Wednesday, December 31, 2014

How acting as a facilitator gains greater participation with women - What Women Want from Financial Advisors



Some describe children as “empty vessels to be filled” with the fundamentals of ABC and 123. Teachers are the knowledge holders that impart fundamentals for children. Adults are very different in that they already have life experiences, information and knowledge that they bring to the table.

Financial planners have worked years earning different certifications and designations that make them experts in their field. They can’t come to the conversation and assume their client has the same level of knowledge and understanding of financial services. It is important for financial planners to be able to quickly assess the knowledge of their client and teach them what they need to know to make knowledge investment decisions. Financial planners can leverage many of the same skills a facilitator uses.

The art of facilitation is not salesmanship nor closing techniques. It's more of an escort process where you manage expectations and answer questions along the way.

Syndicated financial columnist and talk show host Steve Savant interviews Dr. Barb Provost, adjunct professor at Roosevelt University in Chicago. With multiple Masters Degrees and a Doctorate in Adult and Continuing Education, Barbara Provost MS EdD is an expert in how adults learn. Her insights into women and money are considered at the forefront of the most neglected demographic among financial advisers. She has also developed training programs for Fortune 100 companies and is a Certified Coach of the International Coaching Federation. http://youtu.be/a5HTLqMk_vw

Tuesday, December 30, 2014

How to work with women in an engage setting - What Women Want from Financial Advisors



Whether women are solo or with a partner, it is important to create an atmosphere of mutual respect and trust for all parties at the table. This can be done by setting up comfortable seating where she feels a part of the conversation and is engaged in the dialog. You want to create a comfortable setting and atmosphere where people are open to staying and engaging (think Starbucks). Get to know who she is, what she wants and needs. Ask good questions. Be patient and listen. Write her responses down! Repeat what you heard to see if you have captured the information correctly. Keep an open dialog. Encourage collaboration and freedom to participate. Don’t dis questions – in fact – encourage questions.

Women will get up and leave if they need to. They are extremely scheduled and not acknowledging time constraints could be a deal breaker. Propose how the time together could be spent, and ask her if that is the best use of time for her. Keep on task, stay on time! Use time checks within her during the conversation to be sure you are tracking with her. Make the time spent worth it! Most women come to a meeting with some kind of idea as to what they expect to get from the time spent. Check in to see if she is getting what she needs.

Syndicated financial columnist and talk show host Steve Savant interviews Dr. Barb Provost, adjunct professor at Roosevelt University in Chicago. With multiple Masters Degrees and a Doctorate in Adult and Continuing Education, Barbara Provost MS EdD is an expert in how adults learn. Her insights into women and money are considered at the forefront of the most neglected demographic among financial advisers. She has also developed training programs for Fortune 100 companies and is a Certified Coach of the International Coaching Federation. http://youtu.be/IlId2b77jG8

Monday, December 29, 2014

How women learn & what’s Important to them - What Women Want from Financial Advisors



As an adult educator, an adviser needs to know their audience, whether they're a client or prospect. Everyone is NOT starting in the same place in terms of knowledge, skill or motivation. Everyone is NOT able to act immediately as additional information or input, may be needed. Everyone does NOT learn at the same pace or takes in new information at the same speed. Everyone doesn't learn the same way.

Women don’t want to be “sold” or “marketed to,” they want an engagement process. Women are a monumental demographic force. but they cannot be painted with the same broad brush. It is important to also look at and learn about the differences across women groups and what they need to be financial solvent now and in retirement.

