FERS

Point to Federal Employee
Retirement System Page
(FERS)

(Make sure prospect is seated before you begin presentation)

FERS: Consist of three major components:
READ: FERS Annuity…
Mandatory Participation…
Thrift Savings Plan AKA TSP…
Let’s take a look at your FERS Annuity, the
1st component.

Turn to next page

How much is your annual salary?
How many years have you worked as a career employee?

Currently your check amount is at_______________________________

If you were retiring today would that be enough income for you?
(Wait for response).

Of course not, this is why mandatory social security participation
was added as a 2nd component

Turn to next page

Social Security Benefits are based on a “Pay as you go” system…

(Explain this briefly)
This is why there’s fear the funds will be depleted or reduced
unless congress passes a bill to increase social security taxes
drastically. This brings us to the 3rd component.

Point at next page

The Thrift Savings Plan AKA TSP

is a defined contribution plan which operates like a 401K. It comprises of INDIVIDUAL Funds with annual returns that has no guarantees.

This means you can still lose your money.

For example in 2008 (Point to diagram) people lost almost half their investments. Safest option is to invest within the 5% the government is willing to match. When adjusted to inflation “FERS, Social Security & TSP Are Just not Enough!”.

So currently this is what retirement looks like for Majority of Americans. They simply can’t afford to retire! To help solve this epidemic financial expert suggested current employees find areas of lost earnings or wasted monies that can be REDIRECTED  to help reverse the problem.

What is your F.I.N ?

Now do you know what your F.I.N is? 

Don’t worry, you are not alone, most people know their SSN and their PIN, but they don’t know what their FIN is.   

Your F.I.N is your Financial Independence Number – the amount of money you will need to have saved up by a certain age, so when you go to work because you want to and not because you have to.  Also known as retirement.  Most people don’t know what that number is, but that is why we are here to help you figure that out.

The formula for calculating your Fin is your current basic salary x 2 x number of years you ‘expect’ to live past retirement (ex 25) = your FIN.

That seems like a lot of money, what we do is EDUCATE employees on strategies to help their money grow.

3 Wealth Strategies

There are 3 Strategies that the wealthy use to accumulate their money,

…which you may already know, so this would be more of a refresher.

1^st Strategy is INTEREST or RATE of RETURN. 

Do you know how much interest you are getting on your saving, investments, and retirement?

Do you know the Rule of 72?  You are not alone…The rule of 72 states that if you take an interest rate and dived that number by 72, it will give you the amount of time it would take for your money to double for instance:

Explain CHART……….

You’ll find that people who put most of their money in the bank and get less than 1%…why do you think that is?

Most people know they need to do something to save money, but financial advisors don’t normally speak to people that earn under 100,000 and don’t have a lot of money to invest.  So those people then go to the bank or rely on their jobs to make the decisions about their retirement FOR  them..

Studies show that the average American thinks that in order to get a high rate of return they have to risk their money.  The  other reason is that  they simply don’t  know where to go to get more interest.

Now if you had your choice which interest rate would you rather have your money growing by?

Exactly.  Experts found that if people knew of a way to get more interest, they would…and we are here to show you how…

#2 Strategy is RISK MANAGEMENT – There are 3 ways your money can grow:

Explain CHART…

Fixed – Doesn’t grow much…pretty much stays the same

Variable – A lot of RISK,  Goes up and down with the market…has potential for great growth and tremendous losses….How are you with potentially losing your money?

Index – Your money is not IN  the market but it mirrors the markets growth, so it if the market does well, your savings does well.  If the market crashes or loses, your money is SAFE.  So this concept offers all the advantages of market growth but none of the risks of market losses.

Which strategy do you think would offer the greatest potential for growth?  And if you had a choice of how your money grew,   which would it be?  I am here today, to assist you in eliminating the RISK and chance of LOSS most people experience.

#3 Strategy is TAXATION

Explain Chart………

If you could have your money in one of these buckets, which would it be?  I am here to show you a way to eliminate Uncle Sam from taking a large chunk of your money

Do I have your permission to review what you currently have?

Chart

So would agree that you are putting most of your money in places that are not giving you the security, return, and tax advantage you told me you wanted?

If you don’t remember anything else I tell you, remember what I am about to show you…..

Explain the Benefits of the IUL – Circle Chart………

Most people, with your age, your number of years before retirement start their plan off at $250 per month.  It all depends if you want more money when you retire or less.

All we need is a few pieces of information to set up your plan for you….

Begin the application….