NSURANCE Retirement Income Show
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Transcript of NSURANCE Retirement Income Show
Planning for retirement income requires important decisions!Let Nsurance Solutions Group help design a plan which fits your needs.
THE NSURANCE SOLUTIONS GROUP “We’re all about helping you plan for retirement”
The Importance of Retirement Planning
Are you concerned about...
• Outliving your retirement income?
• Paying state and federal taxes?
• Getting a satisfactory return on your money?
• Market volatility?
• Probate and estate transfer fees?
• Loss of assets to long-term care?
• Creditors?
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Income
Social
Security
Pension
Wages
Interest
$
Monthly
Living
Expenses
$
Savings
Fund
$
Emergencies
$
NEST EGG
The Importance of Retirement Planning
Are the assets in your NEST EGG accumulating at a satisfactory rate?
2014 Property of Tri-State Agency for Senior Solutions . 2
• Annuities
• IUL Life Insurance
• Real Estate
• Mutual Funds
• CDs
• Savings Accounts
• Stock market
Retirement Planning Options for Your Nest Egg
Planning vehicles used should match both your goals and your comfort level towards risk.
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An Annuity or IUL Life Insurance is part of the Base that can help protect your money.
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Retirement Planning Options for Your Nest Egg
• Where are your assets?
• Are they in alignment with your goals
and the level of risk you are willing
to accept?
• If not, should you change your goals
or change where your money is?
Even the best laid plans for a comfortable retirement can fail if the assets in your nest egg remain exposed to unnecessary value loss!
The Importance of Retirement Planning
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Taxes
Unsatisfactory returns
Market volatility
Long-term care
Creditors
An Annuity or IUL can help control the drain.
$
The types of assets you own should match your risk tolerance.
Risk Tolerance
51 10
$ $
Excess Savings
Earnings/Growth
Nest Egg
IUL
CDs
IRAsStocks
Annuities
MutualFunds
MoneyMarket
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What is an annuity or IUL Life Insurance?
An annuity is an insurance product designed to accumulate money, tax-deferred (under current tax laws)
- Often for retirement- Often provides a guaranteed income for life
An Index Universal Life is an insurance product designed to accumulate money, tax-deferred (under
current tax laws) - Often for a Tax-Free retirement- Often used for Long Term Care
What is an Annuity or IUL?
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• Principal is guaranteed and not subject to market volatility
• Will not affect Social Security
• Annuity Avoids probate in most cases IUL provides Tax-Free funds to the beneficiary
• May be given special protection from attachments of creditors, claims, lawsuits, bankruptcies, etc.
• An annuity and IUL are savings vehicles which offers benefits in two different ways– To grow or accumulate benefits– To payout or distribute benefits
Annuity – Benefits as a growth vehicle
• Deferred Annuities are used to accumulate money on either a tax qualified or non-qualified basis
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What is a Tax Deferred annuity?
• Provides Long-term tax-deferred growth
• Offers Competitive interest rates
• Like a CD, principal accumulates at interest
• Unlike a CD, interest accumulations are not taxed until withdrawal
• Provides a minimum interest rate guarantee
Another way of looking at it…
TAXABLE INVESTMENT DEFERRED ANNUITY
Year Beg. Yr Value Earnings Principle + Taxes Year-End EBIT Paid Value
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5
10
20
30
$10,000
$11,681
$14,184
$20,915
$30,841
$550
$642
$780
$1,150
$1,696
$10,550
$12,323
$14,964
$22,065
$32,537
$154
$180
$218
$322
$475
$10,396
$12,143
$14,746
$21,743
$32,062
Beg. Yr. Earnings Year-End Value Value
$10,000
$12,388
$16,191
$27,656
$47,241
$550
$681
$891
$1,521
$2,598
$10,550
$13,070
$17,081
$29,178
$49,840Assumptions
(1) The Annuity and Taxable Accounts earn 5.5 percent a year
(2) The client is in the 28 percent tax bracket
(3) No money is withdrawn before age 59 1/2
(4) EBIT = Earnings Before Income Taxes
(5) If the entire $49,840 is withdrawn after 30 years, the after
tax value would equal $38,685 assuming 28% tax bracket
Over $17,778More!
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Because you’re not paying taxes while your money is growing, you’re able to get interest on the principal, interest on interest and interest on tax savings.
