Retirement Planning Resource Guide

Transcription

1 For Producer Use nly Prepared For: Billy Penn Prepared By: obyn D June 13, 2012 etirement Planning esource uide Use this guide as reference for the materials Penn Mutual provides to discuss general retirement concepts and ocial ecurity with clients. Visit to access these marketing materials. ll items are available to download and print immediately from your desktop. Most items are available to order from CustomPoint Donnelly or customized from Donnelly as indicated. Producer etirement esources etirement eadiness Producer uide Use this step-by-step guide to build retirement reviews into your practice. his guide contains tips for targeting clients, conversation starters and more. Producer uide: Conducting etirement eadiness eviews etirement DIN VIW etirement Benefits of Life Insurance: Illustrated ales Concepts on Life olutions Illustrator Presented with the illustration, this report highlights the benefits and features of your client s particular policy as it relates to a retirement strategy. his helps the client make a more informed decision about the life insurance product. o access, go to Producers Place, click on oftware & ools tab and look for Life olutions Illustrator listed under enerate New Business section. etirement Benefits of Indexed Universal Life Insurance Client etirement esources Focus on etirement Planning Individual Brochure - PM6278 Introductory piece for clients on why it s important to start planning and saving for retirement. Brochure dispels common myths about retirement and encourages clients to take action. Focus on etirement Planning rder from D

2 3555 Page 1 Producer Company ddress ddress Phone mail Website Personal Information Phone Numbers q Home q Business q Mobile ddress Phone Numbers q Home q Business q Mobile mail ddress U Citizen: q Yes q No ccupation What are your career plans? Phone Numbers q Home q Business q Mobile ddress Phone Numbers q Home q Business q Mobile mail ddress U Citizen: q Yes q No ccupation What are your career plans? ccupation Prepared By: Producer : DB: ddress: City, tate Zip: Phone: mail: Web ddress: ccupation XXXX ccupation and Date (mm/dd/yyyy) Client etirement esources mall Business etirement Planning Brochure - PM6279 Introductory piece for business owners on why it s important to start planning and saving for retirement. Brochure dispels common retirement myths among business owners and encourages them to take action. Focus on etirement Planning for business owners rder from D Your Future is in ight Workbook - PM6280 Interactive tool to help clients determine how much money they will need and how much income they will have in retirement. Designed to identify any potential income shortfalls. Can be personalized with contact information. etirement Planning: Your future is in sight etirement DIN VIW Business Individual wner Planning Planning etirement Fact Finder sk the right questions to uncover important facts on existing retirement vehicles and helping to focus on future needs and goals while building client relationships. 1 Client 1 2 Client 2 3 Children 4 randchildren etirement DIN VIW etirement eadiness eview emplate Use this summary document to deliver a formal retirement plan recommendation to clients. etirement Presentation Client-approved presentation that dispels common retirement myths and reinforces the need to start planning for retirement. Presentation includes scripted presenters notes. Can be used on a PC or ipad.

