Housekeeping Matters

 Please silence your cell phones

 You will be offered a free consultation at the conclusion of
this seminar
 The seminar will last about 60 minutes
 Please hold your questions until we come around to your
table – we have a lot of information to cover

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We work with those soon to be retired and
those who are already retired.

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 About Us
• Orange County 5 Star Wealth Manager
• A+ Rating from Better Business Bureau
• Master Elite IRA Advisor with Ed Slott & Company
• Member of National Ethics Agency
• Retirement Planning Specialist
• Licensed since 1992
• Protecting clients’ life savings - one client at a time
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 FACTS:

Sometime in the future, for one reason or another,

you will no longer be working. My job is to help you
create sufficient retirement funds that will keep
flowing when your income through paid employment
stops.

I am a retirement income planning expert.

I want to make sure you stay retired and don’t
have to go back to work……EVER!
 Social Security Website

Source: http://www.ssa.gov/pgm/retirement.htm
How much could my check be?
Born between 1943 and 1954 with a full benefit of $2,466

Age 62 75% = $1,850

Age 63 80%
Age 64 86.7%
Age 65 93.3%

Age 66 100% = $2,466

Age 67 108%
Age 68 116%
Age 69 124%
Age 70 132% = $3,255 - $4,060 with COLA’s
Social Security Survivor Benefits
Both spouses living

Husband - $2,000
Wife - $1,200
Total - $3,200

After husband dies

Wife gets husband’s $2,000

Wife -$1,200

38% difference in monthly income

This hypothetical example is for informational purposes only.

Your experience and needs may vary.
Social Security Survivor Benefits
Both spouses living
Husband’s Pension - $2,000
Husband’s SS - $2,000
Wife’s SS - $1,200
Total - $5,200
After husband dies
Husband’s Pension $2,000
Wife’s New SS – $2,000
Wife’s original SS - $1,200
$3,200/month difference in income equivalent to 60%

This hypothetical example is for informational purposes only.

Your experience and needs may vary.
Sources of Guaranteed Income
During Retirement

Annuities Social Security

Pensions

Happy and Healthier Retirement!

11
 2 MOST IMPORTANT
THINGS IN
RETIREMENT ARE:
1. HEALTH –Do you have more than one
doctor?
2. OUTLIVING YOUR MONEY and/or
KEEPING YOUR MONEY SAFE –Why do
some of you only have one advisor?
I am not a Doctor and I can’t change your life however, what I
am is a Retirement Advisor and I can change your
RETIREMENT LIFE!
Peace ofAs Mind = Quality of Life
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 PRESERVATION

I work in the preservation & distribution

phase of your life.
Helping you keep what you worked so hard to earn.
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 Investment Tool Box

RISK
PRINCIPAL
• Stocks
PROTECTED
• Bonds
• Insured Deposits
• Mutual Funds
• Certificate of
• Variable
Deposits
Annuities • Government
• REITs
Bonds
• ETFs
• Fixed Annuities
• Etc.
• Indexed
Annuities
Would you rather have a 20% return or 8%?
CONSISTENCY vs. VOLATILITY
20% Average Return 8% Average Return
$100k $100k

Year 1 -50% $50k Year 1 0% $100k

Year 2 90% $95k Year 2 16% $116k
(-50%) + (+90%) (0%) + (+16%)
2 Years
= 20%
2 Years
= 8%

Now which would you rather have?

 There Is No Retirement
Without Income
To stay retired you need RELIABLE and
SUSTAINABLE INCOME.
To preserve your standard of living
you need INCREASING INCOME
to compensate for inflation.
 What it takes to maintain
standard of living (3% Inflation)
If you live on You will need You will need
this much this much in this much in
today: 20 years: 30 years:

$25,000 $45,153 $60,682

$50,000 $90,306 $121,363
$75,000 $135,458 $182,045
$100,000 $180,611 $242,726
Source: http://www.vertex42.com/Calculators/inflation-calculator.html
Disclaimer: This calculator and information on this page is for educational purposes only. We do not
guarantee the results or the applicability to your unique financial situation. You should seek the
advice of qualified professionals regarding financial decisions.
 INCOME
Create a plan to answer the big “What if”
questions

