54 Freedom

Annuity and life insurance sales

Mission. 54Freedomâ€s business is providing financial freedom to 54 million people in America with disabilities and providing security, flexibility and certainty to 78 million Baby Boomers approaching -- or now enjoying -- their retirement years. When 54Freedom began operations in 2007, it was virtually impossible for people with disabilities to obtain life, and health coverage or purchase annuity products. 54Freedom changed this by working with major insurance companies to make available specially designed products to members of the disabled community. From this core business, 54Freedom expanded its offerings. 54Freedom designed its 54FreedomSM Gift Annuity to address the needs of people over 50 years of age, members of the so-called Baby Boomer generation and their parents. These demographic groups have assets which have appreciated over the last four decades and, in the current tax and economic environment, many are searching for ways to turn those assets into current income. The Boomer group is also one of the most politically active in US history and one for which causes of all kinds have been a lifetime interest. 54FreedomSM Gift Annuity Defined. 54Freedom developed a patent pending process for its proprietary 54FreedomSM Gift Annuity Product. 54Freedom designed its product to improve upon the “traditional” Charitable Gift Annuity. A traditional Charitable Gift Annuity (CGA) allows a donor to make a large donation to a Charity, and permits the Charity, in turn, to provide fixed income to the donor or his designee(s) over their remaining life or lives. The transaction has very favorable tax implications for the donor, as it permits the donor to offset significant capital gains tax with a tax deduction from a donation. Monies so contributed also reduce the donorâ€s taxable estate. With a traditional CGA, the contributed property, given irrevocably, becomes a part of the charity's assets, and the annuity payments to the donor are a general obligation of the charity. The proprietary 54FreedomSM Gift Annuity Product retains the tax benefits and security of income of a traditional Charitable Gift Annuity, but provides additional benefits to the donor. Key points of differentiation between 54FreedomSM Gift Annuity and traditional CGA offerings are in the 54FreedomSM Gift Annuityâ€s market flexibility, security, convenience, and accessibility. For example, the donor can direct the donation to multiple not-for-profits. This keeps the donor from being locked into any single Charity. Also, in a traditional CGA, if the beneficiary dies early, the annuity ends and all of the annuitantâ€s money goes directly to the Charity. The 54FreedomSM Gift Annuity, on the other hand, provides for return of any unused principal to the donorâ€s heirs or estate in the event of the donorâ€s premature death. Finally, with the 54FreedomSM Gift Annuity, the annuity promise is kept by a major life insurance carrier not a Charity. Industry-Changing Business Model. 54Freedom serves the needs of three groups who participate in this transaction: donors who (make tax deductible donations and receive lifetime income for themselves or their loved ones), planned giving professionals of small and medium sized charities (which may receive donations), and the nationâ€s life insurance agents and financial planners (who help to execute the transaction). The 54FreedomSM Gift Annuity Product is an industry-changing product, harnessing demographic and social trends by solving a major financial planning challenge for the Boomer Generation and their parents. Also, the 54FreedomSM Gift Annuity allies the independent financial professional with struggling small and medium sized charities, which, heretofore, have not been able to avail themselves of planned giving solutions. Market potential for the 54FreedomSM Gift Annuity Product is vast: US Census Bureau data shows Boomers†and their senior parents†combined net worth to be in excess of $58 trillion. The company distributes its proprietary 54FreedomSM Gift Annuity Product through our web site, www.54freedom.com ; through its insurance professionals†portal, www.54freedomsecurities.com ; through its call center in Miami, FL; and through wholesaling relationships with household name financial institutions serving customers nationally. Robust Per Transaction Revenues. 54Freedomâ€s average transaction is in excess of $100,000 and 54Freedom projects transaction volumes 1,000 over the next year through its own distribution and as many as 5,000 transactions through other partners over the next 12 months starting June, 2011.