Presentation on theme: "Looking long term Life insurance in retirement Minnesota Life Insurance Company Financial Advisor Introducing (Wholesaler Name) as Registered Rep of SFS."— Presentation transcript:
Looking long term Life insurance in retirement Minnesota Life Insurance Company Financial Advisor Introducing (Wholesaler Name) as Registered Rep of SFS (Wholesaler name) is not affiliated with (firm Name) Securities and investment advisory services offered through Securian Financial Services, Inc., Member FINRA/SIPC. Securities dealer and registered investment advisor. is independently operated.
Keeping your dreams on course Define your destination Phases of retirement Your financial fuel Financial roadblocks & detours Make the right turns with a knowledgeable guide 2
DEFINE YOUR DESTINATION
Which way are you headed? 1.How will you spend your time? 2.Will your retirement include work? 3.Who will depend on you for personal and financial support? 4.Where is “home base” during retirement? 4
What kind of retiree will you be? Traditional Downshifter Playcheck Jhobbie Boomer Entrepreneur Sandwich Generation 5
PHASES OF RETIREMENT
Three Retirement Phases Gearing up Taking off Cruise control 7
Gearing Up First phase Gathering information Test drive 8
Taking Off Second Phase Active Engaged Managing Health Downsizing Tracking 9
Cruise Control Third Phase Active Health Management Patterns emerge Leaving a legacy 10
YOUR FINANCIAL FUEL
Decumulation is different Accumulation: – Saving – Investing – Asset Allocation Decumulation: – Making the money last – Trade-off decisions – Asset depletion is inevitable 12
Fueling retirement years 13
Sources of Income Personal savings and investments Pension Plans Social Security Employment during retirement 14
Personal savings and investments 401k plans IRA’s Annuities Stocks Bonds Mutual Funds CD’s Real Estate Life insurance cash values 15 Investments will fluctuate and when redeemed, may be worth more or less than originally invested.
Pension Plans Monthly income stream Lump sum distribution Retirees need to create their own retirement income 16
Social Security Personal Earnings & Benefit Statement Check benefits at Benefits taken before full retirement age may be considerably reduced Social Security Administration: Income of the Aged 2004 Chartbook, released September
Employment during retirement 72% intend to continue to work 34% of retirees currently working 47% retired sooner than anticipated Retirement Confidence Survey. A research report from the EBRI Education and Research Fund.
FINANCIAL ROADBLOCKS AND DETOURS
Roadblocks Living a longer life & staying healthy The effects of inflation Carrying debt into retirement How you really spend your money When & how much to withdraw Dying too soon 20
Living a longer life 21
Living a longer life Add at least 10 years to projections of life expectancy Get an independent perspective – work with a financial advisor 22
The effects of inflation 23 This is a hypothetical value illustration showing the value of $1 invested in This example is for illustrative purposes only and is not indicative of any particular investment. Past performance does not guarantee future results. You cannot invest directly in an index.
Previous Graph Disclosure Note: The data assumes reinvestment of all income and does not account for taxes or transaction costs. The average return represents a compound annual return. Government bonds and Treasury bills are guaranteed by the full faith and credit of the United States Government as to the timely payment of principal and interest. Stocks are not guaranteed. Small company stocks are more volatile than large company stocks, are subject to significant price fluctuations and business risks and are thinly traded. An investment cannot be made directly in an index. Past performance is no guarantee of future results. Source: U.S. Small Company Stocks — Represented by the fifth capitalization quintile of stocks on the NYSE for and the performance of the Dimensional Fund Advisors (DFA) Small Company Portfolios benchmark thereafter. U.S. Large Company Stocks — S&P 500 Index, which is an unmanaged group of securities and is considered to be representative of the stock market in general. U.S. Long-Term Government Bonds — 20-year U.S. Government Bond. U.S. 30-day Treasury Bill — 30-day U.S. Treasury Bill. U.S. Inflation — Consumer Price Index.
The effects of inflation Use Consumer Price Index (CPI) + 1% 3.5% - 5% historically Most retirees need some exposure to equities Unpredictable – need to adjust along the way 25
Carrying debt into retirement Debt restricts your financial flexibility Reduces income Affects your ability to have a comfortable retirement 26
Carrying debt into retirement Retire debt-free Retire mortgage-free 27
How you really spend your money Target between 70 – 85% of pre-retirement income Requires detailed tracking of expenses to get it right 28
How you really spend your money % pre-retirement income Increase that by 5% -10% Adjust as necessary 29
When and how much to withdraw 30 This is a hypothetical example for illustrative purposes only and is not indicative of any particular investment. Investments will fluctuate and when redeemed, may be worth more or less than originally invested.
When and how much to withdraw Determine how much of your income comes from guaranteed sources Adjust discretionary expenses during down markets Determine a balance of guarantees and growth Consider asset protection strategies 31
Dying too soon Living longer Inflation Debt in retirement How you spend your money When & how much to withdraw
Dying too soon Life insurance Funded sufficiently Policy riders – Cost of living – Waiver of premium – Long term care Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. Policy loans and withdrawals may create an adverse tax result in the event of a lapse or policy surrender, and will reduce both the cash value and death benefit. Riders may be subject to additional costs and restrictions.
Make the right turns with a knowledgeable guide
Mapping your route Think about how you want to spend your retirement Watch for roadblocks Take inventory of finances Take steps to protect your retirement income streams Work with an advisor 35
Get started now! Schedule a complimentary, no obligation, one hour consultation