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Retirement
Retirement Prepared for: Paul and Sally Johnson 34 Bonnie Dr Los Angeles CA 90039 Prepared by: Steven Chapin, FLMI Client Services Advisys, Inc. 20271 SW Birch Newport Beach CA 92660 Phone: 949.419.1322 Mobile: 323.273.4242 Email: [email protected] Website: www.brtnow.com October 19, 2011 TITLEPAGE1 Table of Contents Disclaimer Notice.......................................................................................................................................... 1 Disclosure Notice.......................................................................................................................................... 2 The Need for Retirement Planning............................................................................................................... 3 Retirement Analysis...................................................................................................................................... 5 Retirement Timeline...................................................................................................................................... 6 Alternatives to Achieving Retirement Goals..................................................................................................7 Sources of Retirement Income..................................................................................................................... 8 How a Traditional IRA Works...................................................................................................................... 10 Progress towards Your Retirement Goals.................................................................................................. 11 Long-Term Care.......................................................................................................................................... 12 Long-Term Care Break-Even...................................................................................................................... 15 Retirement Needs Analysis Data - Fact Finder...........................................................................................16 Paul and Sally Johnson I mp o r t a n t No t i c e Thi sr epor ti si nt endedt oser v easabasi sf orf ur t herdi scussi onwi t hyourot herpr of ess i onal advi s or s. 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Al t houghgr eatef f or thasbeent ak ent opr ovi deaccur at edat aandex pl anat i ons,andwhi l et hes our ces ar edeemedr el i abl e,t hei nf or mat i ont hatf ol l owsshoul dnotber el i eduponf orpr epar i ngt axr et ur nsor maki ngi nv es t mentdeci si ons.Thi si nf or mat i onhasnei t herbeenaudi t edbynorv er i f i edbyt hecompany , orc ompani es ,l i s t edbel owandi st her ef or enotguar ant eedbyt hem ast oi t saccur acy. I fanumer i calanal ysi si sshown,t her esul t sar enei t herguar ant eesnorpr oj ect i ons,andact ual r esul t smaydi f f ersi gni f i cant l y.Anyassumpt i onsast oi nt er estr at es,r at esofr et ur n,i nf l at i on,or ot herval uesar ehypot het i calandf ori l l ust r at i vepur posesonl y.Rat esofr et ur nshownar enot i ndi cat i veofanypar t i cul ari nvest ment ,andwi l lvar yovert i me.Anyr ef er encet opastper f or mance i snoti ndi cat i veoff ut ur er esul t sandshoul dnotbet akenasaguar ant eedpr oj ect i onofact ual r et ur nsf r om anyr ecommendedi nvest ment . October 19, 2011 Page 2 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson For much of the 20th century, retirement in America was traditionally defined in terms of its relationship to participation in the active work force. An individual would work full-time until a certain age, and then leave employment to spend a few years quietly rocking on the front porch. Declining health often made retirement short and unpleasant. Retirement planning, as such, typically focused on saving enough to guarantee minimal survival for a relatively brief period of time. More recently, however, many individuals are beginning to recognize that for a number of reasons, this traditional view of retirement is no longer accurate. Some individuals, for example, are voluntarily choosing to retire early, in their 40s or 50s. Others, because they enjoy working, choose to remain employed well past the traditional retirement age of 65. And, many retirees do more than just rock on the front porch. Retirement is now often defined by activities such as travel, returning to school, volunteer work, or the pursuit of favorite hobbies or sports. This changed face of retirement, however, with all of its possibilities, does not happen automatically. Many of the issues associated with retirement, such as ill health, and the need to provide income, still exist. With proper planning, however, these needs can be met. The single most important factor in this changed retirement picture is the fact that we now live much longer than before. A child born in 1900, for example, had an average life expectancy of 47.3 years. For 1 a child born in 2007, however, average life expectancy had increased to 77.9 years. The graph below illustrates this change. 