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EXPANDED MEMBER SERVICES - PLANNING STRATEGIES FOR YOUR FAMILY

Estate Planning | Retirement Planning | Financial Planning | College Funding

Estate Planning

Maintain surviving family's lifestyle - by paying off debt and providing a a lump sum of cash which they can draw from in the event of your death.

Divide and distribute your estate equitably - for example, you could have someone be an heir to your business that may be worth a couple million and provide another heir a couple million in life insurance proceeds.

Reduce or eliminate gift and estate taxes - for example, a member of senior generation transfers their residence to a Qualified Personal Residence Trust (QPRT), the residence eventually passes to the junior generation without any additional gift tax - as long as the grantor survives the specified retained term; junior generation purchases life insurance policy insuring senior generation to insure against the risk that the residence may be brought back into the grantor's estate if the grantor dies during the retained term.

Solve liquidity needs - to pay for administrative costs, gift and estate taxes. Often times estates are composed of non-liquid property or property such as collectible artwork, jewelry and other family heirlooms that heirs may not wish to sell to pay expenses. Life insurance can be used to provide the necessary liquidity to pay the expenses associated with your estate.

The above examples are only the tip of the iceberg. There are many more ways in which life insurance can be used to solve issues associated with estate and gift taxes. Only a professional can help you determine which planning techniques are appropriate for your situation. So, it is important to work closely with a Life Insurance Professional and CPA.

Retirement Planning

According to the Social Security Administration, today's retirees can only count on corporate pensions and Social Security for 56% of their income at retirement. The remainder must come from other sources - personal savings and earned income. If the same holds true in the future, you may need to accumulate enough in personal savings to make up a 44% shortfall in your retirement income. Your challenge is...how to close this gap?

There are so many important considerations when planning for your retirement such as: What types of investments should you consider? What are the contribution limits and tax consequences of each? What rates should be assumed for inflation and investment earnings? What is the optimal mix of taxable and tax-deferred investments to properly fund your retirement?

• Census figures indicate that only one in every ten Americans today is financially prepared to retire when they reach age 65!
• Life expectancies continue to increase. For a 65-year-old couple, the odds that one spouse will live until age 90 are over 50%.
• Social Security benefits will replace only 16% of the income of married couples earning $50,000 - $100,000 and only 9.5% of the income of married couples earning $100,000-plus.
• Over the past 30 years inflation has averaged about 5%

Working people tend to think their retirement lifestyle will be better than their current lifestyle, but retirees report their standard of living has declined. Of retirees, 20% are "just making ends meet."

Sources: U.S. Bureau of the Census; National Association of Variable Annuities; CSIS National Commission on Retirement Policy, 1997; Office of Research and Economic Analysis, Pension and Welfare Administration; Employee Benefit Research Institute; Merrill Lynch Strategic Planning

Financial Planning

Before purchasing financial products, it is necessary to fully understand your goals and objectives, income and future needs. "If it will cost $200,000 to send my 2 year old to college in 16 years, what do I need to put away between now and then?" is a typical question that a Financial Profile can help you answer. "If something happens to me, what would my family need to retain its current standard of living?" is another.

College Funding

Planning for your son's or daughter's college education is a complex process. If life was certain, you would only need to determine how much would be needed, when it would be needed, and how much you had to save each year to reach that goal. A proper education funding plan, however, must combine life insurance (for protection) and a funding plan (for paying tuition and other expenses) to ensure that this important goal will be met. Over the past 20 years, college costs have risen more than twice the rate of inflation. For many of us, paying for a child's education will be one of the largest expenses we'll incur in our lifetime. But the opportunity is clear — a college degree helps you earn up to 80% more than a high school diploma alone according to the College Board.

All Securities through Money Concepts Capital Corp. Member NASD/SIPC
OSJ Branch: 7121 Fairway Drive, Palm Beach Gardens, FL 33418. Ph. (561) 472-2000.
Investments are not FDIC or NCUSIF insured. May Lose Value. No Bank or Credit Union Guarantee.