Senior Financial Services

Michael Gibson

For the Courtesy of all Guests,

Please Silence Cell Phones

TaxesProbateDistributionAsset AllocationIncome ReplacementNursing HomeSpecial NeedsEstate TaxesOutliving Your Income

Looking Down the Road

Our Goal is to Pave That Road

for our Clients.

Our Commitment to You

1. To Provide Sound Information

2. Help you Identify Goals and Challenges

3. Recommend Beneficial Solutions

All Top Professionals On Staff

•Insurance Representatives

•Registered Investment Advisors

•Independent Attorney Network

•Independent CPA Network

•Certified Senior Advisors

What Makes us Different?

Our Focus:

•Reducing Taxes

•Increasing Spendable Income

•Keeping Your Money Safe and Secure

•Protecting Your Financial Legacy

Independent Advisors

www.smartmoneyconcepts.org

 

Brad Mattix

Seminar Evaluation Sheet Senior Financial Services

Investment and Retirement Planning Strategies

Please Print

Date ___/___/___

Name ____________________________________________________

Address __________________________________________________

City / State / Zip ___________________________________________ Phone: ( ) ______________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-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

3 30 10

John and Joyce Jones

2 Livin The Dream Blvd.

Anywhere, USA

555 555 1212

Today’s Topics: Today’s Topics:

1. Accumulation •Avoiding Unnecessary

Taxes

•Keeping up With Inflation

•Passing it on (When I’m

Gone)

2. Preservation

3. Distribution

•Keeping More of What You

Have

•Tax-Advantaged

Growth

•Avoiding Loss

•What Affects the Growth of Your Money

The Life Cycle of Money

The Life Cycle of MoneyThe Life Cycle of Money

0 20 40 60 80 100

Accumulation

Working

Preservation

Distribution

Retirement

Planning

What’s Important About Your Money To You?

What Affects the Growth of Your

MoneyInflationInflation

Market UncertaintyMarket UncertaintyTaxesTaxes

Inflation

Current Rate :4.94%

Source: US Department of Labor

2010

What Affects the Growth of Your Money

1975$100,00

0

2010$405,22

5

How Inflation Affects Purchasing Power

At 4% Inflation…

• 48% more income by age 72 • 48% more income by age 72

To Maintain Current Lifestyle…

To Maintain Current Lifestyle…

• 100% more income by age 80• 100% more income by age 80

…A 62 Year Old Retiring Today Will Need to Earn

•Inheritance Tax

•Federal Tax•County Tax

•Luxury Tax

•State Tax •Estate Tax

•Probate

•Property Tax

•Capital Gains

Tax

Social Security Tax

•Excise Tax

•Gasoline Tax

•Medicare Tax

•Personal Property Tax•Real Estate Tax

•Service Charge Tax

•Sales Tax•Telephone Usage Tax

•Utility Tax

How Taxes and Inflation Affect Growth

Investment $50,000

Actual Return: $47,980

Interest @ 1.26% $630Taxes @ 25% ($158)Net Return $50,473Inflation @ 4.94% (2,493)

Reduce Reportable,

Taxable Income

Key to Reducing Taxes:

Where do I Start?

•What is my Income Tax Bracket?

•Am I Paying Tax on my Social Security Unnecessarily?

•Am I Paying Taxes on Money I’m not Using?

Interest on Your Principal

Interest on Your Interest

Interest on the Money You Would Have Paid in Taxes

Tax-Deferral

8th Wonder of the World

The Power of Tax-Deferral

$123,799

5 year growth of $100,000 @ 6%

28% Tax Bracket

Taxable

Tax-Deferred

$133,823

+10,024+7,217

After Taxes

10 year growth of $100,000 @ 6%

28% Tax Bracket

$153,263$179,084

+25,823+18,593+18,593

AfterAfter Taxes Taxes

Tax Deferred Accounts

•Retirement Accounts: IRA’s, 401k’s, 403b’s

•Life Insurance Policies

•Annuities

The Amount of Income Taxes Paid on Social Security

Depends Upon Your Total Income.

How is Social Security Income Taxed?

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

Total Combined

Income

Taxable Percentage

of Social Security

$25,000 to

$34,000Single

Married

Over $34,000

50%

85%

Over $44,000

$32,000 to $44,000

50%

85%

Eliminating Taxes on Social SecurityAdjusted 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

% of Social Security Taxable: 85%

Tax Bracket: 25%

Tax Due: $10,475

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

% of Social Security Taxable: 0%

Tax Bracket: 15%

Tax Due: $3,735

Total Tax Reduction

= $6,740

“I’m not as concerned about the

return on my money as the return of my

money!” --Mark Twain

Market Volatility

Risky Choices

•StocksStocks•BondsBonds•Mutual Mutual FundsFunds

•Variable Variable InvestmentsInvestments

•Fees

•Can Lose Money

1.01%

2.33%

How Much Should I Have at Risk?

