How to help protect your assets in today s uncertain times
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How to Help Protect Your Assets in Today’s Uncertain Times. Protecting Your Assets. You’ve spent a lifetime accumulating your assets You want to help protect your assets from risk, liabilities, and taxes, while you’re alive and at your death…

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How to help protect your assets in today s uncertain times
How to Help Protect Your Assets in Today’s Uncertain Times


Protecting your assets
Protecting Your Assets

  • You’ve spent a lifetime accumulating your assets

  • You want to help protect your assets from risk, liabilities, and taxes, while you’re alive and at your death…

  • If you don’t plan to protect your assets someone else will plan to take them!

Source: Life Expectancy Tables from www.efmoody.com/estate/lifeexpectancy


How important is it to you to protect your assets in today s uncertain times
How Important isit to YOUto Protect Your Assets in Today’s Uncertain Times?


Three common fears and concerns
Three Common Fears and Concerns:

  • Outliving your money and not being able to provide for yourself

  • Becoming a financial burden to your children

  • At your death, making sure your assets get to your heirs as easily as possible

    Do you have these fears and concerns when it comes to your current assets?


Annuities can help you protect against these common fears and concerns
Annuities Can Help YOU Protect Against These Common Fears and Concerns

Three Types of Annuities:

  • Variable

  • Fixed

  • Indexed


Variable annuities
Variable Annuities and Concerns

  • No guarantee of principal or interest

  • Tied to market values which may fluctuate daily

  • There are many costs associated with variable annuities not found in fixed annuities (management cost, advertising costs, and sales expenses)


Fixed annuities
Fixed Annuities and Concerns

  • All of your money goes to work for you

  • Compared to variable annuities, there is little investment risk to the owner

  • No direct downside market risk

  • Allows you to enjoy a potentially higher rate of return

Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values.


Fixed annuities1
Fixed Annuities and Concerns

  • Give you the ability to create a guaranteed monthly income you cannot outlive

  • No other financial product provides the tax advantages and guarantees like fixed annuities

Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. It’s important to know that qualified plans, 401(k)s and IRAs are already tax-deferred. Therefore, an annuity contract should be used to fund an IRA in order to benefit from annuity features other than tax deferral, such as the lifetime income options and guaranteed death benefit payout options.


Choosing the right accumulation vehicle for retirement can b e difficult
Choosing the Right Accumulation Vehicle for Retirement Can and ConcernsBe Difficult…

  • On one hand, you want the safety and guarantee of principal and past earnings

  • On the other hand, mostpeople prefer the potential of higher returns by being linked to the market, a return that a fixed rate investment cannot offer

In the past, Retirement Savers had to make a decision on which hand to choose from.


That was then this is now
…That was then, this is NOW! and Concerns

NOW with an INDEXED ANNUITY,

you can have the best of both worlds!

  • Guarantee of principal with a minimum interest rate guarantee

  • Avoid direct downside market risk, while still participating in a portion of market index-linked returns

  • Protected growth and diversification

Principal is only guaranteed if no withdrawals in excess of the contract's free amount are taken during the withdrawal charge period. Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments. Clients who purchase indexed annuities are not directly investing in a stock market index.


Outliving retirement income
Outliving Retirement Income and Concerns

“I want two GUARANTEES for my retirement income”

  • My monthly income checks STAY THE SAME every month, never decreasing when interest rates decline.

  • My monthly income checks must keep coming to me no matter how long I live.

A married couple age 65 has a 45% chance that one spouse will live to age 95


Annuities guarantee
Annuities Guarantee: and Concerns

  • Monthly income checks will be the same every month

  • Your income will never decrease even when interest rates decline

  • With a life income option, your money will never run out

Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.


Easy accessibility
Easy Accessibility and Concerns

PROBLEM:

  • Most financial products charge penalties for withdrawals on the entire account balance.

    A SOLUTION:

  • Annuities have guaranteed, penalty-free withdrawal options that allow you to access a portion of your money without paying any company penalties or charges

  • In the event you are confined to a nursing home, you may have access to a larger portion of your money, penalty-free

Principal is only guaranteed if no withdrawals in excess of the contract's free amount are taken during the withdrawal charge period. Taxable amounts withdrawn prior to age 59½ may be subject to a 10% IRS penalty in addition to ordinary income tax. Withdrawals are not credited with index interest for that term. Withdrawals in excess of the free amount are subject to withdrawal charges and a market value adjustment.


