�ݺ�ߣ

Entaire Programs Overview Rev. Date 8/18/2009

Who Entaire Programs are for: Business Owners What the Programs are: Financed Planning ™ How the Programs work: Overview of the Programs Case Study: Paul Smith Financed Planning ™ is a trademark of Entaire Global Intellectual Property, Inc. Today’s Agenda

Who Entaire Programs are for: Business Owners

47% of Business Owners surveyed indicated that they do not believe that they are financially prepared for their retirement 1 68% of Business Owners believe that they will live below their current lifestyle when they retire 2 1 Harris Interactive on behalf of Sharebuilder 401(k) 2 LIMRA, 2006 So, what’s the challenge? The Business Owners’ Challenge

Startup Growth Expansion Maturity Limited Excess Money Excess Money Reinvested Excess Funds Available Cashing Out Phase Phases of the Entrepreneurial Business

Government Mandated Restrictions Retirement Health The Entrepreneur’s Dilemma: Restrictions

Programs: designed solely for you, the Business Owner, that allow for large sums of money to grow tax deferred, that are tax efficient and cost effective, that use your business checkbook, and that will create less risk and more stability in your portfolio The Answer

What the Programs are: Financed Planning™

Note: Hypothetical results for illustrative purposes only and not a representation of past or future results. $500K 0 Years $500K 10 Years $500K 20 Years $500K 30 Years The Rule of 72 How long does money take to double? Divide 72 by the assumed rate, the result is the number of years until a sum doubles. Assumptions : Net Book Value of Business - $500K Rule of 72 Interest Rate – 7.2% $500K $1M $2M $4M

Note: A hypothetical crediting rate of 7%. Represents approximations and should not be relied upon as tax or investment advice. The performance of financial products fluctuate over time. The actual time to achieve any result cannot be predicted with certainty. Compressed Time Frame Concept Choice 3 - $500,000 only once X Today = $500,000 Choice 2 - $ 50,000 per year X 10 years = $500,000 Choice 1 - $ 16,667 per year X 30 years = $500,000 Accelerated Funding $2,860,393 $50,000 $3,808,127 $500,000 $1,684,584 $16,667 Today 30 Years

Compounding with Real Estate Asset Value = $500,000 $500k Mortgage 7% Interest-Only $35,000 annual cost 7% average annual growth over 20 years $500k Mortgage Asset Value = $1,934,842 $1,434,842 gross gain - $700,000 interest cost = $734,842 Net Gain Point A Point B Note: This is a hypothetical example, not indicative of actual results. Actual results will vary.

Allows client to participate in market upside No downside risk to principal and prior period earnings $1,000,000 Annual Crediting 8% $1,080,000 Market Down Turn - 8% $993,660 Annual Crediting 5% Annual Crediting 0% $1,134,000 Needed to Catch Up 14.12% The Stability of Equity Indexed Products Keep in mind… If you received the 5% as shown in this example on the $993,660, you would have a total of $1,043,343. That is a $90,657 difference because of the guaranteed floor.

How the Programs Work: An Overview

Program Overview Product Funding Universal Life and/or Annuity Products Step 3 Transfer Method Your Business Step 2 You Your Business Global One Financial Commercial Loan Step 1

Recent Cases Furniture $200,000 Dentist $600,000 Doctor $2,400,000 Nuts & Bolts $1,000,000 Industry Case Size

Case Study – ABC Company Paul Smith, Small Business owner 25 Years in Business Desired Retirement Age – 63

Summary – Paul Smith Current Age: 50 Years Until Retirement: 13 Desired Annual Income: $115,000 Number of Payout Years: 25 Personal Tax Bracket: 35% Paul needs a lump sum of at least $1,340,162 at retirement to support an income of $115,000 per year for 25 years.

Solution – Paul Smith ABC Company implements a Financed Planning™ program in the amount of $600,000. The $600,000 is placed into an Equity Indexed Annuity, owned by Paul Smith (assumed annual tax deferred earnings of 7%). After 13 years, Paul’s annuity value will have grown to $1,445,907, which gives Paul an income in the amount of $115,957 per year for 25 years. ABC Company makes interest payments of approximately $40,500 annually (assumed interest rate of 6.75%). (This example assumes that the loan is repaid at retirement using assets that are not part of the program’s financed product - preferably assets with the then-current lowest yielding performance.)

Equivalent Yield – Paul Smith ABC Company makes interest payments for the Entaire Program of approximately $40,500 annually. If the company were to distribute this amount to Paul directly, he would have to pay income tax at 35%, leaving him with $26,325 per year to invest. Paul’s investment of $26,325 per year for 13 years would have to earn an annual rate of return of 19.26% in order to provide the same annual income of $115,957 for 25 years.

Provides alternative to traditional retirement plans Allows catching up on retirement planning Activates dormant assets May provide various levels of asset protection to the corporation, its owners and the policy holder. Value of the Entaire Programs

Program Structure – Asset Protection Individual Level The product is owned by the individual, not the corporation. If the corporation is sued, the product is not its asset. Corporate Level We lend directly to the corporation, which by pledging certain assets, may diminish the attractiveness of law suits against the corporation. Product Level Product protection varies depending on state law. These laws define available protection regarding cash value and policy attachment by creditors.

For more information contact Ronnie O’Dell 888-906-6661 [email_address] The Next Step

�ݺ�ߣ

Finances1

Recommended

More Related Content

What's hot (17)

Viewers also liked (19)

Similar to Finances1 (20)

Finances1