1 Source: National Center for Health Statistics. Deaths: Final Data for 2007, May 20, 2010. October 19, 2011 A454S Page 3 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson ! "# $ % Planning for a much longer life span involves addressing problems not faced by earlier generations. Some of the key issues include the following. • • • • • Paying for retirement: Providing a steady income is often the key problem involved in retirement planning. Longer life spans raise the issue of the impact of inflation on fixed dollar payments, as well as the possibility of outliving accumulated personal savings. Social Security retirement benefits, and income from employer-sponsored retirement plans typically provide only a portion of the total income required. If income is insufficient, a retiree may be forced to either continue working, or face a reduced standard of living. Health care: The health benefits provided through the federal government’s Medicare program are generally considered to be only a foundation. Often a supplemental Medigap policy is needed, as is a long-term care policy, to provide needed benefits not available through Medicare. Health care planning should also consider a health care proxy, allowing someone else to make medical decisions when an individual is temporarily incapacitated, as well as a living will that expresses an individual’s wishes when no hope of recovery is possible. Estate planning: Retirement planning inevitably must consider what happens to an individual’s assets after retirement is over. Estate planning should ensure not only that assets are transferred to the individuals or organizations chosen by the owner, but also that the transfer is done with the least amount of tax. Housing: This question involves not only the size and type of home (condo, house, shared housing, assisted living), but also its location. Such factors as climate and proximity to close family members and medical care are often important. Completely paying off a home loan can reduce monthly income needs. A reverse mortgage may provide additional monthly income. Lifestyle: Some individuals, accustomed to a busy work life, find it difficult to enjoy the freedom offered by retirement. Planning ahead can make this transition easier. &" # '% ( Developing a successful retirement plan involves carefully considering a wide range of issues and potential problems. Finding solutions to these questions often requires both personal education and the guidance of knowledgeable individuals, from many professional disciplines. The key is to begin planning as early as possible. October 19, 2011 A454S Page 4 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Retirement Analysis Income Goals You have indicated that you would like to have the following monthly retirement income:1 At Paul's age 67 and Sally's age 65 - 71.05% of current income, or $9,000 At Paul's age 72 and Sally's age 70 - 65% of current income, or $8,200. At Paul's age 77 and Sally's age 75 - 57% of current income, or $7,200. Income Sources To support these goals you have the following monthly sources: Social Security benefits at Paul's age 67 - $2,616 Social Security benefits at Sally's age 66 - $2,361 Pension beginning at Paul's age 67 - $1,316 Pension beginning at Sally's age 65 - $658 Available Assets at Retirement Paul's retirement assets - $651,991 Sally's retirement assets - $378,325 Other assets - $96,452 Analysis Your funds will be depleted at Sally's age 89. Your current savings of $550 will need to be increased by $185 with the additional monthly savings earning a rate of return of 6.00%. An additional $19,402 will be required at retirement to meet your goals. Values shown in this presentation are hypothetical and not a promise of future performance. 1 Monthly amounts shown are in today’s dollars. October 19, 2011 Page 5 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Retirement Timeline Assumptions: Analysis Results: Retirement Rate of Return: Rate of Inflation: 6.00% 4.00% Total of Annual Shortfalls: Additional Capital Required $86,629 $19,402 Sources Ages Need Earned Income Social Security Other Income Earnings from Assets Beg. Balance 67/65 68/66 69/67 70/68 71/69 72/70 73/71 74/72 75/73 76/74 77/75 78/76 79/77 80/78 81/79 82/80 83/81 84/82 85/83 86/84 87/85 88/86 89/87 /88 /89 $142,121 147,805 153,718 159,866 166,261 157,542 163,843 170,397 177,213 184,301 168,299 175,031 182,032 189,313 196,886 204,761 212,951 221,469 230,328 239,541 249,123 259,088 269,451 280,230 291,439 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $31,392 60,348 61,555 62,786 64,042 65,323 66,629 67,962 69,321 70,707 72,121 73,564 75,035 76,536 78,067 79,628 81,220 82,845 84,502 86,192 87,916 89,674 91,467 49,502 50,492 $23,687 24,003 24,331 24,673 25,028 25,397 25,782 26,181 26,597 27,029 27,479 27,946 28,432 28,938 29,464 30,011 30,579 31,171 31,786 32,426 33,091 33,783 34,503 35,252 36,030 $66,615 66,136 66,157 65,902 65,342 64,955 64,687 64,111 63,195 61,905 60,975 60,339 59,359 58,000 56,223 53,989 51,252 47,966 44,079 39,536 34,278 28,242 21,358 12,105 483 Asset Balance Annual