Pension Maximization
Presented by Gary Peterson Defined benefit pensions can present a challenge to clients who want to maximize retirement payouts and also provide income for a surviving spouse. The pension maximization approach provides an ideal solution using life insurance to bridge the gap. Here are some great resources from one of our carriers to help you discuss pension maximization with clients and prospects. Pension Maximization Quick TipsSocial Security Planning
Presented by John Schraut Are you thinking of a way to get in front of more pre-retiree prospects? Think of a subject matter that is important to all of those approaching retirement age, no matter what they do for a living or where they live, Social Security Planning! Protective Life’s Understanding Social Security program offers a variety of resources to help you learn about the key aspects of the Social Security program and promotional materials to help you promote your Social Security planning services to clients and prospects. Additionally, it provides educational materials to help you work with your clients on key decisions as they prepare to receive Social Security benefits. Use the categories HERE http://www.protectivemarketing.com/socialsecurity to find the materials and tools you need to help your clients see the bigger picture when it comes to their Social Security benefits and retirement.Tips To Managing Your Inheritance
Presented by Marketing Take your time. This is an emotional time…not the best time to be making important financial decisions. Short of meeting any required tax or legal deadlines, don’t make hasty decisions concerning your inheritance. Identify a team of reputable, trusted advisors (attorney, accountant, financial/insurance advisors). There are complicated tax laws and requirements related to certain inherited assets. Without accurate, reliable advice, you may find an unnecessarily large chunk of your inheritance going to pay taxes. Park the money. Deposit any inherited money or investments in a bank or brokerage account until you’re in a position to make definitive decisions on what you want to do with your inheritance. Understand the tax consequences of inherited assets. If your inheritance is from a spouse, there may be no estate or inheritance taxes due. Otherwise, your inheritance may be subject to federal estate tax or state inheritance tax. Income taxes are also a consideration. Treat inherited retirement assets with care. The tax treatment of inherited retirement assets is a complex subject. Make sure the retirement plan administrator does not send you a check for the retirement plan proceeds until you have made a distribution decision. Get sound professional financial and tax advice before taking any money from an inherited retirement plan…otherwise you may find yourself liable for paying income taxes on the entire value of the retirement account. If you received an interest in a trust, familiarize yourself with the trust document and the terms under which you receive distributions from the trust, as well as with the trustee and trust administration fees. Take stock. Create a financial inventory of your assets and your debts. Start with a clean slate and reassess your financial needs, objectives and goals. Develop a financial plan. Consider working with a financial advisor to “test drive” various scenarios and determine how your funds should be invested to accomplish your financial goals. Evaluate your insurance needs. If you inherited valuable personal property, you will probably need to increase your property and casualty coverage or purchase new coverage. If your inheritance is substantial, consider increasing your liability insurance to protect against lawsuits. Finally, evaluate whether your life insurance needs have changed as a result of your inheritance. Review your estate plan. Your inheritance, together with your experience in managing it, may lead you to make changes in your estate plan. Your experience in receiving an inheritance may prompt you to want to do a better job of how your estate is structured and administered for the benefit of your heirs.Ask Grandma and Grandpa
Presented by Brian Leising
When you meet with a person who is a grandparent, what photos do you see on their walls? The photos of their children are long gone and the walls are now adorned by their adorable grandchildren. Just try to ask a question about their grandchildren and see if you can get a word in edgewise for the next hour. They love to talk about their grandchildren and would do just about anything for them. If your clients (the parents) are short on cash, ask them about their parents.
Some retirees have more money than they will spend in their lifetime. They may even have funds already earmarked for future generations. This provides you with a great opportunity, you just need to ask. Here are a few specific items you should bring up:
Do the grandparents have IRA’s or qualified plans with benefits larger than they will need for retirement income?
Are they taking required minimum distributions only to re-invest them and pay more taxes on that income?
Do they have CD’s, mutual funds or annuities earmarked for their heirs?
By taking this money and placing it into a life insurance policy, they could shelter the money so the income is not included on their tax return. If structured properly, it could also provide tax free loans that may be used for any purpose, including college tuition. The policy also produces a legacy at death.
In other cases, you may find the grandparents are able to fund a policy on the lives of the parents. The death benefit, if needed, would provide funding for the children and the cash value could be tapped for any purpose, including college tuition.