Dave ramsey weak plan

Buy Term & Save the Difference Prepared for: Sample Client May 13, 2015

Prepared by: Mark Sessanta T. 9083192274 O. 610-419-1634 E. Msessanta@starkfinancialgroup.com

Buy Term & Save the Difference Prepared for Sample Client

Contribution

The values shown are hypothetical and intended for conceptual purposes only.

Financial Media and Entertainers are saying...

Your Present PositionTM PRESENT VALUE

You probably only need life insurance until you've accumulated enough assets.

COST BASIS

$0

$0

ANNUAL PAYMENTS (+/-)

$1,200

The Market is a good way to build wealth.

TIMING

Their message seems clear... "Buy term and save the difference!"

Permanent life insurance is too expensive.

Beginning of Year

YEARS

20

Contribution $24,000

$18,000

$12,000

$6,000

$0 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

This analysis is only valid in conjunction with your review and acceptance of the conditions of the Disclaimer page. The illustrations herein are based on the assumptions provided by you and/or your representative, are hypothetical, do not represent any specific investment or product, and are not a guarantee of future results. Actual results will vary. Any fees or commissions may reduce the outcome significantly. Please consult your tax/legal advisor regarding strategy.

Prepared by Mark Sessanta on May 13, 2015 | CONFIDENTIAL

Page 1 of 7

Buy Term & Save the Difference Prepared for Sample Client

Contribution > Growth

The values shown are hypothetical and intended for conceptual purposes only.

Fill in Rates of Return ORDINARY INCOME & SHORT TERM GAINS

Average Return vs. Net Return Average Return does not equal Net Return.

LONG TERM GAINS

60.00

10.00

DIVIDEND

TAX FREE

50.00

A 50% loss in year 1 and a 100% gain in year 2 equals a 25% average annual return but 0% is the net annualized return.

Market performance tends to be volatile.

0.00

CREDIT FOR LOSSES

Human emotions often cause us to buy high and sell low, making net return even lower.

HISTORICAL RATES

ASSET TYPE

STARTING YEAR

Large Cap

1995

Contribution

(+) Growth

$60,000

$45,000

$30,000

$15,000

$0 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

This analysis is only valid in conjunction with your review and acceptance of the conditions of the Disclaimer page. The illustrations herein are based on the assumptions provided by you and/or your representative, are hypothetical, do not represent any specific investment or product, and are not a guarantee of future results. Actual results will vary. Any fees or commissions may reduce the outcome significantly. Please consult your tax/legal advisor regarding strategy.

Prepared by Mark Sessanta on May 13, 2015 | CONFIDENTIAL

Page 2 of 7

Buy Term & Save the Difference Prepared for Sample Client

Contribution > Growth > Expenses

The values shown are hypothetical and intended for conceptual purposes only.

Initial Expenses

Expenses eat away at your return The first cost of this strategy is the purchase of term life insurance

ANNUAL TERM COSTS

$84

Net resources may be subjected to other costs

NET

DEATH BENEFIT

Sales charges or fixed annual costs could be required

TERM YEARS

$125,000

Professional management of your money may also be necessary

20

Expenses continue to reduce your actual net return as shown below

MISCELLANEOUS FEE

$0

NET

MANAGEMENT FEE

COST OF MONEY (COM%)

1.00%

0.00%

Contribution

(+) Growth

(-) Term Expenses

(-) Other Expenses

$60,000

$45,000

$30,000

$15,000

$0 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

This analysis is only valid in conjunction with your review and acceptance of the conditions of the Disclaimer page. The illustrations herein are based on the assumptions provided by you and/or your representative, are hypothetical, do not represent any specific investment or product, and are not a guarantee of future results. Actual results will vary. Any fees or commissions may reduce the outcome significantly. Please consult your tax/legal advisor regarding strategy.

Prepared by Mark Sessanta on May 13, 2015 | CONFIDENTIAL

Page 3 of 7

Buy Term & Save the Difference Prepared for Sample Client

Contribution > Growth > Expenses > Taxes

The values shown are hypothetical and intended for conceptual purposes only.

What Are Your Tax Rates?