Syndicated financial columnist and talk show host Steve Savant interviews Dr. Barb Provost, adjunct professor at Roosevelt University in Chicago. With multiple Masters Degrees and a Doctorate in Adult and Continuing Education, Barbara Provost MS EdD is an expert in how adults learn. Her insights into women and money are considered to be at the forefront of what she calls the most neglected demographic among financial advisers. She has also developed training programs for Fortune 100 companies and is a Certified Coach of the International Coaching Federation. http://youtu.be/4fZecb8mp5c

Friday, December 26, 2014

How split interest charitable trusts can be significant for donors (2) - Part 2 - End-of-Year Charitable Giving Strategies

Charitable Lead Annuity Trust generates income to the charity and at the end of the term, the remainder returns to an individual, trust or reverts back to the donor. The grantor charitable lead annuity trust is for income tax planning. The non grantor charitable annuity lead trust is for estate and gift tax planning. These advanced charitable strategies can have a significant impact on donor income and/or tax savings and a dramatic endowment effect on a non profit organization. This is part 2 of 2 shows explaining the strategies of split charitable trusts. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year charitable planning for 2014.

Thursday, December 25, 2014

How split interest charitable trusts can be significant for donors - Part 1 - End-of-Year Charitable Giving Strategies

A Split Interest Trust have two parties:the income interest (donor or charity) and the remainder interest (individual, trust or charity.) You need to compute a 7520 federal rate and the distribute interest rate (whatever is the target income.) Charitable Remainder Trusts are one of the most popular charitable giving strategies financial professionals employ. Donors make an irrevocable gift to the trust, receive a tax deduction for the present value of the charitable interest. The remainder interest is the charity. Charitable Remainder Trust has some unique iterations: Charitable Remainder Annuity Trust and Unit Trust. This episode is part 1 of 2 shows on these advanced giving strategies available for tax and charitable planning. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year charitable planning for 2014.

Wednesday, December 24, 2014

How family foundations can create philanthropy for the community - End-of-Year Charitable Giving Strategies

Family foundations are private charitable organizations that apply for non profit status and have significant regulations to adhere to that traditional charities are not obligated to comply with. And although they're private entities, their filings are in the public domain, i.e. so full disclosure. Donor Advised Funds are little to no cost, remain anonymous, and can be independent to select the charities of choice. Donations become part of a large account, but are still segregated in a sub account by donor. The donor can advise, but can't control the funds.This episode describes the advantages and disadvantages of private family foundations and donor advised funds. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year charitable planning for 2014.

Tuesday, December 23, 2014

Why retirement plans can make a sudden impact on the tax returns - End-of-Year Charitable Giving Strategies

Qualified retirement plans are an excellent charitable asset for clients who don't need the income or want to modify their required minimum distributions (RMDs) because of taxation. One of the newest strategies waiting for President Obama's signature is the Charitable IRA rollover, which allows direct RMD giving to a IRS approved non profit or charity. There are several qualified plan giving strategies that can yield significant tax savings, generate income and, with the middle class, potential tax free Social Security benefits. This episode addresses the use of qualified plan giving as a tax saving strategy. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year charitable planning for 2014.

Monday, December 22, 2014

How end of the year charitable giving strategies can benefit tax payers - End-of-Year Charitable Giving Strategies

Year end charitable giving is generally comprised in two areas one called check book giving, i.e. cash and two appreciated assets like stocks. Charitable gifts are also called below the line deduction. The tax deduction depends upon the charitable entity, whether giving direct to a charity, Private Family Foundations or Donor Advised Funds (the poor man's foundation.) Many affluent charitably minded contributors have Private Family Foundation in tandem with Donor Advised Funds.This episode introduces the basics into year end charitable strategies. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year charitable planning for 2014.

Friday, December 19, 2014

How proactive planning interfaces with tax bracketology - End-of-Year Tax Planning

Many advisers have a good understanding of U.S. Tax Code and the marginal tax brackets utilized in a progressive tax system. But managing these marginal tax brackets with "bracket bumping" can maximize tax strategies for better cash flow now and in retirement. This is one of the theories behind "Bracketology." After the Bush tax era expired a new 7 tier tax bracket system was developed for ordinary income. And remarkably there are now 4 capital gain tiers because of Obamacare. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year tax planning for 2014.

