Making The Most Of Retirement Assets  2008 Compliance Approved
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Making The Most Of Retirement Assets  2008 Compliance Approved Making The Most Of Retirement Assets 2008 Compliance Approved Presentation Transcript

  • Considering Your Retirement Assets NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • “…I wish we had a retirement plan that didn’t require matching six numbers.” NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • SOURCE OF retirement income? Other 3% Personal savings 14% Social Security 39% Potential retirement pitfalls Retirement income sources Longevity risk Part-time Inflation risk Potential retirement pitfalls Asset allocation risk Work 25% Retirement income sources Longevity risk Inflation risk Pensions Asset allocation risk 19% Most people need approximately 70% of their current income to maintain their current standard of living in retirement Source: Income of the Aged Chartbook 2002, SSA Publication No. 13-11727, Social Security Administration (September 2004). NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC View slide
  • NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC View slide
  • NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • *This hypothetical example does not reflect the  effects of taxation, fees, and inflation. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Financial Planning Process 1. Determine where you are going - Set goals & objectives 2. Know where you are - Take inventory of existing assets 3. Develop & follow a retirement plan NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • When do you want to retire? What do you want to do in retirement? NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Manage Your Monthly Debt payments Short-term Payments- Should not exceed 20% of after-tax income Mortgage Payments- Should not exceed 28% of monthly gross income Combined Monthly Debt Payments- Should not exceed 36% of monthly gross income NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Will I Need a Lump Sum of Money at retirement? Repairs to your house Pay off bills College tuition Retirement vacations Start a business? NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Roadblocks to Retirement Security Inflation Taxes Procrastination Longer Life Expectancy Market Risk NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Consider This… ‐ Life expectancy has increased ‐ You may well be retired longer  than you work Average Life Expectancy for Men in 2007 Current Age 40 45 50 55 60 65 Avg Life Expectancy 78 79 79 80 81 83 Additional Years 38 34 29 25 21 18 Source: Social Security Administration NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • SWhere Do I Want to Go? ummary When will I retire? What will I do? How much do I need to live on? Consider: taxes, inflation, and risk NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Where am I Now? Taking Inventory Social Security Company Benefits Personal Investments NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • “You’ll find how to live on Social Security over there in the fiction section.” NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Social Security: Then and Now 1940 Today (2007) Payroll Tax 2% 12.4% Earnings Cap $3,000 $102,000 Beneficiaries <1,000 50,000,000 Average Benefit $22.60 $1,079.00 Source: Social Security Administration NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • DISTRIBUTION Choices: 1. Pay Taxes Ordinary Income 2. Defer Taxes Indirect Rollover Direct Rollover NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Defer taxes IRA Rollover No current taxes on distribution Tax deferral continues on interest and/or dividends Stock can be sold without current tax liability Can have numerous investments in rollover account No probate, with appropriately designated beneficiary NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • TWO TYPES OF Rollover distributions Direct Rollover Transfer Indirect Rollover NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Direct Rollover Transfer Employer sends directly to IRA, new plan or custodian Simplest method of rollover NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Rollover Process Step 1: Fill out company paperwork, request Direct Rollover to avoid Taxes and Penalties Step 2: •Invest money into various securities Step 3: •Take distributions when you are ready. Distributions will be subject to taxes and possibly 10% penalties. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • How Do I Receive My Monthly Income? IRA Pension Other Income Social Security Your Bank Account Your Retirement Paycheck NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Regions Financial Corporate Footprint 1,400 Regions Bank Locations 400+ Morgan Keegan Locations (66 full service and 234 satellites in Regions Banks 20 Regions Insurance Group Locations NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • • Morgan Keegan & Company • Founded in 1969 in Memphis, Tennessee • Full service investment banking and securities brokerage firm Our firm’s • Serving the diverse financial needs of individual investors in the  entrepreneurial Southern United States and corporate and institutional clients  culture throughout the US and abroad promotes • 400+ offices in 19 states innovation and • Member NYSE, SIPC dedication to • Wholly owned subsidiary of