Annuities can offer protection from
Annuities Can Offer Protection From… and Concerns

  • Creditors

  • Bankruptcy

  • Liens

Helps protect your

lifetime savings


Taxation
Taxation and Concerns

  • Federal Income Tax Paid on:

    • Bond funds (except special tax-free bonds)

    • CD’s

    • Corporate bonds

    • Dividends on stock

    • Mutual funds

    • Stocks

    • T-Bills

ALL are taxed each year even if you don’t spend the income.

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.


Social security benefits may be taxable
Social Security Benefits May Be Taxable and Concerns

INCOME THRESHOLD*

% Social

Security

Income

that may

be taxable

*This calculation includes TAX FREE income

Source: http://www.socialsecurity.gov/planners/taxes.htm


Tax benefits of annuities
Tax Benefits of Annuities and Concerns

  • Interest credited to your annuity account is tax deferred

  • You will not pay taxes on your annuity interest income until you take it out

  • Less taxes paid means more of your Social Security income coming to you

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.


Tax deferral means the potential for compounding interest
Tax Deferral Means the Potential for Compounding Interest and Concerns

  • Interest on principal

  • Interest on interest (compounded)

  • Interest on deferred taxes (money that would have been paid for taxes)

You receive:

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.


Annuities provide other benefits
Annuities Provide and ConcernsOther Benefits

  • Ability to add additional money*

  • Tax-free exchanges

    • Internal Revenue code section 1035 provides for a tax-free exchange of like to like assets from insurance company to insurance company

  • The IRS will allow you to transfer your IRA, 401(k), 457 and TSA’s to an annuity

  • With a properly designated beneficiary, annuities can avoid probate!

    *Available only through flexible premium annuities


Protect your heirs from probate
Protect Your Heirs From Probate and Concerns

  • Probate administrative costs and fees can run 3-8% of the assets

  • Assets are not available to the heirs until approved by the probate court

  • Assets may be tied up one to two years in probate

  • All records of the assets are available to the general public

  • Without a will and proper estate planning the court will transfer your money only as directed by law

The insurance agents presenting this information are not licensed to give legal or tax advice regarding individuals’ tax situations. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.


What is the greatest financial risk to retirees today
What is the Greatest and ConcernsFinancial RISKto Retirees Today?

The high cost of long term nursing care!

According to AARP 50% of seniors over 85 will develop Alzheimer’s


What are your funding options for nursing home stay home health care
What are Your Funding Options for Nursing Home Stay/Home Health Care?

  • Spend your savings

  • Use nursing home stay/home health care insurance

  • Qualify for government assistance (Medicaid)

Annuities may offer Confinement benefits or waivers. These are not long term care insurance, nor are they substitutes for such coverage. Availability varies by state.


What is medicaid medi cal in california
WHAT IS MEDICAID? Health Care?(MEDI-CAL In CALIFORNIA)

  • A joint federal/state program that can pay a share of nursing home costs for those qualified individuals over 65 or who are disabled

  • Rules vary from state to state but generally eligibility is determined by one’s income and how one’s assets are arranged

  • You’re allowed to rearrange your assets at any time within guidelines, to qualify

It’s the ability to rearrange assets and still qualify that creates the value of Medicaid Planning

These materials are provided for informational purposes only, do not constitute legal advice on Medicaid Planning, and are not guaranteed to be correct, complete, or up-to-date. Consult your legal advisor.


You should consider an annuity if you
You Should Consider an Annuity If You: Health Care?

  • Want safety of principal

  • Want to protect your liquid assets from creditors

  • Want to protect your assets from Medicaid spend-down

  • Want to reduce or eliminate income tax on your Social Security benefits

  • Want to control when YOU pay taxes

  • Want to transfer your IRA, 401(k), 457, or TSA to annuities without incurring taxes

  • Want a better return than you are getting from your CDs, plus tax deferred benefits

  • Want the power of compounding interest

  • Want an income that you can’t outlive

  • Want easy access to your money

  • Want to potentially avoid probate

It’s important to know that qualified plans, 401(k)s and IRAs are already tax-deferred. Therefore, an annuity contract should be used to fund an IRA in order to benefit from annuity features other than tax deferral, such as the lifetime income options and guaranteed death benefit payout options.


Where do we go from here
Where Do We Go Health Care?From Here?

  • Do it yourself

  • Work with others

  • Work with us

  • Procrastinate


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