Providence wealth partners distributions from-retirement-plans
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If you’re like many Americans, you’ve been setting aside money for your retirement. Now that you’re nearing retirement age, it may soon be time to start drawing money from your qualified retirement plans. When it comes to taking distributions, you face a number of important decisions, including which money to use first.
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- 1. Retirement MattersDistributions from Retirement Plans Please
Call/Email with any questions. Here to serve.
- 2. Financial Matters Series ProvidenceWealthPartnersSecurities
and Investment Advisory services offered through Transamerica
Financial Advisors, Inc. (TFA), a registered investment advisor.
Member FINRA & SIPC.Non-Security products and services are not
offered through TFA. Providence Wealth Partners LLC and TFA are not
affiliated. We are licensed to sell securities in thefollowing
states: CA, CO, IL, IN, MN, OR and TN. This should not be
considered a solicitation in any other state. Due to various state
regulations and registrationrequirements concerning the
dissemination of information regarding investment products and
services, we are currently required to limit access of the
following pages toindividuals residing in states where we are
currently registered. A broker/dealer, investment advisor, BD agent
or IA rep may only transact business in a particular stateafter
licensure or satisfying qualifications requirements of that state,
or only if they are excluded or exempted from the states
broker/dealer, investment advisor, or BDagent or IA rep
requirements, as the case may be; and follow-up, individualized
responses to consumers in a particular state by broker/dealer,
investment advisor, BDagent or IA rep that involve either the
effecting or attempting to effect transactions in securities or the
rendering of personalized investment advice for compensation, asthe
case may be, shall not be made without first complying with the
states broker/dealer, investment advisor, BD agent or IA rep
requirements, or pursuant to anapplicable state exemption or
exclusion.
- 3. Retirement Income Sources
- 4. Distribution Decisions 1. What to Take First 2. How to Take
Distributions 3. Investment Strategies 4. Rules to Remember 5.
Benefits and Beneficiaries
- 5. What to Take First Taxable Accounts (Savings and
Investments) Tax-Deferred Accounts (Traditional IRAs, 401(k) &
403(b) plans) Tax-Exempt Accounts (Roth IRAs)
- 6. What to Take First
- 7. Click to Play
- 8. How to Take Distributions Option 1.......Leave it Alone
Option 2 .......Lump Sum Option 3 .......Rollover Option
4.......Annuity Option 5... ....Combination
- 9. IRA Rollover Considerations Continued tax deferral Control
Generally, more investment options Mandatory distributions at age
70 (traditional) 14% Spent all of the 65% Rolled over proceeds all
to an IRA 86% 21% Reinvested Rolled over some or some to all of the
an IRA, proceeds reinvested some outside an IRA, and/or spent
someSource: Investment Company Institute, 2011. Results are from a
survey of employees retiring between 2002 and 2007.
- 10. Investment Strategies Protecting Generate Growth Principal
Income Potential Certificates of Individual bonds Individual stocks
Deposit Income-oriented Growth-oriented Money market mutual funds
mutual funds funds Fixed annuities Variable annuitiesMutual funds
and variable annuities are sold only by prospectus only. You should
consider the charges, risks, expenses, andinvestment objectives
carefully before investing or entering a contract. A prospectus
containing this and other information about theinvestment company
or insurance company can be obtained from your financial
professional. Read it carefully before you invest orsend
money.
- 11. Investment Strategies Cash 10% Bonds Aggressive Portfolio
10% Best Year.........33.6% Worst Year.....-32.8% Stocks
Average..........8.8% 80% Stocks 20% Conservative Portfolio Best
Year...............16.8% Cash Bonds Worst Year...........-13.2% 60%
20% Average..............5.7%Source: Thomson Reuters, 2012Past
performance does not guarantee future results. Actual results will
vary.
