Great Western Consulting Great Western Consulting LLCLLC
Welcome to Our Exclusive Welcome to Our Exclusive Workshop on how to Workshop on how to INCREASEINCREASE
your monthly income and reduce your monthly income and reduce your taxesyour taxes
My Promises to youMy Promises to you• Promise # 1: I will prove that, just Promise # 1: I will prove that, just
because you become ill, you do not have because you become ill, you do not have to give your dignity and assets away.to give your dignity and assets away.
• Promise #2: I will introduce you to ways Promise #2: I will introduce you to ways you can INCREASE your monthly income you can INCREASE your monthly income and save on taxes.and save on taxes.
• Promise #3: I will explain to you about the Promise #3: I will explain to you about the new types of ANNUITIES that increase your new types of ANNUITIES that increase your monthly income and cut your taxes.monthly income and cut your taxes.
• Promise # 4: How to mathematically Promise # 4: How to mathematically design your portfolio so you never design your portfolio so you never lose your principal or run out of lose your principal or run out of money.money.
• Promise # 5: How to use annuities to Promise # 5: How to use annuities to protect your assets and still qualify protect your assets and still qualify for Medi-Cal assistance by using for Medi-Cal assistance by using Medi-Cal Retirement.Medi-Cal Retirement.
7 Ways Seniors Mess Up Their 7 Ways Seniors Mess Up Their Finances.Finances.• Paying too much in Paying too much in
taxes.taxes.• How To Make Your How To Make Your
Capital Work Harder Capital Work Harder for You.for You.
• Having your assets in Having your assets in joint tenancy.joint tenancy.
• Avoiding Federal Avoiding Federal Estate Taxes with Tax Estate Taxes with Tax Reduction Strategies.Reduction Strategies.
• Not protecting your Not protecting your assets.assets.
• Protecting yourself Protecting yourself from Health Care from Health Care Catastrophes.Catastrophes.
• The shocking truth The shocking truth how seniors spend how seniors spend more time planning a more time planning a vacation rather than vacation rather than planning their estate.planning their estate.
Let Me See A Show of Let Me See A Show of Hands.Hands.
How Many People Own CD’s or Money How Many People Own CD’s or Money Market Accounts?Market Accounts?
How Many Have Annuities or IRA’s or How Many Have Annuities or IRA’s or Roth IRA’s?Roth IRA’s?
How Many Feel their Paying Too Much in How Many Feel their Paying Too Much in Taxes?Taxes?
How To Reduce your Taxes How To Reduce your Taxes and Increase your Income.and Increase your Income.• Tax reduction Tax reduction
strategiesstrategies
• Ways to increase your Ways to increase your monthly income.monthly income.
• Now you can have Now you can have deduct up to deduct up to $2,000,000.00 in $2,000,000.00 in Estate Tax-freeEstate Tax-free
Tax Reduction StategiesTax Reduction Stategies• By having your money in non tax By having your money in non tax
deferred products like CD’s you will deferred products like CD’s you will lose from 15-40% in taxes.lose from 15-40% in taxes.
• By investing in a tax deferred By investing in a tax deferred annuity you can increase your annuity you can increase your monthly income.monthly income.
How To Make Your Capital How To Make Your Capital Work Harder for YouWork Harder for You• How to reduce your How to reduce your
taxable incometaxable income
• How to increase How to increase your monthly your monthly incomeincome
Advantages of Joint TenancyAdvantages of Joint Tenancy• Probate Avoidance: Probate Avoidance:
Assets held in joint Assets held in joint Tenancy do not require Tenancy do not require a formal probate.a formal probate.
• Convenience: At the Convenience: At the time of death accounts time of death accounts can be withdrawn at can be withdrawn at death or managing death or managing during incapacity by during incapacity by the the
Joint Tenant.Joint Tenant.
