Great Western Consulting LLC by suchenfz

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									Great Western Consulting LLC



   Welcome to Our Exclusive Workshop
   on how to INCREASE your monthly
     income and reduce your taxes
           My Promises to you
• Promise # 1: I will prove that, just because you
    become ill, you do not have to give your dignity
    and assets away.
•   Promise #2: I will introduce you to ways you
    can INCREASE your monthly income and save
    on taxes.
•   Promise #3: I will explain to you about the new
    types of ANNUITIES that increase your monthly
    income and cut your taxes.
• Promise # 4: How to mathematically
 design your portfolio so you never lose
 your principal or run out of money.

• Promise # 5: How to use annuities to
 protect your assets and still qualify for
 Medi-Cal assistance by using Medi-Cal
 Retirement.
7 Ways Seniors Mess Up Their
Finances.
• Paying too much in taxes.   • Not protecting your
• How To Make Your              assets.
  Capital Work Harder for     • Protecting yourself from
  You.                          Health Care
• Having your assets in         Catastrophes.
  joint tenancy.              • The shocking truth how
• Avoiding Federal Estate       seniors spend more time
  Taxes with Tax Reduction      planning a vacation
  Strategies.                   rather than planning their
                                estate.
Let Me See A Show of Hands.

How Many People Own CD’s or Money Market
 Accounts?

How Many Have Annuities or IRA’s or Roth
 IRA’s?
How Many Feel their Paying Too Much in
 Taxes?
 How To Reduce your Taxes and
Increase your Income.
• Tax reduction strategies

• Ways to increase your
  monthly income.

• Now you can have deduct
  up to $2,000,000.00 in
  Estate Tax-free
Tax Reduction Stategies

• By having your money in non tax deferred
 products like CD’s you will lose from 15-
 40% in taxes.

• By investing in a tax deferred annuity you
 can increase your monthly income.
How To Make Your Capital Work
Harder for You
• How to reduce your
  taxable income

• How to increase your
  monthly income
Advantages of Joint Tenancy
              • Probate Avoidance:
                  Assets held in joint
                  Tenancy do not require
                  a formal probate.
              •   Convenience: At the
                  time of death accounts
                  can be withdrawn at
                  death or managing
                  during incapacity by the
                  Joint Tenant.
   Disadvantages of Having Your
      Assets in Joint Tenancy
• Loss of control
• Assets may not reach your children
• Increased liability
• Potential tax penalties
     * Capital gains tax penalty
     * Gift tax penalty
     * Estate tax penalty
Avoiding Federal Estate Taxes with
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 Assets

• Avoiding Probate

• Avoiding Estate Taxes

• Avoiding Catastrophic health problems
              Our Goal…

• Help you Protect and Preserve your Assets
 for you and your Loved Ones.


An Entire Lifetime of Work to Build your
 Estate Could be Greatly Reduced at
 Death by PROPATE.
Peace of Mind
             What is Probate?

Probate is the legal process that your family may
  go through when you die with or without a will.

The probate court and your executor, or court
  appointed administrator, makes sure your debts
  are paid, establishes clear title to your property
  and then distributes what is left of your assets
  according to your will.
     Disadvantage of Probate

• Public Disclosure of Personal Wealth
• The Cost of Probate
• Delays to Your Heirs
• Legal Fees
• Executor Fees
• Physical and Emotional Stress
• Possible Forced Asset Liqidation
  One Advantage of Probate

One advantage of the probate process is
that creditor claims must be filed within a
set time period, such as three to six
months from the start of probate to be
considered against estate. This can v\be
valuable if decedent was in an occupation
susceptible to lawsuits.
What Do You Know About…
• Estate Planning
• Living Trusts
• Probate
• Wills
 You and your family’s financial security and the ability to
   achieve your estate planning goals rests on your ability
                  to make good decisions.

   If you Don’t Plan your Estate, the Courts Will!
Protecting yourself from Health
Care Catastrophes.

• Home Health Care

• Nursing Home Costs

• Medicare & Medi-cal
The shocking truth how seniors
spend more time planning a
vacation rather than planning their
estate.


• Is there anyone in the room that feels
 they’ve spend more time planning their
 vacation than planning their estate.

• Please don’t raise your hands!
Would you invest in this investment
property?
The following is Guaranteed in writing:
• Price is $250,000
• No Annual fees apply
• No repairs or maintenance required
• You pay nothing in taxes until it is sold
• And in just five years your local Banker
  will buy it back from you for $319,000.
• Let me see a show of hands who would be
  interested in buying this property
Plus, You Can Purchase This
Property Without Paying a
Commission.
• What I’ve just
 described in the
 previous panel is
 a 5% Interest,
 Tax-Deferred,
 Fixed Annuity!
 IF your Looking For Safety Of
  Principal It’s Time for a Tax
       Deferred Annuity




What I’ve just Described is a Five-
Year, 5% Interest, Tax-Deferred,
          Fixed Annuity
By having your money in a CD you
will lose 15% to 35% due to 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 Annuities
• Avoids Probate
• No Current Federal
    Tax
•   No 1099’s Issued
•   No Commissions
    charges to your
    principal
•   100% of Your
    Principal earns
    interest.
Just say NO to 1099s
Unlike 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.                                                                  $265,330
                                                                                    tax-deferred

