The Infinite Banker

1. INFINITE BANKING BECOME YOUR OWN BANK The New 200 YEAR OLD Life Changing Secret to Growing and Protecting Your Financial Future

2. You Need To Know… This presentation will discuss certain financial strategies. Any information obtained during the course of this meeting may be used for the solicitation of life insurance and/or annuity products by a properly licensed insurance professional. Any discussion of the tax treatment of products and services discussed within this presentation are based on our current understanding of tax laws and regulations, which are subject to change. Such information is presented for educational purposes only, and should not be relied upon as professional tax advice. You should always consult your personal tax advisor or attorney

3. CAN THIS HAPPEN TO YOU? Suppose what you thought to be true regarding paying off debt and saving for retirementturned out not to be true. WHEN WOULD YOU WANT TO KNOW???

5. Turn your back on the stomach-churning twists and turnsof the stock and real estate markets.

6. Get back every penny you pay for your cars, vacations, a college education, and other major purchases, so you can enjoy more of your life.

7. Become your own source of financing and recapture the interest and principal you pay to banks.

10. Consumer debt now tops $3.5 Trillion.

11. Will future tax rates likely be:LOWER SAME HIGHER This is a Road to a Rocky Ending

12. Tax BRACKET HISTORY Top Marginal Rate

13. IS YOUR 401(k) UNDER WATER? “The ugly truth, is that the 401(k) is a lousy product, a financial flop, a rotten repository for our retirement reserves. In what must seem like a cruel joke to many, the accounts proved the most dangerous for those closest to retirement. This isn’t how retirement was supposed to be.” - October 19, 2009

14. Stomach-Churning Twists & Turns of the Stock Market $100,000 Invested in the S&P 500 1-1-2000to 12-31-2009 (10 Years) Value $ 91,000 -0.99% 1-1-2002 to 12-31-2009 (7 Years) Value $113,000 +1.56% 1-1-2006 to 12-31-2009 (3 Years) Value $ 97,000 -0.66% 1-1-2008 to 12-31-2008 (1 Year) Value $ 63,000 -37.0% 1-1-2009 to 12-31-2009 (1 Year) Value $ 127,000 +27.0% “I feel like I was closer to retirement at age 40 than I do now at age 50.” Major Brokerage Company Advertisement October, 2009 *Figures from www.moneychimp.com

15. Stomach-Churning Twists & Turns of the Stock Market *Figures from www.moneychimp.com

16. $100,000 Invested in the S&P 500 1-1-2000to 12-31-2009 (10 Years) Value $ 91,000 -0.99% 1-1-2002 to 12-31-2009 (7 Years) Value $113,000 -1.56% 1-1-2006 to 12-31-2009 (3 Years) Value $ 97,000 -0.66% 1-1-2008 to 12-31-2008 (1 Year) Value $ 63,000 -37.0% 1-1-2008 to 12-31-2009 (2 Years) Value $ 80,000 -10.7% Q1: With regard to your $100k invested in 2008, what return would you need to get back to even? 59% Q2: Do you think the next 10 years will perform better or worse than the last 10 years? *Figures from www.moneychimp.com

17. So…What’s the Number One Problem Keeping Us From Attaining the “Great American Dream?” THE INTEREST VOLUME WE PAY ON OUR DEBT!

18. “You finance everything you buy. You either payinterest to someone else, or you give up interest you couldhave earned somewhere else. There are no exceptions.” -Nelson Nash-

19. KEY CONCEPT Interest Volume: Finance a purchase; you pay interest to a bank. That money is gone forever and will never earn you anything. 2. Lost Opportunity Cost: You give up interest or investment returns you have earned could somewhere else, even if you pay cash.

20. Family Income $100,000 - $30,000 (income tax) = $70,000 after tax $70,000/12 months = $5,833/month $2,046/$5,833 = 35% The average family spends 34.5% of after tax dollars in Interest payments! It’s Not the Annual Percentage Rate… It’s the VOLUME of Interest

21. INTEREST VOLUME HURTS $70,000 After Tax Income $34,500 Interest Volume $30,500 Living Expenses $5,000 Savings What rate of return does your $5,000 Savings have to earn to make up for the $34,500 spent on Interest?

