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WELCOME

WELCOME. Legacy. LEGACY. A plan to transfer money to heirs or charities. By-Pass Probate. Annuities Transfer without Probate to your Named Beneficiary. No Delay. No Added Expense. Complete Privacy. What is the Cost of Probate. TIME!. An AARP study on Probate said, " The average

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WELCOME

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  1. WELCOME

  2. Legacy LEGACY A plan to transfer money to heirs or charities.

  3. By-Pass Probate Annuities Transfer without Probate to your Named Beneficiary No Delay No Added Expense Complete Privacy

  4. What is the Cost of Probate TIME! An AARP study on Probate said, "The average time in the probate process was one year and three months." Public records show many estates tied-up in probate for years. MONEY! The AARP report said, "The average cost of probate consumed 5 to 10 percent of the gross estate. In some cases, attorney's fees consume 20 percent or more of the estate value."

  5. Disadvantages of Going Through Probate Impound Accounts Impounded Safety Deposit Boxes Probate Court Costs Waiting Periods (1-3yrs) Attorney Fees Executor Fees Administrative Fees Public Disclosures Expensive Appraisals Premature Payment of Debts Bonds to Post Outside Third Person Control Forced Asset Liquidations Forced Asset Distribution Expensive Litigation Possible Federal Estate Taxes

  6. Income INCOME A plan to provide an income stream … That you cannot outlive!

  7. Babe Ruth Benefitted from Having his Money in Annuities 714 715 Enabling him to Weather The Stock Market Crash of 1929

  8. SPIA Single Premium Immediate Annuity or Settlement Option (Annuitize) Period Certain Life Only Life Only Life with Period Certain Joint and Survivor Cash Refund Installment Refund Benefits

  9. Income & Benefit Riders Bonuses Roll-Ups (Simple / Compound) Death Benefits (Account Value / Roll-Up / Enhanced) Terminal Illness Benefit Home Health Care Benefit Nursing Home Benefit

  10. Preservation Preservation A plan for safety & some growth to protectagainst unforeseen circumstances.

  11. If Left in the Annuity… Earnings will Not Not Affect Taxation of Social Security Income!

  12. Social Security • as Taxable income Single Taxpayer Married Taxpayer $25,000 50% Taxable $32,000 $25,000 50% Taxable $32,000 85% Taxable $34,000 85% Taxable $44,000 $34,000 $44,000

  13. In 1939, promised Franklin D. Roosevelt “there would never be a tax on Social Security benefits” Taxation of Social Security began in 1984 Initially, only 10% of the people on Social Security had their benefits taxed In 1994, 22% had their benefits taxed In 1998, 30% had their benefits taxed In 2000, 50% had their benefits taxed In 2002, 75% had their benefits taxed Source: Congressional Joint Committee on Taxation

  14. What Income is Included to Determine: • “Modified Adjusted Gross Income” • “Modified Adjusted Gross Income” All Pensions All Income from: Wages, Pensions, Savings, Dividends, Rents, Royalties Wages Savings Dividends Rents Royalties All Interest from: Tax-Exempt Investments, Bonds and Bond Funds All Tax-Exempt Investments Bond Funds Bonds 50% - 85% of Social Security Benefits Social Security Benefits 50% - 85%

  15. TAX Processor TAX PAYER Your Interest Earnings Your Savings

  16. After-Tax True Rates of Return Taxable Interest Rate Equivalent Non-Taxable or Tax-deferred Rate 15% 28% 31% 36% 39.60% 31% 2.88% 3.24% 3.60% 3.96% 4.32% 3.40% 3.83% 4.25% 4.68% 5.10% 2.42% 2.72% 3.02% 3.52% 3.62% 2.76% 3.11% 3.45% 3.80% 4.14% 2.56% 2.88% 3.20% 3.52% 3.84% 4.0% 4.5% 5.0% 5.5% 6.0% 3.45% 5.0% Taxable Investments: Certificate of Deposit (CDs) Treasury Bills (TBs) Money Market Account Corporate Bond Equity Mutual Fund

  17. Why Pay Taxes on Money You Haven’t Withdrawn? Tax-Deferred Interest Rate Equivalent Pre-Tax Rates with Different Tax Brackets 15% 28% 31% 36% 39.60% 6.94% 8.33% 9.72% 7.81% 9.38% 10.93% 5.88% 7.06% 8.24% 8.28% 9.93% 11.59% 7.25% 8.70% 10.15% 5.0% 6.0% 7.0% Triple-Compounding Interest on Principal Interest on Interest Interest on Tax Savings

  18. InterestRates % % Historically Unequal

  19. % Competitive Interest Safety & Stability Tax Advantages

  20. Stretch Save Spend Legacy Income

  21. NO Mortality Costs Taxes on Gains as long as they Remain within the Contract Sales Charges Management Fees Penalty for Surrender Prior to the End of the Contract Term. Expense Charges

  22. Term Contract Shorter Longer Expected Holding Period Subject to Surrender Penalty End-of-Term Principal Guarantee CONTRACT TERM

  23. END OF TERM Annuitize Transfer (Qualified) Cash Out 1035 Exchange (Non-Qualified) Renew Use Income Rider ($) Use Benefit Rider ($) OPTIONS

  24. These are some of the Tradeoffs for Surrender Chargesin Fixed Annuities

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