Pension platforms for Life Income -- Feb2012


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If one chooses to commute a pension plan in order to create an individualized income, what kinds of factors might one consider in order to feel that the "nest egg" is secure and one's income will continue for life?

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Pension platforms for Life Income -- Feb2012

  1. 1. PENSION PLATFORMS SECURING INCOME FOR LIFE . Seminar #2 <ul><li>__________________ </li></ul><ul><li>Brian Weatherdon, MA, CFP, CLU </li></ul><ul><li>[email_address] </li></ul><ul><li>1 877 937-3500 x 223 </li></ul>
  2. 2. How to use seminar #2 . . . <ul><li>This follows seminar #1 which helps people compare ( a ) traditional fixed-income pension plan, and ( b ) a personalized and flexible pension in which you can choose and adjust your income streams and also enhance estate value for your family &/or philanthropy. </li></ul><ul><li>We now can address how to safeguard your income in a flexible personalized plan, and also preserve estate value for those dearest to you. </li></ul><ul><li>Do you recall meeting Mary, Eric, and Pat in seminar #1? Their personalized pension must withstand whatever the world will bring. How will we do this? </li></ul><ul><li>After you have considered these slides it’s time to talk again. We’ll discuss how we can fit your particular situation. How much income do you want? …starting when? …increasing how? …what value for survivor? …what for your estate? …and protection for health and inflation. …and adaptability to future needs. </li></ul><ul><li>Foremost are your personal comfort, feelings, beliefs, family, and lifestyle… More than confirming your risk/return profile, we clarify and counsel together to design your pension to fit your personal values and how you want to enjoy LIFE. </li></ul>
  3. 3. PLATFORMS TO FULLY ENJOY LIFE <ul><li>The future isn’t one moment or event. It is a journey. </li></ul><ul><li>Careers and family life hold many stages, platforms or </li></ul><ul><li>experiences. In retirement we are similarly free to build </li></ul><ul><li>interests, avocations, health and serenity. I suggest </li></ul><ul><li>at least 3 time horizons, and will here show how we </li></ul><ul><li>provide a personalized series of platforms to serve your </li></ul><ul><li>life throughout your retirement years, and ultimately also </li></ul><ul><li>enhance and streamline your estate. </li></ul>
  4. 4. Life is not about standing still. It’s not even a straight line. Neither is retirement. A traditional pension plan is drawn as a straight line from when one retires until it terminates at death (or death of a surviving spouse).
  5. 5. Life was never a single platform. Search for more enjoyment and meaning is endless More time and opportunities to explore “self-actualization”
  6. 6. The way forward can be fun! Resources make it possible! Dad said, “I’ll live until I die.” Life always has room for fun! Financial resources can fit the budget for the life you choose.
  7. 7. Artful design and careful engineering combine to keep your way safe and secure! “ Safety first” still applies to the stairways or bridges leading to your future.
  8. 8. One platform wouldn’t do. Even at its simplest, life has different levels! If one wants flexibility to adjust income to fit changing needs or opportunities in life, a fixed-income pension offers little capacity to do that. A personalized pension plan offers flexibility to adjust your income and also to manage further values for your estate.
  9. 9. Should life have some colour and fun? We focus on the life you choose, and how you are ready to reward yourself and enjoy the years ahead. This is all about YOU…..
  10. 10. Here we are: a natural sequence of journeys to enjoy the whole of life!