Thursday, December 18, 2014

How qualified plans & Social Security income are correlated - End-of-Year Tax Planning

Almost every form of income affects Social Security taxation, especially qualified plans. So qualified plan strategies need to integrate with future Social Security income to manage the taxes in retirement. Roth IRAs are not deductible, but is an excellent tool, not only as a tax deferred plan, but as a tax free form of income. It's important to note that tax diversification is necessary in retirement to manage net income or "spendable" income. Using Roth IRA is one option that can help manage taxation during retirement. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and O'Dell, CFP on end of the year tax planning for 2014.http://youtu.be/cHz_iUGqgvE

Wednesday, December 17, 2014

How charitable giving can help you give less to Uncle Sam - End-of-Year Tax Planning

Charitable giving can be a major tax advantaged strategy to reduce your tax liability and create a bit of philanthropy in your community. Low basis stock is an excellent asset to give to an IRS approved charity and is a targeted asset for end of the year giving. Donor advised funds and family foundations are two ways to leverage charitable giving. Each has it's own advantages and disadvantages. In this episode, Steve and his guests explain the basic ideas of both and identify the prospects for each concept. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year tax planning for 2014. http://youtu.be/aRtZdDN4RSo

Tuesday, December 16, 2014

What deductions rule the roost in income tax planning - End-of-Year Tax Planning

Tax deductions are the holy grail when it comes to keeping more of your money in your pocket. Creating cash flow using tax deductions is an art of the advanced financial planner, who designs tax planning as a way to generate more money for savings and retirement. Itemized deductions on Schedule A are comprised of several categories that can yield tax deductions: Medical, Charitable, State Taxes, Mortgage Interest, Professionals Fees just to name a few. Keep in mind that some of these items are subject to phase out rules based on income. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers, Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year tax planning for 2014.

Monday, December 15, 2014

How to frame the game of paying the least amount of taxes - End-of-Year Tax Planning

Individuals as well as businesses are always searching for tax strategies, especially towards the end of the year. The skillful use of deductions, exemptions and tax credits can significantly reduce tax liabilities and therefore increase cash flow. Understanding above the line and below the line accounting can help in the understanding of adjusted gross income (AGI). In addition to understanding AGI, the real targeted area for tax strategies is reducing modified adjusted gross income or MAGI. This episode introduces you to the basics of tax planning that can help consumers pay only their required tax liability and no more. Syndicated financial columnist and talk show host Steve Savant interviews financial authors and speakers Mike Kilbourn, CLU, ChFC and Ron O'Dell, CFP on end of the year tax planning for 2014.

Friday, December 12, 2014

How Using Truth Concepts Supports Prosperity Economics - New Prosperity Economics



Kim Butler, RIA espouses her truth concepts with missionary zeal and self certainty. Kim disassembles the traditional planning methods as assumptive to the point of creating a false sense of financial security for retirees.

Kim's makes a significant distinctive between maximizing your money and optimizing your money. Kim says that maximizing is accumulating money to create a huge sum, whereas optimizing your money makes your money as efficient as possible.

Truth concepts premise takes the snap shot of current money use is more important than projected assumption use. Truth Concepts centers on money efficiencies that include financial product expenses, RIA fees, taxation consequences and inflation impact.

Syndicated financial columnist and talk show host Steve Savant interviews controversial author and registered investment adviser Kim Butler over her contrary views of retirement. Her books include Busting the Financial Planning Lies, Busting the Retirement Lies, and Live Your Life Insurance. http://youtu.be/PMIqzDgCjYc

Thursday, December 11, 2014

Why the 7 Prosperity Principles Will Replace Financial Planning - New Prosperity Economics



Kim Butler, RIA developed the prosperity ladder that illustrates the concept of prosperity economics for consumers to understand the steps involved in moving towards financial freedom. But she begins with and also defines poverty as working people without assets, a redefining alternative to government's categorization of the working poor. Kim goes on to say that controlling your money is beyond simply owning the accounts your money is deposited in. Real control is having access to your money for opportunities.

The seven principles of prosperity deal with a new mindset, avoiding tunnel vision, measuring opportunity costs, creating cash flow, controlling your money, using the velocity of money and leveraging money multipliers.

