A member of the Lincoln Financial Advisors Retirement Planning Group

Transcription

1 A member of the Lincoln Financial Advisors Retirement Planning Group

2 Retirement Planning Group B. Dale Henderson CRPC, CFS 1820 E. University Drive Auburn, AL Phone Fax Dale Henderson has been with First Financial Group of the South, Inc., since August of Prior to joining First Financial Group, he was in management in a privately-held corporation in Birmingham. Dale graduated from Auburn University with a Bachelor of Arts (BA) degree in communication and a minor in religion. Dale was born in Auburn, AL and Dale s wife, Deborah and son Zachary make their home in Auburn. Dale has earned his reputation by finding practical solutions to help meet his clients financial challenges. His diverse business and educational background coupled with the support of an outstanding technical staff, enables him to advise individuals and business owner clients in areas including individual retirement planning, wealth accumulation, insurance, employee benefits and estate planning. Dale became a shareholder in First Financial Group in 1991 and attained the Certified Fund Specialist designation in He has been a member in good standing with the Financial Planning Association since Associates of First Financial Group of the South, Inc. are registered representatives of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker-dealer and registered investment advisor Insurance offered through Lincoln affiliates and other fine companies. CRN

3 Are you heading in the right direction? Just as the 76 million Baby Boomers once transformed American culture, so too are they redefining retirement. No longer is retirement a time to sit back and wait for the rest of your life to unfold. Instead, today s retirees have busy, active lifestyles with the freedom to chase new opportunities, revive old passions and realize long-held values.

4 It all begins with the first step The changes in retirement have intensified the issues future retirees face. Here are the five basic challenges that could affect your retirement income security: Timing/withdrawal rate Choosing the wrong time to begin withdrawing income during retirement can have a dramatic impact on your future retirement income security, as can withdrawing too much money too soon. Longevity With Boomers living longer, healthier lives, retirement could conceivably last for 30 years or more. In that case, there is every possibility that retirees or their spouses could outlive their income. Inflation and taxes Asset allocation Careful consideration of asset allocation can help reduce the volatility (or degree of fluctuation) of the overall portfolio and optimize an investor s balance of risk and return. Health care expenses The statistics as to the rise in these costs and how many people incur them are staggering. However, the real problem with this expense is that no one is certain if, when, or how much may be needed. Thus, it is very difficult to plan for with any accuracy. Inflation constantly erodes purchasing power through increased costs, while taxes reduce the potential of investable earnings. Value-based retirement planning But the challenges aren t all financial. One of the things to keep in mind is that retirement isn t only about how you ll invest your money, it s also about how you ll invest your time. Retirement can be a difficult transition because it brings many unforeseen changes. Retirement can feel lonely because it is truly a solo passage, with some support from your spouse, partner or friends if you re lucky. Even with enough money to live comfortably in retirement, most people do not take the time before retiring to consider the intangibles such as their changing identity, life purpose, and social relationships. That can lead to feeling unproductive, unfulfilled, and dissatisfied during retirement. We help you develop a realistic, actionable non-financial plan that can be supported by your financial plan.

5 A plan for your future Once you have developed your value-based, non-financial plan, our advisors follow the stages below to develop your personal retirement income security plan. Our advisors follow the stages to develop your personal plan which can help guide you toward your retirement income goals in the future. We re proud to work with you through a detailed and comprehensive process that has received national recognition from the Financial Planning Association (FPA ). Establish and define the client-advisor relationship We begin by educating clients about the five retirement income security challenges, and discuss how we can work together to develop and implement your retirement income security plan. We need to understand your financial goals, but we also want to help you define your values. Gather client data, including goals and expectations The more detailed information we can obtain, the more customized and accurate the retirement income security plan can be. A sampling of the types of information include: Basic information and general assumptions: name, date of birth, family members, taxes, and health status. Projected retirement expenses: Basic Needs (e.g, food, shelter, clothing), Lifestyle Wants (e.g., travel, entertainment), Specific Goals (e.g., college for grandchildren, purchase of a vacation home), and desired Legacy for heirs. Resources: income from pension, Social Security, rental income, etc., the taxes paid on each resource, and availability of insurance (life, long-term care or disability income). Other assumptions: risk tolerance, anticipated rate of return, inflation assumptions, and length of projections. Process and analyze information to determine retirement savings need We analyze the gathered data to determine to what level you are meeting your retirement security income goals with your current strategy. If a gap exists, we offer straight line what if alternatives such as retire later, reduce spending, increase returns, save more, etc. If you are married, we then rerun the analysis assuming the death of either spouse in the short term. Finally, we stress test the current strategy to determine the probability of meeting your needs and goals with your current investment allocation. Define Scope Data & Goal Setting Evaluate Current Plan Present Alternatives Action Plan & Solutions Reviews & Changes ENGAGE COLLECT ANALYZE DESIGN IMPLEMENT REVIEW