22. INTEREST VOLUME HURTS $70,000 After Tax Income Most advisors focus on getting a higher Return on Money $34,500 Interest Volume $30,500 Living Expenses $5,000 Savings Fixing the 34.5% Interest Volume Problem Will Allow More Money For Retirement 690% Return needed on $5,000 Savings to make up for $34,500 Spent on Interest!

23. THE UNIVERSAL PROBLEM Current Solution: Borrow money from a financial institution. Result: BetweenInterest Volume and Lost Opportunity Cost, the average family is in a Modern Day Financial Prison. Better Solution: Reduce Interest Volume and Recapture Lost Opportunity Cost by: BECOMING YOUR OWN FAMILY BANK!!!

24. Do banks make money? Bauer Financial, Inc. BANK GROSS PROFIT: BANK NET PROFIT: DEFAULT RATE:

25. CREATING YOUR OWN BANK MAKE YOURMONEY WORK FOR YOU! Get Money Flowing to YOU… Not AWAY from you!

27. 401(k) Government Plans/ 403B /IRA /ROTH

28. Stock Portfolio / Mutual Funds

29. Home Equity Line of Credit (HELOC)

30. A Properly Structured Whole Life Insurance ContractWHICH FUNDING VEHICLE PERFORMS THE BEST?

31. Why a properly structured whole life insurance contract is the best vehicle to fund your family bank We use a specially designed, very specific type of policy.

32. Do What The Banks D0 Tier One Assets (Core Reserves) Cash Treasury Bills Precious Metals Whole Life Insurance (BOLI)

33. Do what The banks do Bauer Financial, Inc.

34. Hereis Your Chance to be ALL THREE The Banker The Borrower The Depositor Thistriple play ELIMINATES RISK and turns liabilities into ASSETS. Most importantly, it puts YOU in control of YOUR MONEY!

35. The Infinite BankingWhole Life Concept Sound / Timeless Economic Principals Guaranteed Earnings and Predictable Growth Non-Guaranteed Annual Dividends Current U.S. Tax Laws Interest & Dividends Grow Tax Deferred Earnings Can be Accessed Tax Free Benefits Creditor Proof; Liquidity of Funds Death Benefit is Tax Free Can be Estate Tax Free

38. How To Get Back Every Penny You Pay For Major Purchases CARS BOATS COLLEGE VACATIONS EVEN YOUR HOME

40. Buy / Finance the Car

41. Pay Cash (Capital)

42. The INFINITE BANKER WAYFar more money will leave your home just to buy cars over your lifetime than most people ever manage to save up for retirement!

43. OPTION1: LEASE Monthly Payment $416.00 Interest $57.57 Loan Rate 7.5% 40 years, New Car, Every 4 years Total Cash Paid $199,680 Lost Opportunity Cost @6% $832,602 TOTAL COST $1,032,282 -$1,032,282 $0.00 ($200,000) ($400,000) ($600,000) ($800,000) ($1,000,000) ($1,200,000) ($1,400,000) ($1,600,000) ($1,800,000) Total Cash Paid Lost Opportunity Cost $103,228 Ave. Cost Per Car Over 40 Years!

44. OPTION 2: FINANCE Monthly Payment $604.00 Interest $84.00 Loan Rate 7.5% 40 years, New Car, Every 4 years Total Cash Paid $289,920 Lost Opportunity Cost @6% $1,208,874 TOTAL COST $1,498,794 -$1,498,794 $0.00 ($200,000) ($400,000) ($600,000) ($800,000) ($1,000,000) ($1,200,000) ($1,400,000) ($1,600,000) ($1,800,000) Total Cash Paid Lost Opportunity Cost $149,879 Ave. Cost Per Car Over 40 Years!