 . . . I outlive my money?
 . . . my investments lose money?
 . . . I have expensive medical bills?
 . . . inflation eats up my savings?
 . . . the tax code changes?
 3 TYPES OF
INVESTMENTS

TAXABLE
TAX DEFERRED

* TAX FREE!!!
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 The Three Tax Buckets

Taxable Tax Deferred Tax Free

Provided for informational purposes only, not intended to provide tax or legal advice or serve as the basis for your financial decisions.
Your needs, objectives and experience will vary. Consult a qualified tax professional regarding your individual situation.
TAX FREE INCOME

• MUNI BONDS
• ROTH IRA’S

• LIFE INSURANCE

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 IRA TAX BOMBS!
• RMD’S – 70 -1/2
- Effects on social security being taxed
- 50% penalty if not taken
• BENEFICIARY DOCUMENTS - 85% are WRONG!

• LUMP SUM PAYOUT (MONEY MAGAZINE)

(401K’s vs. IRA’s vs. Stretch vs. Multi-generational)

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 We can Turn A RMD Pain into A
Gain!
Bob takes his RMD of $7,000
Pays taxes at a 30% tax rate in the
amount of $2,100 and uses the
remaining $4,900 to fund a life insurance
policy.
In exchange, Bob’s beneficiaries can access up to
$649,485 tax-free!
Or…. Bob can access up to $618,557 tax-free via loans

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Income
46%
Tax
$500,000 - $230,000

$270,0
00
 IRA TAX BOMBS!
•NON-SPOUSE INHERITED IRA -
WHO IS YOUR CUSTODIAN?

Banks? Vanguard? Brokerage?

•TRUST NAMED AS IRA BENEFICIARIES?

WRONG!

= HIGHER TAX
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 What Worries You Now?
 As you look ahead to the next 10 years,
what is your single biggest priority?

 What is most important for you to accomplish?

 At what age would you like to retire?

 Why that age? Why not earlier?

 What does the perfect “retirement” look like to

you?

 Where are you and what are you doing to accomplish

that?

 What keeps you awake at night?

 WHO HERE
TODAY THINKS
WE ARE OUT OF
THE WOODS?
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 WHY DO YOU
THINK THERE IS OVER
$14 TRILLION SITTING
IN BANKS?

Because people want their money SAFE!

Clients looking for safety without loss of principal must have a percentage of assets that are not invested in securities

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The 100 Age Rule

Take 100 minus your age

100-65 = 35

His formula 35% “ok” at risk,

65% safe

John Bogle
Founder and former CEO
of the Vanguard Group
 Rule of 100
100
- YOUR AGE (Safe %)
% RISK

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Warren Buffet’s Famous Quote:
Rule No. 1. Never Lose Money
Rule No. 2: Never forget Rule No. 1

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How much will it take for YOUR money to come back when you
have a %loss?
If You Have Lost… Needed to Recover to Even
5% 5.26%
10% 11.11%
15% 17.65%
20% 25.00%
25% 33.33%
30% 42.86%
35% 53.85%
40% 66.67%
45% 81.82%
50% 100.00%
As Seen On: 55% 122.22%
60% 150.00%
65% 185.71%
70% 233.33%
75% 300.00%
80% 400.00%
85% 566.67%
90% 900.00%
95% 1900.00%
100% NEVER
 3 Annuity
Types
• Variable – Risk. Loaded with
Fees.

• Fixed – Safe. CD like growth.

• Indexed – Safe. Income Forever.

Market-like
growth.
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 Variable
Annuity

Lose Money

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2 Brothers, 2 (Different) Retirements
• Two Brothers: $500,000 each (IRA) at Retirement
• Both will Use $30,000 Annually for Income
• Steve retires in 1990; Bill retires in 2000
• The result?

This hypothetical example is for illustrative purposes only, and should not be deemed a representation
of past or future results, and is no guarantee of return or future performance. This example does not
represent any specific product and/or service.
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AE0114007
Income and Sequence of Returns
Steve Bill
Retired in 1990 Retired in 2000

IRA Account Market IRA Account

End of Year Market Return 1
Withdrawal Balance End of Year Return1 Withdrawal Balance

1990 -4.34% $ 30,000 $ 449,602 2000 -6.18% $ 30,000 $ 440,954

1991 20.32% $ 30,000 $ 504,865 2001 -7.10% $ 30,000 $ 381,776

1992 4.17% $ 30,000 $ 494,667 2002 -16.76% $ 30,000 $ 292,819

1993 13.72% $ 30,000 $ 528,419 2003 25.32% $ 30,000 $ 329,364

1994 2.14% $ 30,000 $ 509,085 2004 3.15% $ 30,000 $ 308,794

1995 33.45% $ 30,000 $ 639,340 2005 -0.61% $ 30,000 $ 277,094

1996 26.01% $ 30,000 $ 767,829 2006 16.29% $ 30,000 $ 287,345

1997 22.64% $ 30,000 $ 904,873 2007 6.43% $ 30,000 $ 273,892

1998 16.10% $ 30,000 $ 1,015,728 2008 -33.84% $ 30,000 $ 161,359

1999 25.22% $ 30,000 $ 1,234,328 2009 18.82% $ 30,000 $ 156,081

 Income Forever

Turn on the Income = $2,000 per month FOREVER

Market Goes 10% = $2,200 per month FOREVER

Market Goes 20% = $2,200 per month FOREVER

Market Goes 20% = $2,640 per month FOREVER

(Hypothetical calculation)
 INCOME PLANNING
• Solid foundation - Your HOME
• Guaranteed Income for Life
• Spousal Protection
• Laddering
• Tax-Advantages
• No more “HOPE AND A PRAYER”

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 Regarding the Markets…

Do you want to
rely on the stock market
for Retirement Income?
Your financial professional is not permitted to offer, and this information is not intended to provide any
investment advice or provide the basis for any financial decisions. Be sure to speak with qualified
professionals before making any decisions about your personal situation.
 A recent U.S. Census data
shows that at age 85, twice as
many women are living than
men.
Wiserwomen.org then tells us the
obvious result: 80% of men die
married, while 80% of women die
single!
 Life Expectancies
A 65-year old couple has a…..
58% chance at at least one
spouse will live beyond 92.
25% chance one will live beyond
95

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 Know Your Risks
What are your beliefs about Long-Term Care (LTC)

Do you think you will need it?

If so, how much do you think you will need?

How long do you think you will need it?

 What are the Odds?
Even if you are currently healthy, exercise regularly
and take care of yourself, recent data suggests you
may still have a need for Long-Term Care services
sometime during your lifetime.

7 out of 10 Americans age 65

and older will require some
type of Long-Term Care¹.

¹Genworth 2015 Cost of Care Survey

 The Financial Impact
You have worked hard to
accumulate your retirement
assets.

What will those assets look

like if you or your spouse
need Long-Term Care for
several years?
Rising Costs of Long
Term Care
$250,000
+119%
Increase
$200,000
Projected 4.00%
average annual $199,9001
$150,000 increase rate Projected Average
over next 20 Years1
$91,250¹ Annual Nursing
Average Annual Home Cost
$100,000 Nursing Home Cost

$50,000

$0
2015 2035

¹Genworth 2015 Cost of Care Survey

The Financial Impact
You have worked hard to
accumulate your retirement
assets.

What will those assets look

like if you or your spouse
need Long-Term Care for
several years?
What is Your Strategy?
Long Term Care
Self Insuring Insurance

Medicare/Medicaid
 In our experience,
there are 3 reasons
people are not prepared
for retirement...

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 THEY ARE...
• PROCRASTINATION
• FEAR OF CHANGE
• GREED (HOPING FOR A LITTLE MORE)

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Knowledge is POWER!

WRONG!

APPLIED Knowledge is
POWER!

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Check YES and
let’s meet for
your free review!
 My goal is to help take the confusion out of

Planning for Retirement.

We want to help you to plan on Retiring, but more
importantly to have you STAY retired.
 Our Process –
Step 1: A “second
opinion” meeting
• Let’s meet for a FREE one hour visit in my office to learn
about your retirement vision, dreams and goals

• Together we will identify any red flags if there is any and we

will meet again to go over my recommendations

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 Our Process –
Step 2:
Evaluation
• I will prepare a Retirement Roadmap for
you that is based on guarantees and NOT
hypothetical numbers

• You decide if you want our help in

addressing your needs
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