Shortfall $1,126,767 $1,106,341 1,109,022 1,107,347 1,100,841 1,088,992 1,087,125 1,080,379 1,068,236 1,050,136 1,025,476 1,017,752 1,004,571 985,365 959,526 926,394 885,260 835,361 775,874 705,913 624,525 530,687 423,298 301,176 117,805 0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 86,629 Values shown in this presentation are hypothetical and not a promise of future performance October 19, 2011 Page 6 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Alternatives to Achieving Retirement Goals There are several alternatives available which will provide a better chance of meeting your goals. You Can Save More Until Retirement Your current savings of $550 will need to be increased by $185 with the additional monthly savings earning a rate of return of 6.00%. You Can Earn More on Your Assets Until Retirement The rate of return on your existing savings of 6.00% will need to be increased to 9.00%. You Can Spend Less During Retirement Your desired retirement spending goals will need to be reduced by 1.00% resulting in $8,910 per month during the first year of retirement. You Can Retire Later You can satisfy your spending goals if retirement is postponed until Paul's age 68 and Sally's age 66. Each of these alternatives may not be possible to implement fully. Therefore you might consider taking some steps in several different areas. Investments with the potential for a higher rate of return also have increased risk of losing principal, and may have increased short-term volatility. Values shown in this presentation are hypothetical and not a promise of future performance. October 19, 2011 Page 7 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Sources of Retirement Income Most retirees derive their retirement income from three primary sources: Social Security retirement benefits, qualified retirement plans, and individual savings/investments. Social Security Retirement Benefits Social Security retirement benefits are intended to provide only a portion of an individual’s retirement income. Traditionally, retirement benefits began at age 65. For those born after 1937, however, normal retirement age, when full retirement benefits begin, will increase gradually, until it reaches age 67 for those born in 1960 and later. A reduced benefit is available, beginning at age 62. The monthly benefit amount is based on an individual’s past earnings record. A worker can earn a larger retirement benefit by continuing to work past normal retirement age. Up to 85 percent of a retiree’s Social Security retirement benefits may be taxable as ordinary income. Retirement benefits are subject to adjustment for inflation on an annual basis. Qualified Retirement Plans A retirement plan is considered to be “qualified” if it meets certain requirements set by federal income tax law. In general, employer or employee contributions to a qualified plan are currently deductible and the earnings are tax deferred until paid out of the plan. Mandatory distribution rules typically apply and 1 taxable withdrawals before age 59½ may be subject to an additional 10% penalty tax. • • • Employer-sponsored qualified plans: Employer-sponsored plans can generally be classified as either defined benefit or defined contribution. Defined benefit plans specify the benefit amount a participant will receive at retirement; an actuary estimates how much must be contributed each year to fund the anticipated benefit. The investment risk rests on the employer. Benefits are generally taxable. Defined contribution plans, such as 401(k), 403(b) or SEP plans, typically put a percentage of current salaries into the plan each year. The retirement benefit will depend on the amount contributed, the investment return and the number of years until a participant retires. The investment risk rests on the participant. Benefits are generally taxable. Individual qualified plans: Include the traditional Individual Retirement Account (IRA) and the Roth IRA. Contributions to a traditional IRA may be deductible and earnings grow tax deferred. Distributions from a traditional IRA are taxable to the extent of deductible contributions and growth. Contributions to a Roth IRA are never deductible and earnings grow tax deferred. If certain 2 requirements are met, retirement distributions from a Roth IRA are tax free. Nonqualified retirement plans: An employer may set up a plan, often in the form of a deferred compensation plan, which does not meet federal requirements to be considered “qualified.” Benefits are generally taxable when received. Such plans are often used as a supplement to qualified retirement plans. The rules and regulations surrounding qualified plans are complex. This discussion is intended to be only a brief, general description. State or local law may vary. 2 The discussion here concerns federal income tax law; state or local tax law may vary. 1 October 19, 2011 A450S Page 8 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Sources of Retirement Income Individual Savings Individual savings and investments are the third primary source of retirement income. An individual can choose to accumulate