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Senior Financial Services

Smart Money Concepts. Senior Financial Services. Smart Money Concepts. Michael Gibson. For the Courtesy of all Guests, Please Silence Cell Phones. Looking Down the Road. Distribution. Asset Allocation. Estate Taxes. Special Needs. Taxes. Probate. Income Replacement. Nursing Home.

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Senior Financial Services

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  1. Smart Money Concepts Senior Financial Services

  2. Smart Money Concepts MichaelGibson

  3. For the Courtesy of all Guests, Please Silence Cell Phones

  4. Looking Down the Road Distribution Asset Allocation Estate Taxes Special Needs Taxes Probate Income Replacement Nursing Home Outliving Your Income

  5. Our Goal is to Pave That Road for our Clients.

  6. Our Commitment to You • To Provide Sound Information • Help you Identify Goals and Challenges • Recommend Beneficial Solutions

  7. What Makes us Different? All Top Professionals On Staff • Insurance Representatives • Registered Investment Advisors • Independent Attorney Network • Independent CPA Network • Certified Senior Advisors Our Focus: • Reducing Taxes • Increasing Spendable Income • Keeping Your Money Safe and Secure • Protecting Your Financial Legacy Independent Advisors

  8. www.smartmoneyconcepts.org

  9. Smart Money Concepts Brad Mattix

  10. Seminar Evaluation Sheet Senior Financial Services Investment and Retirement Planning Strategies Please Print Date ___/___/___ Name ____________________________________________________ Address __________________________________________________ City / State / Zip ___________________________________________ Phone: ( ) ______________ 3 30 10 John and Joyce Jones 2 Livin The Dream Blvd. Anywhere, USA 555 555 1212 I would like more information on the following:   Reducing Taxes  Avoiding Probate  Roth IRA Conversion  Life Insurance • Tax Deferral  Wealth Transfer  Long Term Care Alternatives  Estate Planning • IRA Rollover  Charitable Trusts • Fixed/Indexed Annuity  Other___________        YesI want to have my no-cost—tax-saver one-hour visit! Which Day is best for you? (Circle one or more) Monday Tuesday Wednesday Thursday Friday Which Time is best? (Circle one or more) Morning Afternoon Evening

  11. Today’s Topics: The Life Cycle of Money • Avoiding Unnecessary Taxes • Keeping up With Inflation • Passing it on (When I’m Gone) • Keeping More of What You Have • Tax-Advantaged Growth • Avoiding Loss • Accumulation What Affects the Growth of Your Money 2. Preservation 3. Distribution

  12. The Life Cycle of Money Preservation Retirement Distribution Accumulation Working Planning 0 20 40 60 80 100

  13. What’s Important About Your Money To You?

  14. What Affects the Growth of Your Money Inflation Taxes Market Uncertainty

  15. What Affects the Growth of Your Money Inflation Current Rate : 4.94% Source: US Department of Labor 2010

  16. How Inflation Affects Purchasing Power 2010 1975 $100,000 $405,225

  17. At 4% Inflation… To Maintain Current Lifestyle… …A 62 Year Old Retiring Today Will Need to Earn 48% more income by age 72 100% more income by age 80

  18. Service Charge Tax County Tax Federal Tax Sales Tax Medicare Tax Telephone Usage Tax State Tax Estate Tax Property Tax Real Estate Tax Personal Property Tax Inheritance Tax Probate Excise Tax Gasoline Tax Utility Tax Social Security Tax Capital Gains Tax Luxury Tax

  19. How Taxes and Inflation Affect Growth Investment $50,000 Interest @ 1.26% $630 Taxes @ 25% ($158) Net Return $50,473 Inflation @ 4.94% (2,493) Actual Return: $47,980

  20. Key to Reducing Taxes: Reduce Reportable, Taxable Income

  21. Where do I Start? What is my Income Tax Bracket? Am I Paying Taxes on Money I’m not Using? Am I Paying Tax on my Social Security Unnecessarily?

  22. 8th Wonder of the World Tax-Deferral Interest on Your Principal Interest on Your Interest Interest on the Money You Would Have Paid in Taxes

  23. The Power of Tax-Deferral $179,084 +7,217 After Taxes +18,593 After Taxes +10,024 +25,823 $153,263 $133,823 $123,799 Tax- Deferred Taxable 5 year growth of $100,000 @ 6% 28% Tax Bracket 10 year growth of $100,000 @ 6% 28% Tax Bracket

  24. Tax Deferred Accounts Retirement Accounts: IRA’s, 401k’s, 403b’s Life Insurance Policies Annuities

  25. How is Social Security Income Taxed? The Amount of Income Taxes Paid on Social Security Depends Upon Your Total Income.

