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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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W ha t Y ou W ill N eed to B ring W ith Y ou to Y our A p p oin tm e nt: 1 . M ost R ecen t F in an cia l S tatem en ts 2 . L ast Y ears T a x R etu rn 3 . A n y Policies o r D ocu m en ts Y ou W ou ld L ike R eview ed (ie . L on g -term C a re,
L ife In su ran ce Po licies)
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C harlestow n C rossing
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Blackiston M ill M t. T abor
F rom I-265, trave l n orth on C h arlestow n R oad ¼ m ile to C h arlestow n C ro ssin g . T u rn left. Pass R ep u b lic B an k on th e righ t. T u rn righ t ( in fron t of T u m b lew eed ) an d ou r office is d irect ly in fron t of you .
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
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