funds using a wide range of investment vehicles. The appropriate type of investment will depend on a number of factors such as an individual’s investment skill and experience, risk tolerance, tax bracket, and the number of years until retirement. Below are listed some of the more commonly used choices. • • • • • • Savings accounts: Including regular savings accounts, money market funds and certificates of deposit (CDs) at banks, savings and loans and credit unions. Common stock: May also include other forms of equity ownership such as preferred stock or convertible bonds. Stock can be owned directly, in a personal portfolio or indirectly through a mutual fund. Bonds: Includes corporate, government or municipal bonds. Bonds can be owned directly, in a personal portfolio or indirectly, through either a mutual fund or unit investment trust. Real estate: Individually owned investment real estate or indirect investment through a real estate investment trust or limited partnership. Precious metals: Such as gold or silver, in the form of coins, bullion or in the common stock of mining companies. Commercial deferred annuities: Commercial, deferred annuities are purchased from a life insurance company and can provide tax-deferred growth through a variety of investment choices. Other Income Sources Other retirement income sources include the following. • • • 1 Immediate annuity: An “immediate” annuity is purchased from a life insurance company, typically with a single, lump-sum payment. Soon after purchase, the annuity begins to make regular, periodic payments to the annuity owner. Continued employment: On either a full or part-time basis. Wage and salary income is usually 1 taxable and before-normal-retirement-age earnings above a certain level may affect the amount of Social Security retirement benefits received. Home equity: If a home is completely paid for, a reverse mortgage may provide additional income, without giving up home ownership. “Normal retirement age” is the age at which an individual is entitled to “full” Social Security retirement benefits – 100% of an individual’s Primary Insurance Amount. Under current law, this age will vary from 65 to 67, depending on an individual’s year of birth. October 19, 2011 A450S Page 9 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson • • • Contribution may be tax 1 deductible. Total annual 2 contribution is limited. Annual contribution limits are coordinated with any Roth IRA. • • • • • • • 1 2 A 10% penalty applies if withdrawals are made before age 59½. Some exceptions to 10% penalty are available. Earnings + deductible contributions are taxed as ordinary income in year received. • • • May be opened anytime between January 1 of current year until due date of tax return. Earnings accumulate tax deferred. Account is usually selfdirected (owner controls investments). A separate spousal IRA may be established for a spouse with little or no earned income. Distributions must begin by April 1 of year following year owner reaches age 70½. Required minimum distribution rules apply. Earnings + deductible contributions are taxed as ordinary income in year received. • • • Value of IRA is included in owner’s gross estate. Proceeds can pass to surviving spouse, with payments made over survivor’s lifetime. Income and estate taxes can severely reduce IRA funds left to non-spousal beneficiaries. If an IRA owner (or spouse) is a participant in an employer-sponsored qualified plan, the deductibility of traditional IRA contributions may be limited, based on income level and filing status. The maximum annual contribution is the lesser of $5,000 ($10,000 for a married couple) or 100% of compensation. For married couples, no more than $5,000 may be contributed for either spouse. If an IRA owner is age 50 or older, he or she may contribute an additional $1,000 ($2,000 if spouse is also over 50). October 19, 2011 A439S Page 10 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Progress towards Your Retirement Goals On any journey to a goal, it makes sense to check in every now and then to see that you are on the right track. This report shows you the status and expectations as of 18 months ago. This is a good time to make note of where you actually are on your journey. If your progress is not what you desire, perhaps it is time to revisit the particulars of this goal. Assumptions: Item Description Rate of return for Client 1’s retirement plan Rate of return for Client 2’s retirement plan Rate of return for other assets Annual increase in contributions for Client 1 Annual increase in contributions for Client 2 Number of months used for projected values Item Description Annual employment income for Client 1 Annual employment inflation rate for Client 1 Annual employment income for Client 2 Annual employment inflation rate for Client 2 Retirement plan amount for Client 1 Monthly contributions for Client 1 Retirement plan amount for Client 2 Monthly contributions for Client 2 Other assets amount Monthly contributions for other assets October 19, 2011 Page 11 of 18 Original Value $87,000 4.00% $65,000 4.00% $400,000 $375 $220,000 $375 $60,000 $50 Value 6.00% 6.00% 6.00% 4.00% 4.00% 18 Projected Value $90,480 % $67,600 % $444,743 $390 $247,836 $390 $66,580 $50 Current Value % % Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Long-Term Care Long-term care (LTC) is the term used to describe a variety of services in the area of health, personal care, and social needs of persons who are chronically disabled, ill or infirm. Depending on the needs of the individual, long-term care may include services such as nursing home care, assisted living, home health care, or adult day care. Who Needs Long-Term Care? The need for long-term care is generally defined by an individual’s inability to perform the normal activities of daily living (ADL) such as bathing, dressing, eating, toileting, continence, and moving around. Conditions such as AIDS, spinal cord or head injuries, stroke, mental illness, Alzheimer’s disease or other forms of dementia, or physical weakness and frailty due to advancing age can all result in the need for long-term care. While the need for long-term care can occur at any age, it is typically older individuals who require such care. Individuals With Disabilities, by Age1 Age Range 5-15 Years 16-20 Years 21-64 Years 65-74 Years 75 Years and over No Disability 94% 93% 87% 70% 47% With a Disability 6% 7% 13% 30% 53% What Is The Cost of Long-Term Care? 2 Apart from the unpaid services of family and friends, long-term care is expensive. The table below lists national average costs (regional costs can vary widely) for typical long-term care services; it provides an approximate guide to the cost of long-term care: Service Assisted living facility Nursing home (Private room) Nursing home2 (Semiprivate room) Home health aide2 Homemaker/companion2 1 2 2008 $3,031 per month ($36,372 per year) 212 per day ($77,350 per year) $191 per day ($69,715 per year) $20 per hour $18 per hour 2009 $3,131 per month ($37,572 per year) 219 per day ($79,935 per year) $198 per day ($72,270 per year) $21 per hour $19 per hour 2010 $3,293 per month ($39,516 per year) 229 per day ($83,585 per year) $205 per day ($74,825 per year) $21 per hour $19 per hour Source: U.S. Census Bureau, 2006 American Community Survey, September, 2007. Table B18002, sex by age by disability status for the civilian noninstitutionalized population 5 years and over, male and female. Source: The 2010 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services and Home Care Costs, October 2010. October 19, 2011 A123S Page 12 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Long-Term Care Paying for Long-Term Care – Personal Resources Much long-term care is paid for from personal resources: • • • • • Out-of-Pocket: Expenses paid from personal savings and investments. Reverse Mortgage: Certain homeowners may qualify for a reverse mortgage, allowing them to tap the equity in the home while retaining ownership. Accelerated Death Benefits: Certain life insurance policies provide for “accelerated death benefits” (also known as a living benefit) if the insured becomes terminally ill. Private Health Insurance: Some private health insurance policies cover a limited period of at-home or nursing home care, usually related to a covered illness or injury. Long-Term Care Insurance: Private insurance designed to pay for long-term care services, at home or in an institution, either skilled or unskilled. Benefits will vary from policy to policy. Paying for Long-Term Care – Government Resources Long-term care that is paid for by government comes from two primary sources: • • Medicare: Medicare is a health insurance program operated by the federal government. Benefits are available to qualifying individuals age 65 and older, certain disabled individuals under age 65, and those suffering from end-stage renal disease. A limited amount of nursing home care is available under Medicare Part A, Hospital Insurance. An unlimited amount of home health care is also available, if made under a physician’s treatment plan. Medicaid: Medicaid is a welfare program funded by both federal and state governments, designed to provide health care for the truly impoverished. Eligibility for benefits under Medicaid is typically based on an individual’s income and assets; eligibility rules vary by state. In the past, some individuals have attempted to artificially qualify themselves for Medicaid by gifting or otherwise disposing of assets for less than fair market value. Sometimes known as “Medicaid spenddown”, this strategy has been the subject of legislation such as the Omnibus Budget Reconciliation Act of 1993 (OBRA ’93). Among other restrictions, OBRA ’93 provided that gifts of assets within 36 months (60 months for certain trusts) before applying for Medicaid could delay benefit eligibility. The Deficit Reduction Act of 2005 (DRA) further tightened the requirements to qualify for Medicaid by extending the “look-back” period for all gifts from 36 to 60 months. Under this law, the beginning of the ineligibility (or penalty) period was generally changed to the later of: (1) the date of the gift; or, (2) the date the individual would otherwise