3 Y Y Y Y Y tart your first job Live on one income ejoin the workforce ave or pay for children s education Buy a second home ake care of parents Consider life in retirement et married and buy your first home Move into a larger home and have children dvance your career nter peak earning years Change in family status Finance children s weddings njoy grandchildren Downsize your home 1 National Institute on etirement ecurity, he etirement avings Crisis: Is it Worse han We hink? ocial ecurity dministration, Fast Facts & Figures bout ocial ecurity, Pension Benefit uaranty Corporation 4 he etirement Breach in Defined Contribution Plans, HelloWallet, ocial ecurity dministration, Your etirement Benefit: How is it Figured, 2013 stablish a systematic saving and protection plan Continue asset growth and tax-efficient diversification of financial products Develop a formal retirement plan Determine when you want to retire and ensure you re on track to do so Fine-tune your Pay down student loans Purchase permanent life insurance Consider contributing to 401(k) / I ave for children's education tart a oth I Purchase disability insurance Consider increasing 401(k) contributions Pay off debts Consider a oth I conversion Increase retirement savings and ensure adequate diversification Increase funding of life insurance policies Consider a tax-deferred annuity xplore long-term care insurance stablish a legacy plan valuate need to increase retirement savings Consolidate I and 401(k) accounts Determine retirement income strategy Determine ocial ecurity income strategy e-evaluate permanent life insurance and retirement plan legacy options he earlier you start planning and saving, the better prepared you will be to reach your goals in life as well as your retirement goals. Meet with your Financial Professional to develop and maintain your retirement plan. his infographic is for educational purposes only and should not be viewed as financial, tax, or legal advice applicable to each individual; please consult a qualified advisor regarding your individual circumstances he Penn Mutual Life Insurance Company, Philadelphia, P /14 3YK Households approaching ocial ecurity provides only 36% of the retirement have total income of mericans aged 65 and only $100,000 in retirement 1 savings. (ge 55-64) Pensions make up only earlier than full retirement of all household retirement income sources. 3 nursing homes will need care for 5 years or more. 6 oday In 30 years National average rates for a private room in a nursing home are 7 Daily nnually For the equivalent of $50,000/year in retirement income today, in 20 years ocial ecurity (36%) ther sources (64%) n average, healthy, 65-year-old couple will need $50,000 $101,640 6 Field uide, National Underwriter Company, U.. Department of Health & Human ervices, mployee Benefit esearch Institute, he U.. Bureau of Labor tatistics Not seasonally adjusted. 10 National etirement isk Index, Center for etirement esearch at Boston College, Wells Fargo, Middle-Class etirement urvey, 2013 Don t delay, work with a Financial Professional to address your retirement needs today. his infographic is for educational purposes only and should not be viewed as financial, tax, or legal advice applicable to each individual; please consult a qualified advisor regarding your individual circumstances he Penn Mutual Life Insurance Company, Philadelphia, P PM /14 4YK Consider some of these common mistakes that people often make when planning for retirement. voiding these pitfalls can increase the likelihood of reaching your goals. n Not having a retirement plan. ne in four people do not have a financial plan. 1 Without a formal plan for retirement, it s very difficult to reach goals, especially when you haven t even defined those goals. n Failing to start saving early. When you start early, the power of compounding interest makes a bigger difference than setting aside a larger amount later on. With compounding, you add interest to principal and the whole amount earns interest, in turn growing at a much faster rate. n Not participating in employer-sponsored plans. Participating in your employer s retirement savings plan like a 401(k), 403(b), etc. is a no-brainer, as most plans have matching contributions. Not participating is like turning down a raise since you re essentially leaving free money on the table. n Cashing out your retirement account when changing jobs. aking money from your retirement account and using it for something else, not only seriously harms your future retirement income but essentially gives a large chunk to Uncle am in taxes and penalties. n rying to time the market. Consider your portfolio to be like a bar of soap, the more you handle it, the smaller it gets. tay focused on the long-term perspective, rather than chasing short-term gains. n Underestimating how long you will be retired. Depending on when you retire, you could spend almost as much time in retirement as you did working. Many people don t save enough to cover expenses for 25 to 30 years. n aving for college instead of retirement. You may be more focused on education costs since they come first and will help your children s future. But if you have strong retirement finances, you will be in a much better position to help with college costs. emember, there are no scholarships or loans for retirement. n Lacking diversification. It s important to have a variety of asset types in your retirement portfolio. In addition to having a variety of asset options, true diversification also means accounting for factors like taxes, flexibility, access, etc. n Not calculating how much you need for retirement. nly 44% of people have calculated how much money they will need. 2 he rest simply guess and end up exhausting their retirement savings early, resulting in having to make significant changes to their standard of living. Client etirement esources etirement Countdown Infographic Flyer Infographic provides an overview of the life milestones, financial focus areas, and action steps at key decades counting down to retirement. Ideal for use with ocial Media. n Use 3524-CU to personalize with contact information. n Use PM6435 to order 18 x24 version of the countdown to retirement flyer for display in client areas. rder from D ction teps: ction teps: ction teps: ction teps: ction teps: verage etirement avings older, with the other 64% of retirement income coming from other sources. 2 Can You fford to etire? Infographic - PM6426 Infographic features key statistics to consider when planning for retirement. Ideal for use with ocial Media. 19% Healthcare and Long-erm Care 21% of people who enter Inflation t historical inflation rates, a dollar today may only be worth.42 cents in 30 years. 9 1 in 4 people took money out of their 401(k) before they retired. 4 etirement Planning 53% of households at risk of not maintaining their living standards in retirement. 10 you ll need $101,640/year thanks to inflation. 9 Collecting ocial ecurity age (now 67), can decrease your benefits by up to 30%. 5 People with a formal retirement plan saved three times more than those without a plan. 11 $260,000 to pay for healthcare costs. 8 rder from D Common etirement Mistakes Flyer - PM6427 Flyer highlights some of the most common retirement planning mistakes. Ideal for use with ocial Media. rder from D Common

4 2014 he Penn Mutual Life Insurance Company, Philadelphia, P aa Client Prospecting ools Does your retirement plan look like this? etirement Jar mail or Postcards - PM6403 ngage clients or prospects with an or postcards that reinforce the need to create a formal retirement plan. n rder as an invitation to seminar, etc. using PM6416 Does your retirement plan look like this? When you don t plan for retirement... Hitchhiker mail or Postcards - PM6405 Use this or postcards to engage clients on the need to create a formal retirement plan. n rder as an invitation to seminar, etc. using PM6417 n Use with the U Postal ervices very Door Direct program PM6405-UP When you don t plan for retirement How do you envision retirement? mail or Postcard - PM6404 Use this or postcard to reinforce the benefits of doing a retirement plan review. Can be used for prospecting or as an annual review reminder with existing clients. No matter how you envision retirement it all starts with a plan. rder from D he earlier you get the ball rolling...nowball mail or Postcards - PM6407 Ideal for use with younger clients to reinforce the benefits of starting to save for retirement early. n rder as an invitation to seminar, etc. using PM6422 he earlier you get the ball rolling

5 Client Prospecting ools Cost of Healthcare mail or Postcard - PM6406 ducate clients or prospects about the high cost of health care and the importance of saving enough to cover costs in retirement. eady for the cost of healthcare when you retire? rder from D Prospecting Letter or mail: Younger Client Use as a letter or with younger clients. It reinforces the need to save early and invites the clients to come in for a retirement plan review. Prospecting Letter or mail: Close to etirement Use as a letter or with clients who are closer to retirement. It reinforces the value of having a retirement plan and benefits of reviewing it regularly. ppointment eminder Letter or mail Use as a letter or to send as an appointment reminder. It includes a list of suggested materials to bring to the appointment. hank you Letter or mail end an or letter to thank clients for taking an important move to a solid retirement plan and remind them of next steps to help meet their goals.

6 Helping Business wners ne elationship at a ime able of Contents Personal Information.... 1a Business Information.... 1b Background & oals a - 2d uccession Planning... 3a - 3b Business Valuation Worksheet.... 3c etirement Planning.... 4a - 4b etirement ssets Worksheet.... 4c - 4d etirement Income Needs Worksheet.... 4e state Planning a 5b state Plan nalysis c 5f Family ree Worksheet he Penn Mutual Life Insurance Company, Philadelphia, P /11 1B JC g Key mployee & xecutive Benefits.... 6a 6b mployee Benefits Worksheet.... 6c - 6d xecutive Benefits Worksheet.... 6e mployee isk Worksheet.... 6f mployee Census g Life Insurance Policy eview....7a - 7g otal Insurance Coverage Worksheet.... Document Checklist... Information elease Form....10a I ID I D I MW H MY DN I I 8a 9a mall Business etirement esources Visit to access additional resources developed specifically for building relationships with business owners. uccess ver urvival () Presentation ducate business owners on their unique retirement planning opportunities using the retirement module of the workshop. his popular presentation can be customized for use in one-on-one client meetings, small groups, and large workshop settings. Download to a Personal Computer and/or as an ipad app. mall Business Fact Finder Use the mall Business Fact Finder to ask the right questions to build strong business owner relationships. Use the etirement section to uncover important information and focus on long-term planning goals with business owners. mall Business Fact Finder Business wner Planning elling the Business to Fund etirement mail or Postcards - PM6412 Use this or postcards to highlight the importance of having retirement savings in addition to the value of the business. n rder as an invitation to seminar, etc. using PM6415 elling your business to fund your retirement? You plan for your Business mail or Postcards - PM6411 each business owners who often feel that they cannot afford to fund retirement accounts while they build the business. his postcard or highlights the options for having the business fund retirement accounts with tax-deductible contributions. n rder as an invitation to seminar, etc. using PM6414 You plan for your business. What s your plan for retirement? etirement Pitfalls for Business wners mail or Postcards Use these pop-art inspired or postcards to start a retirement planning conversation with business owners. n rder as an invitation to seminar, etc. using 2982 MW!

