1. Seeking A Tax-Free Retirement Educational Workshop A Discussion of Retirement Vehicles and Taxes Making The Most of Your Retirement Dollars Presented By: Todd Ensing ©2009 Tax Free Retirement, Inc. Used by permission License #10011 TC49238(0508)

2. $11,273,059,048,264.84 – “Official” US Debt as of 5/12/09 1 $9,381,368,108,595.10 – “Official” US Debt as of 3/6/08 1 1.9 trillion “Official” increase in 14 months Real National Debt is $61,173,829,000,000.00 2 -What’s the difference between the “Real” and “Official”? Your share of the real US debt is: $200,000.00 2 Facts About National Debt 1 1. US National Debt Clock www.brilling.com/debt_clockwww.brilling.com/debt_clock 2. Truth in 2008 http://www.truthin2008.org/

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

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

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

6. So the only solution seems to be… Higher TAXES

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

8. 1. Free Money -Inherited -Matching 401(k) Money 2. Tax-Free Money 3. Taxed Deferred Money 4. Taxable Money Smart Retirement Money Order

9. 1. Free Money 2. Tax-Free Money -Roth IRA -Life Insurance Cash Value* 3. Taxed Deferred Money 4. Taxable Money Smart Retirement Money Order *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.

10. 1. Free Money 2. Tax-Free Money 3. Taxed Deferred Money -Annuities -Tax-Qualified Plans such as 401(k), IRA, etc. 4. Taxable Money Smart Retirement Money Order

11. 1. Free Money 2. Tax-Free Money 3. Taxed Deferred Money 4. Taxable Money –Wages –Capital Gains –1099 Interest

12. Smart Retirement Money Order 1. Free Money 2. Tax-Free Money 3. Taxed Deferred Money 4. Taxable Money Any contribution above the match of your 401(k) becomes tax-deferred money, and skips over #2 completely.

13. Let’s take a look at the difference between a Tax-Deferred plan and a Tax-Free plan.

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

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

16. When you put your money into an IRA or 401(k) are you really saving tax? No. Simply delaying tax - which actually compounds the tax problem.

17. If you were a farmer would you rather pay tax on the seed… or the harvest?

18. How It Works with Universal Life Insurance Premium $ - fees UL Life Insurance Policy $ Minimum Company Requires Maximum IRS Allows Death Benefit

19. What’s Best for You? Roth IRA?

20. What’s Best for You? Universal Life Insurance?

21. What’s Best for You? Both?

22. Next Steps