45. OPTION 3: PAY CASH $0.00 ($200,000) ($400,000) ($600,000) ($800,000) ($1,000,000) ($1,200,000) ($1,400,000) ($1,600,000) ($1,800,000) YOUR CAPITAL 40 years, New Car, Every 4 years Total Capital Paid $250,000 Lost Opportunity Cost @6% $1,116,575 TOTAL COST $1,366,575 -$1,366,575 Total Cash Paid Lost Opportunity Cost $136,657 Ave. Cost Per Car Over 40 Years!

46. The power of Compound Interest *From Dwayne Burnell’s “A Path to Financial Peace of Mind” pg. 9

49. Male, Age 25, Preferred Non-Smoker (For Illustrative Purposes Only) Cumulative Cash Outlay Net Death Benefit Loan Amount Age Year Premium Net Cash Value 26 1 13,400 0 13,400 8,723 528,502 13,400 27 2 8,400 0 21,800 15,275 555,069 8,400 28 3 8,400 0 30,200 22,361 582,608 29 4 8,400 0 38,600 30,027 611,041 30,027 30 5 8,400 25,000 54,500 19,837 621,898 25,000 31 6 8,400 -7,500 70,400 35,651 658,930 32 7 8,400 -7,500 86,300 52,500 696,999 33 8 11,611 -4,289 102,200 70,200 748,985 11,611 34 9 8,400 25,000 62,894 762,939 118,100 25,000 35 10 8,400 -7,500 134,000 81,683 802,695 36 11 8,400 -7,500 149,900 101,901 694,010 37 12 -4,289 11,611 165,800 123,086 746,822 11,611 38 13 8,400 25,000 181,700 119,413 763,517 25,000 39 14 8,400 -7,500 197,600 142,005 806,023 40 15 8,400 -7,500 213,500 165,939 849,378 41 16 11,611 -4,289 229,400 190,992 902,327 11,611 42 17 25,000 8,400 245,300 191,347 920,924 25,000 43 18 -7,500 8,400 261,200 218,086 965,171 44 19 7,500 8,400 277,100 246,283 1,010,153 45 20 -4,289 11,611 293,000 275,767 1,063,253 11,611 46 21 25,000 8,400 308,900 280,502 1,083,610 25,000 47 22 -7,500 8,400 324,800 311,838 1,129,793 48 23 -7,500 8,400 340,700 344,899 1,176,798 49 24 -4,289 11,611 356,600 379,563 1,230,617 11,611

50. Male, Age 25, Preferred Non-Smoker (For Illustrative Purposes Only) Cumulative Cash Outlay Net Death Benefit Age Year Premium Loan Amount Net Cash Value 50 25 8,400 25,000 372,500 390,021 1,253,010 25,000 51 26 8,400 -7,500 388,400 427,414 1,301,330 52 27 8,400 -7,500 404,300 466,841 1,350,733 53 28 11,611 -4,289 420,200 508,125 1,406,119 11,611 54 29 8,400 25,000 436,100 525,486 1,431,617 25,000 55 30 8,400 -7,500 452,000 570,031 1,483,464 56 31 8,400 -7,500 467,900 616,889 1,536,800 57 32 11,611 -4,289 483,800 665,932 1,595,542 11,611 58 33 8,400 25,000 499,700 691,412 1,625,588 25,000 59 34 8,400 -7,500 515,600 744,545 1,682,111 60 35 8,400 -7,500 531,500 800,445 1,740,256 61 36 11,611 -4,289 547,400 858,943 1,803,240 11,611 62 37 8,400 25,000 563,300 894,241 1,838,772 25,000 63 38 8,400 -7,500 579,200 957,463 1,901,427 64 39 8,400 -7,500 595,100 1,023,782 1,966,324 65 40 11,611 -4,289 611,000 1,093,069 2,035,886 11,611 66 41 8,400 25,000 626,900 1,139,615 2,078,999 25,000 67 42 8,400 -7,500 642,800 1,214,661 2,149,364 68 43 8,400 -7,500 658,700 1,293,453 2,222,047 69 44 11,611 -4,289 674,600 1,375,923 2,298,936 11,611 1,375,923 2,298,936 674,600 70 45 0 80,000 1,365,271 2,260,397 0 80,000 71 46 0 80,000 1,353,560 2,238,083 80,000 72 47 0 80,000 1,340,576 2,213,498 80,000 73 48 0 80,000 1,326,043 2,186,579 80,000

