15 Minute Annuity Presentation

I want to introduce you to a unique strategy that gives you tremendous opportunity and absolute safety from market risk. It is a fantastic idea that offers safety and opportunity on the same dollar at the same time.

All of America knows where to find safety – CD’s, money markets and treasury bonds. All of America knows where to find opportunity – the stock market. However, very few know how to have safety and opportunity at the same time on the same dollar. Would you agree if we could accomplish this it would be very beneficial to your portfolio and lifestyle?

Let me describe how we do just that!


STEP ONE in this strategy is keeping your money absolutely safe. I’m going to use $100,000.00 for this example. We’re going to put your $100,000 nest egg outside the market, positioned into a high-quality bond portfolio. This bond portfolio is made up of government bonds and investment quality bonds. Let’s say that that this bond portfolio yields a return of 3% because it’s so secure we don’t make a big return. So, step one, we found a safe place to put your money.


STEP TWO. Now we’ve got to make you money. We’re going to take the 3% yield on the $100,000, which would be $3,000. We’re going to use this $3,000 to link to a market index of your choice, let’s say, the Standard & Poor’s 500.

Now, we have spent the $3,000; and in its place, we take a position in the index equal to the size of your principal. In this example, that would be $100,000. So, we are controlling a $100,000 portion of the index. If the market was to go up sufficiently to earn 10% on our $100,000 position, we would make $10,000.

The best part of this strategy is that all of this work is done on autopilot. On your anniversary date, we pull the $10,000 from the market automatically and put it over in the bond portfolio outside the market, where it becomes absolutely safe, along with your principal. After one year of this scenario, you would then have $110,000 in your bond portfolio. In year two, if we earn 3% on the $110,000, that would be $3,300. Again, we take the $3,300 to the market, we link to an index, let’s say the S&P 500 again, and now we will take a $110,000 position in the index in year two to represent not only your principal, but last year’s captured $10,000.

Let’s assume we make a 10% yield again on the $110,000; that would be $11,000. We pull the yield of $11,000 from the market, put it in the bond portfolio, and now you have $100,000 of principal, $10,000 from year one, and $11,000 from year two, for a total of $121,000.

Let’s say we again earn 3% on $121,000 in year three. We take the 3% to the market, and this time let’s say the index crashes on us and we lose the 3% yield. Your statement comes into your home at the end of that year on your anniversary date and how much do you have left? $121,000. You see, the $11,000 from year two can’t be lost because it’s not in the market; the $10,000 from year one cannot be lost because it also is not in the market, and the $100,000 of principal was never in the market. As soon as we capture growth, we pull it from the market and never return it. So, we are protecting both your principal and your growth. This is done every year on your anniversary date on autopilot for as long as you are in this strategy. Now your money is not only safe, it’s also earning you a return.


STEP THREE provides liquidity & access. The next question we might have is: What is the length of the opportunity, and how long is my commitment? As we mentioned earlier, we are typically buying high-quality bonds. We would like to get as good a yield as possible from these bonds. However, if we use too short a duration, we may end up having to sacrifice the quality of the bond to get a good yield. We will not buy junk bonds; so, we like to go with the highest quality bond and longer terms.

There’s a sweet spot in the bond curve yield at about 16 years; so, we back many of these strategies with long-term bonds in this range. If you were going to be stuck in this vehicle for 16 years, not only would you not be interested, but I wouldn’t be offering this strategy to you. The opportunity lasts for 16 years, but the liquidity allows you to take more annually than would be prudent. Let’s learn about the ways we have to access the liquidity in our account.

Before we start, let me ask you a question: If this strategy were 100% liquid for all 16 years, would you care that the bonds backing the strategy have a 16-year term? Of course your answer would be no. It wouldn’t mean anything to you because it would be fully liquid. Well, it isn’t 100% liquid 100% of the time, but it does have so much liquidity that if you take us up on all the liquidity that we have to offer, you are likely to run out of money before you run out of life. So, let’s talk about the ways that we have liquidity.

You can take out 10% of the account balance annually after just 1 year. So, if you withdrew the 10% in our example of $100,000, you would be pulling out $10,000. If you pulled out $10,000 a year for the next 10 years, you could go through everything that you invested in this strategy in the next 10 years.

So, I guess I need to ask you another question now: do you have a plan currently in place to spend 100% of your life savings in the next 10 years? Now I’m not proposing that you put it all here; but wherever it sits, do you have a plan to spend all of it in the next ten years? Of course, my clients always tell me, “No, that would be too fast to go through all of our money.”  Well, if you were to put all of your money with me in this strategy, you could potentially spend all of it in the next ten years.

Additionally, we can take out 50% in one day.  The liquidity charge associated with this withdrawal is 8%, but what I haven’t told you yet is that the company that offers this strategy will give you a 10% bonus the day you open your account. Use the bonus the company gave you to offset this 8% liquidity charge. In this scenario your account becomes 50% liquid in a single day and you still have 2% of the bonus the company gave you remaining. No one has ever taken me up on withdrawing half of their nest egg and spending it in a single day. I can’t think of what would cause you to need to do that; but it certainly is comforting to know that you could, should you ever need to.  Should you ever have an emergency that causes you to spend 50% of your life savings in one day, the problem is not the annuity, it’s the emergency.


STEP FOUR. In addition to this accessible liquidity, we also have a tremendous way to generate guaranteed returns for you. We have a feature that will guarantee you a 6.5% return every year. The cost is .85 basis points annually.  .85 basis points on $100,000 would be $850 as a result of the fee. That’s a pretty low fee to guarantee a 6.5% return on the $100,000, which would be $6,500. Think of it this way: we insure everything of value in life – our homes, cars, health and lives. Now you can insure your portfolio’s rate of return at 6.5% annually for .85 basis points.

This 6.5% is like a floor underneath the index, so you will never earn less than 6.5%.

The 100-year annual compounded return of the DJIA is 5.3% (1900-2000).

In addition, should you ever need help because of poor health after a doctor’s certification that you qualify, your income will be increased by 50% or 100% for up to 5 years, depending on when you choose the payout for just yourself or for your spouse to be eligible as well.

Show them the income printout of 6.5%.

Folks, as we mentioned when we first sat down, most know where to get their money safe and most know where to find opportunity. However, you now know where to find safety and opportunity on the same dollar at the same time.

This strategy will greatly benefit your portfolio and protect your standard of living for as long as you live.

I recommend that we start your recovery right now with the 10% bonus and a growth rate of 6.5% thereafter. Would you purchase what you own today if you didn’t already own it? Does it make sense to turn down a $50,000 payday?

I’ve just shown you how to control the volatile market using just your interest instead of owning it with your principal. What would you like me to do?