Making The Most Of Retirement Assets 2008 Compliance Approved

Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

Considering Your Retirement AssetsConsidering Your Retirement Assets


“…I wish we had a retirement plan that didn’t require matching six numbers.”


Potential retirement pitfallsRetirement income sources

Longevity riskInflation risk

Asset allocation risk

SOURCE OF retirement income?

Most people need approximately 70% of their current income to maintain their current standard of living in retirement

Most people need approximately 70% of their current income to maintain their current standard of living in retirement

Other 3%

Social Security39%

Pensions19%

Part-timeWork 25%

Personal savings14%

Source: Income of the Aged Chartbook 2002, SSA Publication No. 13-11727, Social Security Administration (September 2004).

Potential retirement pitfallsRetirement income sourcesLongevity riskInflation riskAsset allocation risk


*This hypothetical example does not reflect the effects of taxation, fees, and inflation.


Financial Planning Process

1. Determine where you are going

2. Know where you are

3. Develop & follow a retirement plan

- Set goals & objectives

- Take inventory of existing assets


Whendo you want to retire?

Whatdo you want to do in

retirement?


Short-term Payments-

Should not exceed 20% of after-tax income

Mortgage Payments-

Should not exceed 28% of monthly gross income

Combined Monthly Debt Payments-

Should not exceed 36% of monthly gross income

Manage Your Monthly Debt payments


Will I Need a Lump Sum of Money at retirement?

Repairs to your house

Pay off bills

College tuition

Retirement vacations

Start a business?


Roadblocks to Retirement Security

Inflation

Taxes

Procrastination

Longer Life Expectancy

Market Risk


Consider This…

‐ Life expectancy has increased

‐ You may well be retired longer than you work

182125293438

838180797978

656055504540

Average Life Expectancy for Men in 2007

Current Age

Avg Life Expectancy

Additional Years

Source: Social Security Administration


SummaryWhere Do I Want to Go?

When will I retire?

What will I do?

How much do I need to live on?

Consider: taxes, inflation, and risk


Where am I Now?

Taking Inventory

Social Security

Company Benefits

Personal Investments


“You’ll find how to live on Social Security over there in the fiction section.”


Social Security: Then and Now

$1,079.00$22.60

50,000,000<1,000

$102,000$3,000

12.4%2%

1940 Today (2007)

Payroll Tax

Earnings Cap

Beneficiaries

Average Benefit

Source: Social Security Administration


DISTRIBUTION Choices:

1. Pay Taxes

Ordinary Income

2. Defer Taxes

Indirect Rollover

Direct Rollover


Defer taxes

IRA Rollover

No current taxes on distribution

Tax deferral continues on interest and/or dividends

Stock can be sold without current tax liability

Can have numerous investments in rollover account

No probate, with appropriately designated beneficiary


TWO TYPES OF Rollover distributions

Direct Rollover Transfer

Indirect Rollover


Direct Rollover Transfer

Employer sends directly to IRA, new plan or custodian

Simplest method of rollover


Rollover Process

Step 1:

Fill out company paperwork, request Direct Rollover to avoid Taxes and Penalties

Step 2: •Invest money into various securities

Step 3: •Take distributions when you are ready. Distributions will be subject to taxes and possibly 10% penalties.


How Do I Receive My Monthly Income?

IRA

Your Bank

Account

Pension Other Income Social Security

Your Retirement Paycheck


Regions FinancialCorporate Footprint

1,400 Regions Bank Locations

400+ Morgan Keegan Locations(66 full service and 234 satellites in Regions Banks

20 Regions Insurance Group Locations


Our firm’s entrepreneurial culture promotes innovation and dedication to serving every financial need of our clients.