have qualified to receive Medicaid benefits. This legislation also clarified certain “spousal impoverishment” rules as well making it more difficult to use certain types of annuities as a means of transferring assets for less than fair market value. October 19, 2011 A123S Page 13 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Long-Term Care • CLASS Act: The CLASS Act (Community Living Assistance Services and Support Act) is a voluntary long-term care program created by the Patient Protection and Affordable Care Act. Beginning in 2011, individuals 18 and older and actively at work will be able to enroll in the program and have required monthly premiums deducted from their pay check, as is done with other benefits. Individuals who do not wish to participate will be able to “opt out” of the program. No benefits will be paid until an enrollee has paid premiums for at least five years. The program will provide individuals with specified functional limitations a cash benefit of $50 per day or more. There is no lifetime limit on benefits, and persons with greater needs in terms of the basic activities of daily living will receive higher benefits. Details regarding monthly premiums and benefits will not be available for some time. October 19, 2011 A123S Page 14 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Long-Term Care Break-Even Assumptions: Monthly Premium: $250 Annual Benefit: $54,000 Benefit Inflating Annually by: 6% Years Premium Paid 2 years 5 years 10 years 20 years Benefits Paid Will Equal Premiums Paid in: 2 months 4 months 7 months 1 year 2 months Example If you paid monthly premiums of $250, for five years, your benefits would equal your total outlay in approximately 4 months. October 19, 2011 Page 15 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Retirement Needs Analysis Data Date: Personal Name Date of Birth 1. / / 2. / / Retirement Age Social Security Age Address: Phone: E-Mail: Check if clients are married: Income Needs Beginning at retirement (choose one): Monthly amount: $ ; or % of current monthly income Beginning years after retirement (choose one): Monthly amount: $ ; or % of current monthly income Beginning years after retirement (choose one): Monthly amount: $ ; or % of current monthly income Income Sources Annual employment income: Client One: $ Client Two: $ October 19, 2011 A568S Page 16 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Retirement Needs Analysis Data Monthly Social Security benefits: Client One (choose one): None Based on Current Earnings Based on Maximum Earnings User Input: Retirement: $_________ Survivor: $_________ Client Two (choose one): None Based on Current Earnings Based on Maximum Earnings User Input: 1 1 Retirement: $_________ Survivor: $_________ Not Eligible Not Eligible Other Income Sources: Name of Income Source Owner Amount Start Age Monthly or Lump 2 Sum P/V or 3 F/V End Age Inflate Annually Available to Survivor 1. $ % % 2. $ % % 3. $ % % 4. $ % % 5. $ % % Capital Retirement plan(s): Client One Client Two Retirement Plan Balance $ $ Monthly Savings $ $ Company Match $ $ Annual Increase in Contributions % % Assumed Rate of Return % % Other assets • • • Balance: $ Monthly contributions: $ Assumed rate of return: % 1 Use the Social Security benefit at the client’s “Normal Retirement Age” (NRA). Enter “M” if paid monthly or “L” if paid as one lump sum. 3 Enter “P” if amount is present value or “F” if amount is future value. 2 October 19, 2011 A568S Page 17 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Paul and Sally Johnson Retirement Needs Analysis Data Assumptions Analysis date (mm/dd/yyyy): ____/____/____ Client 1 mortality age: Client 2 mortality age: Annual inflation rate: % Annual employment inflation rate – Client 1: ______% Annual employment inflation rate – Client 2: ______% Annual Social Security benefit inflation rate: % Assumed rate of return during retirement: % Solution rate of return: _______% October 19, 2011 A568S Page 18 of 18 Advisys, Inc. 949.419.1322 Presented by Steven Chapin, FLMI Record of Reports 10/19/2011 3:43 PM Coordinated Universal Time Disclaimer Notice.......................................................................................................................................... 1 Disclosure Notice.......................................................................................................................................... 2 The Need for Retirement Planning............................................................................................................... 3 Retirement Analysis...................................................................................................................................... 5 Retirement Timeline...................................................................................................................................... 6 Alternatives to Achieving Retirement Goals..................................................................................................7 Sources of Retirement Income..................................................................................................................... 