BE YOUR “OWN BANKER”

THE 21ST CENTURY SOLUTION:

USING THE POWER and MARVEL OF UNIVERSAL
INDEXED LIFE INSURANCE

Copyright 2013
“THOSE WHO UNDERSTAND COMPOUND INTEREST
EARN IT,

WHILE THOSE WHO DON’T UNDERSTAND IT ARE

DOOMED TO PAY IT.”

ALBERT EINSTEIN
 PRESENTED BY:

Audrey Brattain
Retirement Income Solutions, LLC
816-841-5126 Office
816-522-6888 Cell

Copyright 2013
WHAT IF YOU COULD…

SAVE FOR RETIREMENT AND FINANCE YOUR LIFE AT THE

SAME TIME?
WHY NOT?

BE YOUR OWN BANKER WITH INDEXED UNIVERSAL LIFE INSURANCE

SAY GOODBYE TO BANKS AND TAKE CONTROL OF YOUR

FINANCIAL LIFE
A GREAT FINANCIAL STRATEGY FOR

• THOSE IN THEIR 20S & 30S (AND 40S AND 50S)

• PARENTS SAVING FOR COLLEGE

• BOOMERS WITH A FEW YEARS UNTIL RETIREMENT

BECAUSE . . .

YOU CAN USE YOUR SAVINGS TO FINANCE YOUR

LIFE WHILE ON YOUR JOURNEY TO RETIREMENT

BEING YOUR “OWN BANKER” MEANS

YOU CAN BORROW YOU OWN MONEY TO PAY FOR:

• CARS

• VACATIONS

• HOME DOWN PAYMENT

• CHILDRENS’ COLLEGE

• AND FUND YOUR RETIREMENT AT THE SAME TIME

WHILE ON THE JOURNEY

USE YOUR MONEY…

TO SELF-FINANCE YOUR LIFE

AGE 30:

• SAVE ONLY $600/MO FOR 5 YEARS

• BUY A CAR EVERY 5 YEARS

• SAVE FOR RETIREMENT AT THE SAME TIME

AGE 30:
$280,000 LIFE INSURANCE / OPTION B

NO MORE PREMIUMS EVER!

AGE 30:
$280,000 LIFE INSURANCE / OPTION B
NOW LET’S BORROW $30,000…
AGE 30:
$280,000 LIFE INSURANCE / OPTION B
NOW LET’S BORROW $30,000…

PAY BACK THE LOAN TO YOURSELF SAME AS YOU

WOULD TO A BANK
AGE 30:
$280,000 LIFE INSURANCE / OPTION B
NOW LET’S BORROW $30,000…

INDEXED UNIVERSAL LIFE INSURANCE FEATURE:

NO LATE PAYMENT PENALTIES
AGE 40:

• NOW, LET’S BUY A CAR FOR $35,000

• MAKE THE SAME CAR PAYMENT BUT MAKE IT TO

YOURSELF.

• DO THIS EVERY 5 YEARS - $5,000 MORE EACH TIME

AGE 40:
AGE 40:

VS. TYPICAL BANK LOAN CASH VALUE = $0!

RETIREMENT INCOME = $0!
AGE 50:
AGE 50:

VS. TYPICAL BANK LOAN CASH VALUE = $0!

RETIREMENT INCOME = $0!
AGE 60:
AGE 60:

RETIREMENT INCOME:
$35,000/YR TAX FREE!

Total income + death benefit = $2,372,313

VS. TYPICAL BANK LOAN CASH VALUE= $0!
RETIREMENT INCOME = $0!
SAVE FIRST WITH INDEXED UNIVERSAL LIFE INSURANCE

THEN BORROW FROM YOURSELF

MAKE IT EVEN BETTER:
IF $600 MONTHLY PREMIUM PAYMENT IS CONTINUED TO AGE 64
MAKE IT EVEN BETTER :
IF $600 MONTHLY PREMIUM PAYMENT IS CONTINUED TO AGE 64

INCOME: $120,000/YR TAX FREE!

