| CAMS Long Term Plan GROWTH CONCEPT | | | |
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| SELECT TO VIEW: | |
| EQUITY INDEX FIXED ANNUITY AND A SEPARATE OPTIONS ACCOUNT | | | |
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| Initial Capital: | 100,000 | | 10% Options Page | |
| Annuity | | Options | |
| Allocation: | 90,000 | | 10,000 | | 50% Options Page | |
| | | (See Note 3. Below) | |
| Initial 10% Bonus: | 9,000 | | None | | Projected Option Growth Pattern | |
| | | 1st 12 Mos. | | 2nd 12 Mos. | |
| Starting Balances: | 99,000 | | | 10,000 | | 10,600 | | 21,329 | EXPLANATION: | |
| End of Yr | | | | 11,236 | | 22,609 | In the Projected Option |
| 1 | | 104,940 | | 20,122 | | 11,910 | | 23,966 | Growth Pattern columns |
| 2 | | 111,236 | | 40,489 | | 12,625 | | 25,404 | the numbers show the |
| 3 | | 117,911 | | 81,473 | | 13,382 | | 26,928 | monthly results of the |
| 4 | | 124,985 | | 163,939 | | 14,185 | | 28,543 | option trading happening |
| 5 | | 132,484 | | 329,877 | | 15,036 | | 30,256 | exactly at the stated | |
| 6 | | 140,433 | | 663,777 | | 15,938 | | 32,071 | growth rate under Note 3. |
| 7 | | 148,859 | | 1,335,650 | | 16,895 | | 33,996 | | | |
| 8 | | 157,791 | | 2,687,590 | | 17,908 | | 36,035 | The other two columns |
| 9 | | 167,258 | | 5,407,960 | | 18,983 | | 38,197 | are running annual totals. |
| 10 | | 177,294 | | 10,881,877 | | 20,122 | | 40,489 | |
| | Growth Multiple: | 2.01 | | 2.01 | |
| Notes: | | | |
| 1. Assumed Growth Rate of Annuity: | 6% | | |
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| 2. Option money is in a separate brokerage account where | |
| 20% | of the account balance purchases PUT or CALL OPTIONS each month. | |
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| 3. Option growth assumes a | 30% | profit on each monthly option trade. | |
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| 4. Income tax is deferred until withdrawal in an annuity. | |
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| 5. Capital Gains Income tax (currently 15%) is payable annually from option trading. | |
| (But remember, paying taxes means you made some money.) | |
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| 6. The entire investment can be lost when purchasing options. | |
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| Date of this printout: | 12/01/07 | |
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| N.B. | Are the Option Growth Projections realistic? In my experience, it is not uncommon at all | |
| for options that I have chosen to increase in value by 50% over the course of a few days, not | |
| to mention over the course of 30 days. So suggesting that an option that costs $2,000 may | |
| go to $3,000 in a short time is not unrealistic at all, to me. There are no guarantees, but | |
| a 50% gain is not uncommon. The trick is to avoid getting greedy by "protecting" the trade, | |
| once it hits the target value. You'll just have to trust me to do that consistently. | |
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