal taxes or cut federal spending by 60%.” Former Comptroller General: David Walker http://www.youtube.com/watch?v=QxoP_9W6FC8 Single Click on Link Above – 8 minutes
9. Is Postponing Tax Really The Best Idea? Today After Tax $513,825 BeforeTax$885,906 Future After Tax $318,926 30 Year Old $6,000 Yr Contribution 1,500 Yr Match 7,500 Yr Total Your IRA, pension and 401(k) benefits will be taxable at retirement, probably at a higher tax rate. MF p.236
10. Who’s Retirement Are You Planning Yours or Uncle Sam’s? $885,906 401k @5% $44,295 Gross Income - 14,174 Tax Due Every Yr 25 Yrs Retirement! $ 30,121 Net Income Uncle Sam’s Total Income $354,350 Your Total Income $753,025 At Your Death Heirs Receive $513,825 At Your Death Uncle Sam Receives $372,081 Total Benefit To Uncle Sam $726,431 You’ve Become The Perfect Tax Payer!
11. U.S. Tax History 1916 - 2008 If You Think Taxes Can’t Get Worse, Think Again! 100 61.48% Average! 90 80 70 60 Top Tax Rate % 50 40 30 20 10 1916 1928 1940 1944 1956 1968 1984 1996 2008 1920 1924 1932 1936 1948 1952 1960 1964 1972 1976 1980 1988 1992 2000 2004 Years
12. IRA/401k Tax Time Bomb! Former IRS Agent CPA Ed Slott http://www.youtube.com/watch?v=GSJoFaIy27c&NR=1 Single Click on Link Above - 10 minutes
13. Has Your IRA/401k Lost 30% to 40%? Best Selling Author and Financial Strategist Doug Andrew http://vimeo.com/1705571 Single Click on Link Above – 3 minutes
22. Insurance Mortality and Expense Charges TEFRA 1982 Corridor dictates the minimum death benefit required based upon the insured’s age and gender to accommodate the ultimate desired aggregate premium basis. DEFRA 1984 TAMRA 1986 New Cash Contributions Compound Interest Male Age 30 8.00% Total Premiums Allowed: $ 178,500 GSP Year 5 After Tax Contributions $5,100 To Age 65 $5,100 Year 4 $5,100 Minimum Death Benefit Required:$ 548,353_ Year 3 $5,100 1.5% $5,100 Year 2 $5,100 Year 1 At Age 65 $60,734 Yr Tax Free Income For 35 Years
23. Equity Indexed Investing Annual Lock-In & Reset $177,718 $175,959 Linked S&P 500 Index $168,221 $177,718 $150,198 1600 1500 1400 1300 1200 1000 800 600 400 $123,459 $143,456 1484 $119,217 $129,240 1418 1433 $117,969 $115,393 1262 $100,000 1274 $112,000 $112,000 1205 $104,991 1202 $105,990 1144 $100,249 1088 $100,000 $95,175 $90,516 895 816 162% Better! $109,832 More! $74,460 $ 67,886 As of December 1, 2008 98 99 00 01 02 03 04 05 06 07 08 * This is a hypothetical illustration and assumes a 12% cap and a 1% floor. S&P 500 from December 21, 1996 to December 1, 2008
29. Equity Trapped In Home Has No Rate of Return $80,000 $200,000 $ 160,000 $ 400,000 Opportunity Cost 10 Years @ 7.2% 10 Years @ 7.2%
30. Which Cost Are You Incurring? Mortgage Opportunity Cost Employment Cost $80,000 6.0% 7.2% 4.0% Net MF p. 90
31. Your Family Bank Net Cost Net Growth Net Gain $3,200 Year 1 $83,200 $3,200 $48,000 $205,773 Year 15 $157,773 $96,000 $709,012 Year 30 $613,012 Separate $80,000 Equity Borrow at 6% / 4% Net Investing at 8% Compound Interest @ 8% Simple Interest @ Net 4%
32. Become Your Own Banker! Arbitrage http://www.youtube.com/watch?v=31W3YoEEzp85 minutes Increase Retirement Income 50% to 100% Without Spending One More Dime!