- 12. The $ 100,000 Difference $ 700,000 $ 600,000 Aggressive
Portfolio $ 500,000 $545,187 $ 400,000 Conservative Portfolio $
300,000 $305,551 $ 200,000 $ 100,000 Start Year 10 Year 20This is a
hypothetical example used for illustrative purposes only. It is not
representative of any specific investment or combination
ofinvestments. Past performance does not guarantee future results.
Actual results will vary.
- 13. Strategy #1: Mutual Funds
- 14. Strategy #2: Split Annuities $400,000 divided into two
pools Generates $1,253 per month $129,774 $150,000 $100,000 in
income (at 3%) $50,000 Start Year 1 2 3 4 5 6 7 8 9 10 $400,000 al
at 4% $350,000 $270,226 $300,000 s Princip $250,000 Rebuild
$200,000 $150,000 $100,000 $50,000 Start Year 1 2 3 4 5 6 7 8 9
10This is a hypothetical example used for illustrative purposes
only. It is not representative of any specific investment or
combination ofinvestments. Past performance does not guarantee
future results. Actual results will vary.
- 15. Strategy #3: Combination $400,000 divided into three pools
$150,000 Generates $2,150 per month in $119,653 $100,000 income (at
3%) during years 1-5 $50,000 Start Year 1 2 3 4 5 Generates $2,150
per month in income (at 3%) $150,000 during years 6-10 $100,138
$100,000 Builds value (at 4%) $50,000 Start 1 2 3 4 5 6 7 8 9 10
Year $400,000 $180,209 $300,000 at 8%) principal ( $200,000
Rebuilds $100,000 Start Year 1 2 3 4 5 6 7 8 9 10This is a
hypothetical example used for illustrative purposes only. It is not
representative of any specific investment or combination
ofinvestments. Past performance does not guarantee future results.
Actual results will vary.
- 16. Rules to Remember Required Minimum Distributions - Age 70 -
Based on age, account value, and life expectancy Excess
accumulation penalty - 50% of amount not distributed as
requiredSource: Internal Revenue Service, 2011
- 17. More Rules to Remember Age 59 Exceptions to rule -
Unreimbursed medical expenses - Disabled - Higher education
expenses - Buy or build a first homeSource: Internal Revenue
Service, 2011
- 18. Beneficiaries Naming your spouse as beneficiary Naming
someone other than your spouse as beneficiary
- 19. When Should You Begin TakingSocial Security Benefits? Whos
Early? Whos Late? Age Matters 73.9% Retire Early Age 62 $923/mo.
Age 67 $1,230/mo. Age 70 $1,549/mo. 26.1% Retire at Normal
AgeSource: Social Security Administration, 2012; average monthly
benefit for a retired worker.
- 20. Distributions from Retirement Plans
- 21. Financial Matters Series Brandon Singer
BSinger@ProvidenceWP.com www.ProvidenceWealthPartners.comSecurities
and Investment Advisory services offered through Transamerica
Financial Advisors, Inc. (TFA), a registered investmentadvisor.
Member FINRA & SIPC. Non-Security products and services are not
offered through TFA. Providence Wealth Partners LLCand TFA are not
affiliated. We are licensed to sell securities in the following
states: CA, CO, IL, IN, MN, OR and TN. This should notbe considered
a solicitation in any other state. Due to various state regulations
and registration requirements concerning thedissemination of
information regarding investment products and services, we are
currently required to limit access of the followingpages to
individuals residing in states where we are currently registered. A
broker/dealer, investment advisor, BD agent or IA rep mayonly
transact business in a particular state after licensure or
satisfying qualifications requirements of that state, or only if
they areexcluded or exempted from the states broker/dealer,
investment advisor, or BD agent or IA rep requirements, as the case
may be; andfollow-up, individualized responses to consumers in a
particular state by broker/dealer, investment advisor, BD agent or
IA rep thatinvolve either the effecting or attempting to effect
transactions in securities or the rendering of personalized
investment advice forcompensation, as the case may be, shall not be
made without first complying with the states broker/dealer,
investment advisor, BDagent or IA rep requirements, or pursuant to
an applicable state exemption or exclusion.