Senior Financial Services

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• Smart Money Concepts

Senior Financial Services
2

• Smart Money Concepts

Michael Gibson
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For the Courtesy of all Guests, Please Silence
Cell Phones
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Looking Down the Road
Distribution
Asset Allocation
Estate Taxes
Taxes
Probate
Income Replacement
Nursing Home
Special Needs
Outliving Your Income
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Our Goal is to Pave That Road for our
Clients.
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Our Commitment to You

• To Provide Sound Information
• Help you Identify Goals and Challenges
• Recommend Beneficial Solutions

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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
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www.smartmoneyconcepts.org
 
9

• Smart Money Concepts

Brad Mattix
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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___________

?
?
?
?
?
?
? Yes I want to have my no-costtax-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
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Todays Topics
The Life Cycle of Money

• Avoiding Unnecessary Taxes
• Keeping up With Inflation
• Passing it on (When Im Gone)

• Keeping More of What You Have
• Tax-Advantaged Growth
• Avoiding Loss

• Accumulation

• What Affects the Growth of Your Money

2. Preservation
3. Distribution
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The Life Cycle of Money
Preservation
Retirement
Distribution
Accumulation
Working
Planning
0 20 40 60 80
100
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Whats Important About Your Money To You?
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What Affects the Growth of Your Money
Inflation
Taxes
Market Uncertainty
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What Affects the Growth of Your Money
Inflation Current Rate 4.94 Source US
Department of Labor 2010
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How Inflation Affects Purchasing Power
2010
1975 100,000
405,225
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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

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• Service Charge Tax

• Federal Tax

• County 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

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How Taxes and Inflation Affect Growth
Investment 50,000
Interest _at_ 1.26 630
Taxes _at_ 25 (158)
Net Return 50,473
Inflation _at_ 4.94 (2,493)
Actual Return 47,980
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Key to Reducing Taxes
Reduce Reportable, Taxable Income
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Where do I Start?

• What is my Income Tax Bracket?

• Am I Paying Taxes on Money Im not Using?

• Am I Paying Tax on my Social Security
  Unnecessarily?

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

• Retirement Accounts IRAs, 401ks, 403bs
• Life Insurance Policies
• Annuities

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How is Social Security Income Taxed?
The Amount of Income Taxes Paid on Social
Security Depends Upon Your Total Income.
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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
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Total Combined Income
Taxable Percentage of Social Security
25,000 to 34,000
Single
50
Over 34,000
85
Married
32,000 to 44,000
50
Over 44,000
85
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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
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Market Volatility
Im not as concerned about the return on my
money as the return of my money!
--Mark Twain
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Risky Choices

• Fees
• Can Lose Money

• Stocks
• Bonds
• Mutual Funds
• Variable Investments

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1.01
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2.33
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How Much Should I Have at Risk?
RULE OF 100
100 minus Age Maximum Risk
100 -65 35
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Managing IRA Accounts

• 401k
• 403b
• IRA
• SEP IRA
• KEOGH
• ROTH IRA

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ENRON
TWA
BETHLEHEM STEEL
POLAROID
GLOBAL CROSSING
US AIRWAYS
WORLDCOM
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IRA Rollover
Taking Control of Your Money

• RISK
• STOCKS
• BONDS
• MUTUAL FUNDS
• VARIABLE INVESTMENTS

• SAFE
• CDS
• SAVINGS
• MONEY MARKETS
• ANNUITIES

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IRS Code 1035 Tax-Free Exchange
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Safe Choices

• Savings Accounts
• Money Markets
• CDs
• Fixed Annuities

• Safety
• Flexibility
• Guarantees

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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
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Safety
FDIC Insured For Every Dollar Invested

• Banks
• Credit Unions
• Money Markets
• CDs

The FDIC Requires .07 Cents in Reserve
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Safety
Insurance Company For Every Dollar
Invested