LOOKS GREAT, BUT…

HOW REALISTIC ARE THE VALUES SHOWN IN ALL THE

EXAMPLES IN THIS PRESENTATION?
NOTICE

• CASH VALUES= A TOP RANKED IUL

(AVERAGE INDEX CAP OF 16% SINCE 1945)

• COMPARABLE HISTORICAL AVERAGE 20 YEAR ILLUSTRATION

RATE IS 8.4%- THIS ILLUSTRATION USES 8.1% IR

• A MAXIMUM VARIABLE LOAN CAP RATE OF 6%

COLLEGE SAVINGS
THOSE CAR PAYMENTS COULD BE TUITION
FOR CHILDREN
THE BEST COLLEGE SAVINGS PLAN

• MALE 35 SAVES $1,000 A MONTH

• YEAR 15: ACCOUNT & SURRENDER VALUE = $293,000

• LOAN YEARS 16,17,18 & 19 (NO PREMIUMS)= $70,000/YR

THE BEST COLLEGE SAVINGS PLAN

• REPAY ZERO OF THE LOAN

• AGAIN, SAVE $1,000/MO FOR YEARS 19–25

• RETIREMENT INCOME YEAR 26

AGE 65 $70,000 YEAR INCOME TAX FREE

AGE 90: $2,380,000 10.29% IRR

THE BEST COLLEGE SAVINGS PLAN

• COMPARE TO BANK LOAN @ 6%

• 4 YEAR LOAN BALANCE: $325,000

• LOAN PAYMENT 20 YEARS: $700/MO

• RETIREMENT INCOME: ZERO

THE BEST COLLEGE SAVINGS PLAN

• SO WHICH DO YOU PREFER?

1) LOAN PAYMENT OF $8,400 YEAR WITH

ZERO RETIREMENT INCOME, OR

2) $70,000/YR INCOME TAX FREE

THE BEST COLLEGE SAVINGS PLAN

• CAN TAKE OUT “TUITION” INCOME TAX AND PENALTY FREE

• NOT INCLUDED IN COLLEGE AID FORMULAS

• CASH VALUE REMAINS THE PARENTS’ SAVINGS

• BALANCE CAN CONTINUE TO GROW TO PROVIDE INCOME

TAX FREE RETIREMENT INCOME

• LIFE INSURANCE ON PARENT WILL GUARANTEE COLLEGE

IS PAID FOR IN THE EVENT OF PREMATURE DEATH
WHY INDEXED
UNIVERSAL LIFE
INSURANCE?
"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
MYTH: LIFE INSURANCE IS NOT A GOOD INVESTMENT.

TWO FACTORS POINT TO A REVIVAL OF LIFE INSURANCE AS

AN INVESTMENT:

1. GUARANTEED CREDITS ON CASH VALUES

2. IF OVER 65, YOU CAN OFTEN SELL 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?

KEEP ALL ANNUAL GAINS

• RETURNS CAN BE LINKED TO THE S&P 500 (OR OTHER

INDEX)

• YOU ARE NOT IN THE STOCK MARKET

• PRINCIPAL AND GAINS CANNOT GO DOWN DUE TO THE

MARKET– THEY CAN ONLY GO UP
BECAUSE YOU HAVE …

• NO MARKET RISK

• KEEP ALL GAINS, NO LOSSES

• TAX FREE INCOME

• NO TAXES OWED

• NO IRS OR STATE PENALTIES

HOW WELL CAN INDEXED UNIVERSAL LIFE INSURANCE WORK?
AVERAGE 20 YEAR NET GAIN FOR ALL 20 YEAR PERIODS SINCE 1945 (#47)

• BASED ON ACTUAL S&P 500 INDEX GAINS

• AN AVERAGE CREDITING CAP (16%)

• LESS ALL EXPENSES (M50 NSP)

1992-2011 6.84% NET

1991-2010 6.99%
1990-2009 6.75%
1989-2008 7.20%
1988-2007 7.93%
1987-2006 7.83%
1986-2005 7.88%
1985-2004 8.27%
HOW WELL CAN INDEXED LIFE WORK?

