Learn the Advantages:

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1 Learn the Advantages: BECOME YOUR OWN BANKER & LEARN ABOUT TAX FREE RETIREMENT An Educational Workshop Presented by: James R. Grazioli - President Comprehensive Financial Group Inc. Financial Service Professional 27 Yrs. A Discussion of The Importance of Becoming Your Own Banker & Tax Free Retirement

2 LEARN HOW TO : INCREASE YOUR NET WORTH REDUCE YOUR INCOME TAX LIABILITY INCREASE YOUR MONTHLY CASH FLOW

3 HOW SHOULD YOU PAY FOR LARGE TICKET ITEMS THAT YOU CANNOT PAY WITH YOUR MONTYLY CASH FLOW? AUTOMOBILES BUSINESS EXPENSES (Lump Sums) BUSINESS EXPANSIONS YOUR RESIDENTIAL HOME HOUSEHOLD IMPROVEMENTS INVESTMENT PROPERTIES COLLEGE EDUCATION WEDDINGS VACATIONS

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6 THE PROBLEM WITH THE SAVER WHO PAYS CASH FOR LARGE TICKET ITEMS

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10 HOW TO BECOME A WEATLH CREATOR & NOT INTERRUPT COMPOUNDING INTEREST OF YOUR MONEY?

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12 The Solution: A Properly Structured Cash Value Indexed Universal Life Insurance Policy Cash Value Accumulation Earn Competitive Interest S&P 500 Returns No Cap 6% Spread (Index Earnings No Mkt Losses) Tax Deferred Growth Tax Free Retirement Non Reportable Liquidity, Use & Control Creditor Proof Law Suit Protection Disability Waiver Plan Completion Chronic Illness Some Long Term Care Benefit Included

13 Cash Value Accumulation Earn Competitive Interest S&P 500 Returns No Cap 6% Spread (Index Earnings No Mkt Losses) Tax Deferred Growth Tax Free Retirement Non Reportable Liquidity, Use & Control Creditor Proof Law Suit Protection Disability Waiver Plan Completion Chronic Illness Some Long Term Care Benefit Included

14 The Solution: A Properly Structured Cash Value Indexed Universal Life Insurance Policy Income Tax Free Death Benefit Cash Value Accumulation Earn Competitive Interest S&P 500 Returns Up to 10.5% (Index Earnings No Mkt Losses) Tax Deferred Growth Tax Free Retirement Non Reportable Liquidity, Use & Control of Your Money Creditor Proof Law Suit Protection Disability Waiver Plan Completion Chronic Illness Long Term Care Benefit Included

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16 Indexed Universal Life Policy GOALS: - Income Tax Free Death Benefit From Day 1 - Earn Annual Interest From The Ceiling: No Cap: 6% Spread* From The S&P 500 Annual Index Returns NO CAP Interest Earned From S&P 500 FLOOR - 1% Annual Minimum Interest Earned Never a Market Loss * Rates Are Subject To Change S&P 500 No Cap with a 6% Spread. Average Annual Rate of Return = 7.82% After Spread**. - With a Guarantee Floor of 1% - Liquidity, Use & Control of Your Money. Become Your Own Banker. - Collateral Capacity: Earn Compounded Interest on the Borrowed Money Against Your Policy, While You Use That Money! - Tax Free Retirement Income (Non Reportable) - Disability Completion Benefit: Pays$1, Per Month and Builds the Cash Value if you are Fully Disabled - Chronic Illness Benefit Some Long Term Care Benefits With No Extra Premium - *Rates are Subject to Change - **25 Year Lookback - Average Annual Rate of Return = 7.82% After Spread is Applied.

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18 There are only two ways to combat the growing debt 1. Spend Less 2. Tax More

19 So the only solution seems to be Higher TAXES

20 How important is Tax-Free? The following example will illustrate the beauty and magic of tax free growth Which would you choose to pay taxes on? The seed or the full grown tree?

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22 Tax Thresholds 70 s The next slide shows the Tax rates and the top income for those rates (Thresholds) During the 70 s the tax rates were never below 70% with only $200,00 of Income. Do you see the importance of Tax Free Non Reportable Income with some of your retirement money?

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24 Whose Retirement are we really planning? Ours or Uncle Sam s?

25 DOES IT MAKE SENSE TO: CONTRIBUTE TO A PLAN THAT YOU HAVE NO CONTROL OVER THE FUTURE TAX RATES? CONTRIBUTE TO A PLAN THAT YOU WILL BE PENALIZED IF YOU TAKE MONEY OUT BEFORE AGE 59 ½? SHOULD YOU BE CONTRIBUTING TO A TRADITIONAL IRA, 401k*, SEP, 403b * 401k - CONTRIBUTE IF THERE IS A COMPANY MATCH

26 Have you prepared any kind of an exit strategy? WITH QUALIFIED PLANS: Traditional IRA- No Tax Control 401K No Tax Control SEP No Tax Control SIMPLE IRA No Tax Control 403B No Tax Control Go to the next slide for the Tax Free Retirement Answer!

