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 ...

October 06, 2004

Mixed Regulatory Decisions For Life Agents On TelemarketingWashingtonThe Federal Communications Commission has decided to delay implementation of its do-not-fax rule until July 1, 2005 to ...