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Annuity and IUL – Payout or
Distribution Benefits
Annuities and IULs can be used to distribute funds to
benefit one’s self or others
• Utilize settlement options on an existing
deferred annuity
• Use a Single Premium Immediate Annuity to
immediately start receiving distribution benefits
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Annuity Distributions for Self
• Withdrawals
• Settlement Options
– Life Income: an income that cannot be outlived
– Period Certain: an income stream for a given
period of time
– Amount Certain: an income stream of a
given amount
An Annuity Lets You… Access Your Money!
Bank and investment accounts, CDs and other taxable alternatives can’t guarantee an income for life
Tax-deferred Annuity or a Single Premium Immediate Annuity (SPIA)
• Guarantees your monthly income – It will never go down
• The Lifetime Income Option guarantees you’ll receive monthly income for as long as you live
• If you’re concerned about the need for long-term care, an annuity can help make the funds available
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Annuity Distributions for Others
• Settlement Options while alive
– Joint Life Income: an income for a couple that
cannot be outlived by the survivor
– Period Certain: an income stream for a given
period of time
– Amount Certain: an income stream of a
given amount
• Settlement Options if deceased (if available)
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How would you like to pass on your assets? This Way?
Please note: This is a
simplified diagram of
the probate process
and is not intended to
represent all possible
situations that could
occur. This process
will also vary on a
state by state basis.
Contact your attorney
for details affecting the
process in your state.
DIAGRAM OF THE TYPICAL PROBATE PROCESS
Documents Filed:
Actions Taken:
Documents Filed:
Actions Taken:
Documents Filed:
Actions Taken:
File petition to start the Probate Process
Publish “Notice of Petition” requesting the start of the Probate Estate at
least 15 days prior to hearing
Mail Notice of Petition to heirs and others who may have claim to the estate and are entitled to receive
notice at least 15 days prior to hearing
Submit legal documents to Court for judge’s approval, appointing the
administrator of the estate
Court hearing for judge’s approval tobegin the Probate Process and
appoint the administrator of the estate4 months to 2 years depending on estate assets and time needed to resolve claims
Create inventory of the Probate Estate’s assets and establish
value; file with Court
Give notice to known creditors;accept or reject creditors’ claims
Pay all debts of the estate and filetax returns (IRS Form 706 is due
9 months after date of death)
File petition for distribution of estate assets
Court hearing-Judge signs Judgment of Final Distribution
Submit legal documents to Court for Final Distribution of assets
(no hearing required)
Mail notice to heirs and other partiesat least 15 days prior to hearing
Distribute assets to heirs, and file final income tax returns (if required)
4 to 6 weeks
4 to 6 weeks
…or by avoiding probate?
Beneficiary
Annuitiesor
Life Insurance*
*Please note: This is a simplified diagram of the probate process and is not intended to represent all possible situations that could occur. Contact your attorney for details affecting the process in your state.
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How would you like to pass on your assets?
*In most cases annuities and life insurance may avoid probate
There are lots of good reasons to consider a Nsurance Solutions Annuities
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A Nsurance Solution Annuity Can…• Provide steady growth for a more secure retirement
• Avoid exposure to probate costs
• Provide funding for nursing home costs and final expenses
• Defer taxes on your growth
• Guarantee a minimum interest rate
• Guarantee a monthly income
Nsurance Solutions has a Variety of Annuities to Fit Your Needs
• Single Premium Deferred Annuity
– Traditional Plan – Bonus Plan – Indexed Annuity
• Flexible Premium Deferred Annuity
• Single Premium Immediate Annuity
©2007 Property of Bankers Life and Casualty Company.18
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Plus one more your money can buy...
Why Choose the Nsurance Solution?
• Company’s with Solid reputation
• Company’s with over $9,000,000,000 in assets
• 90% of claims paid within 7 days
• $2 Million paid daily in claims
• Local Nsurance representatives and customer service
• We specialize in seniors.
Peace of MindHow much is it worth to you?
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We do not intend to give tax or legal advice. The
information above was written to support the sale
and marketing of insurance and annuity policies
offered by The Nsurance Solutions Group. Based on
your particular circumstances, you should seek
advice from an independent tax adviser. You cannot
rely upon or use the information above for the
purposes of avoiding any tax or tax penalty that may
be imposed by the Internal Revenue Service.
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You Have Spent a LifetimeAccumulating Assets
RETIREMENT INCOME Growth • Security Emergency
LONG-TERM CARE At Home • Nursing Home
FINAL EXPENSES/INCOME Burial • Taxes • Gifts
MEDICAL EXPENSES Medicare Supplement • Part D