27 Why is this Product Tax Favored? Section 72(e) and 7702 The most unique feature of permanent life insurance is that under Section 72(e) and 7702 of the Internal Revenue Code the accumulation of cash inside the insurance contract is tax advantaged. Not only can the cash value accumulate tax free, but the cash can also be ACCESSED TAX FREE VIA POLICY LOANS, and is NOT CONSIDERED A DISTRIBUTION OF INCOME! Hence, the beauty and magic of life insurance: It is a unique vehicle that allows TAX FREE ACCOUNT VALUE ACCUMULATION, ALLOWS YOU TO ACCESS YOUR MONEY TAX FREE, and, WHEN YOU DIE, The Death Benefit is Paid INCOME TAX FREE to your Beneficiary!

28 YOU MAY BE SHOCKED TO KNOW WHO OWNS CASH VALUE LIFE INSURANCE? 1. Banks are required by regulators to keep large amounts of cash on hand to meet unexpected obligations. This is called their Tier One Capital. Banks must be able to access this money immediately and it cannot be at risk. By law Banks must keep 4% of their assets in Tier One Capital. Banks in the US own over 140 Billion of Cash Value Life Insurance because of the following reasons: Immediate access to cash, no risk, tax free growth of their money, income tax free death benefit. 2. Walt Disney started his investments in Disney World from his Cash Value Life Insurance Policy. 3. James Cash Penny borrowed money from his Cash Value Life Insurance Policy in 1929 after the crash to keep the famous J.C Penny s Stores from closing. 4. Ray Kroc borrowed money from his Cash Value Life Insurance policy to keep the famous McDonalds going when he first started the empire back in 1955.

29 TOTAL BOLI (BANK OWNED LIFE INSURANCE) Represents 25% or more of their Tier One Capital

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33 Case Study: Taxes: Save over ½ Million ($599,896) 50 Year Old Male $55,000 Contribution Per Year for 15 Years $1,308,036 Cash Value at Age 65* $117,850 Tax Free Income Age 66 to Age100 $969,188 Income Tax Free Death Benefit Day 1** Chronic Illness Benefit Included in the Policy and Can Be Used for Long Term Care Needs Disability Benefit Plan will Deposit $1, Per Month Into Your Plan If You Are Fully Disabled Non Reportable Tax Savings: $17,644 Per Year X 34 Years = $599,896*** *Assuming an Annual average Index Rate of Return of 7.35% (Not Guaranteed) (The 25 Year Annual Average Rate of Return 7.82 %, & 25 Year Highest Annual Average Rate of Return is 11.74%), the lowest 25 Year Annual Average Rate of Return is 4.44%. (These Rates include the 6% Spread) ** Assuming a Preferred Plus Non Tobacco Male Age 50 *** Assuming a 22% Tax Bracket Married Filing Joint

34 FULL ILLUSTRATION WILL BE PROVIDED AT APPOINTMENT

35 To Summarize The Benefits 1. Become Your Own Banker Liquidity, Use, and Control of Your Money. Collateral Capacity: Pay for Large Ticket Items: Major Purchases: Autos, Business Expenses (Lump Sums), Business Expansions, Mortgages, Children Education, Health Insurance Deductibles, Investment Opportunities, Vacations, and Emergencies. With a Collateralized Loan Against Your Policy: The Money Stays in Your Policy and Continues to Compound and Earn Interest, While you use that Money for other purposes. 2. Case Study: Male 50 Places 55K in policy for 15 Years: Cash value at age 65 - $1,308,036* Income Tax Free Death Benefit - $969,188** From Day 1. Income Tax Free Retirement (Non Reportable): Age 66 to Age 100: $117,850 Per Year*, X 34 Years = $4,006,900. Disability Completion Benefit If Fully Disabled: Policy will Deposit $1, Monthly into the policy, while fully disabled. Tax Savings : $17,644 Per Year X 34 Years = $599,896*** Creditor Proof Protection From Lawsuits. Chronic Illness Rider Chronic Illness Rider Included Lump Sum Check Up to $131,400 if you are unable to preform at least two activities of Daily Living****. * Assuming 7.35% Annual Average Return (The 25 Yr. Annual Average Rate of Return 7.82%, and the Highest 25 Year Annual Average Rate of Return is 11.74%, & the Lowest 25 Yr. Annual Average Rate of Return is 4.44%. (These Rates include the 6% Spread) ** Assuming a 50 Year Old Male Preferred Plus and Subject to Underwriting *** 22% Tax Bracket Married Filing Jointly **** Stipulations Apply

36 What to look for when selecting an Insurance Company Solvency (Assets over Liabilities to meet all obligations) Liquid Assets (To meet unforeseen emergency cash requirements that may arise) Capital & Surplus to Assets (Capital & surplus divided by total assets) AM Best Rating (Performance in Investment Quality, Policy Reserves, Cost Control, Management Experience)

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38 1912 Penn Mutual Pays $130,000 in Death Claims on the Victims of the Titanic.

39 1863 In Mid-June, Trustees Consider How to Safeguard Penn Mutual s Securities Against a Possible Attack on Philadelphia During the Civil War.

40 Remember the Nature of Procrastination People Don t Plan to Fail They Fail to Plan

41 Thank You For Attending This Presentation Where Do You Go From Here? Presented by: James R. Grazioli - President Comprehensive Financial Group Inc. Financial Service Professional 27 Yrs. Call James R. Grazioli Receive a Customized illustration of the: Become Your Own Banker & Tax Free Retirement Concept or Cell/Text jamesgraz@hotmail.com Website: