1. Legislative Birthdays
A Doorway to Annuity Client Relationship Building

2. Imagine your client as a house.
Most of the times, all the doors and windows are locked. It is very difficult to get inside to build a relationship, identify needs and recommend solutions.
But, every once in a while, something comes about that will cause a door to open. Something happens where a client needs to make a financial decision. If you know when that door is going to open, you can walk in and help them identify their need and present your solutions.

3. Legislative Birthdays
Legislative Birthdays are milestones in an individual’s life where legislation has opened a door to a financial decision.
This presentation will describe those milestones and the financial decision and opportunities presented to these individuals.

4. Legislative Milestone Birthdays
Age 50
Age 55
Age 59 ½
Age 62
Age 65
Age 70 , 70 1/2

5. Age 50 : Legislative Event
Catch-Up Contributions
Can make Catch-Up contributions to IRAs and Qualified plans
2017 Limits:
$6,000 for 401(k), 403(b), and 457 plans
$3,000 for SIMPLE IRA or 401(k)
$1,000 for Traditional or Roth IRA

6. Age 50 : Life Stage Reaching Peak Earning Years
Children in or finished with college
Well into home ownership
Sharper focus on retirement
Need to maximize savings
Age 50 – 60 is ideal for Long Term Care
May be sandwiched between children and aging parents

7. Age 50: Opportunities Retirement Income Planning Asset Consolidation
May have old 401(k) plans
Maximize qualified plan savings
Non-Qualified Savings
Long Term Care
Estate Planning – Asset transfers from parents
Referral to parents

8. Age 55: Legislative Event
Age 55 and Separated from Service
If separated from service and age 55, may distribute retirement plan assets without incurring the 72(t) 10% premature distribution tax penalty.
Federal taxes (and maybe state) still apply

9. Age 55: Life Stage Peak Earning Years
Children in or finished with college
Well into home ownership
Sharper focus on retirement
Need to maximize savings
Age 50 – 60 is ideal for Long Term Care
May be sandwiched between children and aging parents

10. Age 55: Opportunities Retirement Income Planning Asset Consolidation
May have old 401(k) plans
Maximize qualified plan savings
Non-Qualified Savings
Long Term Care
Insurance conversions at retirement
Estate Planning – Asset transfers from parents
Referral to parents

11. Age 59 ½: Legislative Event
No 10% Pre-59 ½ penalty
The 72(t) 10% penalty from annuities and qualified retirement plans no longer exists

12. Age 59 ½: Life Stage Retirement Approaching
Income needs to be estimated and adjusted
Subject to sequence of returns risk
Long Term Care pricing increases
Now or never for retirement savings
Estate Planning begins to become a priority
Parents may begin to need assisted living

13. Age 59 ½ : Opportunities
Maximize qualified plan savings and supplement with non-qualified
Asset Consolidation
Retirement Income Planning
Begin structuring retirement income stream
Begin the Social Security Discussion – When to begin
May have old 401(k) plans
Long Term Care
Group Life conversion if retiring
Estate Planning
May begin RMD Spend down

14. Age 62: Legislative Event
Can begin taking Social Security
At age 62 Individuals that qualify for Social Security can begin taking a reduced income payment.

15. Age 62: Life Stage
The Social Security decision leads to a bigger focus on retirement income planning
Income modeling and sequence of returns risk looms
Long term care pricing is increasing
If working – now or never for retirement saving
Estate planning becoming more important
Parents may be needing assisted living

16. Age 62: Opportunities Asset Consolidation
Pension Max if working with a Defined Benefit plan
Social Security Bridge to delay payment
Estate Planning
Group life conversion from employer
Long term care
RMD spend down

17. Age 65: Legislative Event
Eligible to begin Medicare
At age 65, individuals are eligible begin Medicare
In addition between age 66 and 68 most individuals will hit their full retirement age for Social Security

18. Age 65: Life Stage Generally retired Concern to maximize income
Subject to sequence of returns and inflation risk
Estate Planning is critical
Last chance to purchase Long term Care before cost is prohibitive

19. Age 65: Opportunities Asset Consolidation
FIAs to address sequence of returns risk and potentially inflation risk
Pension Max if a defined benefit plan exists
Estate Planning
Long Term Care
RMD Spend down

20. Age 70, 70 1/2 RMDs and Social Security
Age 70 is the latest you can delay Social Security
Each year Social Security is postponed, it represents an 8% increase in growth of assets
At age 70 ½, in general you must begin receiving Required Minimum Distributions from qualified plans and IRAs
Failure to take sufficient assets can result in a 50% tax penalty on any withdrawal shortfall
Some plans – 401(k), 403(b) or other defined contribution plans may allow the RMD to be postponed until April 1 of the year following the year the participant retires

21. Age 70, 70 ½: Life Stage
Focus will be on not outliving assets and estate planning and asset transfer.
May begin to need some type of assisted living

22. Age 70, 70 ½: Opportunities
Focus on lifetime income guarantees of income annuities
Estate Planning
Charitable giving
Asset Consolidation, prepare for asset transfer
Meet with next generation to begin relationship building

23. More Door Openers CDs Auto Insurance Homeowner’s Insurance
Legislative Birthdays are the only milestones that may open the door to an individual needing to make a financial decision. Here are some more events that you can X-Date:
CDs
Auto Insurance
Homeowner’s Insurance
Mortgage Paid off
Student Loans paid off
Annual or quarterly bonus
Children out of college
Annuity “Step-Up” Dates
Bonds Maturing
End of Surrender Charges
Annuities
Mutual funds
Retirement
Birth of child or grandchild
End of day care
Term Conversion dates
Life Insurance additional purchase options