Building A Financial Foundation

BUILDING A FINANCIAL FOUNDATION v �

UILDINGA FINANCIAL FOUNDATION

b UILDINGA FINANCIAL FOUNDATION

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There is a

Big Difference Between

BUILDING A FINANCIAL FOUNDATIONand

GET-RICH-QUICK SCHEMES.

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BUILDING A FINANCIAL FOUNDATION

GET-RICH-QUICK SCHEMES.


you can builda proper financial foundation

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the wealthformula

the x-curve concept ofwealth & responsibility

You must take care of yourresponsibilities while building

your wealth.

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*This is a concept/goal developed by World Financial Group (WFG) for illustrative purposes only. In no way does this statement offer, guarantee, or otherwise imply any financial gain or reward as a result of joining WFG. The term “wealth” is subjective and must be defined on an individual basis.

*

You can builda successful

financial future!

the wealthformula


save early

small changes,big money

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STMR. START EARLY saves $3,600 per year for 7 years in an 8% tax deferred account.MR. WAIT LONGER starts saving $3,600 per year for 17 years in an 8% tax deferred account, 7 years later than Mr. Start Early.


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KS the power of compounding interest

The Rule of 72, as a mathematical concept, approximates the number of years it would take to double the principal at a constant rate of return. However, the performance of investments fluctuates so the actual time it takes an investment to double cannot be predicted with any certainty, and there is no guarantee that an investment or savings program can outpace inflation.

All figures in the above chart are for illustrative purposes only and do not reflect an actual investment in any product. Additionally, they do not reflect the performance risk, expenses or charges associated with an actual investment. Past performance is not an indication of future results.


UND

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THE COST OF LIVING IN 1978*

Average Income Per Year: $17,000 Average Cost of a New House: $54, 800 Average Rent: $260 Cost of a Gallon of Gas: 63 cents Dozen Eggs: 48 cents Average Cost for a Chevrolet Nova: $3,823 *www.thepeoplehistory.com/1978

Are youwinning or losing

in the money game?

You Lose! You must get about 5% or morein interest to beat taxes and inflation.

the effect of taxes and inflationon your purchasing power:

Assumes 25% tax bracket. The rates of return chosen are for illustrative purposes only, and do not reflect the actual investment in any product. Nor should it be viewed as an indication of performance for any particular investment. They do not reflect the performance risks, expenses or charges associated with any actual investment. Tax and/or legal advice not offered by World Financial Group or any of its affiliated companies. Please consult with your personal tax professional or legal advisor for further guidance on tax or legal matters.

EXAMPLE 1: If you save.................... $100.00 at 3% Interest.............. + 3.00 Pay Tax at 25%............ - .75 (Combined Fed & State)........ _________

Net After Tax................ $102.25 Inflation at 3.5%.......... - 3.50 Actual Return............... $ 98.75 (After Tax & Inflation)

EXAMPLE 2: If you save.................... $100.00 at 5% Interest.............. + 5.00 Pay Tax at 25%............ - 1.25 (Combined Fed & State)........ _________

Net After Tax............... $103.75 Inflation at 3.5%.......... - 3.50 Actual Return After.... $100.25 (After Tax & Inflation)


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This is a hypothetical example for illustrative purposes only and does not reflect the actual investment in any product. Therefore, the outcome does not reflect risks, expenses or charges associated with any actual invesment. Past performance is not an indication of future performance. Actual results may vary substantially from the figures in the example. All rates of return are hypothetical and are not a guarantee of future performance of any asset, including insurance or other financial products. Higher rates of return have been associated with higher volatility.

scenario 1:

scenario 2:


It’s your ability to generate income!

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protectyour family

tHE diME MEtHOd

how to calculateyour protection need

what is your family’smost important asset?

the odds of lifebefore age 65*

*www.guardiandibrokerage.com

The DIME Method is only one method to help determine a client’s insurable need. However, an insurable need of morethan 10 times the client’s current income may not be accepted by WGS unless special exceptions apply.

Combined credit cards, loans,and other debts.

BUILDING A FINANCIAL FOUNDATION v �0

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financial foundation

manage your debt create anemergency fundYou should set aside 3-6 monthsincome to help cope with emergenciesand unexpected changes:

*Making Sense of Your Money, 2007

Scenario 1Pay Minimum(2.5% per month): $112.50Time Pay: Over 25 yearsTotal Interest Paid: Over $6,000

Scenario 2Pay a Little Morethan Minimum: $145/monthTime Pay: Less than 4 yearsTotal Interest Paid: About $1,600

Like building a house,you must build itfrom the ground up.Build it right.Build it strong.

BUILDING A FINANCIAL FOUNDATION v ��

GROW

PROTECTION

SAFE

TAX ADVANTAGES

GET

STA

RTE

D N

Ow managed growth

Build it with confidence.Tax and/or legal advice not offered by World Financial Group, Inc., World Group Securities, Inc. or their affiliated companies.

Please consult with your personal tax professional or legal advisor for further guidance on tax or legal matters.

Can it potentially GROWto achieve your goal?

Is it SAFE enough?

Does it have TAX ADVANTAGES?

Does it have the properPROTECTION for your family?

BUILDING A FINANCIAL FOUNDATION v ��

World System Builders is a team of individual World Financial Group associates working toward the common goalof building a better financial services industry, while helping their clients reach their financial goals.

U.S.: World Financial Group, Inc. (WFG) is a financial services marketing company whose affiliates offer life insurance and a broad array of financial products and services.

Insurance products are offered through World Financial Group Insurance Agency, Inc. (WFGIA) or its subsidiaries. WFG and WFGIA are affiliated companies.Headquarters: 11315 Johns Creek Parkway, Duluth, GA 30097-1517, PO Box 100035, Duluth, GA 30096-9403. Phone: 770.453.9300. WorldFinancialGroup.com

Canada: World Financial Group Insurance Agency of Canada Inc. offers life insurance and SEG funds. Mutual funds, and Scholarship Plans in Ontario and Quebec, are offered through WFG Securities of Canada Inc.

Headquarters: 3700 Steeles Avenue W., Suite 400, Vaughan, ONL4L 8M9. Phone: 905.265.9005. Fax: 905.265.9044.World Financial Group Insurance Agency of Canada Inc. and WFG Securities of Canada Inc. are members of the World Financial Group family of companies.

World Financial Group and the World Financial Group logo are registered trademarks of AEGON Asset Management Services, Inc. Used with permission.

Education

Building A Financial Foundation