Syndicated financial columnist and talk show host Steve Savant interviews controversial author and registered investment adviser Kim Butler over her contrary views of retirement. Her books include Busting the Financial Planning Lies, Busting the Retirement Lies, and Live Your Life Insurance. http://youtu.be/2j3ePDNvFHM

Wednesday, December 10, 2014

Why Busting Financial Planning Lies is Necessary - New Prosperity Economics



Kim Butler, RIA maintains that prosperity economics is the original concept of money management, not financial planning which she refers to as the new kid on the block (since 1950.)

Retirement is a big misconception in Kim's view. Retirement, in her understanding, is counter productive to the life and lifestyle of seniors. Kim shares an alternative approach to consumer mortgages. She also addresses opportunity costs including the embedded expenses in financial products.

Syndicated financial columnist and talk show host Steve Savant interviews controversial author and registered investment adviser Kim Butler over her contrary views of retirement. Her books include Busting the Financial Planning Lies, Busting the Retirement Lies, and Live Your Life Insurance. http://youtu.be/dWkjZAfTPSQ

Tuesday, December 9, 2014

Is Prosperity Economics Better than Financial Planning? - New Prosperity Economics



Registered Investment Adviser Kim Butler compares and contrasts the 12 fundamental differences between her revolutionary prosperity economics and traditional financial planning.

The two schools of thoughts have similar goals, but the methodologies and approaches in achieving those goals appear to be diametrically opposed to each other. This episode outlines the conventional mindset of financial planning versus the new construct (which Kim says is the old tried and true way of money management.)

Syndicated financial columnist and talk show host Steve Savant interviews controversial author and registered investment adviser Kim Butler over her contrary views of retirement. Her books include Busting the Financial Planning Lies, Busting the Retirement Lies, and Live Your Life Insurance. http://youtu.be/guZ9eIixlrQ

Monday, December 8, 2014

Why Financial Planning Doesn’t Work - New Prosperity Economics



Every so often an articulate contrarian surfaces to challenge the status quo. Kim Butler is a self proclaimed recovering certified financial planner, who defies the cultural conventionality of the financial services industry.

Kim doesn't believe financial planning works. She says that assumptions that are traditionally used are often incorrect. Mathematical models don't reflect real life. She says most consumers don't realize the difference between investing and saving.

Qualified plans get drained with fees and and opportunity costs. Most plan participants are under a false sense of security, believing that they will have sufficient funds for retirement. Kim says that's just not true.

Syndicated financial columnist and talk show host Steve Savant interviews controversial author and registered investment adviser Kim Butler over her contrary views of retirement. Her books include Busting the Financial Planning Lies, Busting the Retirement Lies, and Live Your Life Insurance. http://youtu.be/Xgd8tXnW7sI

Friday, December 5, 2014

How cash value life insurance can enhance retirement income - Advanced Retirement Strategies



For many Americans retirement income is about cash flow. But in practical terms net after tax spendable money. So tax diversification is just as important as asset diversification. A TAMRA compliant cash value life insurance policy designed and managed to create the lowest cost of insurance can distribute tax free withdrawals of basis and policy loans of gain as long as the contract is kept in force for the life if the policy insured.

Many advisers use tax advantaged cash value life insurance as a strategy to delay and maximize Social Security to age 70 as well as mitigate taxation in tactical tax bracket management.

Syndicated financial columnist and talk show host Steve Savant interviews insurance product expert Mike McGlothlin on the impact of life insurance contracts.

Thursday, December 4, 2014

Why Wall Street Giant Goldman Sachs is in the indexed annuity market - Advanced Retirement Strategies



This new indexed annuity is used in an allocation option with no interest rate cap to limit performance. The GSMAC Index aims to deliver returns that maximize gains for a given level of volatility. Six diverse asset classes are rebalanced monthly, offering long-term potential for more consistent returns across different market cycles, both high and low. Still, index objectives may not be met. Diversification may not protect against market risk.