• Fixed Annuities
• Life Insurance

One Dollar is Reserved
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The Fixed Annuity
You
Income
Deposit
Insurance Company
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Variable Annuity
Variable Annuity Invested in Various Mutual
Funds
Policy Administration Fees
Fees for EACH Mutual Fund .05 to 7
Brokerage Fee
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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
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The Fixed Indexed Annuity
Take Advantage of Stock Market Gains Without the
Risk.
Guaranteed Return of Your Principal.
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The Fixed Indexed Annuity
Earnings Can be Linked to an Index

• SP 500
• Coca-Cola
• Microsoft
• Home Depot
• Federal Express
• Kellog Co.
• McDonalds

S P 500 Dow Jones Industrial Average NASDAQ
Aviva Approval 12073 081108
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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
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Income Options

• Interest Only

• Specific Amount

• Specified Period
• 5, 10, 15, 20 Years

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Lifetime Income
Age 87
Age 70
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Annuities For Long-Term Planning
Retirement Income
You Control When You Pay Taxes
Safety
Tax Deferred Accumulation
Avoid Probate
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Wealth Transfer Passing it on
Distribution
Distribution
Planning
Planning
0 20 40 60 80 100
120
0 20 40 60 80
100
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If I have a nickel in my pocket when I die, I
miscalculated. --Will Rogers
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Estate Planning

• Powers of Attorney
• Trusts
• ? Wills Living Wills
• ?Asset Record
• Estate Overview
• ? Investments
• ? Insurance
• ? Titles Deeds
• ? Promissory Notes
• ? Last Instructions for Family

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ASSETS Real Estate Stocks Bonds Mutual Funds
Bank Accounts

• 6 to 8
• Court Costs
• Attorney Fees
• Taxes
• Delays

Probate
Beneficiaries
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Estate Taxes
35 Federal Estate Tax
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Wealth Transfers Through Life Insurance

• Liquidity
• Tax-Free Inheritance
• Probate-Free
• Creates an Immediate Estate
• Final Expenses

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50,000 Taxable Investment
50,000 Buys 200,000
Tax-Free Growth
Taxes on Growth
Taxes at Death
Tax-Free at Death
35,000 to Heirs
200,000 to Heirs
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More Bang for the Buck.
87,000 Death Benefit
49,878 Cash Value
174,307 Death Benefit
Additional 87,307 Tax-Free Death Benefit
This illustration is a First Colony Life 50,000
single pay UL premium based on a healthy 70 year
old female.
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THE NEXT STEP
the next step is your free Consultation
Recent Financial Statements Tax Return
Insurance Policies
We Guarantee That You Will Not Be Disappointed!
61
Seminar Evaluation Sheet
Senior Financial Planning 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___________

?
?
?
?
?
?
?
? Yes I want to have my no-costtax-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
62

• Shelbyville Road

Frischs Big Boy
Mall St. Matthews

• Sherburn Lane

• Bowling Blvd

Oxmoor Mall
Black Marble Sign 4500
264
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63
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• Senior Financial Planning, Inc.

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Estate Planning Living Trusts
Probate Reducing Taxes
Long-Term Care Asset
Protection
Concerned About Retirement?
Retirees today face many challenges. From health
care issues to the decreasing value of a dollar,
seniors' concerns about the security of their
financial well-being is growing. According to the
National Council on Aging (NCOA), 54 of seniors
still working, do so because they are afraid of
not having enough money. Rising costs of
prescription drugs, social security taxation,
slow-growing market economy, relatively low
interest rates, inflation climbing and the
possibility of needing long-term health care have
all been major factors in today's retirement
landscape. By utilizing tax-deferred, tax-
advantaged and special government programs
offered to seniors over age 62, retirement
concerns can be lessened dramatically. The right
program can help retirees and pre-retirees put
their financial concerns to rest.
Visit Our Website www.seniorfinancialplanning.org
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Market Volatility
Preservation
Retirement
Distribution
Accumulation
Working
Planning
0 20 40 60 80
100
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Types of Fixed Annuities

• Immediate Annuities
• Deferred Annuities