RULE OF 100

100 minus Age = Maximum % Risk

100 -65=35

Managing IRA Accounts

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

ENRON

GLOBAL CROSSING

WORLDCOM

TWABETHLEHEM STEEL

POLAROID

US AIRWAYS

Taking Control of Your Money

RISK•STOCKS•BONDS

•MUTUAL FUNDS•VARIABLE

INVESTMENTS

SAFECD’S

•SAVINGS•MONEY MARKETS

•ANNUITIES

IRA Rollover

IRS Code 1035 IRS Code 1035 Tax-Free Tax-Free ExchangeExchange

Safe Choices

•Savings Savings AccountsAccounts•Money Money MarketsMarkets

•CD’sCD’s•Fixed Fixed

AnnuitiesAnnuities

•Safety

•Flexibility

•Guarantees

Current CD Interest Rates

6 Month CD 6 Month CD 1.00%1.00%

1 YR CD 1 YR CD 1.26%1.26%

5 YR CD 5 YR CD 1.80%1.80%

1 YR IRA CD 1 YR IRA CD 1.28%1.28%

5 YR IRA CD 5 YR IRA CD 1.85%1.85%

•Banks

•Credit Unions

•Money Markets

•CD’s

FDIC Insured

For Every Dollar Invested…

Safety

The FDIC Requires .07 Cents

in Reserve

•Fixed Annuities

•Life Life InsuranceInsurance

Insurance Company

For Every Dollar Invested…

Safety

…One Dollar is Reserved

You

Deposit

Insurance

Company

Income

The Fixed Annuity

Variable Annuity

Variable Annuity

Invested in Various Mutual Funds

Policy Administration

Fees

Brokerage FeeFees for EACH Mutual Fund.05 to 7%

Time Deposit With a BankTime Deposit With an Insurance Company

CDCD

Fixed Annuit

y

CD vs. Fixed Annuity

The Differences:The Differences:

Higher Interest

•Grows Tax-Deferred

•Penalty Free Access

• Avoids Probate

The Fixed Indexed Annuity

Take Advantage of Stock Market Gains

Without the Risk.

Take Advantage of Stock Market Gains

Without the Risk.

Guaranteed Return of Your Principal.Guaranteed Return of Your Principal.

The Fixed Indexed Annuity

Aviva Approval # 12073 081108

Earnings Can be Linked to an Index

S & P 500

Dow Jones Industrial Average

NASDAQ

S&P 500

•Coca-Cola•Microsoft

•Home Depot•Federal Express

•Kellog Co.•McDonalds

98 99 00 01 02 03 04 05 06 07 08 09 10

Indexed Annuity

S & P Average

$160,747$160,747

$108,789

100K

Guaranteed Interest

142,576

Income Options

•Interest Only

•Specific Amount

•Specified Period

5, 10, 15, 20 Years

Lifetime Income

Age 70

Age 87

Annuities For Long-Term Planning

Retirement IncomeRetirement Income

SafetySafety

Tax Deferred AccumulationTax Deferred Accumulation

Avoid ProbateAvoid Probate

You Control When You Pay Taxes

Wealth Transfer: Passing it on

0 20 40 60 80 100 120

Distribution

Planning

Distribution

Planning

0 20 40 60 80 100

“If I have a nickel in my pocket when I

die, I miscalculated.”

--Will Rogers

“If I have a nickel in my pocket when I

die, I miscalculated.”

--Will Rogers

Estate PlanningPowers of AttorneyTrusts

Wills & Living Wills

Asset Record Estate Overview

Investments

Insurance

Titles & Deeds

Promissory Notes

Last Instructions for Family

6% to 8%

•Court Costs•Attorney

Fees•Taxes•Delays

Beneficiaries

ASSETSASSETS Real Estate Stocks Bonds Mutual Funds Bank Accounts

Probate

Estate Taxes

35% Federal Estate Tax

Wealth Transfers Through Life Insurance

•Liquidity

•Tax-Free Inheritance

•Probate-Free

•Creates an Immediate Estate

•Final Expenses

$50,000 Taxable

Investment

Tax-Free GrowthTaxes on Growth

Taxes at Death

$50,000Buys

$200,000

$35,000 to Heirs

Tax-Free at Death

$200,000 to Heirs

This illustration is a First Colony Life $50,000 single pay UL premium based on a healthy 70 year old female.

$49,878 Cash Value

$87,000 Death Benefit

$174,307 Death Benefit

Additional $87,307 Tax-Free Death Benefit

More Bang for the Buck.

THE NEXT STEP

We Guarantee That You Will Not Be Disappointed!

… the next step is your free Consultation

• Recent Financial Statements• Tax Return

• Insurance Policies

Seminar Evaluation Sheet Senior Financial Planning

Investment and Retirement Planning Strategies

Please Print

Date ___/___/___

Name ____________________________________________________

Address __________________________________________________

City / State / Zip ___________________________________________ Phone: ( ) ______________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-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

3 30 10

John and Joyce Jones

2 Livin The Dream Blvd.

Anywhere, USA

555 555 1212

Black Marble Sign4500

64

264

Mall St. Matthews

Oxmoor Mall

Frisch’s Big Boy

Concerned About Retirement?

Financial Planning Strategies for 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.

SFP

Estate Planning Living Trusts Probate Reducing Taxes Long-Term Care Asset Protection

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Market VolatilityMarket Volatility

Accumulation

Working

Preservation

Distribution

Retirement

Planning

0 20 40 60 80 100

Types of Fixed Annuities

1.Immediate Annuities

2.Deferred Annuities