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Pension Maximization Wilson Financial Benefit Consultants Timothy D. Wilson President www.pensionmaximization.com 18 years of educating and improving business.

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Presentation on theme: "Pension Maximization Wilson Financial Benefit Consultants Timothy D. Wilson President www.pensionmaximization.com 18 years of educating and improving business."— Presentation transcript:

1 Pension Maximization Wilson Financial Benefit Consultants Timothy D. Wilson President 18 years of educating and improving business and individual needs

2 The Pension Dilemma The current pension retirement options available to a employee/spouse and their survivors are very restrictive in nature and faulty in basic design and implementation for receiving maximum lifetime retirement income and benefits

3 The Pension Problem At retirement, a pension plan provided by the employer is based on the age and years of service of the retiring employee. If a pension is to be provided for the surviving spouse as well, the pension income benefit is calculated based on the average life expectancy of both employee and spouse combined and greatly reduces the joint and survivor income benefit sometimes as much as 20-40% for life

4 The Pension Solution Assuming you would be able to pass a Life insurance company medical examination, it may be more cost efficient to provide for your spouse a life insurance policy so that you can select the “Life Only” pension option at retirement time This will provide you with a higher income for life for both you and your spouse to enjoy in your retirement

5 The Pension Max Solution In the event of your death the life insurance is paid in a lump sum to your spouse on a tax-free basis equal to or more than the amount your spouse would have received choosing the joint and survivor pension option By starting your Pension Maximization plan earlier than retirement, the cost is much lower and the prospect of qualifying is much better If the plan can be paid up at retirement, a much higher income benefit can be enjoyed in your retirement

6 Concerns and Long term Goals Retiree/Spouse never outlive retirement income Employee wants and needs to receive the maximum pension income benefit for him/her, their spouse and beneficiaries allowable under the law Consider all pension income options available by employer provided plan and also alternative pension option strategies including employer plan as a combination structure with more flexibility and advantages than employer only offered plan

7 Pre/Post-Retiree Objectives Pre-retiree wishes to receive maximum benefits “Best of Both Worlds” for retiree/spouse and beneficiaries Maximize flexibility if life scenario's change unexpectedly without sacrificing income benefit to retiree/spouse and beneficiaries Receive maximum income and benefits to offset other investment losses due to unforseen current and future economic conditions (401k, stocks, mutual funds, investment properties)

8 Maximizing your Pension Pension Maximization provides ultimate desired retirement objectives ( maximum income for life for retiree/spouse AND beneficiaries, flexibility and protection) Ensure that alternative pension strategy satisfies and surpasses employer's current pension options available to employee and spouse Provides a guarantee of higher lifetime income payments with strength and stability secured by AAA and A++ rated insurance companies

9 Advantages and Strengths No reduction in retirement income before and after employee retires as spouse is protected by a insurance policy on Pre/Post retired employee Higher income for both of you, while you are living for an average of 25 to 30 years and beyond in retirement Indexing or ad hoc increases if any, are applied to a larger pension for both of you to enjoy Client controls pension income not the employer

10 Advantages and Strengths Tax sheltered emergency fund as cash and/or loan values are available within the plan Plan is portable if employer is changed or if pension plan is changed, restructured, cancelled, underfunded or insolvent Can single pay or quick pay to reduce other taxable investments and receive an even higher income in retirement Only interest portion of annuity for spouse would be taxable, Life Insurance proceeds are received tax-free

11 Advantages and Strengths Spouse may predecease you after retirement, policy can be terminated, surrendered or sold for cash as a lifetime settlement to a financial institution in the future if no longer needed In the event of re-marriage, beneficiary can be changed Pension not reduced if spouse is younger unlike current employer pension plan options offered Provides pre-retirement life insurance protection as a bonus covering multiple needs desired

12 Advantages and Strengths Plan has cash surrender value, if terminated or no longer needed No need to convert group life insurance at retirement, avoid buying the largest/highest cost policy of your life at retirement on a fixed income Provides inheritance to children, or charity, etc. in the event of a common disaster or at the second death of surviving spouse

13 Advantages and Strengths Spouse would have a higher after-tax income as only the interest is taxable not the capital The earlier the employee adopts the Pension Maximization Strategy the lower the contributions required to receive maximum benefits desired There is no other strategy like Pension Maximization that currently exists today as most employers/employees are not even aware or offered this fourth option as a alternative selection strategy

14 Next Steps and Requirements Contact Wilson Financial for a full Pension Review Analysis and feasibility study comparison Affordability of life insurance policy premiums Setup and Qualify medically for a life insurance policy with a Paramedical exam at your residence or work at no cost to you Enact Pension Maximization Strategy before a current employer retirement option offered is irrevocably chosen or elected incorrectly

15 Contact or visit us at Wilson Financial Benefit Consultants 1821 W. Maple Birmingham, MI (248) (248) efax 18 years of educating and improving business and individual needs


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