THE AVERAGE HYPOTHETICAL 20 YEAR GAIN

SINCE 1945= 7.0% NET
IRR SUMMARY

(APPROXIMATELY BASED ON GENDER, HEALTH, IUL DESIGN AND # YEARS

PREMIUM IS PAID)

• 20 YEARS: 7% NET/YR

• 30 YEARS: 8% NET/YR

• 40 YEARS: 9-10% NET/YR

INDEXED UNIVERSAL LIFE INSURANCE:
KEEP ALL THE GAINS, NO LOSSES
THIS IS INDEXED LIFE

THE RETIREMENT SAVINGS INVESTMENT FOR THE

FUTURE
AND

THE “SELF-BANKING” FINANCIAL SOLUTION FOR

TODAY
YOU HAVE A CHOICE:

1. PAY INTEREST ALL YOUR LIFE

OR

2. EARN INTEREST WHILE BORROWING THE SAME MONEY

FROM YOURSELF

WHICH DO YOU PREFER?

THANKS TO IRS IRC: 7702(A)

INDEXED UNIVERSAL LIFE IS THE ONLY INVESTMENT APPROVED BY

CONGRESS AND THE IRS TO PROVIDE YOU:

• TAX FREE INCOME

• INCOME TAX FREE INHERITANCE TO HEIRS

• INCOME TAX FREE LIFETIME LIFE INSURANCE (MAY

GUARANTEE RETIREMENT PLAN COMPLETION FOR
SURVIVOR SPOUSE)
ACCELERATED LIVING BENEFIT

• WITH 1 OR 2 YEAR TERMINAL DIAGNOSIS UP TO $1

MILLION ADVANCE BENEFIT

• MONEY CAN BE USED FOR ANY PURPOSE - MEDICAL

TREATMENTS, NURSING HOME, HOME HEALTH,
VACATIONS . . .
PLUS…

• THE TAX FREE INCOME FROM INDEXED UNIVERSAL LIFE

INSURANCE (UNLIKE MUNICIPAL BOND INTEREST, ETC.) IS
NOT INCLUDED IN THE FORMULA TO TAX UP TO 85% OF
YOUR SOCIAL SECURITY

• ACCOUNTS FOR VIRTUALLY 100% OF DISCRETIONARY

CONSUMPTION OF THOSE WITH PRE-RETIREMENT
INCOME LESS THAN $50,000/YR (COUPLES)

• AND FOR 1/3RD OF DISCRETIONARY CONSUMPTION IN

HIGHEST INCOME HOUSEHOLDS (COUPLES EARNING
$500,000 OR SINGLES $250,000 PRE-RETIREMENT)
INDEXED LIFE:
RETIREMENT PEACE OF MIND

• ELIMINATE ALL FUTURE INCREASED TAX RATE RISK AND

STOCK MARKET ROLLER COASTER ANXIETY

• FEEL CONFIDENT ABOUT EARNING - AND KEEPING - MOST

FUTURE MARKET GAINS

• NO MARKET LOSSES

• ENJOY STEADY, TAX FREE INCOME!

PLAN TODAY
PROTECT TOMORROW WITH INDEXED UNIVERSAL LIFE INSURANCE
REMEMBER . . .
LIFE IS A JOURNEY . . . AND IT HAS AN EXPIRATION DATE!
BE YOUR “OWN BANKER”

THE 21ST CENTURY SOLUTION

USING THE POWER AND MARVEL OF INDEXED
UNIVERSAL LIFE INSURANCE
PRESENTED BY:

Audrey Brattain
Retirement Income Solutions, LLC
816-841-5126 Office
816-522-6888 Cell