Entaire Programs Overview

Rev. Date 8/18/2009

• Who Entaire Programs are for: • Business Owners

• What the Programs are: • Financed Planning™

• How the Programs work:• Overview of the Programs

• Case Study:• Paul Smith

Financed Planning™ is a trademark of Entaire Global Intellectual Property, Inc.

Today’s Agenda

Who Entaire Programs are for:Business Owners

• 47% of Business Owners surveyed indicated that they do not believe that they are financially prepared for their retirement1

• 68% of Business Owners believe that they will live below their current lifestyle when they retire2

1 Harris Interactive on behalf of Sharebuilder 401(k)2 LIMRA, 2006

So, what’s the challenge?

The Business Owners’ Challenge

Startup

Growth

ExpansionMaturity

LimitedExcessMoney

ExcessMoney

Reinvested

ExcessFunds

Available

Cashing Out

Phase

Phases of the Entrepreneurial Business

Government Mandated Restrictions

Retirement Health

The Entrepreneur’s Dilemma: Restrictions

Programs:

• designed solely for you, the Business Owner,

• that allow for large sums of money to grow tax deferred,

• that are tax efficient and cost effective,

• that use your business checkbook, and

• that will create less risk and more stability in your portfolio

The Answer

What the Programs are:Financed Planning™

Note: Hypothetical results for illustrative purposes only and not a representation of past or future results.

$500K0 Years

$500K10 Years

$500K20 Years

$500K30 Years

$500K$1M

$2M

$4M

The Rule of 72

How long does money take to double?Divide 72 by the assumed rate, the result is the number of years until a sum doubles.

Assumptions: Net Book Value of Business - $500K

Rule of 72

Interest Rate – 7.2%

Note: A hypothetical crediting rate of 7%. Represents approximations and should not be relied upon as tax or investment advice. The performance of financial products fluctuate over time. The actual time to achieve any result cannot be predicted with certainty.

Choice 3 - $500,000 only once X Today = $500,000

Choice 2 - $ 50,000 per year X 10 years = $500,000

Choice 1 - $ 16,667 per year X 30 years = $500,000

Accelerated Funding

$2,860,393$50,000

$3,808,127$500,000

$1,684,584$16,667

Today 30 Years

Compressed Time Frame Concept

Compounding with Real Estate

Asset Value = $500,000

$500k Mortgage 7% Interest-Only

$35,000 annual cost

7% average annual growth

over 20 years

$500k Mortgage

Asset Value = $1,934,842

$1,434,842 gross gain - $700,000 interest cost = $734,842 Net Gain

Point A Point B

Note: This is a hypothetical example, not indicative of actual results. Actual results will vary.

• Allows client to participate in market upside

• No downside risk to principal and prior period earnings

$1,000,000

Annual Crediting

8%

$1,080,000

Market Down Turn- 8%

$993,660

Annual Crediting

5%Annual Crediting0%

$1,134,000

Needed to Catch Up14.12%

The Stability of Equity Indexed Products

Keep in mind…If you received the 5% as shown in this example on the $993,660, you would have a total of $1,043,343. That is a $90,657 difference because of the guaranteed floor.

How the Programs Work:An Overview

Program Overview

Your Business

Global One Financial

Commercial Loan

Step 1

Product Funding

Universal Life and/or

Annuity Products

Step 3

Transfer Method

Your Business

Step 2

You

Application

Recent Cases

• Furniture $200,000

• Dentist $600,000

• Doctor$2,400,000

• Nuts & Bolts $1,000,000

Industry Case Size

Case Study: ABC Company

Case Study – ABC Company

• Paul Smith, Small Business owner

• 25 Years in Business

• Desired Retirement Age – 63

Summary – Paul Smith

• Current Age: 50

• Years Until Retirement: 13

• Desired Annual Income: $115,000

• Number of Payout Years: 25

• Personal Tax Bracket: 35%

Paul needs a lump sum of at least $1,340,162 at retirement to support an income of $115,000 per year for 25 years.

Solution – Paul Smith

ABC Company implements a Financed Planning™ program in the

amount of $600,000.

The $600,000 is placed into an Equity Indexed Annuity, owned by

Paul Smith (assumed annual tax deferred earnings of 7%).

After 13 years, Paul’s annuity value will have grown to $1,445,907,

which gives Paul an income in the amount of $115,957 per year for

25 years.

ABC Company makes interest payments of approximately

$40,500 annually (assumed interest rate of 6.75%).

(This example assumes that the loan is repaid at retirement using assets that are not part of the program’s

financed product - preferably assets with the then-current lowest yielding performance.)

Equivalent Yield – Paul Smith

ABC Company makes interest payments for the Entaire Program of approximately $40,500 annually.

If the company were to distribute this amount to Paul directly, he would have to pay income tax at 35%, leaving him with $26,325

per year to invest.

Paul’s investment of $26,325 per year for 13 years would have to earn an annual rate of return of 19.26% in order to provide the same annual income of $115,957 for 25 years.

• Provides alternative to traditional retirement plans

• Allows catching up on retirement planning• Activates dormant assets• May provide various levels of asset

protection to the corporation, its owners and the policy holder.

Value of the Entaire Programs

Individual Level

The product is owned by the individual, not the corporation. If the corporation is sued, the product is not its asset.

Corporate Level

We lend directly to the corporation, which by pledging certain assets, may diminish the attractiveness of law suits against the corporation.

Product Level

Product protection varies depending on state law. These laws define available protection regarding cash value and policy attachment by creditors.

Program Structure – Asset Protection

Q & A

For more information contact

Ronnie O’Dell888-906-6661

rodell@PrivateBankFund.com

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