  11. 11. Creating the best combination:
  12. 12. So this life-based planning process: The Lifestyles and Dreams Experience TM : <ul><li>Identifies your lifestyle dreams and goals </li></ul><ul><ul><ul><li>How do you envision retirement; and what more might you add ? </li></ul></ul></ul><ul><li>Stewards your financial resources by mandate, to align with life goals </li></ul><ul><ul><ul><li>All pensions, savings, properties, annuities, </li></ul></ul></ul><ul><ul><ul><li>benefits, insurances, tax-shelters… </li></ul></ul></ul><ul><li>Monitors the plan and adjusts per circumstances </li></ul><ul><ul><ul><li>As new activities or events arise, we adjust to fit your opportunities and needs . </li></ul></ul></ul><ul><li>Secures personal wellbeing and estate values </li></ul><ul><ul><ul><li>Financially secures the life you choose, and allows significant gifting to your family and other persons or causes dearest to you. </li></ul></ul></ul>
  13. 13. Then we personalize this into your . “Certified Life and Financial Plan” <ul><li>“ What I want most </li></ul><ul><li>in retirement… ” </li></ul><ul><ul><li>Avoiding dangers…. </li></ul></ul><ul><ul><li>Capturing opportunities…. </li></ul></ul><ul><ul><li>Maximizing your strengths…. </li></ul></ul>
  14. 14. What three major financial platforms offer a strong combination to secure your income for life and achieve the lifestyle you choose?
  15. 15. #1. Personalized Pension Plan <ul><li>One dedicated advisor / team </li></ul><ul><li>Flexible for changing events or opportunities </li></ul><ul><li>Portfolio of specified funds and leading firms </li></ul><ul><li>Consolidated reporting and easy web access </li></ul><ul><li>Low cost funds, negotiable & transparent fees </li></ul><ul><li>Includes certified financial and estate planning </li></ul><ul><li>Regular reviews of “Certified Life & Financial Plan” </li></ul><ul><li>Guarantees at least 75/75 unlike mutual funds * </li></ul><ul><li>Protects estate: can reduce probate/legal fees… * </li></ul><ul><li>Deposit guarantees by Assuris unlike mutual funds * </li></ul><ul><li>* Asterisk indicates segregated funds; others apply to mutual & segregated funds. </li></ul>
  16. 16. Sample mutual fund portfolio: <ul><li>Dynamic Equity Income </li></ul><ul><li>Dynamic Small Business </li></ul><ul><li>London Capital Dividend </li></ul><ul><li>London Capital Income Plus </li></ul><ul><li>Mackenzie Universal Canadian Resource </li></ul><ul><li>Mackenzie Sentinel Corporate Bond </li></ul><ul><li>RBC Canadian Dividend </li></ul><ul><li>Franklin Templeton Emerging Markets </li></ul><ul><li>Franklin Templeton Global Bond </li></ul><ul><li>* Actual portfolio design is based on mandates identified in your certified plan. </li></ul>
  17. 17. Sample segregated fund portfolio: <ul><li>AGF Canadian Growth Equity </li></ul><ul><li>Brandywine International Bond </li></ul><ul><li>Great West Life Canadian Equity </li></ul><ul><li>Great West Life Canadian Dividend </li></ul><ul><li>Great West Life Income </li></ul><ul><li>Great West Life Real Estate </li></ul><ul><li>JPMorgan International Equity </li></ul><ul><li>Mackenzie Emerging Markets </li></ul><ul><li>* Actual portfolio design is based on mandates identified in your certified plan. </li></ul>
  18. 18. Heard it somewhere… Seen in Zoomer… Consolidated reporting makes life easier….
