Entaire Programs Overview Jack Gary Alspaugh

Gary Insurance Group

jga@GaryInsuranceGroup.com

480-443-3249

• Who Entaire Programs are for: • Business Owners

• What the Programs are: • Financed Planning™

• How the Programs work:• Overview of the Programs

• Case Study:• Paul Smith

Financed Planning™ is a trademark of Entaire Global Intellectual Property, Inc.

Today’s Agenda

Who Entaire Programs are for:

Business Owners

• 47% of Business Owners surveyed

indicated that they do not believe that they

are financially prepared for their retirement1

• 68% of Business Owners believe that they

will live below their current lifestyle when

they retire2

1 Harris Interactive on behalf of Sharebuilder 401(k)

2 LIMRA, 2006

So, what’s the challenge?

The Business Owners’ Challenge

Startup

Growth

Expansion

Maturity

Limited

Excess

Money

Excess

Money

Reinvested

Excess

Funds

Available

Cashing

Out

Phase

Phases of the Entrepreneurial Business

Government Mandated Restrictions

Retirement Health

The Entrepreneur’s Dilemma: Restrictions

Programs:

• designed solely for you, the Business Owner,

• that allow for large sums of money to grow

tax deferred,

• that are tax efficient and cost effective,

• that use your business checkbook, and

• that will create less risk and more stability in

your portfolio

The Answer

What the Programs are:

Financed Planning™

Note:

Hypothetical results for illustrative purposes only and not a representation of past

or future results.

$500K

0 Years

$500K

10 Years

$500K

20 Years

$500K

30 Years

$500K$1M

$2M

$4M

The Rule of 72

How long does money take to double?

Divide 72 by the assumed rate, the result is

the number of years until a sum doubles.

Assumptions: Net Book Value of Business - $500K

Rule of 72

Interest Rate – 7.2%

Note:

A hypothetical crediting rate of 7%. Represents approximations and should not be relied upon as tax or investment

advice. The performance of financial products fluctuate over time. The actual time to achieve any result cannot be

predicted with certainty.

Choice 3 - $500,000 only once X Today = $500,000

Choice 2 - $ 50,000 per year X 10 years = $500,000

Choice 1 - $ 16,667 per year X 30 years = $500,000

Accelerated Funding

$2,860,393$50,000

$3,808,127$500,000

$1,684,584$16,667

Today 30 Years

Compressed Time Frame Concept

Compounding with Real Estate

Asset Value = $500,000

$500k Mortgage7%

Interest-Only

$35,000 annual cost

7%average annual growth

over 20 years

$500k Mortgage

Asset Value = $1,934,842

$1,434,842 gross gain - $700,000 interest cost = $734,842 Net Gain

Point A Point B

Note:

This is a hypothetical example, not indicative of actual results. Actual results will vary.

• Allows client to participate in market upside

• No downside risk to principal and prior period

earnings

$1,000,000

Annual

Crediting

8%

$1,080,000

Market Down Turn

- 8%$993,660

Annual

Crediting

5%Annual Crediting

0%

$1,134,000

Needed to

Catch Up

14.12%

The Stability of Equity Indexed Products

Keep in mind…

If you received the 5% as shown in this example on the $993,660, you would

have a total of $1,043,343. That is a $90,657 difference because of the

guaranteed floor.

How the Programs Work:

An Overview

Program Overview

Your Business

Global One Financial

Commercial Loan

Step 1

Product Funding

Universal Life

and/or

Annuity

Products

Step 3

Transfer Method

Your Business

Step 2

You

Application

Recent Cases

• Furniture $200,000

• Dentist $600,000

• Doctor $2,400,000

• Nuts & Bolts $1,000,000

Industry Case Size

Case Study: ABC Company

Case Study – ABC Company

• Paul Smith, Small Business owner

• 25 Years in Business

• Desired Retirement Age – 63

Summary – Paul Smith

• Current Age: 50

• Years Until Retirement: 13

• Desired Annual Income: $115,000

• Number of Payout Years: 25

• Personal Tax Bracket: 35%

Paul needs a lump sum of at least $1,340,162 at

retirement to support an income of $115,000 per

year for 25 years.

Solution – Paul Smith

ABC Company implements a Financed Planning™ program in the

amount of $600,000.

The $600,000 is placed into an Equity Indexed Annuity, owned by

Paul Smith (assumed annual tax deferred earnings of 7%).

ABC Company makes interest payments of approximately

$40,500 annually (assumed interest rate of 6.75%).

After 13 years, Paul’s annuity value will have grown to $1,445,907,

which gives Paul an income in the amount of $115,957 per year for

25 years.

(This example assumes that the loan is repaid at retirement using assets that are not part of the program’s

financed product - preferably assets with the then-current lowest yielding performance.)

Equivalent Yield – Paul Smith

ABC Company makes interest payments for the Entaire Program

of approximately $40,500 annually.

If the company were to distribute this amount to Paul directly, he

would have to pay income tax at 35%, leaving him with $26,325 per

year to invest.

Paul’s investment of $26,325 per year for 13 years would have to

earn an annual rate of return of 19.26% in order to provide the

same annual income of $115,957 for 25 years.

• Provides alternative to traditional retirement plans

• Allows catching up on retirement planning

• Activates dormant assets

• Provides asset protection opportunities

Entaire Programs Provide Value

Individual Level

The product is owned by the individual, not the

corporation. If the corporation is sued, this is not

its asset.

Corporate Level

In order to make a loan with no personal

guarantee, we lend directly to the corporation and

place a lien on certain corporate assets. This may

limit the attractiveness for a potential law suit.

Product Level

This level depends on the state you sell in. State law

defines the level of protection regarding cash value

and policy attachment by creditors.

Program Structure – Asset Protection

Q & A

For more information contact

Agent Name

Agent Phone Number

Agent E-mail @ .com

The Next Step