3. 1
Are you asking the right questions and making the right moves for your future?
The 6 Steps to
Financial Independence1
Build Wealth
• Strive to outpace inflation
& reduce taxes
• Professional money management
Proper Protection
• Protect against loss of income
• Protect family assets
Debt Management
• Consolidate debt
• Strive to eliminate debt
Emergency Fund
• Save 3-6 months’ income
• Prepare for unexpected expenses
Cash Flow
• Earn additional income
• Manage expenses
Preserve Wealth
• Reduce taxation
• Build a family legacy
When investing, there are certain risks, fees and charges, and limitations that one must take into consideration.
4. 2
Age, health, debts, dependents, income and a variety of other factors should
all be considered.
Life Insurance
How much do you need?2
However, the basic
rule of thumb is
approximately
10Xyour annual
family income.
5. 3
The 3-Legged Stool
A Broken Traditional Retirement Model
Personal
Savings
Social
Security
Company
Pensions
Past retirees often enjoyed a combination of a company pension, a Social Security
check, and their personal savings. With this traditional model all but gone, a new
retirement strategy focused on personal responsibility is needed.
6. 4
Here is an example of how the monthly amount required to reach
$1 million for retirement changes with how much time you have to
hit that goal in an 8% tax-deferred hypothetical account.
The best way to put time on your side is to start saving today.
$2,889.85
/mo.
$286.45
/mo.
$435.94
/mo.
$670.98
/mo.
$1,051.50
/mo.
$1,697.73
/mo.
$5,466.09
/mo.
$13,609.73
/mo.
40 35 30 25 20 15 10 5
Years Until $1 Million Retirement Goal Met
The High Cost of Waiting
Time: Your worst enemy or greatest ally3
8. 6
So, if you made a $10,000
investment at age 29, with an
8% rate of return, it should grow
to about $160,000 by age 65.
$20k
38 47 56 65
$40k
$80k
$160k
For example, the Rule of 72 tells us
that an investment earning a constant
8% rate of return should double
approximately every 9 years.
The Rule of 72
It’s important to manage your rate
of return and risk
If you divide 72 by the rate of return being earned, you will obtain
the approximate number of years required for your initial savings to double.
The Rule of 72 is a mathematical concept that approximates the number of years it will take to double the
principal at a constant rate of return compounded over time. All figures are for illustrative purposes only,
and do not reflect the risks, expenses or charges associated with an actual investment. The rate of return
of investments fluctuates over time and, as a result, the actual time it will take an investment to double in
value cannot be predicted with any certainty. Results are rounded for illustrative purposes. Actual results
in each case are slightly higher or lower.
9. 7
How many times will your money double?
$10,000
$20,000
$20,000
$40,000
$10,000
$40,000
$10,000
$320,000
$80,000
$20,000
$20,000
$10,000
$80,000
$40,000
65
59
56
53
47
41
38
35
29
$160,000
AGE
$5,000 $5,000 $5,000$5,000
4% 8%6% 12%
Notice how a $5,000 investment at age 29 doubles more often as the rate of
return increases.
That’s exciting to think about. But consider the interest rate on your credit card.
Is it 18%? Higher? The Rule of 72 can work against you just as powerfully as it
can work for you. Debt management is still important.
The Rule of 72 doesn’t consider taxes. Taxes can increase the amount of time it
takes for money to double. Your financial professional can help you develop a
strategy that considers the impact of taxes.4
10. 8
50%
Loss
$10,000$10,000 50%
Gain
100%
Gain
$5,000
$7,500
The Impact of Losses
It hurts more than you think
If you lose 50% of $10,000, what rate of return does
it take to get back to $10,000?
A 50% gain only gets you back
to $7,500.
A 100% gain is required to fully
recover a 50% loss.
11. 9
3 Options For Your Future
Which one is right for you?
Client
• If you are satisfied with your career and discretionary income,
consider becoming a client.
• Take advantage of our strategies to help you chart your path to
financial independence.
• Licensing, commissions, technology and great training programs
by WFG.
• Control your time, and create a career on your terms.
• Enjoy the benefits of self-employment.
• Build a business as big as your commitment and vision.
• Earn incentives like: Bonus Pools, Supervisory Overrides, Stock
Options, Renewals Trails, Advisory Fees, Entrepreneurial Program.
Part-time Career
Full-time Career
Click here for the WFG Associate Membership Agreement
