1. TRUE ASSET OPTIMIZATION THE QUICKEST PATH TO EARLY FINANCIAL INDEPENDENCE

3. Different Isn’t always better… but, Better Is always different!

4. “ Remember… Today is the first day of the rest of your life!” Withhold Justifying Suspend Your Disbelief Be Open-Minded

5. Isn’t it Time You Became Wealthy?

6. Wisdom Financial Contribution Core • House • Cash • Other Real Estate • Stocks • Bonds Material Possessions • Family • Health • Values • Knowledge • Experiences • Education • Reputation • Taxes • Charities • Time/Talents • Wisdom/Experience • Family Foundations Re-direct (Things) (Civic/Social) (Intellectual) (Human) • Well Being • Spirituality • Heritage • Character • Talents • Habits • Future • Methods • Ideas • Traditions • Alliances • Skills • Systems

7. Core Wisdom Financial Contribution (Live) (Learn) (Give) ( Earn )

8. “ It is more important that values are understood before assets are valued.”

9. What If … What You Thought To Be True Turned Out Not To Be True, When Would You Want To Know? Especially When It Comes To Your Money & Financial Planning

10. What If … Contributions To Your 401(k) or IRA Were Actually Robbing You of Retirement Income? Paying Off Your Mortgage With Extra Principal Payments Was Wasting Your Home’s Value? Much of What You’ve Been Taught About Financial Planning Was Flat Out Wrong? When Would You Want To Know?

11. An American Wealth Crisis ! Worst Savings Rate Since Depression www.thebigpicture.com 1933-1934 2005-2006 1929 - 2006

12. Is postponing tax a good idea? IRAs and 401(k)s After Tax

14. A. Lower? Will future tax rates likely be: B. Same? C. Higher?

15. Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(k)s

16. The IRA/401(k) Story 35 years @ 8% ROR $6,000/year -$2,000 (33% combined tax bracket x 35 yrs = $70,000 tax savings ) $4,000 Net Cost $1,000,000 Nest Egg 8% interest $80,000/yr -$26,400 (33% tax) 20 year retirement Over $500,000 in taxes ! 30 year retirement Over $800,000 in taxes ! “ Why Didn’t Somebody Tell Us The Rest of The Story?!?” Non Qualified Retirement Plan 35 years @ 8% ROR $6,000/year - $0 (33% combined tax bracket x 35 yrs = $ 0 tax savings) $6,000 Net Cost $1,000,000 Nest Egg $80,000/yr 8% interest - $0 (tax free) $80,000 Net Spendable Income Spendable Income $53,600 Net Nearly 50% Increase from the first scenario! Which Would You Prefer? 20 year retirement Over $500,000 in additional income ! 30 year retirement Over $800,000 in additional income !

17. Are you planning YOUR Retirement or Uncle Sam’s?

18. Growth & Tax of Deductible Plans 7.5% Return 33% Tax Rate Deferred Taxes = Increased Taxes Investment Growth (No Tax)

19. Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(k)s Non-Qualified Alternative Home Equity Retirement Planning

20. True Asset Optimization The World of Successful Equity Management

21. How much would you invest? You determine the amount and length of time for monthly contributions to continue.

22. How much would you invest? You can pay more than the minimum monthly contribution, but not less.

23. How much would you invest? If you attempt to pay less, the financial institution keeps all of the previous contributions.

24. How much would you invest? The money deposited in the account is not safe from loss of principal.

25. How much would you invest? Each contribution made to the account results in less safety.

26. How much would you invest? The money in the account is not liquid.

27. How much would you invest? The money in the account earns a 0% rate of return.

28. How much would you invest? Your income- tax liability increases with each contribution.

29. How much would you invest? When the plan is fully funded, there is no income paid out.

30. Equity Management is the Key to Enhancing your Net Worth

31. Home Equity 101 $ 350,000 Value -200,000 Loans $ 150,000 Equity The difference between fair market value and all loans against the property is your equity.