Disadvantages of Having Your Disadvantages of Having Your Assets in Joint TenancyAssets in Joint Tenancy
• Loss of controlLoss of control• Assets may not reach your childrenAssets may not reach your children• Increased liabilityIncreased liability• Potential tax penaltiesPotential tax penalties * Capital gains tax penalty* Capital gains tax penalty * Gift tax penalty* Gift tax penalty * Estate tax penalty* Estate tax penalty
Avoiding Federal Estate Taxes Avoiding Federal Estate Taxes with Tax Reduction Strategieswith Tax Reduction Strategies• Just like any other asset, it’s
included in your estate for estate taxes--plain and simple.
•But unlike other types of assets, several annuities we sell come with estate tax riders (from 28% to 40%) to pay for estate taxes!
Not Protecting Your AssetsNot Protecting Your Assets• Avoiding ProbateAvoiding Probate
• Avoiding Estate TaxesAvoiding Estate Taxes
• Avoiding Catastrophic health Avoiding Catastrophic health problemsproblems
Our Goal…Our Goal…• Help you Protect and Preserve your Help you Protect and Preserve your
Assets for you and your Loved Ones.Assets for you and your Loved Ones.
An Entire Lifetime of Work to Build An Entire Lifetime of Work to Build your Estate Could be Greatly your Estate Could be Greatly Reduced at Death by PROPATE.Reduced at Death by PROPATE.
Peace of MindPeace of Mind
What is Probate?What is Probate?
ProbateProbate is the legal process that your is the legal process that your family may go through when you die with family may go through when you die with or without a will.or without a will.
The probate court and your executor, or The probate court and your executor, or court appointed administrator, makes sure court appointed administrator, makes sure your debts are paid, establishes clear title your debts are paid, establishes clear title to your property and then distributes what to your property and then distributes what is left of your assets according to your will.is left of your assets according to your will.
Disadvantage of ProbateDisadvantage of Probate• Public Disclosure of Personal WealthPublic Disclosure of Personal Wealth• The Cost of ProbateThe Cost of Probate• Delays to Your HeirsDelays to Your Heirs• Legal FeesLegal Fees• Executor FeesExecutor Fees• Physical and Emotional StressPhysical and Emotional Stress• Possible Forced Asset LiqidationPossible Forced Asset Liqidation
One Advantage of ProbateOne Advantage of Probate One advantage of the probate One advantage of the probate
process is that creditor claims must process is that creditor claims must be filed within a set time period, such be filed within a set time period, such as three to six months from the start as three to six months from the start of probate to be considered against of probate to be considered against estate. This can v\be valuable if estate. This can v\be valuable if decedent was in an occupation decedent was in an occupation susceptible to lawsuits.susceptible to lawsuits.
What Do You Know About…What Do You Know About…• Estate PlanningEstate Planning• Living TrustsLiving Trusts• ProbateProbate• WillsWills
You and your family’s financial security and the You and your family’s financial security and the ability to achieve your estate planning goals rests ability to achieve your estate planning goals rests
on your ability to make good decisions.on your ability to make good decisions.
If you Don’t Plan your Estate, the Courts Will!If you Don’t Plan your Estate, the Courts Will!
Protecting yourself from Health Protecting yourself from Health Care Catastrophes.Care Catastrophes.
• Home Health CareHome Health Care
• Nursing Home CostsNursing Home Costs
• Medicare & Medi-calMedicare & Medi-cal
The shocking truth how seniors The shocking truth how seniors spend more time planning a spend more time planning a vacation rather than planning vacation rather than planning their estate.their estate.
• Is there anyone in the room that feels Is there anyone in the room that feels they’ve spend more time planning their they’ve spend more time planning their vacation than planning their estate.vacation than planning their estate.
• Please don’t raise your hands!Please don’t raise your hands!
Would you invest in this Would you invest in this investment property?investment property?The following is Guaranteed in The following is Guaranteed in writing:writing:• Price is $250,000Price is $250,000• No Annual fees applyNo Annual fees apply• No repairs or maintenance requiredNo repairs or maintenance required• You pay nothing in taxes until it is soldYou pay nothing in taxes until it is sold• And in just five years your local Banker And in just five years your local Banker
will buy it back from you for $319,000.will buy it back from you for $319,000.• Let me see a show of hands who would Let me see a show of hands who would
be interested in buying this propertybe interested in buying this property
Plus, You Can Purchase This Plus, You Can Purchase This Property Without Paying a Property Without Paying a Commission.Commission.•What I’ve just What I’ve just
described in described in the previous the previous panel is a 5% panel is a 5% Interest, Tax-Interest, Tax-Deferred, Deferred, Fixed Annuity!Fixed Annuity!
IF your Looking For Safety IF your Looking For Safety Of Principal It’s Time for a Of Principal It’s Time for a
Tax Deferred AnnuityTax Deferred Annuity
What I’ve just Described is a What I’ve just Described is a Five-Year, 5% Interest, Tax-Five-Year, 5% Interest, Tax-
Deferred, Fixed AnnuityDeferred, Fixed Annuity
By having your money in a CD By having your money in a CD you you will lose 15% to 35% due will lose 15% to 35% due to taxesto taxes
If you’re currently earning 3% on a CD and you’re in a 28% tax bracket, when over 1% of your return goes to pay taxes leaving you less than 2%. When you subtract from that what’s eaten up
by inflation, which is currently averaging about 3.5%, you’re actually losing one-
half percent in purchasing power!
In that same 28% tax bracket, you would have to earn over 10% in
a bank CD to beat the 7.5% Tax-Deferred return on the annuities that we offer.
Annuities, simply put, are “TAX DEFERRED.” You don’t pay taxes until
you take your money out to spend it.
Benefits of AnnuitiesBenefits of Annuities• Avoids ProbateAvoids Probate• No Current Federal No Current Federal
TaxTax• No 1099’s IssuedNo 1099’s Issued• No Commissions No Commissions
charges to your charges to your principalprincipal
• 100% of Your Principal 100% of Your Principal earns interest.earns interest.
Just say NO to 1099sUnlike a bank CD, an annuity offers interest that grows tax-deferred. No income taxes are due until the funds are withdrawn. This graph shows the difference this tax-deferred advantage can make.
This example assumes $100,000 invested at 5% annual compounded rate of return, at a 33% tax bracket.
$300,000
$250,000
$200,000
$150,000
$100,000
Get the advantage of triple compounding with an annuity.
You will:.Earn interest on your money..Earn interest on your interest..Earn interest on the money you would have lost in taxes.
Growth if tax-deferred
Growth if taxable
5 Years 10 Years 15 Years 20 Years
$193,290taxable
$265,330tax-deferred
Annuities Give You Triple Compounding:
Your principal earns interest.
Money you would normally pay the IRS every year earns interest.
Your interest earns interest.
The power of tax-deferral means your money can grow much faster, and because there are no sales charges, 100% of your money goes to work immediately.
Can your CD get money to you quickly?Would you like more liquidity?
Withdraw a certain percentage every year at any time? No Yes
Withdraw in the event of nursing home needs? *
Loan privileges?
Start an income stream you cannot outlive?
Withdraw penalty free required minimum distributions?
Withdraw money for dollar cost averaging opportunities?
Disappearing surrender charges? *
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
CD Annuity
* Availability of benefits vary by product.
What is the Real Rate of Return on your Money?What cripples a CD the most?
ReturnsInflationTaxes
Premium Amount $100,000.00Interest rate 4.5%
Taxes 33%
Amount after tax
Inflation 3.5%
Amount left
+
-
=
-
=
$4,500.00
$1,485.00
$103,015.00
$3,605.53
$99,409.48
Net Loss ($590.52)
Taxing of Social SecurityA single, retired person who receives $950 per month ($11,400 annually) from Social Security, a pension of $1,600 per month ($19,200 annually)
1/2 of Social Security $5,700Pension + Taxable Accounts +33,600Total Combined Income $39,300Threshold (Single) -25,000Exceeded Threshold $14,300
Income in excess of Threshold
50% x $9,000 = $4,50085% x $5,300 = $4,505
SOCIAL SECURITY SUBJECT TO TAX $9,005
POTENTIAL TAX ON SOCIAL SECURITY*$2,521
(*Based on a 28% Federal 1999 income tax bracket.)
An additional tax was created because Social Security became taxable. A potential tax increase of $2,521. (28% of $9,005 = $2,521 in taxes)
Threshold Income LimitsIf income (which includes half of Social Security), exceeds the following thresholds, up to 85% of the amount received from Social Security could be subject to tax:
Total Income Including 1/2 Social Security
Percentage of Social Security that is Taxable
$25,000 up to $34,000
Up to 50%
(Minimum $4,500)
Single
Over $34,000
Up to 85%
(See Maximum Below)
$32,000 up to $44,000
Up to 50%
(See Maximum $6,000)
Married
Over $44,000
Up to 85%
(See Maximum Below)
Please Note: The IRS is limited in the amount of Social Security they can tax. The amount cannot exceed 85% of the taxpayers total Social Security received this year.
Social Security
In 1983 Congress legislated that up to 50% of Social Security could be taxed when combined income
exceeded threshold limits.
In 1993 the law was amended again to allow up to 85% of Social Security Income to be
taxed under certain conditions.
Can your CD get money to you quickly?Would you like more liquidity?
Withdraw a certain percentage every year at any time? No Yes
Withdraw in the event of nursing home needs? *
Loan privileges?
Start an income stream you cannot outlive?
Withdraw penalty free required minimum distributions?
Withdraw money for dollar cost averaging opportunities?
Disappearing surrender charges? *
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
CD Annuity
* Availability of benefits vary by product.
What Is Threshold Income?
INCOME INCLUDED AS THRESHOLDDeferred Annuity
NoPension
YesIncome from Mortgages YesUS Treasuries YesCertificates of Deposit Yes
Money Market AccountsYes
Passbook SavingsYes
Credit Union Savings YesDividends - Stocks Yes
Dividends - Mutual FundsYes
Capital Gains YesMunicipal Bonds
YesAnnuity - Withdrawals Yes
It’s Important That You Plan It’s Important That You Plan Your RetirementYour Retirement• You need a “backup retirement plan” You need a “backup retirement plan”
in case of a market disaster or if you in case of a market disaster or if you personally have a health or economic personally have a health or economic disaster.disaster.
• You need to check out all the You need to check out all the alternatives that will protect your alternatives that will protect your assets and save you money on taxes.assets and save you money on taxes.
The bottom LineThe bottom LineIt’s not just what you earn on your It’s not just what you earn on your
investments that matters…it’s investments that matters…it’s what you keep that counts!what you keep that counts!
How you can avoid Nursing How you can avoid Nursing Home Spend-down Rule and Home Spend-down Rule and Protect your Assets from Protect your Assets from Greedy people and from Medi-Greedy people and from Medi-CalCal
Are You Afraid that you Will Are You Afraid that you Will Have To Go To A Nursing Home Have To Go To A Nursing Home AndAndNot Be Able To Afford It?Not Be Able To Afford It? Recent studies Recent studies
indicate that one in indicate that one in two people over 65 two people over 65 will spend time in a will spend time in a nursing home *nursing home *
The average stay The average stay in a nursing home in a nursing home is approximately 3 is approximately 3 years.years.
Did You Know?Did You Know?
Did you know that according to the Select Committee on aging of the U.S. House of Representatives, the average American couple will have their entire savings wiped out in as little as 13 weeks of having someone confined on a nursing home?
Common Myth
“It will never happen to me.”
Over 50% of all Americans will need long term care in their lifetime.
Over 70% of Alzheimer’s Disease people live at home and receive 75% of their support and assistance from family.
For a couple reaching 65, there is a 75% chance that one of them will enter a long-term care facility.
My family or someone else can take care of me.
Here Are Some Disturbing Facts…
Today the average cost of nursing home care is over $40,000 annually. (1)
Home health care costs an average of $30,000 annually. (1)
Most nursing homes only have a limited amount of Medicaid beds. (2)
The shocking truth is the government can take your estate to recover long-term care costs. (3)
1. Health Care Financing Review 19962. .Journal of Health Politics, Policy and Law 19943. US Health Care Financing Admin.2001
Distribution of Assets (Spousal Impoverishment Provision)
Remaining spouse at home can’t have more than $2,000 a month income from all sources.