Taxes continue to lower your net return Money at work is taxed just like people at work

ORDINARY INCOME & SHORT TERM GAINS

LONG TERM GAINS

30.00%

Different tax rates may be assessed for different kinds of returns

23.00%

Taxes may apply when you convert financial assets for personal use Income from or growth of some investments may be tax free

DIVIDEND TAX RATE

Term life insurance provides tax advantages only on death benefits

25.00%

This general information is not intended as tax or legal advice PAY TAXES FROM ACCOUNT

Contribution

(+) Growth

(-) Term Expenses

(-) Other Expenses

(-) Taxes

$60,000

$45,000

$30,000

$15,000

$0 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

This analysis is only valid in conjunction with your review and acceptance of the conditions of the Disclaimer page. The illustrations herein are based on the assumptions provided by you and/or your representative, are hypothetical, do not represent any specific investment or product, and are not a guarantee of future results. Actual results will vary. Any fees or commissions may reduce the outcome significantly. Please consult your tax/legal advisor regarding strategy.

Prepared by Mark Sessanta on May 13, 2015 | CONFIDENTIAL

Page 4 of 7

Buy Term & Save the Difference Prepared for Sample Client

Contribution > Growth > Expenses > Taxes − Results 1 of 1

The values shown are hypothetical and intended for conceptual purposes only.

AVERAGE RETURN

11.74%

NET RETURN

3.28%

DIFFERENTIAL

($59,519)

NET RESULT

$34,283

Year

Balance B.O.Y.

Rate of Return

Annual Payment

Annual Term

Total Fees

Annual Tax

Cumul. Lost Opp Cost

Balance E.O.Y.

[1] 1995

$0

37.58%

$1,200

($84)

($12)

($107)

$0

$1,417

[2] 1996

$1,417

22.96%

$1,200

($84)

($26)

($148)

$0

$2,940

[3] 1997

$2,940

33.36%

$1,200

($84)

($41)

($344)

$0

$5,024

[4] 1998

$5,024

28.58%

$1,200

($84)

($62)

($446)

$0

$7,387

[5] 1999

$7,387

21.04%

$1,200

($84)

($86)

($455)

$0

$9,751

[6] 2000

$9,751

(9.10%)

$1,200

($84)

($110)

$0

$0

$9,769

[7] 2001

$9,769

(11.89%)

$1,200

($84)

($110)

$0

$0

$9,481

[8] 2002

$9,481

(22.10%)

$1,200

($84)

($107)

$0

$0

$8,148

[9] 2003

$8,148

28.68%

$1,200

($84)

($93)

($675)

$0

$11,152

[10] 2004

$11,152

10.88%

$1,200

($84)

($124)

($339)

$0

$13,140

[11] 2005

$13,140

4.91%

$1,200

($84)

($143)

($178)

$0

$14,635

[12] 2006

$14,635

15.79%

$1,200

($84)

($158)

($632)

$0

$17,448

[13] 2007

$17,448

5.49%

$1,200

($84)

($186)

($259)

$0

$19,137

[14] 2008

$19,137

(37.00%)

$1,200

($84)

($203)

$0

$0

$12,556

[15] 2009

$12,556

26.46%

$1,200

($84)

($138)

($919)

$0

$16,233

[16] 2010

$16,233

15.06%

$1,200

($84)

($174)

($664)

$0

$19,123

[17] 2011

$19,123

2.11%

$1,200

($84)

($203)

($109)

$0

$20,354

[18] 2012

$20,354

16.00%

$1,200

($84)

($216)

($873)

$0

$23,817

[19] 2013

$23,817

32.39%

$1,200

($84)

($250)

($2,053)

$0

$30,706

[20] 2014

$30,706

13.69%

$1,200

($84)

($319)

($1,107)

$0

$34,752

Deferred Taxes

($470)

($2,762)

($9,777)

$0

$34,283

Totals

$24,000

($1,680)

This analysis is only valid in conjunction with your review and acceptance of the conditions of the Disclaimer page. The illustrations herein are based on the assumptions provided by you and/or your representative, are hypothetical, do not represent any specific investment or product, and are not a guarantee of future results. Actual results will vary. Any fees or commissions may reduce the outcome significantly. Please consult your tax/legal advisor regarding strategy.

Prepared by Mark Sessanta on May 13, 2015 | CONFIDENTIAL

Page 5 of 7

Buy Term & Save the Difference Prepared for Sample Client

Contribution > Growth > Expenses > Taxes > Takeaway

The values shown are hypothetical and intended for conceptual purposes only.

Keep the big picture in mind It's easy to reach an incorrect conclusion when we don't consider all the factors of a situation. Those who recommend this strategy too often ignore expenses and opportunity costs. Questions to ask before "buying term and saving the difference" : Have I factored in all expenses, taxes, and opportunity costs?

What are the risks related to my desired financial results?

When I am older, would I want to own permanent life insurance?

