Social Security Rescue-case-study 2
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Social Security Rescue-case-study 2 Social Security Rescue-case-study 2 Document Transcript

  • Making Sales Using Social Security Planning
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 TABLE OF CONTENTS • Fill 2 Seminars for $2k?! ■■ Sample Mailer with Pricing ■■ Response Rate Expectation • The First Appointment – “What’s at Stake?” ■■ Scenario 1 – “Best Strategy” ■■ Scenario 2 – “File ASAP” ■■ Scenario 3 – “Desired Retirement Age” ■■ Sample Client Fact Finder • The Second Appointment – “Identifying Income Gaps” ■■ Social Security Rescue Report ■■ What Will Social Security Cover? ■■ What are Your Income Gaps? • The Closing Appointment(s) – “Solving the Income Gaps” ■■ The FIA Income Rider Sale ■■ The No Lapse Life Insurance Sale
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 Response Rate Expectations The ideal seminar size for the Social Security Rescue program is 40-45 people. With a 5,000 piece mailer, we are able to fill 2 workshop dates in most areas and average between 1-2% response depending on the age and income demographics. While response rates are not guaranteed, we are happy to provide you with additional data from recent mailers. Contact Magellan Financial at 866-779-3553 for more details. Current Pricing (Subject to Change, Contact Magellan Financial for Details) 5,000-10,000 = $.38/mailer (5,000 piece mailer costs $1,900) 10,000-15,000 = $.36/mailer (10,000 piece mailer costs $3,600) Over 15,000 = $.34/mailer (15,000 piece mailer costs $5,100) *Please note: The 24 hour 1-800 reservation line costs extra and is not included in the pricing above View slide
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 The First Appointment “What’s at Stake” Meet David S. (Age 63) & Susan S. (Age 61) David S and Susan S are approaching retirement and have not yet planned on when they want to take social security benefits. After attending a Social Security Rescue workshop, they decide to meet with you and get some additional information about the best filing strategies for their specific situation. After entering the information from their Social Security Statements into the Social Security Explorer software (visit www.social securityexplorer.com), we look at 3 different scenarios. The first scenario is the “Best Strategy” based on the assumed life expectancy, cost of living adjustment (COLA) and full retirement age benefits from their most recent statements. Scenario 1 – “Solving for the Maximum Strategy” In the first scenario, we are looking at the strategy that will provide the most lifetime Social Security Benefit based on the information provided. In this example, the recommended strategy is “You Suspend, Spouse Files Restricted”. When David turns 66, he will file for benefits but not suspend payments until he reaches age 70. By doing so, he will receive 8% per year in delayed retirement credits and a minimum of 132% of his Full Retirement Age (FRA) Benefit. When Susan reaches age 66 (FRA), she will file a restricted application and collect 50% spousal benefits, while also allowing her benefit to grow at 8% per year until she reaches age 70. View slide
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 The First Appointment “What’s at Stake” Meet David S. (Age 63) & Susan S. (Age 61) David S and Susan S are approaching retirement and have not yet planned on when they want to take social security benefits. After attending a Social Security Rescue workshop, they decide to meet with you and get some additional information about the best filing strategies for their specific situation. After entering the information from their Social Security Statements into the Social Security Explorer software (visit www.social securityexplorer.com), we look at 3 different scenarios. The second scenario is the “File ASAP Strategy” based on the assumed life expectancy, cost of living adjustment (COLA) and full retirement age benefits from their most recent statements. Scenario 2 – “Starting Benefit As Soon As Possible” In the second scenario, we are looking at the strategy that will allow for both spouses to collect benefits as soon as possible. In this example, we will not use any special filing strategies”. David is currently 63 and will be able to file for benefits right away, receiving only 80% of his FRA benefit. Susan is 61 and will have to wait until she turns 62 before filing for benefits, receiving only 75% of her FRA benefit. Without using any filing strategies, they will not receive any delayed retirement credits by using the “File & Suspend” or “File Restricted” strategies. The total lifetime benefit is projected to be $1,350,955.
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 The First Appointment “What’s at Stake” Meet David S. (Age 63) & Susan S. (Age 61) David S and Susan S are approaching retirement and have not yet planned on when they want to take social security benefits. After attending a Social Security Rescue workshop, they decide to meet with you and get some additional information about the best filing strategies for their specific situation. After entering the information from their Social Security Statements into the Social Security Explorer software (visit www.social securityexplorer.com), we look at 3 different scenarios. The third scenario is the “Alternate Strategy” based on the assumed life expectancy, cost of living adjustment (COLA) and full retirement age benefits from their most recent statements. We base this scenario on the age the client plans to retire. Scenario 3 – “Best Strategy Based on Planned Retirement Age” In the third scenario, we find during our fact-finding portion of the first appointment that David and Susan are planning to retire when David turns 68 and Susan is 66. They decide to look at the best strategy for filing Social Security based on their planned retirement age. At age 66, Susan will file for benefits and begin collecting immediately, receiving 100% of her FRA. At age 68, David is able to file a restricted application and collect 50% spousal benefit for 2 years while allowing his benefit to continue growing at 8% per year until age 70, when he will receive a minimum of 132% of his FRA benefit. The total lifetime benefit is projected to be $1,751,723.
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 The First Appointment “What’s at Stake”
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 The Second Appointment “Identifying Income Gaps” About the Social Security Rescue Report The secondary “SSR Report” is designed to move the conversation from Social Security Maximization strategies to discussing the income gaps that exist after receiving Social Security retirement benefits. This 5 page report shows a summary of what’s at stake if the clients do not plan for Social Security, in addition to what their income will be before planning and after planning. How to Request the Rescue Report? Your marketer at Magellan Financial creates this report internally. After submitting the first page of your fact-finder, we will run the report for you and provide any annuity or life illustrations that you will need to close the case. For more information, you can reach Magellan Financial at 866-779-3553.
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 The Second Appointment “Identifying Income Gaps” What Will Social Security Cover? On pages 2 and 3 of the Rescue report, the client will be able to see the estimated amount of Social Security and compare this number with their desired retirement income, which will also be adjusted for inflation. In most cases, there will be an Income Gap that will need to be filled in order to provide the clients’ desired retired income. Our goal is to close the gap with income planning, using life insurance and annuities. What is Your Income Gap? In this example, the clients plan to work until David turns 68 and Susan turns 66. While David is collecting 50% spousal benefits from age 69 to 70, they will have just over $50k per year for an Income Gap after Social Security. When David turns 70 and starts receiving his full benefits, the income gap ranges from $25k-$35k until he passes away. If he passes away at 85 and Susan lives until 90, she will lose approximately $38k-$40k in Social Security Benefits per year. The couple decides to take the next step and look at how to fill these gaps on a guaranteed basis.
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 The Second Appointment “Identifying Income Gaps” The FIA Income Rider Sale On pages 4 and 5, we have added an additional income stream to supplement Social Security starting in the 6th year when David and Susan are both retired. The “After Planning” reports show the effect of adding $23,500 in inflation-protected income. We recommend using an inflation protected indexed annuity to fill this gap so it more closely mirrors Social Security and protects your client against reduced spending power during retirement years. If you would rather run a level payment, the report can be adjusted to reflect no Cost of Living Adjustment (COLA). Focus on Qualified Assets First The Social Security Rescue seminar clients generally have more assets than a typical estate-planning workshop and will often have $500k - $1Million in available assets from 401(k), IRA and other qualified plans. Explaining the RMD process to your clients and the fact that they will have to start spending these assets down when they reach 701/2 years old. In this example, we would generally need between $250k and $350k in assets to fill the income and create an income stream of $23,500 in 6 years. For complete details and a sample illustration on this case, call Magellan at 866-779-3553.
  • *Terms and Conditions Apply – Results are Not Guaranteed – Call for Details. NOT AFFILIATED OR ENDROSED BY SOCIAL SECURITY ADMINISTRATION Copyright © 2012-2013 – Magellan Financial & Insurance Services, Inc. 866-779-3553 The Second Appointment “Identifying Income Gaps” The No Lapse Life Insurance Sale What happens to the surviving spouse’s Social Security when the first spouse passes away? As you can see in the illustration, the remaining spouse will have a significant reduction and will lose the lesser if the two Social Security income streams. If the annuity is structured as a joint payout, as shown in this example, Susan will have 7 years of approximately $40k in additional income gaps when David passes away. Buying a no lapse life insurance policy can help solve this additional income gap and protect your client’s longevity risk. How Many Years Do You Want to Insure? There are two main options when discussing the life sale in conjunction with Social Security Planning. The first is to take “Lazy Assets” that exist in a non-qualified account such as a Certificate of Deposit and purchase a simplified issue Single Pay Life Insurance Policy. There are several options that do not require any blood tests while issuing in a week or less with telephone point of sale underwriting. Most of these policies also allow the client to keep the initial premium amount liquid with Return of Premium features, in case and emergency arises. The second option is to use a fully underwritten plan that the client can pay a monthly (quarterly, annually, etc) premium for. There is less initial commitment and usually provides more death benefit versus a simplified single pay option. Your client may not want to insure the full 7 years as Susan and David did, but may want to provide at least some level of coverage. The report is designed to start the conversation for you, make sure not to forget the life sale.
  • 5605 SW Barrington Ct Ste 100 Topeka, KS 66614 866-779-3553 Making Sales Using Social Security Planning For sample illustrations and more information about Social Security Rescue, Contact