Welcome to WealthWave—The HowMoneyWorks Company. My name is _______________ and today we’re going to discuss The Wealth Crisis and how you can take control of your financial future—and help people everywhere do the same. The labels over the house tops in this title image offer a glimpse of how the crisis affects families in communities all over our nation—they’re overspending, they’re not saving, they’re suffering from big losses in the market and the impact of taxes, they’re buckling under the weight of high debt, they’re unable to retire or they’re running out of money in retirement, and regardless of how much they earned in their life—they’re going broke. During the next few minutes, I’m going go share two things: 1. How we help our clients navigate today’s financial threats with world-class education and powerful strategies - 2. How we build exciting careers and what WW might look like for you.

[Briefly tell your story here—why you partnered with WealthWave—what it means to now know how money works and what it means to be a leader with our organization building your business, leading your team, and serving clients.] --- …Maybe you love your job and are making great money, but let me ask you—are you locked into that job for the rest of your career or do you keep your options open? If you keep your options open, I think you might like what you’re about to see. The heart of it is about giving people more control— control of their income, their time, their career, and what their future could look like. With your current job, how much control do you have over your time and income? Do you see a bright future filled with growth, ownership, and freedom? What would your career or business look like if you DID have control over it? How many days a week would you work? What kind of income would you earn? Would it be residual or would you have to work 60 hours a week to maintain it? Stay with me because I’m about to show you a proven path that can give you control over these realities.

Since real financial education is not being taught in schools, we looked elsewhere—in fact, we searched everywhere for an education system that was simple, engaging, and life-changing. We came up empty-handed… so we created our own! It starts with our book—“How Money Works, Stop Being a Sucker,” written by Tom Mathews and Steve Siebold. Great guys who’ve been on a bunch of major TV shows—ABC, NBC, CBS, Fox, CNBC, and others. The book is simple, illustrated, and an easy read. It’s not written for economists and scholars. It’s written for the rest of us—people who need a straightforward guide to take control of their personal finances. If you spend an hour reviewing it, you’ll likely know more about how money works than most people in America, and you’ll never look at money the same way again.

Here’s a hypothetical with the character Zoey from the book. It shows how the Rule 72 can be applied practically. She’s 19 and she just received a $10,000 inheritance. If she wants it to grow to $1 million by the retirement age of 67—48 years away—what interest rate does she need on her money? Look at the chart on the right—1% gives her less than 1 double, getting her to just $16,000. 3% gives her 2 doubles, still not enough. 6% gives her 4 doubles—not enough. Even 9%, which will double her money 6 times, only gets her to $640,000—still $360,000 shy of her goal. She’ll need more than a 9% interest rate to reach $1 million by retirement. Seeing this visually, do you think Zoey would intentionally put her $10,000 in an account that earns 1%, 2%, or even a 3% return? No way! She’s going to look for the biggest interest rate she can get, knowing what her decision could cost her. That’s the power of the Rule of 72 and the importance of understanding financial concepts. The Rule of 72 is a cornerstone of our education, as is teaching people about the Time Value of Money…

By the way, how much of a pay cut do you want to take when YOU retire? Experts say we’ll need about 80% of our peak income to live comfortably. Let’s imagine someone caps out at $100,000—they would need around $80,000 to live on annually in retirement. How will they get to that amount? Let’s say Social Security pays you $40,000. The average 60-69 year old has around $200,000 in their 401(k).* A 5% income from that would give you $10,000 of income which gets you to just $50,000 per year—less than twothirds of what you’d need. Where will you come up with the other $30,000 per year—and what happens when your 401(k) runs out? Regardless of your situation, these are big questions that we can help you tackle at WealthWave. Think of it like this: If your retirement was a plane, it’d be like trying to take off with only one wing. Or worse, can you imagine being on a plane in mid flight at 30,000 feet, you look out the window see a wing break off? Running out of money in the middle of retirement could create that same level of panic—and millions of Americans are facing that harsh reality. - - * “The Average 401(k) Balance by Age,” NerdWallet, Sep 2020

There are three ways your money can be taxed. TAXED NOW, like with a CD. TAXED LATER, like with a 401(k) or regular IRA. Or positioned so the earnings and income are NEVER TAXED. Which would you prefer? Think of it this way. Imagine you’re a farmer. Would you want to be taxed on a couple of bags of seed or the entire harvest you grow from those seeds? Remember Zoey? At 9%, her inheritance of $10,000 grew to $640,000. Then let’s say she retires and uses 5% of the $640,000 each year for income. That would be $32,000 per year. If she lives 31 years in retirement that could potentially add up to $1 million in income. So would you rather pay taxes on the initial $10,000 deposit or on the $1.6 million of potential growth and income? That’s an easy decision, right? When it comes to how we’re taxed, it’s essential that we think ahead and then create a TAX NEVER strategy. Do you have one of these in your portfolio?

Alright, so now I’m going to take a minute and share the two most popular strategies we use to help our clients put the other wing on their retirement plane—and make sure it stays on for the rest of their lives. The first one has a very specific and advantageous set of features and fits in the TAXED NEVER category. We call it the “Tax-Never Income Strategy” or “TenNIS” for short. With this strategy, your money has the potential to grow when the market is up but is shielded from when it drops. That’s right. In other words, you participate in GAINS with ZERO DOWNSIDE RISK. Your money grows TAXFREE and can be withdrawn and used as TAX-FREE income. It also provides creditor protection in some states. It’s also a way to leave a TAX-FREE legacy for your family. Many who learn about our TenNIS strategy see it as a cornerstone of their financial roadmap.

The Wealth Crisis

Robert A. Davis

m: 225 413-2356

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