Would I abandon the strategy when I experience adverse results?

When I consider the big picture, is it the winning strategy I thought it was?

Net Return

Average Return

$100,000

$75,000

$50,000

$25,000

$0 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

This analysis is only valid in conjunction with your review and acceptance of the conditions of the Disclaimer page. The illustrations herein are based on the assumptions provided by you and/or your representative, are hypothetical, do not represent any specific investment or product, and are not a guarantee of future results. Actual results will vary. Any fees or commissions may reduce the outcome significantly. Please consult your tax/legal advisor regarding strategy.

Prepared by Mark Sessanta on May 13, 2015 | CONFIDENTIAL

Page 6 of 7

Buy Term & Save the Difference Prepared for Sample Client

Disclaimer Leap Systems, LLC, its affiliates, licensees, associates or any of the insurance or financial companies represented by the independent user of any of Leap's software systems or any derivation thereof, do not warrant or guarantee any results generated by the software. The purpose of the system is to provide a macroeconomic perspective and provide information you may find useful in making financial decisions. In doing so, you may be presented with concepts and scenarios based upon varying economic conditions. These scenarios, whether generated by Leap presentations, calculators, or depicted manually on printed materials, are intended for educational purposes only; accuracy is not guaranteed.

USE OF LEAP IS NOT INTENDED TO PROVIDE A FINANCIAL PLAN. It is assumed that financial conditions will continue to change. Knowing this, any scenario created by Leap, at any point in time, is understood to be hypothetical rather than a guarantee of results.

USE OF LEAP IS NOT INTENDED TO PROVIDE TAX OR LEGAL ADVICE. You should constantly review your financial situation with your financial representatives, tax advisors, and legal advisors, in order to stay up-to-date with current laws, economic conditions, and personal circumstances.

The Client provides or affirms the initial information and assumptions that are used to create Present Position illustrations and calculations. It's important to understand that any changes to this data will produce different results. Leap Systems, LLC assumes no liability for the use or misuse of Leap or any other component thereof, nor any liability for printed materials or presentations created by independent users of Leap. Leap Systems, LLC is not a party to any agreement made between any client and any independent user of Leap.

No warranty or assurance of success is made by Leap Systems, LLC or by the duly licensed user of Leap. No one is authorized to make such a representation on behalf of Leap Systems, LLC.

Clients accept full responsibility for their own financial decisions and the consequences thereof. All persons are encouraged to seek necessary legal, accounting, insurance, and financial advice only from individuals or firms who are duly licensed and certified under applicable state, provincial, and federal laws and regulations.

No decision to purchase any insurance product should be made without a careful review of complete illustration proposals which must include applicable "Guaranteed Rates and Values," or the equivalent thereof.

INSURANCE POLICY DIVIDENDS, IF ILLUSTRATED, ARE NOT GUARANTEED. If life insurance is presented in the Leap Model™, any such depiction serves as a Life Insurance Supplemental Illustration, and the input and output figures are not guaranteed. You should refer to Basic Illustration(s) for guaranteed elements and other important information concerning any life insurance.

LEAP MAY NOT BE USED BY ANY USER OF THE SYSTEM IN THE DIRECT SOLICITATION OF ANY SECURITIES TRANSACTION. No decision to purchase any financial product or investment should be made without a careful review of any applicable Prospectus and any available explanatory brochures. Any rates of return used in illustrated scenarios or calculations are not guaranteed. These representations are intended for hypothetical purposes only. Neither past performance nor historical data should be relied upon as an indication of future results. Leap Systems, LLC does not warrant or guarantee the performance of any specific insurance product, investment, recommendation, or proposal by any third party.

No information provided by Leap, whether viewed on a computer screen or in printed form, is intended as tax or legal advice, and may not be relied on for purposes of avoiding any federal tax or penalties.

The undersigned Clients are encouraged to seek advice from their own tax advisors and legal counsel.

Users of Leap or any associated products and/or services thereof are independent practitioners and are not acting as agents, employees, or representatives of Leap Systems, LLC.

This analysis is only valid in conjunction with your review and acceptance of the conditions of the Disclaimer page. The illustrations herein are based on the assumptions provided by you and/or your representative, are hypothetical, do not represent any specific investment or product, and are not a guarantee of future results. Actual results will vary. Any fees or commissions may reduce the outcome significantly. Please consult your tax/legal advisor regarding strategy.

Prepared by Mark Sessanta on May 13, 2015 | CONFIDENTIAL

Page 7 of 7