Transcript Success is an attitude Financial Education Series Be prepared to handle anything! Presenter Name (Edit on Title Master) Title (Edit on Title Master) May 19,

Success is an attitude
Financial Education Series
Be prepared to handle anything!
Presenter Name (Edit on Title Master)
Title (Edit on Title Master)
May 19, 2007
©2007 Lincoln National Corporation
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Please read
This seminar is for informational purposes only. It is
intended to be accurate and authoritative in regard to
the subject matter covered. Lincoln Financial
Distributors, Inc. presents this seminar for
informational purposes only. It is presented with the
understanding that we are not engaged in rendering
legal or tax advice.
While this seminar discusses general tax aspects and
investment concepts, we make no representation as to
suitability for individual clients. Interested parties
should seek their own tax and legal advice before
implementing a plan of the type described in this
presentation.
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“The best way to predict the future is to
invent it.”
Computer pioneer Alan Kay
©2007 Lincoln National Corporation
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What would you like to get out of today?
©2006 Lincoln National Corporation
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Agenda items
Assess possible risks
Develop a backup plan
Consider options for you and your family
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Assessing risk
Uncontrollable events
• Short- or long-term disability
• Long-term illness
• Accidental or illness-related death
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Assessing risk
Long-term illness
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Cancer
Heart disease
Diabetes
Stroke
Emphysema
Alzheimer’s disease
Others
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Assessing risk
Disability
• Work-related injuries
• Accidents (household, traffic, sports, etc.)
Death
• Accidental
• Illness-related
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Developing a backup plan
How easy would it be for me/my family to
manage on one less income?
How long could we get by?
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Developing a back-up plan
What are your needs?
Self only
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Living expenses
Long-term or out-of-pocket healthcare expenses
Continue saving for retirement
Leave some money for a relative or charitable
organization
• Designate an individual to control your estate
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Developing a back-up plan
What are your needs?
Self and spouse or partner
• Living expenses on one less income
• Long-term or out-of-pocket healthcare expenses
for one or both
• Continue saving for retirement
• Designate your spouse or partner to control your estate
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Developing a back-up plan
What are your needs?
Self and spouse and/or children
• Living expenses on one less income
• Long-term or out-of-pocket healthcare expenses
for one or both
• Continue saving for retirement
• Leave an inheritance for your children and
grandchildren
• Designate an individual to control your estate
and a guardian for your children
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Looking at the options
Disability insurance
Long-term care insurance
Wills
Trusts
Beneficiary designations
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Looking at the options
Disability insurance
• Two main types
- Short-term
- Long-term
• Replaces all or a portion of your income
• Premiums based on several factors
- Current health
- Danger level of your job
• Offered by many employers
• Reason for disability does not have to be work-related
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Looking at the options
Disability insurance
• Short-term
- Begins after all sick leave is exhausted
- Replaces 100% of your income for an initial period, then
usually drops to 60%
- Continues for up to the first six months of the disability
• Long-term
- Begins after short-term disability is exhausted
- Generally replaces 50-70% of your regular income
- Additional coverage can often be purchased to replace a
higher percentage of income
- Coverage can last for years, often up to age 65
Disability insurance policy coverage presented is for informational purposes only.
Specific policy coverage provisions vary by issuing company.
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Looking at the options
Long-term care insurance
• Covers expenses for care needed due to an extended
illness or condition
• Protects your assets from being depleted to pay for
these services
• Such services include
- Home healthcare workers
- Visiting nurses or hospice
- Assisted living facilities
- Nursing homes
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Looking at the options
Long-term care insurance
• Current average costs of long-term care
services in the United States.