  26. Taxable Income ½ Social Security Pension(s) US Treasuries Certificate of Deposits Money Market Accounts Passbook Savings Dividends: Mutual Funds Annuity Withdrawals Corporate Bonds 401K Income 403B Income + IRA Income __________________________ = Total Combined Income

  27. Total Combined Income Taxable Percentage of Social Security Single $25,000 to $34,000 50% Over $34,000 85% Married $32,000 to $44,000 50% Over $44,000 85%

  28. Eliminating Taxes on Social Security Adjusted Gross Income for Single Person ½ Social Security $ 5,700 Pension $18,200 Dividend Interest $ 9,500 CD Interest $ 7,500 IRA Income $ 1,000 Adjusted Gross Income = $41,900 ½ Social Security $ 5,700 Pension $18,200 Tax-Deferred $ 9,500 Tax-Deferred $ 7,500 IRA Income $ 1,000 Adjusted Gross Income = $24,900 Total Tax Reduction = $6,740 % of Social Security Taxable: 85% Tax Bracket: 25% Tax Due: $10,475 % of Social Security Taxable: 0% Tax Bracket: 15% Tax Due: $3,735

  29. Market Volatility “I’m not as concerned about the return on my money as the return of my money!” --Mark Twain

  30. Risky Choices • Fees • Can Lose Money Stocks Bonds Mutual Funds Variable Investments

  31. 1.01%

  32. 2.33%

  33. How Much Should I Have at Risk? RULE OF 100 100 minus Age = Maximum % Risk 100 -65 =35

  34. Managing IRA Accounts • 401k • 403b • IRA • SEP IRA • KEOGH • ROTH IRA

  35. ENRON TWA BETHLEHEM STEEL POLAROID GLOBAL CROSSING US AIRWAYS WORLDCOM

  36. IRA Rollover Taking Control of Your Money RISK • STOCKS • BONDS • MUTUAL FUNDS • VARIABLE INVESTMENTS SAFE CD’S • SAVINGS • MONEY MARKETS • ANNUITIES

  37. IRS Code 1035 Tax-Free Exchange

  38. Safe Choices Savings Accounts Money Markets CD’s Fixed Annuities Safety Flexibility Guarantees

  39. Current CD Interest Rates 6 Month CD 1.00% 1 YR CD 1.26% 5 YR CD 1.80% 1 YR IRA CD 1.28% 5 YR IRA CD 1.85%

  40. Safety FDIC Insured For Every Dollar Invested… Banks Credit Unions Money Markets CD’s The FDIC Requires .07 Cents in Reserve

  41. Safety Insurance Company For Every Dollar Invested… Fixed Annuities Life Insurance …One Dollar is Reserved

  42. The Fixed Annuity You Income Deposit Insurance Company

  43. Variable Annuity Variable Annuity Invested in Various Mutual Funds Policy Administration Fees Fees for EACH Mutual Fund .05 to 7% Brokerage Fee

  44. CD vs. Fixed Annuity The Differences: Higher Interest • Grows Tax-Deferred • Penalty Free Access • Avoids Probate Time Deposit With a Bank CD Fixed Annuity Time Deposit With an Insurance Company

  45. The Fixed Indexed Annuity Take Advantage of Stock Market Gains Without the Risk. Guaranteed Return of Your Principal.

  46. The Fixed Indexed Annuity Earnings Can be Linked to an Index S&P 500 • Coca-Cola • Microsoft • Home Depot • Federal Express • Kellog Co. • McDonalds S & P 500 Dow Jones Industrial Average NASDAQ Aviva Approval# 12073 081108

  47. S & P Average $160,747 Indexed Annuity Guaranteed Interest 142,576 $108,789 100K 98 99 00 01 02 03 04 05 06 07 08 09 10

  48. Income Options Interest Only Specific Amount • Specified Period 5, 10, 15, 20 Years

  49. Lifetime Income Age 87 Age 70

  50. Annuities For Long-Term Planning Retirement Income You Control When You Pay Taxes Safety Tax Deferred Accumulation Avoid Probate

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