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Tax Diversifying  Your Retirement Income This presentation includes a discussion of one or more tax-related topics. This tax-related discussion was prepared to assist in the promotion or marketing of the transactions or matters addressed in this material.  It is not intended (and cannot be used by any taxpayer) for the purpose of avoiding any IRA penalties that may be imposed upon the taxpayer.  Taxpayers should always seek and rely on the advice of their own independent tax professionals.  Please understand that New York Life Insurance Company, its affiliates and subsidiaries, and agents and employees of any thereof, may not provide legal or tax advice to you.  00386186CV Exp. 12/2010
Retirement Isn’t What It Used to Be ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Social Security  Pension & Qualified Plans Personal Assets Social Security Pension & Qualified Plans Personal Assets
Social Security Is Shaky  ,[object Object],[object Object],[object Object],1 Fast Facts & Figures about Social Security, 2008, SSA Publication No. 13-11785, Released: August 2008; page 2  Without changes, by 2041 the Social Security Trust Fund will be exhausted* and there will be enough money to pay only about 75 cents for each dollar of scheduled benefits. * These estimates are based on the intermediate assumptions from the Social Security Trustees’ Annual Report to the Congress. “ ”
Fewer Pensions, Limits on Qualified Plans ,[object Object],[object Object],[object Object],[object Object],1  ‘ Trends in Retirement Plan Coverage Over the Last Decade,”  Monthly Labor Review , Stephanie Costo, February 2006.  Pensions & Qualified Plans
Personal Assets Are Critical  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Personal Assets
Tax-Perfect Retirement Planning ,[object Object],[object Object],[object Object],[object Object],[object Object]
Where Do You Think Taxes Are Going?  ,[object Object],[object Object],The graph above illustrates the high and low marginal tax rates over history.  Exemptions, deductions and state and local taxes are not taken into account when illustrating these marginal tax rates.  Your actual tax rates may vary from those show on the graph.  Remember that historical rates are not a guarantee of future rates. Source: U.S. Department of Treasury, Internal Revenue Service, Statistics of Income, Historical income Tax Returns (2008)
Is Tax Deferral the Best Strategy? ,[object Object],[object Object],[object Object],1979-1980 2009
Your Retirement Savings Tax Options Financial Vehicles Traditional IRA 401(k) Pension plans Profit-sharing   plans Keogh  Roth IRA Tax-free municipal  bonds Cash value life   insurance ,[object Object],[object Object],[object Object],[object Object],Tax deductible Tax deferred Taxable After tax Tax deferred Tax free
A Non-Traditional Solution 1  The cash value in a life insurance policy is accessed through policy loans, which accrue interest at the current rate, and cash withdrawals. Loans and withdrawals will decrease the total death benefit and total cash value. Life Insurance ,[object Object],[object Object],[object Object],[object Object],[object Object]
A “Self- Completing” Plan! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1  Available on whole life policies Social Security Pension & Qualified Plans Personal Assets
The Benefits of Tax Diversification ,[object Object],[object Object],[object Object],[object Object],Tax Diversification Strategy 1  Marginal federal income tax bracket under current rates.  2  If structured properly. Without Tax Diversification ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],$67,500 to spend after taxes $83,250 to spend after taxes

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Tax Diversification Powerpoint

  • 1. Tax Diversifying Your Retirement Income This presentation includes a discussion of one or more tax-related topics. This tax-related discussion was prepared to assist in the promotion or marketing of the transactions or matters addressed in this material. It is not intended (and cannot be used by any taxpayer) for the purpose of avoiding any IRA penalties that may be imposed upon the taxpayer. Taxpayers should always seek and rely on the advice of their own independent tax professionals. Please understand that New York Life Insurance Company, its affiliates and subsidiaries, and agents and employees of any thereof, may not provide legal or tax advice to you. 00386186CV Exp. 12/2010
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