  19. 19. Then further guarantees that live as long as you do   
  20. 20. #2: Lifetime Income Benefit <ul><li>Dedicated advisory team; specified funds </li></ul><ul><li>Guarantees from age 50…to age 105 and beyond! </li></ul><ul><li>Pays 4% age 50, 5% age 65, 6% age 75 etc </li></ul><ul><li>5% annual bonus prior to withdrawing </li></ul><ul><li>Triennial resets in growing markets </li></ul><ul><li>Discuss: </li></ul><ul><ul><li>guarantee fees </li></ul></ul><ul><ul><li>effect of market conditions </li></ul></ul><ul><ul><li>When LIB may be most useful </li></ul></ul><ul><ul><li>Implications for Estate value </li></ul></ul>
  21. 21. To remember about LIB: <ul><li>Samples of this from age 65, 70, 75 </li></ul><ul><li>Guaranteeing secure base for your income </li></ul><ul><li>Fees higher than some other investments </li></ul><ul><li>Ensure it pays you for life , not just 20-25 years </li></ul><ul><li>Can add guarantees later; save fees now. </li></ul><ul><li>Review & discuss regulatory materials before deciding on LIB. </li></ul>
  22. 22. #3: Risk-Free: Term Ladders and Life Annuity Platforms <ul><li>Risk-Free GICs </li></ul><ul><li>Annualized Ladder of 5 year rates </li></ul><ul><li>What if illness or special needs arise? </li></ul><ul><li>Will low GIC rates suffocate your estate? </li></ul><ul><li>Life Annuity will later give high cash flow </li></ul><ul><li>Other funds (#1 above) protect purchasing power </li></ul><ul><li>Tax-benefits of “open” Life Annuities </li></ul><ul><li>Part of achieving flexible income </li></ul><ul><li>Residue for spouse or estate </li></ul>
  23. 23. One story: secure, easy and flexible for life <ul><li>Commuted pension at 64: invested locked-in retirement account ( LIRA ) </li></ul><ul><li>for growth & income while continuing contract work to age 68. </li></ul><ul><li>Age 68: moved LIRA to Life Income Fund, unlocked ½ into RRIF for </li></ul><ul><li>flexible income from a continuous three year “reservoir ”. </li></ul><ul><li>Age 70+ … may add “Lifetime Income Benefit” guarantee. </li></ul><ul><li>Age 72+ … consider if/ when to guarantee high income from Life Annuity </li></ul><ul><li>and / or income from other properties. </li></ul><ul><li>Later years: multi-source income: LIF, RRIF, LIB, Life Annuity, </li></ul><ul><li>interest, Long Term Care coverage for at-home &/ or facilities care. </li></ul><ul><li>Estate: to spouse, family, charity, trusts. </li></ul>
  24. 24. Points to discuss . . . <ul><li>Stewardship “mandates” to guide our process </li></ul><ul><li>Investment plan aligning with “mandates” </li></ul><ul><li>Flexibility adapting to changing needs </li></ul><ul><li>Tax strategies for spouse and your estate </li></ul>#1
  25. 25. <ul><li>Continues intact wherever you move </li></ul><ul><li>Estate planning with retirement assets </li></ul><ul><li>Philanthropy as an option for future estate value </li></ul><ul><li>Privacy: safe from other peoples’ eyes </li></ul><ul><li>Advisor costs and compensation </li></ul>Points to discuss . . . #2
  26. 26. Financial resources aligning with the lifestyle we choose…
  27. 27. PENSION PLATFORMS FOR LIFE AND BEYOND <ul><li>We see financial products and life horizons fitting together to enhance life experiences for you and your loved ones. </li></ul><ul><li>Our goal is to provide income when you need it, how you want it, with simplicity, tax-savings and estate streamlining. </li></ul>
  28. 28. Ask a Professional <ul><li>Reach me at your convenience… </li></ul><ul><li>Brian Weatherdon, MA, CFP, CLU. </li></ul><ul><li>[email_address] </li></ul><ul><li>1 877 937-3500 x 223 </li></ul><ul><li>Sovereign Wealth Management </li></ul><ul><li>We are an advisory firm specializing to protect the resources </li></ul><ul><li>you have built, and ensure your capacity to enjoy life as you </li></ul><ul><li>choose… while reducing taxes and streamlining your </li></ul><ul><li>ultimate estate for those dearest to you. </li></ul><ul><li>Graphic Clippings from Zoomer Magazine, published by CARP. Membership is inexpensive and fun, and hosts local action groups to address legislative and other issues. Also consider Silver and Gold Magazine, for content, deals, and great ideas. </li></ul>