$300,000
$250,000                                                                                   $193,290
                                                                                           taxable
$200,000
$150,000
$100,000


                     5 Years            10 Years              15 Years               20 Years


                                    Get the advantage of triple compounding with an annuity.
     Growth if tax-deferred
                                    You will:
      Growth if taxable             .Earn interest on your money.
                                    .Earn interest on your interest.
                                    .Earn interest on the money you would have lost in taxes.
    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?
                                                          CD   Annuity
Withdraw a certain percentage every year at any time?     No    Yes

Withdraw in the event of nursing home needs? *            No    Yes

Loan privileges?                                          No    Yes

Start an income stream you cannot outlive?                No    Yes

Withdraw penalty free required minimum distributions?     No    Yes

Withdraw money for dollar cost averaging opportunities?   No    Yes

Disappearing surrender charges? *                         No    Yes



* Availability of benefits vary by product.
What is the Real Rate
of Return on your Money?
What cripples a CD the most?
  Returns
  Inflation
  Taxes

               Premium Amount              $100,000.00
                  Interest rate 4.5%   +   $4,500.00

                        Taxes 33%      -   $1,485.00

                   Amount after tax    =   $103,015.00

                      Inflation 3.5%   -   $3,605.53

                        Amount left    =   $99,409.48
                       Net Loss            ($590.52)
                    Taxing of Social Security
A 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                            $5,700
                 Pension + Taxable Accounts                        +33,600
                 Total Combined Income                             $39,300
                 Threshold (Single)                                -25,000
                 Exceeded Threshold                                $14,300

                               Income in excess of Threshold

                         50% x $9,000 =                            $4,500
                         85% 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 Limits
If 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:
             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?
                                                          CD   Annuity
Withdraw a certain percentage every year at any time?     No    Yes

Withdraw in the event of nursing home needs? *            No    Yes

Loan privileges?                                          No    Yes

Start an income stream you cannot outlive?                No    Yes

Withdraw penalty free required minimum distributions?     No    Yes

Withdraw money for dollar cost averaging opportunities?   No    Yes

Disappearing surrender charges? *                         No    Yes



* Availability of benefits vary by product.
What Is Threshold Income?
     INCOME INCLUDED AS THRESHOLD
Deferred Annuity                  No
Pension                          Yes
Income from Mortgages            Yes
US Treasuries                    Yes
Certificates of Deposit          Yes
Money Market Accounts            Yes
Passbook Savings                 Yes
Credit Union Savings             Yes
Dividends - Stocks               Yes
Dividends - Mutual Funds         Yes
Capital Gains                    Yes
Municipal Bonds                  Yes
Annuity - Withdrawals            Yes
It’s Important That You Plan Your
Retirement
• You need a “backup retirement plan” in
 case of a market disaster or if you
 personally have a health or economic
 disaster.

• You need to check out all the alternatives
 that will protect your assets and save you
 money on taxes.
       The bottom Line

It’s not just what you earn on your
    investments that matters…it’s
      what you keep that counts!
How you can avoid Nursing Home
Spend-down Rule and Protect your
Assets from Greedy people and
from Medi-Cal
Are You Afraid that you Will Have
To Go To A Nursing Home And
Not Be Able To Afford It?
 Recent studies
 indicate that one in
 two people over 65
 will spend time in a
 nursing home *

 The average stay in a
 nursing home is
 approximately 3
 years.
                  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 1996
  2. .Journal of Health Politics, Policy and Law 1994
  3. US Health Care Financing Admin.2001
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.
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 Medicaid
            Spend Down?
•   Non-Countable   •   Countable
•   Car             •   CD’S
•   Home            •   Bonds
•   Burial Plan     •   Stock
•   Jewelry         •   Vacation Homes
                    •   Mutual Funds
                    •   Cash Investments
                    *36 Month Look-Back
People Who Benefit from the
       Appointment
 1. If you own annuities that have dropped in
value or interest
    rate

2. If you have a desire to see if you can
increase your monthly
    income and reduce your taxes.

3. If you have know idea what your
investments are earning
  after taxes.

4. If you want to make sure the nursing home
doesn’t take your
  life savings.
May I see a show of hands
of people in the last two
years have lost between
10% to 70% of their
portofolio?
Wouldn’t you agree if you
went to the emergency room
the doctors would stabilize
you and stop the bleeding?
(While I stop the losses).

This is important! We create
a plan to make sure you
never lose money again.
 IF YOU WANT TO INCREASE
YOUR MONTHLY INCOME AND
   REDUCE YOUR TAXES...




THEN MAKE AN APPOINTMENT AT
  THE END OF THE SEMINAR!
MY JOB IS TO DESIGN A
RETIREMENT PROGRAM THAT
WILL GIVE YOU MORE
MONTHLY INCOME AND SAVE
YOU TAXES

My goal is to make sure you never
run out of money and you avoid any
market risk to your principal
IF YOU FEEL YOU’VE LEARNED
SOMETHING FROM THIS
WORKSHOP AND WOULD LIKE
TO TELL A FRIEND. Please fill
out a referral form and we will
invite them to our next Dinner
Seminar.
THANK YOU FOR ATTENDING
     OUR WORKSHOP!
                     John




        Let’s Eat!

								
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