Your family bank v3.5 (4)

1

YOUR FAMILY BANK®

Protecting Your Financial Future

Why Now?

$2 Million Average Lifetime

Income

$60,000 Average

Total Assets at

65

Your Family Bank® and the

10 Principles

Principle 1

Spending Is Emotional…

Budgets Do Not Work

3+1=?+ =?

Is money more like math…Or oranges?

4

Mark37Joyce35

$3,960/mo$3,125/mo

65 $5,500Not Yet

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√

√√√√

OUTSTANDING DEBTSAccount Name Payment Interest Balance Frequency of

Payment# Payments

Left Explanation

SAVINGS & INVESTMENTSAccount Name Balance Amount of

DepositFrequency of

Deposit Rate of Return How Taxed Explanation

REAL ESTATEName of Property Current Value Date of

Purchase Purchase Price Explanation

VISA 55.00 12.0% 460 Monthly 9Medical/Dental 200.00 0.0% 2,420 Monthly 13Discover Credit 296.00 16.5% 4,236 Monthly 17Furniture 237.00 18.0% 5,988 Monthly 32Auto 417.00 8.0% 13,313 Monthly 37Mortgage 972.00 6.5% 152,935 Monthly 354 valued at $210,000

Emergency Savings 6,000 0 Monthly 2.5% Taxed 401(k) 33,600 3,600 Annual 5% Deferred

Residence 210,000 1997 155,000 Will finish basement soon

A. SPENDABLE MONTHLY INCOME

Historical Current

Gross Monthly Income

Less Taxes FICA

Medicare

Federal Income Tax

State Income Tax

Other Tax

Total Spendable Monthly Income

5,962

358

60

780

477

0

$4,297

7,085

416

69

907

554

0

$5,139

B. SPENDING CATEGORIES EXPENSES

Spending Categories Last 12 Months Totals

Last 12 MonthAverage

Next 12 Months Average

Auto- Gas/RepairCharitable ContributionsCleaning LaundryClothingDebt PaymentEating OutFamily ActivitiesGiftsGroceriesHome MaintenanceInsuranceMedical/DentalMiscellaneousProperty Tax- Car/HomeRecreation/EntertainmentSavingsUtilitiesVacations/TripsTotal Expenses

2,5957,200

2401,800

21,924960420600

6,000600

3,600600420

1,500600

1,5602,1001,800

$54,519

216600

20150

1,827803550

50050

3005035

12550

130175150

$4,543

300600

10125

2,177643548

50040

40065

0125

50300200100

$5,139


Spending Categories Fixed Expenses Variable ExpensesAuto- Gas/RepairCharitable ContributionsCleaning LaundryClothingDebt PaymentEating OutFamily ActivitiesGiftsGroceriesHome MaintenanceInsuranceMedical/DentalMiscellaneousProperty Tax- Car/HomeRecreation/EntertainmentSavingsUtilitiesVacations/TripsTotal Expenses

0600

00

2,17700000

40000

1250000

$3,302

3000

10125

0643548

50040

065

00

50300200100

$1,837


Spending Categories YOU SPOUSEAuto- Gas/RepairCharitable ContributionsCleaning LaundryClothingDebt PaymentEating OutFamily ActivitiesGiftsGroceriesHome MaintenanceInsuranceMedical/DentalMiscellaneousProperty Tax- Car/HomeRecreation/EntertainmentSavingsUtilitiesVacations/TripsTotal Expenses

20000

252,177

340

48100

40400

00

1250

300200

0$3,649

100600

10100

03035

0400

00

6500

5000

100$1,490

Principle 2

When You Track Your Money…

You Control Your Money

Principle 3

Saving is Actually…

Delayed Spending


Spending Categories YOU SPOUSEAuto- Gas/RepairCharitable ContributionsCleaning LaundryClothingDebt PaymentEating OutFamily ActivitiesGiftsGroceriesHome MaintenanceInsuranceMedical/DentalMiscellaneousProperty Tax- Car/HomeRecreation/EntertainmentSavingsUtilitiesVacations/TripsTotal Expenses

Principle 4Power Down Your Debt…

Power Up Your Fortune

21

FIRST WE LOOK AT WHAT MARK & JOYCE ARE CURRENTLY DOING INSOFAR AS THEIR RETIREMENT PLANNING:

Principle 4

Description Monthly Payment

P & I

Interest Rate

Number Payments

Remaining

Remaining Debt

Real Debt

VISA CC $55.00 12.00% 9 $460.00 $482.90Medical/Dental $200.00 0.00% 13 $2,420.00 $2,420.00Discover CC $296.00 16.50% 17 $4,236.00 $4,750.80Furniture $237.00 18.00% 32 $5,988.31 $7,584.00Automobile $417.00 8.00% 37 $13,313.00 $15,020.34Home Mortgage $972.00 6.50% 354 $152,935.40 $344,088.00

AVG%Totals: $2,177.00 10.17% $179,352.71 $374,346.04

$194,993.33

PV= Present ValuePMT= Payment Per Period

5.00% Int= Interest Per Year29.52 Per= Nr Periodic Payments30.00% Per= 29.52 X 12 = 354.24