Indextra,, a fixed indexed annuity issued by Integrity Life Insurance Company (Integrity), offers both growth potential and income guarantees for retirement planning. Allocate your account value among four interest crediting choices, including three indexed interest options.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts. http://youtu.be/C29K7NnsSNo

Wednesday, December 3, 2014

How QLAC & MAGI correlate in retirement taxation - Advanced Retirement Strategies



Many consumers and some advisers don't realize that taxation for most tax payers has migrated from adjusted gross income to modified adjusted gross income. And to further complicate the understanding taxation, modified adjusted gross income calculations have multiple iterations depending upon income sources.

The tax correlation as it relates to MAGI and tax deferral can significantly impact retirement cash flow for retirees, so it matters to perform several models to deliver the best net income results.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts. http://youtu.be/X9S35Htd2H0

Tuesday, December 2, 2014

How QLACs fit into Existing & New Retirement Plans - Advanced Retirement Strategies



Qualified longevity annuity contracts (QLAC) can be used in existing qualified or new plans like 401(a), 401(k), 403(b) governmental 457(b) and individual retirement accounts (IRA). The retirement plan documents must change to accommodate QLACs.

A QLAC can be single or joint life, life only or with life cash refund. The deferred income annuity (DIA) can support the QLAC can offer with CPI-U, 1-5% simple or compounded or flat dollar amount.

Roth IRAs, inherited IRAs and retirement accounts currently in required minimum distributions (RMD) mode are not eligible. There is no death benefit return on premium plus interest (ROP), just ROP or death benefit.

Monday, December 1, 2014

Why QLACs may be a blockbuster retirement strategy - Advanced Retirement Strategies



Qualified longevity annuity contracts (QLAC) using deferred income annuities (DIA) can lower the required minimum distributions by delaying distributions as far out as age 85. The amount of deferral can be up to 25% of qualified retirement plan monies not to exceed $125,000 per person.

Friday, November 28, 2014

The Performance Factor - Pathway to Freedom



The key performance indicators in my performance model that drive real business. This is a scientific methodology applied to your practice. Wayne built a 90 calendar for measuring performance based on his theory entitled "The 90 Day Wonder." This is part of Wayne's annual road map, which is like having a GPS for your practice.

The capability gap is the difference between where you are and where you could be if you became a focus profile specialist. You'll see how it is possible to accelerate your income by focusing on what you do best. You'll enjoy the business and you'll actually be able to take far more personal time off.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry.

Thursday, November 27, 2014

The Power of Program & Process - Pathway to Freedom



If you narrow your client profile, you naturally narrow you program. The power of a program will help you become masterful as you use the same concepts, stories, illustrations and planning tools.

Akin to the power of programming is the power of process. In this episode the key issue at hand is the method of marketing. There are basically three methods: desperation, attraction and precision. Wayne drills down on attraction marketing and why it evolved into precision marketing.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry.

Wednesday, November 26, 2014

The Power of Profile - Pathway to Freedom



The most monumental business decision that you can be made is knowing exactly the clientele you want to prospect. Wayne often reiterates how huge this business growth decision is for your practice or business.

In this episode Wayne centers on having an extreme focus on what you do best, i.e. knowing your area of speciality or expertise. Wayne defines and differentiates being a strategist and not an opportunist. Wayne highlights the process of duplication and how it can become an art form in your practice.

Wayne shares an incredible example of how 4% of effort generates 64% of results. His formula for success is called "Hyper Focus," the 80/20 ruled squared.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry.

Tuesday, November 25, 2014

The Clarity of Purpose - Pathway to Freedom



The first principle of growth is purpose, identifying the core values of why you do what you do and how you do it, i.e. knowing who you want to see. In this episode Wayne shares his own story of failure and his personal pathologies that him lead to his ground breaking revelation of his principles of growth.

After living as an extreme workaholic with eight stress related problems, Wayne was able to understand himself and be more productive in his practice that led to new levels of revenue. After surviving his own crash and burn experience, Wayne formed his own marketing mantra, "time off drives time on."

His color coded calendar is a popular graphic that has been adopted as a planning format for thousands of financial advisers and insurance professionals. Wayne is fond of saying, "Planning your time first is like saving money.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry. http://youtu.be/HbxrufQfbVE

Monday, November 24, 2014

The 4 Phases of Growth & Career Satisfaction - Pathway to Freedom



In the world according to Wayne, advisers work and live out of one of four locations: the house of pain, the house of same, the house of gain and the house of sane. Building out your home office can reveal much about your practice.

