The presentation will begin shortly This webinar is being
recorded for future use. Funds for this webinar were provided by
the U.S. Department of Health and Human Services (HHS), Health
Resources and Services Administration (HRSA) with the American
Recovery and Reinvestment Act (ARRA) funding for the Retention and
Evaluation Activities (REA) Initiative. This webinar is being
offered by the San Francisco Community Clinic Consortium and the
California Statewide AHEC program in partnership with the Office of
Statewide Health Planning and Development (OSHPD), designated as
the California Primary Care Office (PCO).
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WELCOME EVERYONE! Thank you for joining us today
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Raising your hand to ask a question
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Sending Notes
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Muting your phone
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Presented by Michael F. Merrill, CLU, ChFC Financial Advisor |
Senior Partner Finity Group, LLC [email protected]
Registered Representative, Securities offered through Cambridge
Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC.
Investment Advisor Representative, Cambridge Investment Research
Advisors, Inc., a Registered Investment Advisor. Finity Group, LLC
and Cambridge are not affiliated. Financial Advisors do not provide
specific tax/legal advice and this information should not be
considered as such. You should always consult your tax/legal
advisor regarding your own specific tax/legal situation.
0368-2002-2445 DOFU: 062002
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Your Strategy Can Not Be NORMAL > $113,799 = 10% >
$159,619 = 5% > $380,354 = 1% *According to the IRS 2010
Database
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The Three Ts Time Getting a late start! Taxes Due to your
income, you will pay significantly more in taxes than most people!
Trial Attorneys You are an attorneys dream come true!
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Keys to Reaching Financial Independence Calculate Net Worth
Match Investments to Time Horizons Save 20% of your Income
Eliminate Bad Debt Manage Risks Properly Use Tax Code to your
advantage Review your Financial Situation Yearly
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Emergency Reserves Debt Management SECURITY & CONFIDENCE
Risk Management Mutual Fund Portfolio Savings CAPITAL ACCUMULATION
Retirement Plans Home TAX ADVANTAGED INVESTMENTS WEALTH
SUCCESS
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SECURITY & CONFIDENCE Debt Management
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7% rule Good Debt vs. Bad Debt Mortgage Interest Student Loans
Business Loans Focus on high interest, short-term debt
Emergency Reserves Safe, Liquid, Low Costs Im not so concerned
about the rate of return on my money, just the return of it!
High-Interest Savings Accounts www.bankrate.com
Risk Management Medical Insurance Home Insurance Car Insurance
Life Insurance Disability Insurance Professional Liability Umbrella
Liability
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Umbrella Liability Insurance Excess liability insurance that
covers above and beyond the limits on your Auto & Home Owners
insurance Only sold in million dollar increments Usually costs $12
- $15 per month per million of coverage
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Keys to Risk Management Self Insure High Probability, Low Cost
Risks Deductibles and waiting periods Share Low Probability, High
Cost Risks Insure those risks with the least probability of
occurrence and the greatest potential loss. Protect Your Most
Valuable Assets Health Income Family
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Life Insurance Temporary vs. Permanent Term insurance Least
expensive form of life insurance Lasts for a specified period of
time (i.e., 10, 20 or 30 years) Permanent (whole life, variable
life, etc.) Can last your whole life Costs more than term insurance
Builds cash value Life insurance products contain fees, such as
mortality and expense charges, and may contain restrictions, such
as surrender charges.
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Long Term Disability Insurance
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Example Benefits Received from Group LTD *Based on an
individual making $20,000/month, 33% effective tax rate and a Group
LTD policy with a taxable 60% benefit and a monthly maximum of
$15,000.
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What to look for in a Financial Advisor Specialized in working
with Physicians Truly Independent no conflict of interests No
Regulatory Violations, Disciplinary Actions, or Client Complaints
filed. www.FINRA.org Broker Check
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Emergency Reserves Debt Management SECURITY & CONFIDENCE
Risk Management CAPITAL ACCUMULATION Mutual Funds, College Savings
Plans, Real Estate TAX ADVANTAGED INVESTMENTS WEALTH SUCCESS
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Start Saving Early $2,000/year from Age 35 to age 45 Stop
Investing Total: $20,000 Result at Age 65: $147,157 Wait to start
saving $2,000/year from age 45 to 65 Total: $40,000 Result at age
65: $114,550 This example assumes an 8% rate of return compound
interest. This is a hypothetical example for illustrative purposes
only, and is not representative of any specific investment. It does
not factor investment costs, and if costs were factored, results
would be less.
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3 Methods of Diversifying Your Financial Strategy 1. Asset
Class 2. Time Horizon 3. Tax Treatment *Asset allocation and
diversification strategies cannot assure profit or guarantee
against loss. Past performance does not indicate future
results.
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Investor Behavior 20 year average equities investment return =
9.14% 20 year average equities investor return = 3.83% 20 year
average bond investment return = 6.89% 20 year average bond
investor return = 1.01% 20 year average inflation = 3% Average
equities investor retention rate = 3.27 years Source: 2011 DALBAR
Study of Investor Returns Offers Ways to Improve Investors
Alpha
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3 Methods of Diversifying Your Financial Strategy 1. Asset
Class 2. Time Horizon 3. Tax Treatment *Asset allocation and
diversification strategies cannot assure profit or guarantee
against loss. Past performance does not indicate future
results.
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Time Horizons Short Term Medium Term Long Term
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3 Methods of Diversifying Your Financial Strategy 1. Asset
Class 2. Time Horizon 3. Tax Treatment *Asset allocation and
diversification strategies cannot assure profit or guarantee
against loss. Past performance does not indicate future
results.
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What do you get when you combine the words: The IRS THEIRS
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*Source: www.taxpolicycenter.org
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Three Buckets Used Pre-Tax 401(k), 403(b), SEP, Traditional IRA
Post-Tax Roth IRA, Cash Value Life Insurance Capital Gains Tax
Non-Retirement Investment account
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Roth IRA Vs. 401k / 403b Roth IRA After tax contribution Tax
deferred growth TAX FREE distributions* 401k / 403b Pre-tax
contribution Tax deferred growth TAXABLE distributions *For a Roth
IRA, earnings withdrawn prior to reaching age 59 and/or not meeting
the five-year holding period may be subject to a 10 percent penalty
in addition to income tax. After-tax contribution amounts are
generally returned income tax free. Investors anticipated tax
bracket in retirement will determine whether or not a Roth IRA
versus a traditional IRA or qualified plan will provide more money
in retirement. Generally, investors who are in a higher tax bracket
at retirement relative to their current tax bracket while making
contributions to a Roth IRA benefit more than an investor who is in
a lower tax bracket at retirement. For 401k or 403b plans,
withdrawals prior to age 59 are subject to a 10% early distribution
penalty unless an exception applies.
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Possible Opportunity Do you have an old IRA, 401k, 403b, or
other retirement plan? Roth Conversion IRA Rollover
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Roth IRA Effective January 1, 2013 Filing StatusIncome Single
or Head of Household$112,000 - $127,000 Married & filing
jointly$178,000 - $188,000 Contribution Limitation 2013: $5,500
2012: $5,000 (Eligible participants may contribute up until April
15 th, 2013 for tax year 2012) Distributions Tax-Free If over age
59 , and Established for at least five years
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People dont plan to fail, they fail to plan. Please Take a few
Minutes to Fill Out the Seminar Comment Form & CME
Evaluation