51. Male, Age 25, Preferred Non-Smoker (For Illustrative Purposes Only) Cumulative Cash Outlay Net Death Benefit Age Year Premium Loan Amount Net Cash Value Total Premiums Paid: $374,600 Total Car Payments Paid: $300,000 Cumulative Cash Outlay: $674,600 74 49 0 80,000 2,157,111 1,309,899 674,600 0 674,600 80,000 75 50 0 80,000 2,124,821 1,292,023 80,000 76 51 0 80,000 2,089,503 1,272,259 80,000 77 52 0 80,000 2,050,981 1,250,354 80,000 78 53 0 80,000 2,009,197 1,226,038 80,000 79 54 0 80,000 1,964,065 1,198,878 80,000 Total Car Loans: $250,000 ($25,000 x 10 Cars) Cash Value at Age 70: $1,375,923 Retirement Income to Age 90: $1,680,000 ($80,000 x 21 Years) Cash Value at Age 90: $605,959 Death Benefit at Age 90: $1,175,250 80 55 0 80,000 1,915,468 1,168,564 80,000 81 56 0 80,000 1,863,164 1,134,737 80,000 82 57 0 80,000 1,806,908 1,097,043 80,000 83 58 0 80,000 1,746,266 1,055,235 80,000 84 59 0 80,000 1,680,952 1,008,977 80,000 85 60 0 80,000 1,610,669 957,730 674,600 80,000 90 65 0 80,000 1,175,250 605,959 674,600 80,000 605,959 1,175,250 674,600 95 70 0 0 674,600 515,411 1,023,167 100 75 0 0 737,402 277,367 674,600 ALL INCOME TAX FREE!

52. OPTION 4: BE YOUR OWN BANK $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,250,000 $1,000.000 $ 750,000 $ 500,000 $ 250,000 IT’S YOUR CHOICE! Lease -$1,032,282 Finance -$1,498,794 Pay Cash -$1,366,575 4. INFINITE BANKER Cash Outlay $674,600 Total Retirement: $1,680,000 Insurance Benefit: $1,175,250 Total Benefit: $2,855,250 Plus the use of 10 cars for 40 years! Life Insurance Benefit At Age 90 Retirement Income For 21 Years

54. Lazy Money / Savings

55. Insurance Premiums / Deductibles

56. Tax- Refunds

57. Restructure Debt / Equity

58. Current Insurance Cash Value FUNDING YOUR FAMILY BANK With After-Tax Dollars

59. Would You Rather Pay Tax On The Seed… OrThe Harvest?

60. PayTax on the seed now… and get all the corn TAX FREE!!!

61. QuestionstoCONSIDER If you are age 50, on a scale of 1 – 10 (10 being the highest) where are you now with your financial security?

62. QuestionstoCONSIDER 2. What are you going to do in the next 15 years, that you haven’t done in the past 30 years, that is going to get you to a 10?

63. CAUTION: The Infinite Banking Concept is about building a solid financial foundation and a secure future. You’re not going to see those thrilling spikes, but you’re also not going to have those unpredictable, heart-stopping losses that inevitably follow. It is notfor everyone and is a long term strategy that requiresdisciplineand patience, but it will… SET YOU FREE!

64. TAKETHE NEXT STEP Review your Personal Situation. Create a Funding Strategy…we help with a Free Initial Analysis. Create your Personal Strategy. See if you Qualify. Open your Family Bank.

65. HERE IS YOUR CHANCE TO FREE YOURSELF FROM FINANCIAL PRISON! FAMILY?orBANK?

66. For Additional Education…

67. THANK YOUANY QUESTIONS?