Wayne then describes the insidious impact of "Busyness," which is often mistaken for and used as a substitute for doing real business. In the episode. Wayne introduces the five principles of growth: The Power of Purpose, The Power of Profile, The Power of Program, The Power of Process, The Power of Performance.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry.

Friday, November 21, 2014

How cash value life insurance can enhance retirement income - Emerging Retirement Products

For many Americans retirement income is about cash flow. But in practical terms net after tax spendable money. So tax diversification is just as important as asset diversification. A TAMRA compliant cash value life insurance policy designed and managed to create the lowest cost of insurance can distribute tax free withdrawals of basis and policy loans of gain as long as the contract is kept in force for the life if the policy insured.

Many advisers use tax advantaged cash value life insurance as a strategy to delay and maximize Social Security to age 70 as well as mitigate taxation in tactical tax bracket management.

Syndicated financial columnist and talk show host Steve Savant interviews insurance product expert Mike McGlothlin on the impact of life insurance contracts.

Thursday, November 20, 2014

Why Wall Street Giant Goldman Sachs is in the indexed annuity market - Emerging Retirement Products

This new indexed annuity is used in an allocation option with no interest rate cap to limit performance. The GSMAC Index aims to deliver returns that maximize gains for a given level of volatility. Six diverse asset classes are rebalanced monthly, offering long-term potential for more consistent returns across different market cycles, both high and low. Still, index objectives may not be met. Diversification may not protect against market risk.

Indextra, a fixed indexed annuity issued by Integrity Life Insurance Company (Integrity), offers both growth potential and income guarantees for retirement planning. Allocate your account value among four interest crediting choices, including three indexed interest options.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts.

Wednesday, November 19, 2014

How QLAC & MAGI correlate in retirement taxation - Emerging Retirement Products

Many consumers and some advisers don't realize that taxation for most tax payers has migrated from adjusted gross income to modified adjusted gross income. And to further complicate the understanding taxation, modified adjusted gross income calculations have multiple iterations depending upon income sources.

The tax correlation as it relates to MAGI and tax deferral can significantly impact retirement cash flow for retirees, so it matters to perform several models to deliver the best net income results.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts.

Tuesday, November 18, 2014

How QLAC could bring relief from RMDs - Emerging Retirement Products

Required Minimum Distribution are mandatory at age 70 1/2 for all qualified plans. This new regulation allows a deferral of distributions up to 25% of qualified plan holdings not to exceed $125,000 per retiree to age 85. It's conceivable that affluent married couples could collectively defer $250,000.

But the only financial product that currently qualifies is a qualified longevity annuity contract.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts.

Monday, November 17, 2014

Why QLACs could change retirement planning - Emerging Retirement Products



This is the most significant change in retirement regulation in recent times, perhaps since the launch of the Roth IRA. Each retiree can defer up to 25% of their qualified monies not to exceed $125,000 in a qualified longevity annuity contract.The deferral period can extend to age 85. This new regulation could dramatically change retirement planning and potentially save retirees tax dollars by reducing their require minimum distributions.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts.

Friday, November 14, 2014

How to Bridge the Longevity Gap to the Next Generation - Long Term Care

This segment will demonstrate how to bridge the gap in client discussions about longevity planning and it will also show ways in which LTC planning can introduce new relationships to the advisor. We know that LTC planning makes good financial sense. We also know that there are obstacles which get in the way of advisors speaking to clients about LTC planning. Our recommendation is that, as an advisor, you first align yourself with a support system that can help you with ltc planning. One that is market intuitive, experienced, innovative and puts the best choice for your client at the top of the priority list. In seeking a supportive partnership, common objections that held the advisor back disappear. Objectives include:

  • Not enough time
  • It’s an uncomfortable conversation
  • Skeptical about the market
  • It’s too complicated

Identify the right clients: 45-75 net worth of $400k+, premium allowance of $3,000 to $5,000 per year. Clients with existing life/annuity products Start the conversation by asking clients if they’ve ever known someone who has had a care event and then ask them to tell you about it. Find the common threads that put you in the seat of uncovering planning opportunities. Tell your client how accountable you feel to help them plan for every aspect of their retirement…especially by protecting their retirement plan.