PV= $33,600.00PMT= $300.00INT= 5% Per YearPer= 354.24P/Yr= 12Future Value= $388,628.51 BEFORE TaxesFuture Value= $272,039.96 AFTER TaxesLoss of retirement funds due to taxes: $116,588.55

Annual Interest Earned:Number of Years For Plan:

Income Tax Bracket:Retirement Account At The End Of Savings Period:

The Interest You Will Pay Is:

Current Retirement Planning Without Your Family Bank® Current Retirement Savings: $33,600.00

Monthly Contribution: $300.00

REAL DEBT REPORT

Description Monthly Payment

Interest Rate

No. of Payments

Remaining Debt Real Debt

The interest you will pay is:

VISA 55.00 12.0% 9 460.00 482.90

$ 2,177.00 $ 374,346.04$ 179,352.71

Medical/Dental 200.00 0.0% 13 2,420.00 2,420.00

Discover Credit 296.00 16.5% 17 4,236.00 4,750.80

Auto 417.00 8.0% 37 13,313 15,020.34

Mortgage 972.00 6.5% 354 152,935 344,088.00

Furniture 237.00 18.0% 32 5,988.00 7,584.00

$ 194,993.33

Repayment In 9.26 Years 29.52 Years

25

THEN WE LOOK AT WHAT MARK & JOYCE COULD BE DOING INSOFAR AS THEIR RETIREMENT PLANNING:

Principle 4

RegularPayment

55.00200.00296.00237.00417.00972.00

PowerPayment

0.0055.00

255.00551.00788.00

1,205.00

$133,955.65Saved Interest

RegularPayment

55.00200.00296.00237.00417.00972.00

PowerPayment

300.00355.00555.00851.00

1,088.001,505.00

$144,472.19Saved Interest

28

CURRENT PLAN: HAVE $272,039.96 AFTER TAXES FOR RETIREMENT

Principle 4

YOUR FAMILY BANK® PLAN: HAVE $1,167,016.15 TAX-FREE FOR RETIREMENT!

Know the Rules!

Principle 5

Principle 6

The Rules…Are Always Changing

Always Look At…

The Big Picture

Principle 7

Principle 8

Organizing Your Finances…Enables the Creation of Additional Wealth

Organize Assets Based on How They Are Taxed

Principle 9

Understanding Taxation…Enables You to Retain More of Your Money

$66,488

$41,900

Principle 10

Multiplier Effect: 48%Gross earnings/year$20 or $480

2%

5%

5%10%

8%

$1000

22%

$725,366$828,359

$1,384,494

$1,759,698

Available at Retirement $906,707 $952,137 $1,798,563 $1,892,148

Percent Subject to Taxes 42.39% 15.25% 8.07% 13.52%

Principles Applied

None #8 • Became organized• Found 1% higher rate

of return than earned with 401(k)

#9• Participated in

company Roth IRA instead of continuing with 401(k)

#2• Found $300

Accelerator through tracking

• Began to Power Down debt

#4• Paid off all debts• Applied debt

payments to Emergency Savings

#2, #4, #9,#3• Used $4,696 of Emergency

Savings to pay off all debt• Increase Accelerator to $651#7• Found higher returns on

401(k) and Roth IRA#10• Combined all principles at the

same time Tax rates are left constant.Return rates between 5 & 6%.

What are you really earning?

One Step Forward…Two Steps Back!$100,000

Annual Income$150,000Retirement Acct.

10% Annual Return

-34.5% Interest Payments

-19.5%

-$19,500Annual Return

$15,000 -$34,500

Year 1

$20,000 4 Years at 5% = $460/mo = $5,520/yr

$30,000-20,000$10,000

+5,520$15,520Year One Balance

Initial Balance

Year One Balance $ 0.00

Year 2

Year Two Balance

Initial Balance

Year Two Balance $ 0.00

$11,000 3 Years at 10% = $354/mo = $4,248/yr

$15,520-11,000$4,520

5,520+4,248

$14,288

Year 3

$5,000 2 Years at 10% = $230/mo = $2,760/yr

Year Three Balance

Initial Balance

Year Three Balance $ 0.00

$14,288-5,000$9,288

5,5204,248

+2,760$21,816

Year 4

$21,816+12,528$34,344Year Four Balance

Year Three Balance

The Velocity Of Money!$5,520 4,248+2,760

$12,528

$34,344

To which Bank would you rather be making payments?

Started $30,000Ended $34,344

$20,000 $11,000 $5,000

You Make The Rules!

+ Liquidity, Use, & Control

+ Tax-free Transfer To Heirs+ Disability Benefits+ Collateral (For Loans)+ Tax-free+ Tax-deferred

+ No Credit Checks+ No Taking a Number+ No Banking Hours+ No Application+ No Loan Denial+ It’s Your Money!

That was Mark and Joyce…

What about you?

BENEFITSShort Term Long Term

Rarely argue about money Get out of debt in 9 years or less

Save 2-7% of your gross income Save 10% of you income for life

Identify wasted money Double or Triple your retirement savings

Learn how to prioritize Learn how to protect you retirement nest egg

Learn how to stop worrying about money

Learn how to cut your annual tax burden in half

Learn how to forecast your retirement need

Become more efficient with your money

Protecting Your Financial Future

WWW.YourFamilyBank.Org

Your family bank v3.5 (4)

Economy & Finance

Transcript of Your family bank v3.5 (4)