34. -2 x -2 = What do you get when you multiply one negative by another? +4 A POSITIVE

35. Preferred vs. Non-Preferred Interest Expense Income $72,000 $72,000 Non-Preferred Interest -12,000 0 60,000 72,000 Preferred Interest 0 -12,000 Available Before Taxes 60,000 60,000 (TAX SAVINGS) $4,000 $72,000 $60,000 Taxable Income Difference $12,000

36. 30-Year Amortized Mortgage

37. Amortization Schedule

38. Equity Development

39. Equity Management

40. Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(k)s Non-Qualified Alternative Home Equity Retirement Planning

42. WHAT IS THE #1 REASON FOR FORECLOSURES? DISABILITY! NEED FOR LIQUID CAPITAL

43. NEED FOR LIQUID CAPITAL YOU’RE FIRED. JOB LAYOFF

44. Fat Chance!

45. NEED FOR SAFETY HURRICANE KATRINA

46. NEED FOR SAFETY PROTECT YOUR EQUITY FROM LAW SUITS! Property Search includes a report with information pertaining to sales history, current value, lot size, property details, owner(s) information, current mortgage, l egal information, and other information that is part of public records, including county records.

47. Fat Chance!

48. 5 Years @ 6% $ 255,256 5 Years @ 6% $ 255,256 $ 510,512! RETURN ON EQUITY Separate Equity HOME EQUITY HAS NO RATE OF RETURN $ 200,000 $ 200,000 BUT… BUT THERE’S A COST!

52. 5 Years @ 6% $ 255,256 5 Years @ 6% $ 255,256 $ 510,512! RETURN ON EQUITY Separate Equity HOME EQUITY HAS NO RATE OF RETURN $ 200,000 $ 200,000

53. Tax Deductible Interest Expense

54. Tax Deductible Interest Expense Interest Expense $12,000 Dollar Analysis Tax Savings $4,000 Real Cost of Interest $8,000

55. BANKS AREN’T AFRAID TO PAY INTEREST!

56. Your Family Bank Separate $100,000 of Equity Borrowing at 9% Investing at 7.5% $90,000 $195,888 Year 15 $105,888 $180,000 $775,495 Year 30 $595,495 $6,000 Year 1 Net Cost $7,500 Net Growth $1,500 Difference

57. Three Ways to Stack Up a Million or More Separate $100,000 of Equity Borrowing at 6.5% Investing at 8.5% 1 Example $65,000 $239,974 Year 15 $174,974 $130,000 $1,055,825 Year 30 $925,825 $4,333 Year 1 Net Cost $8,500 Net Growth $4,167 Difference

58. Three Ways to Stack Up a Million or More Separate $175,000 of Equity Borrowing at 7% Investing at 8% 2 Example $122,500 $380,130 Year 15 $257,630 $245,000 $1,585,965 Year 30 $1,340,965 $8,167 Year 1 Net Cost $14,000 Net Growth $5,833 Difference

59. Three Ways to Stack Up a Million or More Separate $260,000 of Equity Borrowing at 7.5% Investing at 7.5% 3 Example $195,000 $509,308 Year 15 $314,308 $390,000 $2,016,288 Year 30 $1,626,288 $13,000 Year 1 Net Cost $19,500 Net Growth $6,500 Difference

60. L IQUIDITY R ETURN S AFETY

61. Private Retirement Plan

62. Phases of Retirement Planning Taxed-As-Earned Investments Non Qualified Tax-Deferred Investments Traditional IRAs and 401(k)s Non-Qualified Alternative Home Equity Retirement Planning

63. The IRA/401(k) Story 35 years @ 8% ROR $6,000/year -$2,000 (33% combined tax bracket x 35 yrs = $70,000 tax savings ) $4,000 Net Cost $1,000,000 Nest Egg 8% interest $80,000/yr -$26,400 (33% tax) 20 year retirement Over $500,000 in taxes ! 30 year retirement Over $800,000 in taxes ! “ Why Didn’t Somebody Tell Us The Rest of The Story?!?” Non Qualified Retirement Plan 35 years @ 8% ROR $6,000/year - $0 (33% combined tax bracket x 35 yrs = $ 0 tax savings) $6,000 Net Cost $1,000,000 Nest Egg $80,000/yr 8% interest - $0 (tax free) $80,000 Net Spendable Income Spendable Income $53,600 Net Nearly 50% Increase from the first scenario! Which Would You Prefer? 20 year retirement Over $500,000 in additional income ! 30 year retirement Over $800,000 in additional income !

64. The Home Equity Retirement Plan Home Value $270,000 Home Equity Loan $100,000 x 6.0 % Employment Cost $ 6,000 Interest-Only You have the same up-front tax advantage as an IRA/401k: $6,000 Deductible Interest 33.3% $2,000 Taxes Saved 4,000 Net Outlay A $100,000 pre-funded alternative retirement account @8% = $1,475,000 @ 35 yrs 8 % Interest-only Withdrawals $ 118,000 Net Income Is there a way to “ HAVE MY CAKE and EAT IT TOO?” Which Net Income Would You Prefer: $118,000 or $53,600 /year?

