Retirement Trax. History What Investors Want Immediate Gratification Sleep at Night Keep up with the...
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Transcript of Retirement Trax. History What Investors Want Immediate Gratification Sleep at Night Keep up with the...
RetirementTrax™
Retirement Depot™
HistoryWhat Investors Want
Immediate GratificationSleep at NightKeep up with the Jones’
INTRODUCTION
OLD PATTERN RESURFACING
1929
(50 years)
70,71,72 What took 50 yea rs00,01,02 has now occurred
08,09 three ti mes in 38 yrs.
$50k SPIAYear 1 $6,500Year 2 $6,500Year 3 $6,500Year 4 $6,500Year 5 $6,500Year 6 $6,500Year 7 $6,500Year 8 $6,500Year 9 $6,500Year 10$6,500Tota l $65,000
$50k Variable AnnuityStart yr. 1 $50,000 Star t yr. 2 $53,600 Star t yr. 3 $57,459 Star t yr. 4 $61,596 Star t yr. 5 $66,031 Star t yr. 6 $70,785 Star t yr. 7 $75,882 Star t yr. 8 $81,345 Star t yr. 9 $87,202 Star t yr. 10 $93,481End Value $100,211
Repeat Process
AN OLD IDEA
Loss of ControlClock on IncomeMaybe VA won’t Double
OLD IDEA PROBLEMS
Fixed Indexed Annuity Avg . r e t u r n 5 % $ 1 0 0 , 0 0 0 d e p o s i t A n n . w / d ’s ( - 1 0 % ) + 1 0 % b o n u s A n n . N e t % ( - 5 % ) $ 1 1 0 , 0 0 0
Yr. 1 ( b e fo r e w / d ) $ 1 1 5 , 5 0 0 Yr. 2 ( b e fo r e w / d ) $ 1 0 9 , 1 4 7 Yr. 3 ( b e fo r e w / d ) $ 1 0 3 , 1 4 5 Yr. 4 ( b e fo r e w / d ) $ 9 7 , 4 7 2 Yr. 5 ( b e fo r e w / d ) $ 9 2 , 1 1 2 Yr. 6 ( b e fo r e w / d ) $ 8 7 , 0 4 6 Yr. 7 ( b e fo r e w / d ) $ 8 2 , 2 5 9 Yr. 8 ( b e fo r e w / d ) $ 7 7 , 7 3 5 Yr. 9 ( b e fo r e w / d ) $ 7 3 , 4 6 1 Yr. 1 0 ( b e fo r e w / d ) $ 6 9 , 4 2 0
N e a r l y 7 0 % o f o r i g i n a l d e p o s i t s ti l l g u a r a n t e e d * a ft e r t e n y e a r s .
* G u a r a n t e e s b a s e d o n c l a i m s p a y i n g a b i l i t y o f I n s u r a n c e c o m p a n y
Managed Account A v e ra g e Re t u r n n e t o f fe e s 8 %
E n d o f Ye a r 1 $ 1 1 , 5 5 0 E n d o f Ye a r 2 $ 1 0 , 9 1 4 E n d o f Ye a r 3 $ 1 0 , 3 1 4 E n d o f Ye a r 4 $ 9 , 7 4 7 E n d o f Ye a r 5 $ 9 , 2 1 1 E n d o f Ye a r 6 $ 8 , 7 0 4 E n d o f Ye a r 7 $ 8 , 2 2 5 E n d o f Ye a r 8 $ 7 , 7 7 3 E n d o f Ye a r 9 $ 7 , 3 4 6 E n d o f Ye a r 1 0 $ 6 , 9 4 2
$ 1 4 7 , 0 0 1 $ 6 9 , 4 2 0 + $ 1 4 7 , 0 0 1 = $ 2 1 6 , 4 2 1 - $ 1 0 0 , 0 0 0 G a i n o f : $ 1 1 6 , 4 2 1
11.6% Annual Return
SIMPLE PROCESS
THE REAL WORLD
Fixed Index Annuity 2000 – 0% (w/out bonus) 2001 – 0% 2002 – 0% 2003 – 7.00% 2004 – 7.00% 2005 – 3.00% 2006 – 7.00% 2007 – 3.53% 2008 – 0% 2009 – 7.00%
3.45% = Avg. Ann.
F I A p e r fo rman c e n o t i n c l u s i ve o f S &P 500 d i v i den d s
S&P 500
2000 – ( -9.21%) 2001 – (-12.07%) 2002 – (-22.27%) 2003 – 27.82% 2004 – 10.23% 2005 – 4.34% 2006 – 15.02% 2007 – 4.94% 2008 – (-36.87%) 2009 – 26.04% Avg. Ann.= 0.79%
S&P 500 pe r fo rm ance i s i n c l u s i ve o f d i v i dends
WORLD CLASS MANAGERS
WHAT YOU MIGHT EXPECT
Reduce FeesMaintain LiquidityReduce Volati lityCompete with or Beat the MarketSleep at NightImmediate Gratification
IN CLOSING
Most Recent StatementFill out New ApplicationSign a Few Pages
WHAT’S NEXT?
THANK YOU!