8 How a Traditional IRA Works...................................................................................................................... 10 Progress towards Your Retirement Goals.................................................................................................. 11 Long-Term Care.......................................................................................................................................... 12 Long-Term Care Break-Even...................................................................................................................... 15 Retirement Needs Analysis Data - Fact Finder...........................................................................................16 Client Name: Presentation Date: July 14, 2009 LaRae Bakerink WBB SECURITIES, LLC 16835 West Bernardo Drive, Suite 120 San Diego CA 92127 Reference: FR2009-0709-0088/E Org Id :00118440 REVIEW LETTER 1. Retirement Report Rules: 2210, VARIABLE 36 pages Fee: $360 Total Fee: $360 Attention: LaRae Bakerink Please be advised that the above-referenced material submitted for compliance review must be revised to be consistent with applicable standards. The disclosure contained in footnote 1 on page 6 must be removed from the footnotes section and incorporated into the main body of the presentation, so that it may be seen as an important and meaningful part of the overall material, pursuant to Rule 2210(d)(1)(C). Please be advised that the name of the member firm must be disclosed in the material, pursuant to Rule 2210(d)(2)(C). If you should have any questions, concerns, or comments, please contact me at (240) 386-4500. Sincerely, Geojoe Thomas Supervising Analyst jws This year’s Advertising Regulation Conference will be held on October 21-22 in Washington, D.C. For more information and to register, please view our online brochure at http://www.finra.org/Industry/Education/ConferencesEvents/AdvertisingRegulationConference/ind ex.htm NOTE: This review is limited to the communication that was filed. We assume that the communication does not omit material facts, contain statements that are not factual, or offer opinions that do not have a reasonable basis. This communication may be described as “Reviewed by FINRA” or “FINRA Reviewed”; however, there must be no statement or implication that this communication has been approved by FINRA. Advisys Retirement Static Reports A170S - Private Annuity (1 page) A450S - Sources of Retirement Income (2 pages) A649S - Annuities in Retirement Income Planning (2 pages) A124S - Pension Income Alternative (2 pages) A099S - Traditional IRAs (5 pages) A439S - How A Traditional IRA Works (1 page) A292S - Roth IRAs (6 pages) A436S - How A Roth IRA Works (1 page) A083S - Tax-Deferred Growth In An IRA (1 page) A084S - Does It Matter When You Contribute To An IRA? (1 page) Simple Calculators A384L - When Will Your “Nest Egg” Run Out? (1 page) A690Y - Roth IRA Conversion (1 page) A385L - Tax-Deferred Growth In An IRA (calc) (1 page) A386M - Tax Deferred Growth In An IRA (graph) (1 page) A387M - Does It Matter When You Contribute To An IRA? (1 page) A701M - Safe Rate of Withdrawal (1 page) A526L - Required Minimum Distributions During Life (calc) (1 page) A527M - Required Minimum Distributions During Life (graph) (1 page) Needs Analysis Module A555M - Retirement Analysis (1 page) A556Y - Capital Available for Retirement (1 page) A558M - Alternatives to Achieving Retirement Goals 1 page) A662M - Achieving Retirement Goals (1 page) A557M - Retirement Timeline (1 page) A639L - Retirement Analysis Detail(1 page) July 14, 2009 LaRae Bakerink WBB SECURITIES, LLC 16835 West Bernardo Drive, Suite 120 San Diego CA 92127 Reference: FR2009-0709-0087/E Org Id :00118440 REVIEW LETTER 1. Long Term Care Report Rule: 2210 10 pages Fee: $100 Total Fee: $100 Attention: LaRae Bakerink The material submitted appears consistent with applicable standards. Sincerely, Geojoe Thomas Supervising Analyst jws This year’s Advertising Regulation Conference will be held on October 21-22 in Washington, D.C. For more information and to register, please view our online brochure at http://www.finra.org/Industry/Education/ConferencesEvents/AdvertisingRegulationConference/ind ex.htm NOTE: This review is limited to the communication that was filed. We assume that the communication does not omit material facts, contain statements that are not factual, or offer opinions that do not have a reasonable basis. This communication may be described as “Reviewed by FINRA” or “FINRA Reviewed”; however, there must be no statement or implication that this communication has been approved by FINRA. Advisys Long-Term Care Static Reports A123S - Long-Term Care (2 pages) A485S - Choosing a Long-Term Care Policy (2 pages) A486S - Long-Term Care Tax Issues (2 pages) A578S - How Individual LTC Insurance Works (1 page) A579S - How Employer-Provided LTC Insurance Works (1 page) Simple Calculators None Needs Analysis Module A533M - Long-Term Care Analysis – Client 1 (1 page) A535L - Long-Term Care Timeline – Client 1 (1 page)
