GUIDING YOU THROUGH THE ROUGH SPOTS AND SHALLOW WATERS IS WHAT GOOD FINANCIAL PLANNING IS ALL ABOUT
<ul><li>Will you out live your retirement income? </li></ul><ul><li>Will taxes erode your income? </li></ul><ul><li>Will y...
Estate Planning For IRA’s <ul><li>Legacy IRA </li></ul><ul><li>Maximize tax deferral </li></ul><ul><li>The power of compou...
Stretch IRA <ul><li>This Strategy is designed for investors who will not need the assets for their own retirement needs. <...
LET’S TALK ABOUT THE REAL WORLD TODAY. LET'S TALK ABOUT REALITY
Uncle Sam gives us a  Tax Break? ROTH  IRA  OPPORTUINTY
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Seminar pm - retirement challenges withaudio15-20

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Section 2 Five Challenges for Retirees

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  • Have we had any rough spots in the past? (wait for response) sure we have. We will have any in the future? Sure we will. My job is guiding our clients through the rough spots and shallow waters to make sure they don&apos;t make any irreversible mistakes.
  • Read slide
  • How many of you have IRA’s? Raise your hands. Ok. Now this is really important, I see people make irreversible mistakes in this area all the time. You need to set up your IRA’s properly as a Legacy IRA or Stretch IRA in conjunction with your estate plan. We do this for our clients all the time. If you set up your IRA properly a non-spouse beneficiary, your children, can inherit the IRA and keep it as an IRA. They will be required to take minimum distributions based on their life expectancy and if there is money left in the IRA when they pass it goes to their kids. If you don’t set it up properly the non spouse beneficiary, your children, will have to withdraw all the money from the IRA either all at once and pay taxes on the whole amount, or they can withdraw it over a 5 year period and pay taxes over that 5 year period, which is really not much better. Now I don’t know if you want to leave you kids a big inheritance, but I’m sure you don’t want it going to the IRS! This is really important, if you have an IRA be sure and mark that off on the goldenrod sheet. I see people make mistakes with their IRA’s all the time, and many times the mistake is irreversible.
  • (Go through bullet points on the slide)
  • How many of you are taking distributions from your IRA? How many of you are taking distributions because the IRS requires you to take them? Every time you take money out of your IRA it gets added to your tax return as income and is taxed. Once you turn 70 ½ you are required to take mandatory distributions every year and every year that distribution is subject to taxation. That’s going to happen for the rest of your life and if there is money left over for the kids they will continue to pay taxes on distributions.
  • Now Uncle Sam has given us a way to eliminate those taxes. You can convert you Traditional IRA to a ROTH IRA.
  • Seminar pm - retirement challenges withaudio15-20

    1. 1. GUIDING YOU THROUGH THE ROUGH SPOTS AND SHALLOW WATERS IS WHAT GOOD FINANCIAL PLANNING IS ALL ABOUT
    2. 2. <ul><li>Will you out live your retirement income? </li></ul><ul><li>Will taxes erode your income? </li></ul><ul><li>Will your retirement money keep pace with inflation? (purchasing power risk) </li></ul><ul><li>Will you need to pay for Long Term Care? </li></ul><ul><li>Will there be anything left for your loved ones? </li></ul>Five Challenges For Retirees
    3. 3. Estate Planning For IRA’s <ul><li>Legacy IRA </li></ul><ul><li>Maximize tax deferral </li></ul><ul><li>The power of compounding </li></ul>It is suggested that you consult with your tax and/or legal professional regarding your individual situation
    4. 4. Stretch IRA <ul><li>This Strategy is designed for investors who will not need the assets for their own retirement needs. </li></ul><ul><li>Significant conditions, restrictions, and limitations apply to both the original IRA owner and the beneficiary including (but not necessarily limited to) eligibility requirements, timing factors, and distribution requirements. </li></ul><ul><li>The beneficiary’s distribution period is potentially very lengthy. </li></ul><ul><li>This strategy is based upon current tax law and that changes to tax law during the distribution period may significantly impact its outcome, including a beneficiary’s ability to maintain estimated distributions. </li></ul><ul><li>A lengthy distribution period exposes investors to significant market risk and inflation risk. </li></ul><ul><li>Ongoing fees, costs, and changes may be applicable during the distribution period. </li></ul>
    5. 5. LET’S TALK ABOUT THE REAL WORLD TODAY. LET'S TALK ABOUT REALITY
    6. 6. Uncle Sam gives us a Tax Break? ROTH IRA OPPORTUINTY

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