ABE adv legacy 7 27 15

Brutal Honesty Required

Be honest with yourselfhellip

Are you where you want to be

Where are you financially

ldquoIf you are too attached to your own thinking and how everything

is done now then nothing will

change for the betterrdquo

John C Maxwell

ldquoOur only security is our ability to

changerdquo

John C Lilly

ldquoIf what you always believed to be true about money turned out not to be true when would you want to knowrdquo

Willingness To Unlearn

ldquoIf you fully understand The Information You will hear

today It can change your life and Set You on A path of

Creating Long Term Wealth as itrsquos already done for

countless others rdquo

Mike Anthony Childs

Licensed Financial

Strategist

Past President Metro Atlanta

ChapterSociety for Financial Awareness

If you distributed the worldrsquos

wealth equally among every person on earthhellip over time most of the wealth would end up back in the

hands of a few people

Distribution of Wealth

WHY

Everyone Falls Into One Of These Three Categories

MONEY CHASERS

MONEY WASTERS

WEALTH CREATORS

How We Handle Our Money

Letrsquos Take A Closer Look At Thesehellip

the Wealth Chasers

>

the money Chasers

BORROW BORROW

DEBT

BORROW

BROKE$0 $0

>

OUR MISSION

Through the use of cutting edge financial strategies and concepts our goal is to uncover your potential wealth thatrsquos being ldquolostrdquo or ldquotransferredrdquo unintentionally andor unknowingly And once found to creatively redirect this new found money to improve your current lifestyle and provide a comfortable rewarding retirement and to simultaneously leave a legacy

Money

Life isnrsquot all about money Itrsquos about what money allows us to do Wouldnt you agreeDo you believe that itrsquos possible to control money instead of it controlling you

It is easier to save 10-20 of new found money than to try to increase the rate of return on saved dollars Wouldnrsquot you agree

Unnecessary Mortgage Interest

Unnecessary Finance charges and Credit

Card InterestOver Paying Taxes Risking our money

when we donrsquot have to

1-2 Million Dollars flows through the average American Household over the course of 30-40 working years

SpentMoney

SavedMoney

Lost Money

InvestmentsIRArsquos401(k)

Real EstateBusiness Interest

HouseCars

ClothesVacations

Our Potential Wealth

Recoup a large portion of the interest and finance charges you pay every day

Control your debt instead of it letting it control you

Build unlimited wealth without risking your hard-earned money

What yoursquoll learn how to do

1Transferrsquos of our Wealth How and why we unknowingly give away

large sums of our hard-earned money

2 How Banking Works The basics of banking and our concept

3 How We Can ldquoBecome The Bankrdquo

How to apply the concept in everyday life

What You Will Learn Today

YOUR INCOME All of the money we earn flows into 3 buckets

Once the current bucket in line fills up the money flows to the next

For many of us our Savings bucket is last in line It only gets the leftovers

When we reach retirement we have only a bucket full of pennies

Letrsquos take a closer look at the buckets

ldquoStuffrdquo

ExpensesMortgageCarsCredit CardsFoodClothingEntertainment

Savings401KStocksMutual FundsLife Insurance

Taxes

What Happens To Our Money

Taxes

When we make money at our job or business who ALWAYS comes to visit

On average what percent of their income do Americans pay in taxes

We pay taxes on-

31

The money we make (income tax)The things we buy (sales tax)The things we own (property tax)We pay more than 30 different taxes

Expenses

Avg mortgage payment $961 (not incl taxes insurance) Avg amount financed $157740 (80 of purchase price)Avg length of mortgage 75 years

80

Percentage of payments that goes to interest

Average monthly payment $479 Average amount financed $24864

255

What Happens To Our MoneyPercentage of payment that goes to interest

Average credit card interest rate 150

Average annual interest paid $1380

415

If you maintain a $10000 balance and make the minimum payment what percentage of that payment is interest

On average what percent of after-tax (take home)

income do Americans spend

on interest payments30

$31 taxes $69 take home pay-$21 interest

Goes to Taxes amp Interest

52

The Impact of Taxes amp Interest

Are you satisfied with giving away 52 of the money you make

$48 what you live on

Letrsquos go back to the question

$100 of income

What Happens To Our MoneyIs it any wonder we have only pennies in our Savings bucket

Taxes amp Interest Payments take most of our money

And we just sit back and take it - because we donrsquot know that there is a better way52

Taxes

You are going to learn how to become your

own bankerEveryone should be in

two businesses

Its Time To Make A Change

1)Whatever they do for a living and

2) The banking business

11

House Remodel

Car

House

Debt Consolidation

You100K

1

6

7

Visa

Seller

Dealer

Contractor

8

How Banks Work

The bank lends out your money at a higher rate than you receive on it Sometimes you actually borrow your own money from the bank

Win

Traditional Debt

amortizing loan

structured principle

amp interest payment

This Strategy Does Not Build Wealth

The Problem With Traditional Consumer Debt

DEBT

Obligation on future earnings

Lose capital to purchase s AND financing costs forever

Debtor to the Creditor

Loss of Control

Say ldquoNOrdquo to

The Solution

WRONGPay Cash

The Wealth Wasters

SPEND SPEND SPEND

BROKE$0 $0

You must drain the vault to make your purchase

Paying cash is not bad but itrsquos not the most efficient You lose the interest you could have earned had you not drained your vault

The Problem With Paying Cash

Annual taxes

To pay cash you need to first save cash

Paying Cash is a defensive strategy

Lost Opportunity Cost

Either we pay interest to someone else

OR

We pay cash and lose interest we could have earned

We finance EVERYTHING that we

buy

How Can I win

>

The Compounding Effect

Albert Einstein considered COMPOUND INTEREST

to be one of the Great Wonders of the World

Wealth Creators understand that Einstein was actually referring to

UNINTERRUPTED COMPOUND INTEREST

the Wealth Creators

ldquoCOLLATERALIZEDrdquoBORROWING

THE lsquoCOMPOUNDINGrsquo EFFECT

BROKE$0 $0

ldquoCollateralizedrdquoBorrowing

What is it

The goal of this strategy is to leverage the fundamental differences between amortized and compounding interest

Leveraging Your Own Private Reserve of Money through Collateralized Borrowing

collateral

amortizing loan

FINANCIALINSTITUTION

lienstructured principle

private reserveldquoSavings Vaultrdquo

ldquoArbitragerdquo

Wealth Creators around the globe have implemented this strategy for centuries to finance their high-quality lifestyles and earn fortunes SIMULTANEOUSLY

Keep Choice and Control Of Your Money

The financial institution that we utilize allows application-free collateralized borrowing PLUS additional benefits that a regular bank account does nothellip

We refer to it as a Legacy Bank and to the strategy as

How Will You Be Paying Today

AUTOMOBILE PURCHASE EXAMPLE

4yrs

interest

Same Money Different Results

Automobile Purchase

$100000-$40000$60000+40000$100000+$3200$103200

80K4yrs

1

interest

Cash

-$40000-$5072

-45072

6Interest for 4 yrs

principle

Bank Financed $100000

-$40000 $60000-$5072$54928+40000$94928+28000

$122928

100K4yrs7

interest

RECOUPED

6 interest

for 4 yrs

ldquoCollateralizedrdquo

Principle

principle

SAVED

ldquoWealth ChaserrdquoldquoWealth Wasterrdquo

Few peoplehellipeven financial experts understand itrsquos full potential

How Does Legacy Banking Work

You donrsquot have to be wealthy or have a business or financial background to take advantage of this type of account- itrsquos available to anyone who knows where to find it

What Do You Use It

For

The Secret Of The Wealth Creators

The Wealth Creators discovered that life

insurance wasnrsquot being used to itrsquos full

potential

Although originally created primarily to provide a death benefit when

properly structured it could actually be

used as a super-charged personal banking system

Wealth Creators realized that maintaining use and control of their money was much greater than

their need for a death benefit

Section 7702 Technical and Miscellaneous

Revenue Act ndash TAMRAPlaces limits on the investment orientation

of life insurance contracts either by restricting the allowable premium paid into

the contract or by mandating minimum death benefits or both

Section 72(e)Allows a policy owner to take tax-free

distributions from a PROPERLY STRUCTURED insurance contract

Section 101(A)(1)

Section of the code that qualifies the death benefit paid under a life

insurance policy may be received by the beneficiary income-tax free

Renown tax advisor Ed Slot

put it best

Ed Slott Renowned tax advisor and personal finance author

ldquoIn my opinion life insurance is the only legal way to print moneyrdquo

Permanent life insurance when designed and utilized properly can provide stable growth cash value collateralization

guaranteed loan access

Permanent Insurance as a Private Reserve

collateral

lien

Private reserveSavings Vault

interest-only loan

non-structured payment

use and control

INSURANCECOMPANY

POLICY DEATH

BENEFIT

Protection

Plus death benefit protection

By replenishing the cash reserve account faster than would be required with traditional financing you can minimize loan interest

expense satisfy liens sooner or purchase and fund additional policies

ldquoCash Back Rewardsrdquo

ldquoSavings Vaultrdquopolicy cash

value

use and control

extracash flow

accelerated principle amp

interest payment

INSURANCE COMPANY

POLICY DEATH

BENEFIT

Protection

Built in Legacy Protection

Private Reserve

POLICY DEATH

BENEFIT

Protection

Investments

Retirement Next Generation

Premium

MortgageVacations

Car

Business Cost

College

Your Bank(Permanent Insurance Contract)

INSURANCE COMPANY

Business Owners

The banking system is

wonderful for personal use

but for entrepreneurs and business

owners it gets even betterhellip

Reduce taxable income

Business Owners

Reposition money from the business to personal use on a tax advantaged basis

Better in most cases than a qualified plan ie IRA 401(k) profit sharing plan and so forth

Recoup many of the costs and interest associated with purchases used for your business

This is a BANKING process NOT an investment process Wersquore not just growing wealth wersquore financing our lifestyle simultaneously

NO RISK to our principal

The Market

LiquidityTax-FreeDeath BenefitRate of Return

Contractual Guarantee

You Should Be Thinkinghellip

UtilizingTo Super-Charge Your

Retirement Income

Part II (15 minutes)

Significant Market Losses

(How will they effect you)

bullFall in the Dow 45bullLosses recovered by December 1982bull8 years to recover

1973-74

bullFall in the Dow 89bullLosses recovered by November 1954bull22 years to recover

1929-32

bullFall in the Dow 53bullLosses Not Yet Recoveredbull4 years and countinghellip

2007-9

An Attractive Alternativehellip

presents

What Type Of Insurance Contract Do I Use To Set Up A Legacy Bank and How Does It Work

presents

A Legacy Bank account is set up inside of a PROPERLY STRUCTURED Equity Index Universal Life Insurance Policy

presents

It is very important that you only use a licensed advisor who has been specially trained to set up this type of account

An improperly structured policy can result in MAJOR tax consequences

Very few agents (less than 5) have been trained to properly structure this policy account

Floor

0

Goal

bullTo have some potential for market gain without risk of principal

Ceiling

15

ldquoCaprdquo

bull Use of index like Standard and Poorrsquos 500 or the DOW

bull Principal guaranteed against loss

The Safety of Guarantees

$100000

Gains BecomePrincipal

That is a $11705 difference because of the annual lock in and reset

10

$110000

$99000

-10

$115655

$103950

5

11$110000

The Powerful Advantage of

Locking in Annual Gains

The Safety of GuaranteesComparison Between the SampP Index and

an EIUL Fixed Index Account Legacy BankAssumptions Beginning Acct Value of $100000 (Both Accounts)

SampP Cap None

Index Product Cap 15

Year Account Floor None

Account Floor 0

Year Market return Account Value Account Value

112000 1482 $114820 1482 $114820 112001 -1014 $103177 0 $114820 112002 -1304 $89723 0 $114820 112003 -2337 $68755 0 $114820 112004 2638 $86892 1500 $132043 112005 899 $94704 899 $143914 112006 300 $97545 300 $148231 112007 1362 $110831 1362 $168420 112008 353 $114743 353 $174365 112009 -3412 $75593 0 $174365 112010 2150 $91845 1500 $200520

11 Yr-077 $91845 653 $200520

Totals

Difference

730

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010$0

$200000

$400000

$600000

$800000

$1000000

$1200000

Invested In Market

Legacy Bank

$357785 $367216

$597098$597500

$390000$500000

Assumes IUL has 0 Floor 15 Cap

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010$0

$200000

$400000

$600000

$800000

$1000000

$1200000

Invested In Market

Legacy Bank

$357785 $367216

$597098$597500

$390000

$1004173

$500000

$873194

$575000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010$0

$200000

$400000

$600000

$800000

$1000000

$1200000

Invested In Market

Legacy Bank

$357785 $367216

$597098$597500

$390000

$1004173

$500000

$873194

$575000

Year Age Deposited Net Outlay Accumulation Value

Your Bank Death Benefit

1 55 52543 52543 46633 52543 9016732 56 52543 52543 96946 105087 9016733 57 52543 52543 151266 157630 9016734 58 52543 52543 210253 210253 9016735 59 39827 39827 260993 260993 9016736 60 0 0 275007 275007 9016737 61 0 0 290002 290002 9016738 62 0 0 306054 306054 9016739 63 0 0 323257 323257 901673

10 64 0 0 341701 341701 90167311 65 0 -33000 366152 332045 86756612 66 0 -33000 392460 322115 83132813 67 0 -33000 420789 311940 79282414 68 0 -33000 451315 301556 75191415 69 0 -33000 484241 291016 70844816 70 0 -33000 519793 280384 66226417 71 0 -33000 558215 269736 61319418 72 0 -33000 599797 259181 561057

19 73 0 -33000 644882 248871 50566220 74 0 -33000 693863 238994 44680521 75 0 -33000 747187 229783 384269

36 90 0 -33000 2344150 250406 36761437 91 0 -33000 2528277 269568 37069938 92 0 -33000 2728250 294265 37611239 93 0 -33000 2945693 325476 38439040 94 0 -33000 3182705 364619 39644641 95 0 -33000 3441081 412758 412758

The Safety of GuaranteesEg 55 yr old Female transferring $250K into EIUL ldquoLegacy Bankrdquo