Regions Financial Corporation serving every financial need of • Regions Financial Corporation our clients. • Among top 10 largest financial services companies in the nation • $140 billion in assets • Over $27 billion market capitalization • 5 million households • 1,400 locations in 16 states • Listed on NYSE (symbol:RF) • Member FDIC • Member of the S&P 100 Index and Forbes’ “Platinum 400” list of  America’s best big companies NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • A Full Service Financial Institution Morgan Keegan Morgan Keegan Morgan Keegan Regions Private Equity Fixed Income Bank Client Group Capital Markets Retail Brokerage Sell-Side Advisory Public Finance Loans Portfolio Buy-Side Advisory Mortgage Finance Mortgages Management Fairness Opinions Fixed Income Research Leases Financial Planning Private Placements Fixed Income Trading Insurance Executive Services Public Equity Cash Management Insurance Institutional Sales Corporate Debt International Services Retirement Planning Asset/Liability Equity Research Commercial Services Family Office Management Institutional Sales Other Banking Services Support Portfolio Accounting Private Equity Funds NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Issue: Process: 1. Investments Provide an asset allocation and portfolio review. 2. Insurance Analyze existing life, disability, long-term care and liability insurance. 3. Liabilities Review the terms, creditors, collateral, etc., for all debt. 4. Qualified Retirement Plan/IRA Review current contribution amounts, investment alternatives and plan limits. 5. Stock Options Prepare an exercise strategy for qualified and non-qualified stock options. 6. Business Succession Planning Develop succession plan that meets client’s stated goals. 7. Durable Power of Attorney Review existing Powers of Attorney. 8. Gifting to Children/Descendents Establish gifting plans for wealth transfer to heirs. 9. Charitable Gifting During Life Establish optimal charitable giving plan. 10. Titling of Assets Review current titling of assets to meet client’s estate planning objectives. 11. Executor/Trustee Review existing executor/trustee designations. 12. Distribution Plan at Death to Review existing estate planning documents in light of a client’s expressed goals and Spouse/Descendents objectives. 13. Charitable Inclinations at Death Consider alternative gifting strategies to meet charitable goals. Morgan Keegan has identified 13  Wealth Management Issues‐ some of the these may not presently apply to  your situation or you may choose to focus on only the most pressing issue at this time. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Investment Management Philosophy NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • MY Delivery TO YOU: • Preparation of an analysis of your choices under YOUR retirement program • Analysis will consider your other assets as well • Your retirement goals will drive the process • Investment recommendations premised upon your risk profile and time horizons NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • I believe the most rewarding investment experience comes from making the  investor the focus rather than the market. Investors, unlike markets, have  goals. We can position your investments relative to your goals, while taking  into account the inevitable market fluctuations which will occur along the way.   This approach has been shown to increase your likelihood of success. My Management Program My Professional Discipline Investor-Centered Investments based on client’s clearly defined goals, vs. Market-Centered consistent with their values, understood within their total life-plan Reason vs. Emotion Responsive to changes in goals or life events, rather than reactive to market events Long-term Process vs. Investing and Investment decisions understood within Short-term Event the context of a life and a life time rather than a single day or event Relational vs. Transactional Investment decisions based on comprehensive knowledge of the client and their interests, achieved through ongoing consultation NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • My Commitment to You As a Morgan Keegan financial advisor, I have the resources, personnel, and  backing of one of the nations largest full service investment firms. It is my  responsibility to create, grow, protect, preserve, or utilize your wealth  regardless of the prevailing investing environment. I can also help you plan  for the distribution of your wealth in a tax‐advantaged way both during your  life and beyond. This is done by building a plan specific to your family’s  dynamics, hopes, and dreams.  NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC
  • Morgan Keegan & Company Members NYSE, SIPC 50 N. Front Street Memphis, Tennessee 38103 800-366-7426 Disclaimer: The information and opinions expressed are intended for  general information only. Morgan Keegan & Company, Inc. does not assume liability for any loss, which may result from the reliance of  any person upon any such information or opinions. Such information  and opinions are subject to change without prior notice. The general  information is not intended as an offer or solicitation with respect to  the purchase or sale of any security or offering, nor is it deemed  individual or personalized advice. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC