How To Plan For Retirement

Transcription

1 Software Benefits

2 Become a Higher Level Producer using: SIPS Structured Income Planning Software A comprehensive demonstration toolset for the Independent Financial Advisor Communicate your investment strategy to your client in a concise, easy to understand format. Build a compelling client case quickly and easily Dynamic tool allows for real time changes to allocations, financial instruments, projected returns, and tax implications. Scalable Interface Illustrate projected performance of a single investment or map potential for a multi tiered strategy. Include social security and other incomes and or other investments to provide a complete vision for you client. Show how the plan behaves in the future to a target, adjust for inflation, and test different investment performance assumptions Comprehensive Software Toolset Financial Planning Module LEARN MORE Tax Planning Module LEARN MORE Power for the Indexed Annuity Producer LEARN MORE

3 The SIPS Software Tool Financial Planning Module Asset Allocation discovery, recommendation and graphic presentation Cash Flow Analysis to determine desired retirement income Income Planning utilizes multiple accounts and multiple income streams Target income tested for changing assumptions: inflation, hypothetical investment returns, potential emergencies Multiple report tools to help communicate your recommendations Support your existing clients with easy to understand performance reporting Tax Planning Module Income Tax calculations to highlight potential savings Roth Conversion IRA tax optimizer RMD Calculator Other Software Features to support Fixed Indexed Annuity Producers Full support to illustrate Income Rider contractually guaranteed benefits from all major insurance carriers Income Rider payout comparison tool Case Builder that has four different predefined Structured Income Plans each utilizing the power of Equity Indexed Annuities to meet different objectives

4 Financial Planning Module

5 Asset Allocation Discovery What is your clients net worth? 1. How would you categorize the assets? With market issues at all time high levels of volatility, just graphically showing your client their at risk allocation and how a different solution will lower that risk is often enough to have them move. Allocations can be any metric of your choosing. 2. Are there potential ownership or inheritance issues? This is a good tool to use to clarify issues associated with ownership and tax liability. Both are powerful sales tools. 3. Is there a recommendation of how the assets should be invested? You can easily turn on the recommendation graphic to show how your concept would improved their

6 Investment Philosophy Why do you have money and what is the purpose of each investment? 1. Income Start at the bottom of the pyramid and decide how much of the money is needed to provide a safe or conservative income stream. 2. Protection for your beneficiaries Estate tax issues, life insurance, trusts, long term health planning. Do they have enough money to allocate some to this important bucket. 3. For emergencies, or just for fun This is the money where risk can enter the picture. The basics of the pyramid are taken care of and now we are looking for liquidity wit h potential for good returns.

7 Cash Flow What is your client spending and what are their incomes? 1. How much does your client make each year? Explore the stability of the income streams and determine how much they really need from the investment plan. In this case there is a 50% survivorship on the husband s pension. She will also lose her social security payment upon his death. 2. How much do they spend and on what? The expense section is as extensive as it needs to be for each client. If they are not saving today, then the expenses must come close to equaling their income. 3. What distribution from their savings will they need? The whole point of this section of this tool is to come to consensus on how much is needed as a base level income coming from the investment plan. Can it happen. Build scenarios to help explore what ifs. Is there really a plan to replace his income if he happens to pass first?

8 Structured Income Planning This is one of several pre built cases within the income planning module. 1. A simple 5 year SPIA can be used in Leg 1 known returns, tax efficient 2. The Leg 2 account uses an indexed annuity annuitize after 5 years in deferral 3. Leg 3 maximizes the advantage of an Indexed Annuity Income Rider growing for 10 years with contractual guarantees choose from any of the popular riders available within the Income Planning Module to calculate income payout 4. The Leg 4 account is a managed brokerage this is where the clients liquidity is

9 Income Planning Graphics 1. Show hypothetical overall account values over time 2. The planned yearly income includes both distributions and other income 3. Compare against your target income

10 Performance over Time How have your clients investments done? 1. How do you support existing clients? If you handle both fixed products like Indexed Annuities and are a Registered Investment Advisor, it is difficult to find an easy to understand one page performance report. Run the report over any period, and accurately account for distributions and additions.

11 Tax Planning Module

12 Income Tax Calculation How much does your client pay in income taxes and can you save them money? 1. What is there bottom line income tax bill? Enter the basic information on income and write offs and then quickly create scenarios showing potential solutions. 2. What percent of their Social Security is taxed? This is often a surprise and for certain people, very easy to remedy. A small change to the tax return by deferring interest creates a 75% reduction in tax liabilities. 3. Can you set up a tax efficient distribution? Use an annuity to tax defer interest and dividends. A split annuity has the advantage of still giving the income needed but creating far less taxable income.

13 Roth Conversion IRA Optimizer Is a Roth Conversion right for your client? 1. Is the client s specific tax situation suitable for a conversion? A Roth Conversion can save a tax payer hundreds of thousands of dollars but it is certainly not right for everyone. Plug in the relevant information regarding real income needs, taxable income and deductions and run the optimizer to see if it worth doing. 2. How much will they save? In this case the optimizer is telling us that if you roll the IRA over in a three year period, your client will pay the least amount of taxes on this money that they ever will. Over the next 20 years they could save as much as $251K in tax liability.

14 RMD Calculator There are two tools to support RMD calculations. 1. A quick calculator that shows you when and your much your clients RMD will be. It will also calculate the RMD for an inherited IRA. 2. The second tool is integrated with the Income Planning Module where you can specify an RMD as the income stream.

15 Power for the Fixed Indexed Annuity Producer

16 Income Rider Payout Comparison 1. Compare as many income riders as you want from all the major carriers 2. Shows how the guaranteed roll up grows and what the payout is 3. Change the deferral period, joint versus single, bonus, etc. 4. Use this tool right in your client case to help them choose, or make a separate file

17 Extensive Rider Support 1. Menu driven software gives you plenty of power to illustrate your case 2. Income Rider and Death Benefit Rider support for all major carriers 3. Rider specifications updated monthly to always let you see your choices

18 Extensive Case Development Support The Planning Module is fully customizable and scalable. 1. Show up to 12 different accounts 2. Add income riders or death benefit riders to any account 3. Income calculations include income rider payout, annuitization, RMD s, free withdrawals, or one time distributions 4. Show 15, 25 or 40 year time horizon 5. Summarize groups of accounts 6. Develop target income goals and adjust them for inflation 7. Show other incomes like Social Security and pensions 8. Vary the overall returns to see the impact of under performing assumptions

19 Case Builder or Build Your Own Predefined Structured Income Plans: 1. Split annuity 2. Three annuity max income 3. Four bucket principal preservation using long term growth of rider to insure future income 4. Four bucket, all annuity plan to guaranteed future income and potentially preserve principal Other advanced illustration tools include Stretch IRA and Roth conversion concepts