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IRA Strategies for Wealth TransferPresenter Title

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Today’s Objectives

Today I’ll demonstrate how you canimprove your client’s legacy

Today I’ll demonstrate how you canimprove your client’s legacy

by describing what IRA investors typically do,& comparing it to two simple but powerful ideasby describing what IRA investors typically do,

& comparing it to two simple but powerful ideas

so they can maximize their IRA legacy potentialand recognize the value you bring.

so they can maximize their IRA legacy potentialand recognize the value you bring.

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30 Years Ago

Pension Social Security Savings

Today

Pension Social Security Savings

Sources of Retirement Cash Flow

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IRAs and RMDs

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6%8%

10%

12%14%

3.6%

RMDs vs. Account Value

RMDs as a % of Account Value

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Projected IRA Values

$100,000 IRA; 7% hypothetical annual return

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

70 75 80 85 90 95 100 105 110 115

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Typical IRA Transfer

IRA Owner(s)

Children

Grandchildren

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Typical IRA Transfer

IRA Owner(s)$500,000

Children$300,000

Grandchildren

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Story Selling

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3 Circles

2 Questions

3-Point Value Proposition

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Cross out the one you would least liketo get your money when you’re done with it.

XL.O. C G

Your money can go to threeplaces when you’re done with it:

3 Circles

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2 Questions:

1. Mr. & Mrs. Jones, if things go the way you have planned, what’s going to happen to your IRA?

2. Why don’t you give it to them right now?

2 Questions:

1. Mr. & Mrs. Jones, if things go the way you have planned, what’s going to happen to your IRA?

2. Why don’t you give it to them right now?

Client Questions & Value Proposition

3-Point Value Proposition:

1. We’ll keep your IRA in your Care, Custody and Control;

2. Potentially double, triple or quadruple the value of your legacy; and

3. Take no additional investment risk in your portfolio

3-Point Value Proposition:

1. We’ll keep your IRA in your Care, Custody and Control;

2. Potentially double, triple or quadruple the value of your legacy; and

3. Take no additional investment risk in your portfolio

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IRA Wealth Transfer Strategies

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Typical IRA Transfer

IRA Owner(s)

Children

Grandchildren

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Typical IRA Transfer

IRA Owner(s)$500,000

Children$300,000

Grandchildren

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Life Insurance Solutionsfor

IRA Wealth Transfer

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1. IRA Income Tax Offset

IRA

RMD’s

Life Insurance(equal to taxes)

Taxes

Beneficiaries

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IRA$500,000

RMD’s

Life Insurance$200,000

Taxes

Beneficiaries$500,000

1. IRA Income Tax Offset

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2. IRA Income Tax Elimination

IRA

RMD’s

Life Insurance(equal to IRA)

Beneficiaries

Charity

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IRA$500,000

RMD’s

Life Insurance$500,000

Beneficiaries$500,000

Charity$500,000

Tax-Free Total:$1,000,000

2. IRA Income Tax Elimination

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Comparison of StrategiesTotal Net After-Tax Legacy

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

Current Tax Offset Tax Elimination

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Do you remember our3-Point Value Proposition?

1. We’ll keep your IRA in your Care, Custody and Control;

2. Potentially double, triple or quadruple the value to your beneficiaries; and

3. Take no additional investment risk in your portfolio

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The “Soft” Close

“I know you qualify for this program financially, but. . .

I don’t know if you qualify medically.”

You have time to think about it.

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Questions or Comments

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IRA Strategies for Wealth Transfer

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Important Information

Policies issued by American General Life Insurance Company (AGL), a member of American International Group, Inc. (AIG)

The underwriting risks, financial and contractual obligations and support functions associated with the products issued by AGL its responsibility. Guarantees are subject to the claims-paying ability of the issuing insurance company. AGL does not solicit business in New York.

Policies and riders not available in all states. Keep in mind that American General Life Insurance Company and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Individuals should seek the advice of an independent tax advisor or attorney for more complete information concerning their particular circumstances and any tax statements made in this material.

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