Tax Free Retirement Income Planning
“People do not plan
to fail, they just fail
to plan!”
Unknown
Tax Free Retirement Income Planning
Major Planning Goals:
Reduce or remove investment risk
Safely receive the highest rate of return on
your savings
Reduce or eliminate income taxes*
Increase your Retirement Income by 25% to 40%
*Past investments in qualified plans may be required to stay in a qualified plan until age 59 1/2.
Financial Scenarios LLC nor the Advisor providing this information is engaged in rendering legal and accounting services or legal and accounting advice. This information is in-tended to present only an overview of one aspect of certain financial planning advantages and alternatives and to serve as a reference for further discussion with qualified legal coun-sel, accountants and professional advisors. Information, illustrations, calculations and assumptions are for information purposes only and will change based on different assumptions and laws and are not guaranteed. We do not represent, warrant or guarantee financial or retirement planning performance or results that may be illustrated, nor does it represent, war-rant, or guarantee that analysis of past financial performance can predict or is any indication of future financial performance. The information does not recommend any particular asset allocation, security or investment method nor do we provide customized tax, legal or investment advice or strategies. Rates of return and calculations are for illustration purposes only and do not represent any specific investment results. Before taking any action, you should seek the advice of qualified legal counsel, accountants and professional advisors.
2010 Tax Federal Income Tax Rates
The goal is to provide you with a income tax free retirement income that will be
approximately, 25% to 40% more, than you would have received otherwise.
Taxes
Currently the Federal State and Local Governments take
about 25% to 40% of everything we earn through Taxation
.
The most unique feature of permanent life insurance is that under Section 72(e) and 7702 of the Internal Revenue Code the
accumulation of cash inside the insurance contract is tax advantaged.
Not only can the cash value accumulate tax free, but the cash can also be accessed tax free.
It is a unique vehicle that allows tax free account value accumulation, allows you to access your money tax free, and, when
you die, blossoms in value and transfers income tax free!
To maximize income, we uses the tax laws, known as use DEFRA, TEFRA, & TAMRA and the guidelines they put forth to
create a life insurance policy, with the least amount of life insurance and the maximum amount of tax free savings.
The goal is to provide you with a income tax free retirement income that will be
approximately, 25% to 40% more, than you would have received otherwise.
This is the major
reason why your
future retirement
income needs to
be…...
Annual Reset
Annual Reset
Allows your money to grow and only grow along with the market up to a certain
percentage CAP.
_______%
The graph shows a simulation of having $100,000 over a 3 year period in the saving
ele-ment of the IUL tied to a major stock market index using Annual Reset and how it can work
to your advantage .
Initially $100,000 in Index Account $100,000 in the Stock Market Index
Both Accounts =$100,000
End of year one the Market Index is up 10% Both Accounts worth $110,000
End of Year 3 the Market Index is down 10% IUL Account = $110,00 loses no value
Index Account loses 10%= $99,000
End of year 3 the Market Index is up 5%
IUL Account goes up 5% to $115,655 Index Account goes up 5% to $103,950
IUL Account has 11% More Money
Planning Data
Client Name: _________________________________ Date of Birth: ________________ Age: ______
Current Retirement Savings Programs: (Complete all that apply)
IRA:
Annual Contribution $______________ 401K:
Annual Contribution $______________ Less Match
Requirements $______________ 403b:
Annual Contribution $______________ SEP:
Annual Contribution $______________ Other:
Annual Contribution $______________
Total Tax
Deductible $_______________
ROTH-IRA:
Annual Contribution $______________ Retirement Age: ____
Spouse Name:________________________________ Date of Birth: ________________ Age: ______ Retirement Age: ____
Annual Income: $_________________________ Annual Income: $_________________________ Spouse Retirement Savings Programs:
(Complete all that apply) IRA:
Annual Contribution $______________ 401K:
Annual Contribution $______________ Less Match
Requirements $_(__________)_ 403b:
Annual Contribution $______________ SEP:
Annual Contribution $______________ Other:
Annual Contribution $______________
Total Tax
Deductible $_______________
ROTH-IRA:
Annual Contribution $______________
Total Income $_________________
Tax Bracket _________%
(See next page)
Total Tax Deductible Savings $_________________ Total After Tax Amount
Available $________________
(1-Tax%) X Total Tax Deductible Savings
Add in Annual Roth Contributions $___________________
Total Available for Tax Free Program $______________________
ROI% ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ROI% ____ ____ ____ ____ ____ ____ ____
Current Qualified Retirement Savings Programs: (Complete all that apply)
IRA:
Balance $______________ 401K:
Balance $______________ 403b:
Balance $______________ SEP:
Balance $______________ Other: $______________
Total Tax
Qualified $_______________
ROTH-IRA:
Balance $______________
Life Insurance:
Insured Amount Type ______________ $______________ ________ ______________ $______________ ________ ______________ $______________ ________ ______________ $______________ ________
Planning Data
Client Name: _________________________________
Current Qualified Retirement Savings Pro-grams:
(Complete all that apply) IRA:
Balance $______________ 401K:
Balance $______________ 403b:
Balance $______________ SEP:
Balance $______________ Other: $______________
Total Tax
Qualified $_______________
ROTH-IRA:
Balance $______________ Stocks, Bonds, Mutual Funds, CD’s: Emergency Fund $______________ ______________ $______________ ______________ $______________ ______________ $______________
Total
$______________
Spouse Name:________________________________ Date:________________
Notes:
Will? Y____ N____ Umbrella Insurance? Y____ N____
Indexed Universal Life Insurance that:
is not your Father’s Universal Life Insurance
Con-tract!
uses recent life expectancy tables with competitive
low cost insurance rates!
provides an immediate Income Tax Free Death
Benefit!
provides access to the Savings Element of the policy
without any government penalties before age 59 1/2
and can also be available Income Tax Free!
all or part of the saving element can be tied to the
growth and only the growth of major stock market
indexes. If you choose to participate in the growth of
the market, you will do so, without any downside
risk!
all of the internal growth in the policy is Tax
De-ferred and available on an Income Tax free basis
when you take money out through the use of policy
loans!
allows you to get access to the money through Tax
Free Loans using the policies preferred or what
some call wash loans feature so that you have access
to the money in the policy on an Income Tax Free
Basis at little or no cost!
also has over-loan protection riders that make sure
the policy does not lapse which could create a
tax-able event.
is the best and safest platform available to use to
build your Tax Free Retirement Program!
Attached is a sample illustration for you to evaluate:
In the illustration you will be Annually Saving:
$_________________ per year*
For: ____________years
It is projected that you can then take as policy loans out of
the policy $______________ Annually Income Tax Free
For:_________ years starting in year _______
You will also have an immediate additional
death benefit of: $_______________
The projections are based on:
Overall projected growth in the policy, of _______%
Not valid without illustration.
*There are no government limitations on the annual contribution amount