The spouse still living at home can keep the home and one car.
Maximum limit of assets depend on each state. The average is $75,000. These assets will be established when the first spouse enters a nursing home.
Distribution of Assets (Spousal Impoverishment Provision)
Remaining spouse at home can’t have more than $2,000 a month income from all sources.
The spouse still living at home can keep the home and one car.
Maximum limit of assets depend on each state. The average is $75,000. These assets will be established when the first spouse enters a nursing home.
Common Myth
“It will never happen to me.”
Over 50% of all Americans will need long term care in their lifetime.
Over 70% of Alzheimer’s Disease people live at home and receive 75% of their support and assistance from family.
For a couple reaching 65, there is a 75% chance that one of them will enter a long-term care facility.
My family or someone else can take care of me.
The Odds are 1 Out of 2
While the general population perceives the risk of needing long-term care services to be less than 25%, the actual risk for needing long-term care (either home care or nursing home care) is greater than 50%. (1)
Health Insurance Association of America/Life Plans.
Which Assets Count for Which Assets Count for Medicaid Spend Down?Medicaid Spend Down?
• Non-CountableNon-Countable• CarCar• HomeHome• Burial PlanBurial Plan• JewelryJewelry
• CountableCountable• CD’SCD’S• BondsBonds• StockStock• Vacation HomesVacation Homes• Mutual FundsMutual Funds• Cash InvestmentsCash Investments*36 Month Look-Back*36 Month Look-Back
People Who Benefit from the People Who Benefit from the AppointmentAppointment
1. If you own annuities that have 1. If you own annuities that have dropped in value or interest dropped in value or interest rate rate
2. If you have a desire to see if you can 2. If you have a desire to see if you can increase your monthly increase your monthly income and reduce your taxes. income and reduce your taxes.
3. If you have know idea what your 3. If you have know idea what your investments are earninginvestments are earning after taxes. after taxes.
4. If you want to make sure the nursing 4. If you want to make sure the nursing home doesn’t take yourhome doesn’t take your life savings. life savings.
May I see a show of May I see a show of hands of people in the hands of people in the last two years have lost last two years have lost between 10% to 70% of between 10% to 70% of their portofolio?their portofolio?
Wouldn’t you agree if you Wouldn’t you agree if you went to the emergency went to the emergency room the doctors would room the doctors would stabilize you and stop the stabilize you and stop the bleeding?bleeding? (While I stop (While I stop the losses).the losses).
This is important!This is important! We We create a plan to make create a plan to make sure you never lose sure you never lose money again.money again.
IF YOU WANT TO INCREASEIF YOU WANT TO INCREASEYOUR MONTHLY INCOME AND YOUR MONTHLY INCOME AND
REDUCE YOUR TAXES...REDUCE YOUR TAXES...
THEN MAKE AN APPOINTMENT THEN MAKE AN APPOINTMENT AT THE END OF THE SEMINAR!AT THE END OF THE SEMINAR!
MY JOB IS TO DESIGN A MY JOB IS TO DESIGN A RETIREMENT PROGRAM RETIREMENT PROGRAM THAT WILL GIVE YOU MORE THAT WILL GIVE YOU MORE MONTHLY INCOME AND MONTHLY INCOME AND SAVE YOU TAXESSAVE YOU TAXES My goal is to make sure you My goal is to make sure you never run out of money and you never run out of money and you avoid any market risk to your avoid any market risk to your principalprincipal
IF YOU FEEL YOU’VE IF YOU FEEL YOU’VE LEARNED SOMETHING LEARNED SOMETHING FROM THIS WORKSHOP FROM THIS WORKSHOP AND WOULD LIKE TO TELL A AND WOULD LIKE TO TELL A FRIEND. Please fill out a FRIEND. Please fill out a referral form and we will referral form and we will invite them to our next invite them to our next Dinner Seminar.Dinner Seminar.
THANK YOUTHANK YOU FOR FOR ATTENDINGATTENDING OUR OUR
WORKSHOP!WORKSHOP!
Let’s Eat!Let’s Eat!
John