Home healthcare worker
Approx. $75 per visit
Visiting nurse
Approx. $40 per visit
Assisted living facility
Approx. $2,400 per visit
Nursing home
Approx. $4,800-$5,500 per month
Source: American Association for Long-Term Care Insurance
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Looking at the options
Long-term care insurance
• Projected annual costs of long-term care services
2015
2030
$35,299
$73,385
Assisted living facility
$51,268
$106,583
Nursing home
$102,299
$212,673
Home healthcare
(5 home health aide visits/week)
(semi-private room)
Source: American Association for Long-Term Care Insurance
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Looking at the options
Long-term care insurance
The good news
• The younger you are, the less expensive the
premiums are
• Some employers offer long-term care insurance
• Your life insurance policy may already offer this coverage
• Long-term care insurance premiums paid by your
employer are generally not taxable income for you
• A portion of any premiums you pay may be deductible
from your federal and state income taxes
• The benefits you receive from some policies are not
taxable
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Looking at the options
Estate planning tools
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Wills
Trusts
Beneficiary designations
Power of attorney
Healthcare proxy and living will
Gifting
Registration of assets
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Looking at the options
Wills
• Important for protecting your estate for your family and
other heirs
• Consist of three basic elements
- Personal declaration
- Property description
- Distribution instructions
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Looking at the options
Wills
• Easy to create
- Do-it-yourself kit
- Consult an attorney
• You have complete control over how to distribute
the assets of your estate
• Easy to make changes
• Can make changes any time
• You name an executor to ensure your will is
carried out properly
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Looking at the options
Trusts
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Distribute property to beneficiaries
Manage assets when the beneficiary cannot
Save on taxes
Avoid probate
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Looking at the options
Revocable trusts
• Created during your lifetime
• Keep control of assets
• Ongoing management of property if you become
incapacitated
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Looking at the options
Irrevocable trusts
• Cannot be changed
• May save on taxes because assets are removed
from your estate
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Looking at the options
Charitable trusts
• Possible income tax deduction
• Possible reduction in estate tax
• Immediate benefit to a charitable organization
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Looking at the options
Beneficiary designations
• Life insurance policy
- Young and single with no children:
name one or both parents as beneficiary
- Unmarried with children:
name children as primary beneficiaries
- Married with children:
name your spouse as primary beneficiary, children as
secondary
• IRA, 401(k), other investments
- In some cases you are required to name your spouse as
beneficiary, or to get the spouse’s consent to name someone
else
- Investment products provide different options for distributing
benefits to your beneficiaries
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Looking at the options
Power of attorney
• This enables a trusted friend or relative to make
decisions about property if you become incapacitated.
Healthcare proxy and living will
• Proxy enables a trusted friend or relative to make
decisions about your healthcare if you are unable to.
• Living will gives instructions to healthcare providers
about what you want in medical care.
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Looking at the options
Gifting
• Spouse
• Other people
• Favorite causes or charities
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Be prepared for anything
Feel confident knowing you’re prepared!
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Thank you
Questions?
For educational and informational purposes only.
The United Bank of Philadelphia offers advice independently of
Lincoln Financial Group. This seminar and the accompanying
materials were created by Lincoln Financial Group in an effort to
provide educational services to the United Bank of Philadelphia and
its customers. This seminar is not for the purpose of promoting
Lincoln Financial products. Any interest in investing is at the discretion
of the customer and their financial advisor.
If mutual funds and variable annuities are discussed, prospectuses
will be provided.
Securities and investment advisory services distributed by Lincoln
Financial Distributors, Inc., a broker/dealer and registered investment
advisor. Insurance products are issued by Lincoln affiliates. Lincoln
Financial Group is the marketing name for Lincoln National
Corporation and its affiliates.
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Thank you
Neither Lincoln nor its representatives provide tax or legal advice. You
should contact your tax advisor or attorney regarding your particular
situation. Lincoln Financial Group is the marketing name for Lincoln
National Corporation and its affiliates. Affiliates are responsible for their
own financial and contractual obligations.
This material was prepared to support the promotion and marketing of
investments. Lincoln Financial Group® affiliates, their distributors, and
their respective employees, representatives, and/or insurance agents do
not provide tax, accounting, or legal advice. Any tax statements
contained herein were not intended or written to be used, and cannot be
used for the purpose of avoiding U.S. federal, state, or local tax penalties.
Please consult your own independent advisor as to any tax, accounting,
or legal statements made herein.
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