6 Needs Wants Goals Legacy Develop and present financial planning recommendations and/or alternatives Based on your input and our analysis, we develop a retirement income security plan. Our first priority is to make sure your Basic Needs will be met for your lifetime. After your Basic Needs are satisfied for life, we then offer you a variety of suggestions for helping meet your Lifestyle Wants, your Specific Goals and your Legacy desires. Once these general options have been considered and finalized, we again stress test the plan to help determine if your portfolio will continue to help meet your needs and goals. This is the most important stage where the planning takes shape. Implement the financial plan recommendations Once you ve accepted the general solutions outlined in the retirement income security plan, we present the specific recommendations and products that will best meet your needs, and discuss the pros, cons, risks and costs for each recommendation. This helps ensure that you will make an informed decision. Review the financial plan recommendations Many factors within and outside of your control can impact the viability of your retirement income security plan in the future a life event, unexpected expenses or income, a change in taxes, etc. We will meet with you on a regular basis to check the status of the plan by comparing actual results to initial assumptions and use this analysis to determine if adjustments need to be made.

7 Five steps to help guide you toward retirement income security We focus particular attention on the financial planning process. By following the five steps to retirement income security, your advisor will create a plan that will provide you a sense of confidence in your financial decision-making process and in the knowledge that your financial challenges have been considered and appropriately addressed. Step 1 We believe that the first priority of every retiree is to assure that their Basic Needs (food, shelter, clothing, etc.) are met for their lifetime. To do this, we compare your stable, recurring sources of income against your Basic Needs (including survivor income and medical expenses). These stable sources help alleviate the five challenges that could affect your retirement income security. Step 2 If your Basic Needs are greater than your stable income sources, we allocate available assets (e.g., those not designated for a specific purpose) to financial products designed to help cover the costs. Step 3 After your Basic Needs are covered, we look at your Lifestyle Wants (regular recurring expenses in retirement that are not fundamental, such as travel, country club membership, etc.) and your Specific Goals (non-recurring expenses that have specific timing, such as college for grandchildren in five years, purchasing a vacation home in two years, etc.). We match your remaining income sources and available assets to your Lifestyle Wants and Specific Goals in order of your priority. Step 4 If your Lifestyle Wants and Specific Goals are not met after allocating sufficient funds to cover Basic Needs, together we consider the alternatives: For retirement income, we consider these and other options: Retire later Reduce spending Increase return potential* Reduce inflation risk Save more *Investments that have a higher return potential also carry increased risk of loss. Step 5 For survivor income, we consider: Additional life insurance Pension options Reprioritization of goals For long-term care, we consider: Additional insurance Self-fund In our final step, we outline various alternative strategies** and identify solutions that are appropriate for your situation, and most importantly, are consistent with your objectives. These personalized recommendations form the basis of your retirement income security plan. The benefits of this approach are quickly apparent you enjoy a greater understanding of the impact of various options and are better positioned to make the appropriate decisions to help you reach your retirement income security. **There can be no assurance that the approach and strategies offered will be successful.

8 Take the first step Founded in 1969, Lincoln Financial Advisors is a nationwide financial planning firm with over 2,400 representatives in hundreds of offices across the country. Our associates work as a team to provide clients with comprehensive financial, retirement, investment, business owner and estate planning using comprehensive strategies and state-of-the-art software. Our advisors can help you implement financial solutions to address the unique needs uncovered during the financial planning process. As a firm, we are among the leaders in offering retirement income security services. Our clients can benefit from our national team of Certified Public Accountants (CPAs), Cert ified Fi n a nc i a l Pl a n n e r TM (CFP ) practitioners, attorneys, and investment professionals who are positioned to provide you with the information and solutions you need. We have a dedicated group of advisors who are specially trained to help clients meet their specific retirement needs and goals. These advisors have obtained the Chartered Retirement Planning Counselor SM (CRPC ) designation from The College for Financial Planning, which has provided financial services education since Lincoln Financial Advisors Corp. has also been recognized by the Financial Planning Association as the first FPA Alliance Firm. Our firm s philosophy the one that uniquely defines the way we do business is Serve First, Last and Always SM. The essence of this philosophy is that in all client engagements, we are committed to do whatever is required to get you to take the actions that are necessary to put your financial affairs in the best possible order. Our Retirement Income Security Specialists are singularly focused on helping you identify, quantify and ultimately realize your retirement income security objectives. If you re ready to take the first step to help secure your financial freedom in retirement, contact your advisor. If you would like to be connected with an advisor, contact 888-PLAN-311 or LincolnAdvice@LFG.com.

9 Retirement Planning Group We drew together the most knowledgeable and talented individuals throughout our organization nationally when we established our Retirement Planning Group. These individuals stand out in our industry for their experience, reputation and results. Here are just some of the resources available to our Retirement Planning Group. NASSER ALI, CFA, CFP, AAMS, CMFC, CRPC Director of Financial Advisory Services Prior experience as a portfolio manager responsible for managing customized investment portfolios totaling close to $400 million. Bachelor of Science degree in Finance from the University of Maryland. Member of the Association of Investment Management and Research and the Baltimore Security Analysts Society. Published an article in the Encyclopedia of World Terrorism entitled, The Impact of 9/11 on the Global Economy. ROBERT E. APPEL, J.D.*, LL.M., MBA National Design/Advanced Planning Attorney Listed in numerous sections and editions of Who s Who (including Who s Who in American Law and Who s Who in the World) and member of the American and Connecticut Bar Associations. BS degree (Accounting and Finance) from Central Connecticut State University; J.D. degree from the University of Bridgeport School of Law; MBA (Finance) degree from the University of Connecticut; and LL.M. (Taxation) degree from Boston University School of Law. GREGORY W. BUTLER, ChFC, CFP, CLU Director of Financial Advisory Services Areas of expertise include comprehensive financial, estate and business owner planning, and employee benefits. Graduated from Central Connecticut State University with a Bachelor of Arts degree in Economics. Served on the Board of Directors of the International Association of Financial Planners and the Board of Directors of the Kansas City Association of Insurance and Financial Advisors. Currently serves on the Board of Directors of the Kansas City Financial Planning Association. JACKIE GLASSCOCK, ChFC, CFP Director of Financial Advisory Services Areas of expertise: Estate planning for the affluent and business succession planning for the owners of privately held business. Served on various Advisory Boards for Lincoln Financial Advisors. KATHY FAULKNER HARTIN, MBA, CPA*, CFP Director of Planning Published author and experienced lecturer; serves as Academic Program Director for and teaches in Rice University s CFP Certification Education Program. Member of the Houston Chapter of CPAs, serving as the Vice-Chair of the Members in Industry Committee; member of the Houston Financial Planning Association; Board Member of the Pearland Economic Development Corporation. Bachelor of Science degree in Finance and MBA with accounting emphasis from the University of New Orleans. *CPAs and JDs with the firm do not provide legal or accounting services on behalf of Lincoln Financial Advisors Corp.

10 Retirement Planning Group BEN T. HUDDLE, CFP, MBA, CRPC Director of Financial Advisory Services Areas of expertise: the development, training, and implementation of fee-based financial planning within the firm including the integration of the investment and comprehensive financial planning processes. Masters in Business Administration for The University of Houston and a Bachelor s degree in Industrial Management from Purdue University. National speaker/trainer for Lincoln Financial Advisors. Jane Johnson, CFP Director of Planning Helps to create estate, retirement, investment, and business succession plans for clients. Holds a Bachelor of Arts degree from The College of William and Mary. A member of the Northeast Florida Estate Planning Council. TIMOTHY S. JOHNSON, J.D.*, CRPC Chief Investment Strategist Areas of expertise include fixed-income, equity allocations, alternative investments and affluent wealth management. BA in Political Science from Lipscomb University in 1981and graduated from Vanderbilt University School of Law. DONNA L. ROWAN, J.D.*, LL.M., CLU, CHFC National Design/Advanced Planning Attorney Expertise in the areas of personal and corporate income taxation, as well as estate, gift and trust taxation. Member of the Connecticut and American Bar Associations. BA degree in English from State University of New York at Buffalo; J.D. from Western New England College School of Law; LL.M. (Taxation) from Boston University School of Law. ROBERT A. STUDIN, J.D.*, CPA*, CFP, CLU, CRPC, ChFC Executive Director, Financial Advisory Services Named in Worth magazine s Top Financial Advisors in , Medical Economics 120 Best Advisors for Doctors in 1998, 2000 and 2002, the Birmingham Business Journal s Top 40 Under 40, and received the Leadership Award from the MS Foundation in Bachelor of Science degree from the University of Alabama, and J.D. from Cumberland School of Law, Member of the Alabama Society of Financial Planning Association and the AICPA. *CPAs and JDs with the firm do not provide legal or accounting services on behalf of Lincoln Financial Advisors Corp.

11 A century of integrity At Lincoln Financial Group, we have a 100-year-old heritage of helping people find solutions to their financial challenges with the same honesty, integrity, and responsibility that you d expect from our namesake. It s a legacy that we proudly and respectfully continue each day. The strength of Lincoln Financial today Lincoln Financial is one of the largest financial services companies in the country. We believe our continued commitment to strength and stability is indispensable to who we are and critical to your confidence in us. We are a proven industry leader in identifying and delivering sophisticated financial strategies and product solutions for the creation, preservation, protection, and enjoyment of wealth. We are committed to helping clients redefine their retirement because we don t believe retirement is an end it s an opportunity for everyone to start doing what they were meant for all along. Lincoln Financial Group, headquartered in the Philadelphia region, is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Affiliates also include: Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; and Lincoln UK. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit Lincoln Advisors Corp. Securities offered through Lincoln Financial Advisors Corp., a broker-dealer. Investment advisory services offered through Lincoln Financial Advisors Corp. or Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. It is not our position to offer legal or tax advice. We encourage you to seek the advice of an attorney or accountant prior to making tax-related investment and/or insurance decisions. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. CRN /09 The Financial Planning Association (FPA ) owns the FPA Alliance mark and recognizes Lincoln Financial Advisors for its commitment to support FPA s primary aim and principles of financial planning.