66. A. Liquidity B. Safety C. Rate of Return D. Tax Favored E. All of the Above

67. The Risk-Return Paradigm 1. Commodities 2. Business Ventures 3. Limited Partnerships 4. Raw Land 5. Speculative Common Stocks 6. Lower Quality Bonds 7. Investment Real Estate 8. Blue Chip Stocks 9. High Grade Bonds 10. Mutual Funds 11. CD’s 12. Maximum-Funded Insurance 13. Money Market Funds 14. U.S. Treasury Bills 15. Annuities 16. Equity in House • Liquidity • Safety • Rate of Return • Tax Favored Harvest 1. Commodities 2. Business Ventures 3. Limited Partnerships 4. Raw Land 5. Speculative Common Stocks 6. Lower Quality Bonds 7. Investment Real Estate 8. Blue Chip Stocks 9. High Grade Bonds 10. Mutual Funds 11. CD’s 12. Maximum-Funded Insurance 13. Money Market Funds 14. U.S. Treasury Bills 15. Annuities 16. Equity in House

69. Passes On Tax Free Accumulation Tax Free Withdrawals Tax Free Properly Structured Tax Favored Investment Grade Insurance Plans Where is the Answer? IRS Tax Codes

70. Year 5 Year 4 Year 3 Year 2 Year 1 New Cash Contributions Compound Interest Total Premiums Allowed: $____________________ Minimum Death Benefits Required: $__________ Insurance Mortality and Expense Charges TEFRA 1982 DEFRA 1984 TAMRA 1986 Corridor dictates the minimum death benefit required based upon the insured’s age and gender to accommodate the ultimate desired aggregate premium basis.

71. Year 1 Year 2 Year 3 Year 4 Year 5

72. THE SWING AND THE CLUBS…

74. BACKWARDS DON’T GO END YEAR HYPOTHETICAL RETURN YEAR-END VALUE $100,000 1 10% $110,000 2 10% $121,000 3 -10% $108,900 NEXT LET’S LOOK AT A FIXED ANNUITY WITH A RATE OF 3.25%

75. BACKWARDS DON’T GO END YEAR HYPOTHETICAL RETURN YEAR-END VALUE $100,000 1 3.25% $103,250 2 3.25% $106,606 3 3.25% $110,070 THE FIXED ANNUITY YIELDING JUST 3.25% HAS A HIGHER ACCUMULATION OVER A THREE YEAR PERIOD! $108,900 VS $110,070 Volatile Safe, Guaranteed

76. 96 97 98 99 00 01 02 03 04 05 06 1600 1500 1400 1300 1200 1000 800 600 400 1433 1274 1144 895 1088 1205 1202 946 748 Linked S&P 500 Index $119,458 Equity Indexed Investing Annual Lock-In & Reset 1262 $170,110 $ 188,930 * This is a hypothetical illustration and assumes a 15% cap and a 1% floor. S&P 500 from December 21, 1996 to December, 2006 $191,349 $152,759 1418 $100,000 $145,141 $160,671 $168,222 $100,000 $115,000 $156,771 $180,286 $199,576 $234,678 +19% Better! $126,400 $160,528 $132,325 $152,162 $153,683 $155,219 $208,956 A difference of $45,748!

77. 1996 $100,000 $100,000 1997 $126,400 +26% $115,000 +15% 1998 $160,528 +27% $132,325 +15% 1999 $191,349 +19% $152,162 +15% 2000 $170,110 -11% $153,683 +01% 2001 $152,759 -10% $155,219 +01% 2002 $119,458 -22% $156,771 +01% 2003 $145,141 +21% $180,286 +15% 2004 $160,671 +11% $199,576 +11% 2005 $168,222 +05% $208,956 +05% 2006 $188,930 +12% $234,678 +12% +7.89% Ave +9.07% Ave TAXABLE SERIES 1 fund value at the end of 10 years = $188,930 TAX-FREE SERIES 2 fund value at the end of 10 years = $234,678 Year SERIES 1 SERIES 2 Taxable Tax-Free *Based Upon The S&P 500 From Dec. 21, 1996 To Dec. 21, 2006 Monthly Average Index With 15% Cap and 1% Floor 19% Better! Starting with $100,000

78. Coast or Risk Crashing

79. “ There is something that is more powerful than all the armies in the world, and that is an idea whose time has come.”

80. True Wealth Transformer

81. MILLIONAIRE BY THIRTIES THE QUICKEST PATH TO EARLY FINANCIAL INDEPENDENCE