October 06, 2004

Donald Mulvihill, manager since April 2004 S&P Rank: 5 Stars A Smoother Ride to Higher After-Tax Returns

October 06, 2004

ByDespite a recovery in the stock market, fewer employees were participating in 401(k) retirement plans last year, according to a recent study.Conducted as an annual ...

October 06, 2004

The excerpts in this report are a small part of the data in the Full Disclosure software subscription series. Easy-to-use editions cover universal, whole, ...

October 06, 2004

NU Online News Service, Oct. 7, 2004, 5:02 p.m. EDTBig employers expect to pay an average of 8% more for health coverage for active ...

October 06, 2004

Pre-RetirementPlanning AtTheLastMinutePatrickA.LangAtsomepoint,yourclientsinthe50-to65-year-oldrangewillaskyou,theirfinancialadvisor,whatlast-minutetechniquestheycanusetohelpensureacomfortableretirement.Fortunately,thereareanumberofplanningoptionsavailablethatallowpre-retireestotakeadvantageofspecialtaxexceptionsandattendtootherimportantdetailsduringtheirworkingyears.Thestartingpointforanyretirementplanningshouldbeacarefulreviewoftheclientswillsandtruststounderstandthescopeofhisorheroverallplan.Yourcompanysadvancedsalesdepartmentshouldbeabletohelpwiththisreview.Inaddition,everyclientshouldhaveadurablepowerofattorney,healthcaredirectiveandlivingwill,ensuringthatthefinancialaffairsareinorderforthelatterstagesoflife.Longtermcareinsuranceisanotherimportantoptiontoconsiderearlyintheplanningstages,becausefundingthisinsuranceearlywillhelpkeepthepremiumdowninthelongrun.Thepeaceofmindthisprotectionoffersalsowillallowtheclienttofocusonmoreimportantmatters.Nowthatpricingandproductdesignhavebeguntostabilizeforthisessentialcoverage,youlldowelltosurveythemarketandselectafewcarriersyouarecomfortablewithbeforeyourclientbeginsaskingquestions.Qualifiedplansshouldbeanotheroptioninthepre-retirementyears.Inmostcases,maximumfundingisessentialtofuturesecurity.Inaddition,thereareafewlast-minutecatch-upopportunitiesavailabletogetthemostmoneyintoaprogrambeforeretirement.Catch-upcontributionsareadditionalelectivedeferralsmadebyaneligibleparticipantinanapplicableemployerplan.For2004,catch-upforatraditional401(k)planinwhichtheparticipantis50yearsorolderis$3,000.Catch-upfora403(b)planisalso$3,000wheretheparticipantisatleast50.UnderaSection457plan,thecatch-upamountforclients50oroveris$3,000forallbutthelast3yearsbeforeretirement,duringwhichtimeits$13,000.Catch-upamountsare$1,500forSIMPLEIRAsandSIMPLE401(k)plans.FortraditionalIRAs,theamountis$500forindividualswhohavereachedage50.ThesamelimitappliesforRothIRAs.Thisperiodbeforeretirementisalsoanappropriatetimetodiscussretirementdistributionplanning.Clientsneedtoappreciatethatcertainwaysoftakingqualifiedplandistributionscanbemoreadvantageousthanothers.Theyalsoneedtoconsiderbothqualifiedandnonqualifiedassetsindesigninganefficientdistributionstrategy.Perhapsadiscussionofthenew,simplerrequiredminimumdistributionrulesalsowouldbebeneficial.Besuretoreviewqualifiedplanbeneficiarydesignationstoensuretheystillmatchtheclientscurrentobjectives.Fornonqualifiedinvestments,thetimevalueofmoneycanbeastrongpersuader.Createyourownchartsthatreflectthesavingsabilityofyourclienttoshowtheadvantageofsavingmorenowversustryingtoplaycatch-upwithnonqualifiedinvestmentsatage65.Whileyourclientsinvestmentphilosophymayneedtobeadjustedinthepre-retirementyears,moreadvisorsarepointingouttheneedtoretainasignificantequitypositionduringtheretirementyearstoprovideadequatefundsforever-increasingpost-retirementlongevity.Apre-retirementreviewofyourclientslifeinsuranceprogramisalsoimportant.Adequatelifeinsurancecanofferpeaceofmindbyallowingclientstospendassetsinretirementknowingtheirfamilieswillbeprovidedfor.Inaddition,manyclientsmayfeelcomfortablebeingmoreaggressivewiththeirequityinvestmentsduringretirementknowingtheirfamilieshaveanunderlyingsafetynetofsufficientincometax-freelifeinsuranceproceeds.Secondarydeathbenefitguaranteesmayhelpassuretheclientthatpolicyproceedswillbeavailablefortheirfamiliesregardlessoffuturefluctuationsinthefinancialmarkets.Furthermore,adequatelyfundedlifeinsurancecanprovideanincometax-freesupplementalretirementincomeinthelateryears.Annuitiesalsoneedtobeconsideredatthispointbecauseoftheirtax-deferredgrowthandtax-advantagedpayouts.Atthisstageintheirlives,manyclientscaneffectivelytransfercertainunderperformingassetsintoannuitiesorlifeinsurancewithsignificantyieldsandtaxadvantagestotheclient.WhileMedicaresupplementsmaybeanichemarket,youshouldhaveabasicunderstandingoftheseprogramstospeakknowledgeablywithprospectswhomayexpressaninterestinthisarea.Remember,clientswanttoleavenostoneunturned.SocialSecurityisonemoreareatoreviewinthepre-retirementyears.SocialSecurityhasbegundistributingbenefitstatementsperiodicallytoparticipants,butyoullneedtohaveamethodtoreviewtheearlybenefitsquestion.Manycompanieshavesoftwarethatcanhelpwiththis.Finally,oneofthemostoverlookedopportunitiesforpost-retirementplanningischaritablegiving.Forthoseclientswhoindicateadesiretoallocatecertainassetsforpost-mortemcharitablegifts,youshouldpointoutthatthesesameassetscanbepreservedforthefamilybyfundingtheproposedgiftonadeeplydiscountedbasisusingasinglelifeorsurvivorshiplifeinsurancecontract.Weveonlyscratchedthesurfaceinexploringsomeofthetopicsyouneedtodiscusswiththepre-retiree.Makeupyourownchecklisttobesureyouvecoveredallthetoolsthatareappropriateineachclientssituation. PatrickA.Lang,JD,CLU,ChFC,CFP,CFS,FLMI,isvicepresidentofadvancedsalescasesupport,forJeffersonPilotFinancial.Youcane-mailhimat patrick.lang@jpfinancial.com.ReproducedfromNationalUnderwriterEdition,October7,2004.Copyright2004byTheNationalUnderwriterCompanyintheserialpublication.Allrightsreserved.Copyrightinthisarticleasanindependentworkmaybeheldbytheauthor. ...

October 06, 2004

Acacia Life Flex Account Ultra Lifetime Death Benefit Rider; Accumulation Sales; Long-Term Values; Maximum Retirement Income; Living BenefitsAIG American General Life ContinUL Death Benefit Guarantees; ...

October 06, 2004

Psychoanalysis Has Met Investing. What Does It Mean For Advisors? Behavioral finance is the study of why investors think and do what they do about ...