• Morgan Keegan & Company

• Founded in 1969 in Memphis, Tennessee• Full service investment banking and securities brokerage firm• Serving the diverse financial needs of individual investors in the

Southern United States and corporate and institutional clients throughout the US and abroad

• 400+ offices in 19 states• Member NYSE, SIPC• Wholly owned subsidiary of Regions Financial Corporation

• Regions Financial Corporation• Among top 10 largest financial services companies in the nation• $140 billion in assets• Over $27 billion market capitalization• 5 million households• 1,400 locations in 16 states• Listed on NYSE (symbol:RF)• Member FDIC• Member of the S&P 100 Index and Forbes’ “Platinum 400” list of

America’s best big companies


A Full Service Financial Institution

Retail BrokeragePortfolio

Management Financial PlanningExecutive Services

InsuranceRetirement Planning

Family Office Support

Morgan KeeganPrivate

Client Group

Public FinanceMortgage Finance

Fixed Income ResearchFixed Income Trading

Institutional SalesAsset/Liability Management

Portfolio Accounting

Morgan KeeganFixed Income

Sell-Side AdvisoryBuy-Side AdvisoryFairness OpinionsPrivate Placements

Public EquityCorporate Debt

Equity ResearchInstitutional Sales

Private Equity Funds

Morgan Keegan Equity

Capital Markets

LoansMortgages

LeasesInsurance

Cash ManagementInternational ServicesCommercial Services

Other Banking Services

RegionsBank


Review current titling of assets to meet client’s estate planning objectives.10. Titling of Assets

Review existing executor/trustee designations.11. Executor/Trustee

Review existing estate planning documents in light of a client’s expressed goals and objectives.

12. Distribution Plan at Death to Spouse/Descendents

Prepare an exercise strategy for qualified and non-qualified stock options. 5. Stock Options

Develop succession plan that meets client’s stated goals.6. Business Succession Planning

Review existing Powers of Attorney.7. Durable Power of Attorney

Establish gifting plans for wealth transfer to heirs.8. Gifting to Children/Descendents

Establish optimal charitable giving plan.9. Charitable Gifting During Life

Process:Issue:

Consider alternative gifting strategies to meet charitable goals.13. Charitable Inclinations at Death

Review current contribution amounts, investment alternatives and plan limits.4. Qualified Retirement Plan/IRA

Review the terms, creditors, collateral, etc., for all debt.3. Liabilities

Analyze existing life, disability, long-term care and liability insurance. 2. Insurance

Provide an asset allocation and portfolio review.1. Investments

Morgan Keegan has identified 13 Wealth Management Issues‐ some of the these may not presently apply to your situation or you may choose to focus on only the most pressing issue at this time.


Investment Management Philosophy


MY Delivery TO YOU:

• Preparation of an analysis of your choices under YOUR retirement program

• Analysis will consider your other assets as well

• Your retirement goals will drive the process

• Investment recommendations premised upon your risk profile and time horizons


I believe the most rewarding investment experience comes from making the investor the focus rather than the market. Investors, unlike markets, have goals. We can position your investments relative to your goals, while taking into account the inevitable market fluctuations which will occur along the way. This approach has been shown to increase your likelihood of success.

My Management ProgramMy Management Program

Investor-Centeredvs. Market-Centered

Reason vs. Emotion

Long-term Process vs. Short-term Event

Relational vs. Transactional

MyMy Professional DisciplineProfessional Discipline

Investments based on client’s clearly defined goals,consistent with their values, understood within their total life-plan

Responsive to changes in goals or life events, rather than reactive to market events

Investing and Investment decisions understood withinthe context of a life and a life time rather than a single day or event

Investment decisions based on comprehensive knowledge of theclient and their interests, achieved through ongoing consultation


As a Morgan Keegan financial advisor, I have the resources, personnel, and backing of one of the nations largest full service investment firms. It is my responsibility to create, grow, protect, preserve, or utilize your wealth regardless of the prevailing investing environment. I can also help you plan for the distribution of your wealth in a tax‐advantaged way both during your life and beyond. This is done by building a plan specific to your family’s dynamics, hopes, and dreams.

My Commitment to YouMy Commitment to You


Morgan Keegan & CompanyMembers NYSE, SIPC

50 N. Front StreetMemphis, Tennessee 38103

800-366-7426

Disclaimer: The information and opinions expressed are intended for general information only. Morgan Keegan & Company, Inc. does notassume liability for any loss, which may result from the reliance of any person upon any such information or opinions. Such information and opinions are subject to change without prior notice. The general information is not intended as an offer or solicitation with respect to the purchase or sale of any security or offering, nor is it deemed individual or personalized advice.

Making The Most Of Retirement Assets 2008 Compliance Approved

Economy & Finance

Transcript of Making The Most Of Retirement Assets 2008 Compliance Approved