Transcript Document

Look Back, Plan Ahead with an Annual
Financial Review
AFN4559
What’s new in your life?
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Birth of a child or grandchild
Marriage or divorce
New job/career
Inheritance or other windfall
Child’s marriage
Illness or death of a loved one
Getting from Point A to Point B
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Income
Living Expenses
Budgeting
Short-term goals
Long-term goals
Six Pillars of an Annual Review
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Retirement
College Planning
Investments
Estate Planning
Insurance
Tax Planning
Retirement — A Big Challenge
• Calculate your savings goal
• Will you be saving enough this year to meet
that goal?
• Are you taking full advantage of tax-qualified
retirement accounts?
Retirement Goal Review
• Fewer than half (46%) of American workers
have calculated a retirement savings goal*
• You may need the equivalent of 60% to 80%
of your working-years’ annual income for
each year you live in retirement
• Studies show that calculating a goal helps to
increase retirement confidence*
*Source: Employee Benefit Research Institute, 2013 Retirement Confidence Survey.
Are You Saving Enough?
• IRAs
• 401(k) and other workplace retirement
plans
• Annuities
• Review expenses
Take Advantage of Tax Rules
• 2014 Contribution Limits
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IRAs—$5,500
IRA “Catch-Up”— $1,000
401(k), 403(b), and 457 Plans — $17,500
“Catch-Up” Contributions — $5,500
*401(k) and 403(b) plans only. Consult a qualified tax advisor for all matters pertaining to tax planning.
Retirement Distribution Planning
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How long will your money last?
Use conservative withdrawal assumptions
Required Minimum Distributions (RMDs)
Lifetime income through annuities
Consult a qualified tax advisor for all matters pertaining to tax planning.
The Price of Higher Education
• College costs are rising — in many cases
much faster than the overall inflation rate*
• You should consider 529 plans and
Coverdell Education Savings Accounts
• Don’t overlook tax breaks and financial aid
*Source: The College Board.
Assess Your College Savings Options
• 529 Plans come in two varieties:
– Prepaid tuition plans
– High contribution limit
– Tax-free college investment accounts
• Coverdell Education Savings Account
– Formerly called Education IRAs
– Tax-free investment growth
– Tax-free qualified withdrawals
Study Up on Financial Aid
• Pell Grants
• Stafford Student Loans
• Plus Loans for Undergraduates (PLUS)
Loans
• Supplemental Education Opportunity Grant
• The Perkins Loan
Tax Breaks and Incentives
• The American Opportunity Tax Credit
(formerly HOPE Credit)
• The Lifetime Learning Credit
• More flexibility for claiming existing student
loan deduction
Investment Review
• During the past year, has anything occurred
that might affect:
– Your investment time frame, goals, or risk
tolerance
– Your portfolio’s asset allocation and
diversification
Annual Investment Action Plan
• Refocus
• Review
• Rebalance
Striving for Balance
• There are two ways to actively rebalance a
portfolio:
– Sell shares
– Purchase additional shares
• Either way, it’s probably a good idea to
speak with a professional before making a
transaction
Past performance does not guarantee future results.
Your Estate Plan — The Basics
• Are your documents up-to-date?
– Wills
– Beneficiary arrangements
Consult a qualified legal advisor for all matters pertaining to estate planning.
Controlling Your Wealth
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Trusts
Estate Taxes
Other objectives
Gifting
Consult a qualified legal advisor for all matters pertaining to estate planning.
Gifting Strategies
• Annual Gift Tax Exclusion
• Passing wealth while you’re alive
Consult a qualified legal advisor for all matters pertaining to estate planning.
Protecting Your Future
• “It’s better to have insurance and not need it,
than need insurance and not have it”
– 30% of American households (35 million) are
uninsured*
– A majority think coverage is too expensive*
– Many who do have coverage have far less than
experts recommend
*Source: LIMRA’s 2013 Life Insurance Awareness Month September 2013, Fact Sheet.
Reviewing Your Life Insurance Needs
• How much and what type of coverage is right
for you?
• Employer-provided coverage may not be
enough
• Coverage for short-term expenses and longterm priorities
Other Insurance Needs
• Don’t forget about disability income
insurance
• Realities of long-term care
Tax Laws Have Changed
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Return to top income tax rate of 39.6%
20% top rate on capital gains and dividends
Permanent AMT “Patch”
Many extensions to tax credits and education
incentives
Consult a qualified legal advisor for all matters pertaining to tax planning.
Be Tax Smart
• Pay attention to the timing of investment
sales
• Consider offsetting a gain with a loss
• Keep detailed, comprehensive records
• Work with a professional
Consult a qualified legal advisor for all matters pertaining to tax planning.
In Summary
• What has changed?
• What can you do better next year?
Preparing for Your Review
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Get organized
What’s your current situation?
Create a “personal balance sheet”
Identify needs and strategic considerations
“Benchmark” your progress
Questions & Answers
Investment options are offered through a group variable annuity contract (Forms 902-GAQC-09 or 902-GAQC-09(CT) or 902GAQC-09(OR)) underwritten by United of Omaha Life Insurance Company for contracts issued in all states except New York.
United of Omaha Life Insurance Company, Omaha, NE 68175 is licensed nationwide except in New York. Companion Life
Insurance Company, Hauppauge, NY 11788 is licensed in New York and underwrites the group variable annuity (Form 900GAQC-07(NY)). Each company accepts full responsibility for each of their respective contractual obligations under the contract
but does not guarantee any contributions or investment returns except as to the Guaranteed Account and the Lifetime
Guaranteed Income Account as provided under the contract. Neither United of Omaha Life Insurance Company, Companion Life
Insurance Company, nor their representatives or affiliates offers investment advice in connection with the contract.
Specific features of the Lifetime Guaranteed Income Account (Rider Forms 651-GAQR-10 or 651-GAQR-10(CT) or 651-GAQR10(OR)) vary by state. Restrictions apply. The Lifetime Guaranteed Income Account is not available in Nevada or New York.
Group variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement
purposes. Distributions may be subject to ordinary income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may
apply. Investing in a group variable annuity involves risk, including possible loss of principal.
Prior to selecting investment options for your retirement account, you should consider the investment objectives, risks,
fees and expenses of each option carefully. For this and other important information, you should review your enrollment
materials or the participant website. Read this information carefully.