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Asset
protection and money management have become essential
in today’s environment. It is about understanding
yourself, your money, and the need to protect what you
have through tax-advantaged products.
- Non-Qualified Executive Compensation Plans
- A Living Buy-Out
- Business Exit Strategies
- Asset Protection Program
- Key-Man Incentive Program
- Retirement 401 (k) to safe IRA's Executive Compensation Strategies Census
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When high-end executives start to retire, we want to make sure their retirement picture is complete in the areas of:
- When should I start Social Security?
- How long will I live?
- What factors will impact retirement savings?
- What is Long Term Care?
- How can I leave a legacy to my family?
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"Shift Personal Assets to Creditor Protected
& Tax Deferred Growth"
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| Clients
will tell me their CDs are a “Safe Bet”.
But
is their CD money really safe?
|
| Consumers
love FDIC-insured CDs, largely because of their perceived
safety. But is this “safe money” equally secure
from the effects of inflation and taxation? You'll see
that CDs netted 1% or more “real” growth in
only three of the past 10 years. And just as often, CDs
lost money after inflation and taxes! The numbers speak
for themselves. |
| 1995 |
6.16% |
39.6% |
2.54% |
1.15% |
| 1996 |
5.61% |
39.6% |
3.32% |
0.07% |
| 1997 |
5.87% |
39.6% |
1.70% |
1.81% |
| 1998 |
5.58% |
39.6% |
1.61% |
1.73% |
| 1999 |
5.59% |
39.6% |
2.68% |
0.68% |
| 2000 |
6.79% |
39.6% |
3.39% |
0.69% |
| 2001 |
3.69% |
39.1% |
1.56% |
0.68% |
| 2002 |
1.18% |
38.6% |
2.38% |
-1.24% |
| 2003 |
1.25% |
35.0% |
1.80% |
-0.97% |
| 2004 |
1.75% |
35.0% |
3.94% |
-2.70% |
|
| Source
Lipper Inc. Internal Revenue Service. Inflation rates
are based on the Consumer Price Index (CPI) a measure
of change in consumer prices as determined by the U.S.
Bureau of Labor Statistics. Past Performance is no guarantee
of future results. CD rate used is six month (dated material) |
How
do bank CDs compare to Index Annuities?
|
| CD
Tax Efficient Transfer for Gifting, Click for Sample Ideas |
 Faster
Growth |
|
Tax-Advantaged |
|
Life
Time Income |
|
Predator
Protected |
|
Peace
of Mind |
|
 |
| Increase
the Yield on Bank Deposits |
| Those
in a 31% tax bracket can increase the growth on their
bank deposits with tax-deferred annuities. Here is how
it works: |
| If
your bank account earns $1,000 in annual interest income,
shortly after year’s end, you will receive a 1099
for $1,000 to report on your tax return. This means you
will owe Uncle Sam $310, equals 31% of what you earned.
By transferring your savings to an annuity, you eliminate
the 1099 and get to keep that $310 in interest to compound
tax-deferred. It’s like borrowing from Uncle Sam
at 0%. |
| Other
Key differences between Bank CD’s and Annuities
with Certificate of Deposit |
| Features
|
Comparison
of Annuities with Certificates of Deposits |
Annuity |
CD |
| |
| 1. |
Free
from Principal/Market risk and price fluctuations? |
Yes |
Yes |
| 2. |
Are
interest earning free from current taxation? |
Yes |
No |
| 3. |
Are
interest earnings reinvested automatically with
no current taxation? |
Yes |
No |
| 4. |
Am
I able to make small additional investments? |
Yes |
No |
| 5. |
Tax
Liability on Social Security income eliminated on
Deferred Accumulations? |
Yes |
No |
| 6. |
Liquid? |
Yes |
No |
| 7. |
Flexible? |
Yes |
No |
| 8. |
Penalty
free withdrawals?
|
Yes
|
No |
| 9. |
Funds not reduced by commissions?
|
Yes |
No |
| 10. |
Does
this investment automatically avoid the expense
and delay of probate? |
Yes
|
No |
| 11. |
Guaranteed
lifetime income with tax advantages? |
Yes |
No |
| 12. |
Creditor
Protected? |
Yes
|
No |
|
| When
a Tax-Deferred Annuity is a Flexible Deferred Annuity
versus a Single Premium Deferred Annuity; small additional
deposits are allowed. |
