Seeking A Tax-Free Retirement Educational Workshop A Discussion of Retirement and Taxes

$14,405,050,000,000 – US “Official” Debt as of 10/22/20102 $9,381,368,108,595.10 – US “Official” Debt as of 3/6/081 5.1 trillion “Official” increase in 35 months Real National Debt is $76,223,000,000,000.002 What’s the difference between the “Real” and “Official”? The Debt has grown by $4.17 Billion PER DAY since 9/28/20071 Facts About National Debt1 1. US National Debt Clock www.brilling.com/debt_clock 2. Truth in 2010 http://www.truthin2010.com

1. Social Security Administration sample statement from www.ssa.gov Facts About National Debt1

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

Are we spending less as a government? We are spending more than we ever have in the history of our country.

Higher TAXES So the only solution seems to be…

History of Federal Individual IncomeTop Marginal Tax Rates Source: truthandpolitics.org, referencing IRS Statistics of Income Bulletin Pub 1136

Taxable Types of Retirement Income Capital Gains Ordinary Earnings on: • Stocks • Mutual Funds • Sale of Business Interests • Real Estate Income From: • Wages & Interest • Social Security • IRA • SEP • SIMPLE • 401(k) • 403(b)

Retirement Income – Tax Free • Municipal Bonds • Roth IRA • Life Insurance Cash Value* *Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years. Overfunding a permanent life insurance policy creates the risk that the policy will become what is known as a Modified Endowment Contract (MEC.) For MECs, contract loans and withdrawals are considered taxable income.

Smart Investment Order List Free Money Tax-Free Money Taxed Deferred Money Taxable Money

Smart Retirement Money Order • Free Money • Inherited • Matching 401(k) Money • Tax-Free Money • Taxed Deferred Money • Taxable Money

Smart Retirement Money Order Free Money Tax-Free Money Taxed Deferred Money Taxable Money Any investment above the match of your 401(k) becomes tax-deferred money, and skips over #2 completely.

Example Tax-Deferred Tax-Free Tax Deferred Growth Tax Deferred Growth Taxed As Ordinary Income On Withdrawal $0 Federal Tax For Qualified Distributions After-Tax Deposits 0 Tax on Deposits

Would you rather pay tax on this… Example Traditional IRA Tax-deferred Roth IRA Tax Free Tax Deferred Growth Tax Deferred Growth Taxed As Ordinary Income On Withdrawal $0 Federal Tax For Qualified Distributions After-Tax Deposits 0 Tax on Deposits

Or this? Example Traditional IRA Tax-deferred Roth IRA Tax Free Tax Deferred Growth Tax Deferred Growth Taxed As Ordinary Income On Withdrawal $0 Federal Tax For Qualified Distributions After-Tax Deposits 0 Tax on Deposits

So when you put money into an IRA or 401(k) are you really saving tax? No. You are simply delaying tax - which actually compounds the tax problem. Making it much worse!

UL Life Insurance Policy Premium$ $ Death Benefit - fees MinimumCompanyRequires Maximum IRS Allows How It Works with Universal Life Insurance

What’s Best for You? Roth IRA?

What’s Best for You? Universal Life Insurance?

What’s Best for You? Both?

Next Steps

Seeking A Tax-Free Retirement Educational Workshop A Discussion of Retirement and Taxes