7 have surpassed men in earning bachelors and advanced degrees. 1 nd hold over 51% of all management and professional positions. 2 mall Business etirement esources Prospecting Letter or mail for Business wner etirement Planning Highlight the unique needs of business owners and request the client come in for a retirement plan review. Women etirement esources Visit to access additional resources developed specifically for building relationships with women. Women are Financial Powerhouses etirement mail or Postcards - PM6361 each out to women executives and business owners with an empowering yet engaging or postcard that asks them to take action with retirement planning. n rder as an invitation to seminar, etc. using PM6361WKP Women today are financial powerhouses! It s Never too arly and lmost Never too Late etirement mail or Postcards - PM6362 arget women with an or postcards that ask them to take charge of their financial future and not procrastinate with retirement planning. n rder as an invitation to seminar, etc. using PM6362WKP It s never too early and almost never too late to... Women urpassing Men etirement mail or Postcards - PM6364 ducate women on the need to achieve financial independence with stats like only 1 in 4 women are prepared for retirement. n rder as an invitation to seminar, etc. using PM6364WKP

8 Women etirement esources Work Hard and mart etirement mail or Postcards - PM6365 ngage women with an or postcard to take advantage of life s possibilities now and in retirement. n rder as an invitation to seminar, etc. using PM6365WKP You ve worked hard to attain your lifestyle; Work smart to enjoy it throughout your lifetime. ocial ecurity esources Visit to access third party client resources, including information from the ocial ecurity dministration. ocial ecurity Covers 36% of etirement Income Where s the est Coming from? mail or Postcards - PM6408 Intended for use with clients closer to retirement to establish the need for other sources of income in retirement and the value of meeting with an advisor. n rder as an invitation to seminar, etc. using PM6418 ocial ecurity covers about 36% of retirement income. Missing omething? ocial ecurity tatements mail or Postcards - PM6409 Highlights the importance of monitoring social security records and meeting with an advisor to maximize future benefits. n rder as an invitation to seminar, etc. using PM6409-UP Missing something? ocial ecurity statements are no longer being mailed. Do you know how much ocial ecurity to xpect? reasury Check mail or Postcards - PM6410 Focuses on the importance of determining best filing strategy and meeting with an advisor before taking ocial ecurity benefits. n rder as an invitation to seminar, etc. using PM6413 Do you know how much ocial ecurity income to expect?

9 ocial ecurity provides a monthly lifetime retirement benefit adjusted each year for inflation. You qualify for ocial ecurity by having at least 10 years in which you had earnings that were subject to ocial ecurity or self-employment tax. You can apply for benefits at age 62, but are not eligible for full benefits until age 67 (if you were born in 1960 and later). s the chart below indicates, beginning ocial ecurity benefits earlier reduces your monthly benefit amount. Birth Full mount Benefit is educed if Year etirement ge etirement Begins at ge % and 2 months 25.83% and 4 months 26.67% and 6 months 27.50% and 8 months 28.83% and 10 months 29.17% 1960 and Later % Your ocial ecurity benefit is based on your average earnings over your entire work history, calculated as a percentage of your income. s the chart below illustrates, people with lower earnings receive a higher percentage ocial ecurity benefit than those with higher earnings. But regardless of where you fall with respect to ocial ecurity benefits as a percentage of earnings, it is clear that ocial ecurity alone is not likely to meet all of your retirement income needs. ocial ecurity Benefit as a % of arnings $42,000 41% ocial ecurity should be viewed as supplemental $67,000 34% retirement income not the sole source of income. $106,800 28% ool for unlocking a key component of retirement planning Many people look to ocial ecurity as an important component of their retirement income, but don t realize that the age you begin taking ocial ecurity benefits along with the filing status impacts the benefit amount. For example: Collecting ocial ecurity at age 62 can result in decreased income by as much as 30%. Waiting to take ocial ecurity income past full retirement age can provide an 8% increase for every year you wait. hese amounts can make a big difference in overall income over the course of a 30-year retirement. his is why it s important to consider ocial ecurity as part of your client s overall retirement plan. Help Clients Determine the ight ge and trategy Penn Mutual s ocial ecurity xplorer can improve the way you approach retirement planning. his free tool can help you quickly determine the optimum age and filing strategy for taking ocial ecurity benefits. btaining this information is key for strengthening a retirement plan by coordinating employer and personal retirement assets along with ocial ecurity benefits. imple to Use You can access ocial ecurity xplorer from Producers Place and immediately begin running client scenarios. o run reports, your clients need to provide three pieces of information: year of birth, marital status and monthly benefits at full retirement age from the ocial ecurity website (that can be accessed through our site). xplorer provides the best strategy by age for clients as well as their spouse. he reports generated can be saved or printed. Benefits of Using xplorer asy to start the conversation with clients and prospects Includes longevity and CL adjustments Can lead to more life and annuity sales djusts for pensions not covered by ocial ecurity Works with ipads and laptops et tarted with Penn Mutual s ocial ecurity xplorer ool today. Visit Producers Place to access the tool, key security information, training session and more. For Producer Use nly. Not for use in sales situations he Penn Mutual Life Insurance Company, Philadelphia, P 19172, /13 3YK Your use of ocial ecurity xplorer enables you to assist all of your clients as they approach retirement with one of the most important financial decisions of their life. In some cases, the right choices could mean tens of thousands of dollars for their retirement. But, they must make these choices before they file for benefits. Nine out of ten people age 65 and older are receiving ocial ecurity retirement benefits, and for 32% of them, it represents over 90% of their income. How and when to begin this income is one of the most important decisions many people make concerning retirement. ens of thousands of people are making their decision every day, yet most of them do not know what their options are. he ocial ecurity office is well staffed with very well trained and knowledgeable employees. he staff answers questions accurately but may not provide information about various planning considerations, options or alternatives. If someone does not know the options, they may not ask about them, and probably will not be told about them. Learning and considering their options, is a brief, but essential phase of retirement planning. wrong choice, unless it is corrected within a year, continues for life! You probably have heard baby boomers make statements similar to these: I just want to get all the benefits I can, as fast as I can. Who knows how long it will last. I get really confused when people just throw number after number at me. Can t they make it simple and easy to see what might be best for my situation? My friend talked to her financial advisor and was told always to select yadda yadda, yadda; so that s what I m going to do. I paid for it and I want every penny I m entitled to! ound familiar? Perhaps you have even said one or two of these. hese people could use the help you can give them with ocial ecurity xplorer. he right ocial ecurity choices may mean tens of thousands of dollars for retirement. Page 1 of 20 Patent Pending. Copyright 2012 Impact echnologies roup, Inc. (Impact ). ll ights eserved. ocial ecurity esources ocial ecurity nalysis Prospecting Letter Letter offers client a ocial ecurity analysis and is intended for use with clients within 15 years of retirement. Will ocial ecurity Meet My etirement Needs? Will ocial ecurity Meet My etirement Needs Flyer - PM6027 ducate clients on how social security benefits can be impacted by taking benefits early and more importantly the impact of inflation over the course of a long retirement. ocial ecurity xplorer ool Use this software to evaluate and determine the best strategy for your clients to maximize their social security benefit depending upon their unique situation. Visit to access this dynamic tool. ocial ecurity xplorer ocial ecurity xplorer verview Flyer ead this flyer to learn more about the ocial ecurity xplorer ool. ocial ecurity xplorer etting tarted uide Learn how to use the ocial ecurity xplorer ool by reading this guide. r view one of the recorded training sessions located on Producers Place. etting tarted Visit to ccess hese Helpful ools and esources. For Producer Use nly. Not for use in sales situations /14 4CM