When you protect your client, you also protect their family…and your business. 2% of children keep their inheritance with their parent’s financial advisor. The millennial are the biggest generation to hit our country since the baby boomers. Every year for the next 50 years $1 trillion will pass from one generation to the next. How prepared will you be when your clients children call to ask you about Mom/Dad’s long term care plan? Filial laws are not to be ignored. In 28 states there is a legal precedent of financial responsibility for the expenses of a loved one. State agencies can seek collection of funds on Medicaid services. Document your LTC planning discussion with your clients. Have the client sign and acknowledge that you discussed options and either took next steps or decided to take their chances. Either way, the family members should know that you as the advisor took necessary steps to educate their loved one on LTC planning.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Thursday, November 13, 2014

Why Stand Alone LTC Policies Make Sense - Long Term Care

Stand Alone LTC policies are still a viable solution. The key is to educate clients on what to expect. Premiums will continue to go up. Talk about cost sharing the responsibility. Policies do not need to be structured to cover every aspect of care. There is great flexibility in plan design for this solution and it is still the only solution prepped to support multi life ltc in the employer sponsored space. What drive the premium up are long durations and expensive inflation options. Why start your ltc planning discussion with a $10,000 annual premium? Why not start with something that is meaningful yet within the client’s budget? Remember our earlier suggestions on identifying sources of premium?

Cost of care is expensive…much more expensive than paying for it out of pocket. A typical standalone LTC policy costs $2,500 a year. Average monthly cost of care in this country is $5,000. We can find some helpful ways to cover the cost of a long term care insurance policy. Unspent household income, HSA’s, RMD, Savings, Cash in low interest bearing accounts. These premiums may also be tax deductible and/or tax credits may apply.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Wednesday, November 12, 2014

How to Use Accelerated Benefit Riders - Long Term Care

Accelerated Benefit Rides are the newest entry to the LTC landscape. Unlike linked benefit solutions where there is often a second tank of gas for LTC access, these products are mainly designed to spend down the life insurance for a care event. These solutions were built for families with a need for legacy assets first but with the option to tap that benefit while living. Monthly benefits are often a percentage of the death benefit…i.e. 2%, 4%. There are essentially 2 types of riders, indemnity or reimbursement.

Chronic Illness vs. Long Term Care riders has a finite distinction. One supports non recoverable conditions only whereas the other supports recoverable OR non recoverable. Chronic illness riders will pay claim only when the condition is expected to last indefinitely. Often the premium for this rider is included in the base policy. A LTC certification is not often required. These riders can also not be positioned or sold as long term care riders. A true LTC rider does not require the condition to be permanent. Certification is required. LTC riders a little more flexible in their coverage opportunities. When clients ask me which one is better? I respond that it’s a personal preference! That’s what is so great about our current offerings. We need to ask the client what their key benefit drivers are so that we can point to a solution that fits best.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Tuesday, November 11, 2014

How to Leverage Linked Benefit Coverage - Long Term Care

Born from client request of a promised benefit when ltc planning. Covers the twin risk of living too long or dying too soon. Many of these policies are established on Universal or Whole life chassis. A 60 female who invests $100,000 can create a death benefit pool of $450,000. That provides a life insurance benefit of $150,000. It’s quite a ‘cost share’ approach. $The first monies that are spent for LTC is the death benefit. $100,000 of which is the clients own premium. The benefits are paid income tax free since it’s for LTC. Once the life insurance benefit is exhausted there is a second bucket of money that is available. It’s a right pocket/left pocket approach to solving the ltc need. The internal rate of return on these solutions is often in the double digits. Premiums can also be paid for with flexible payments. This same client can use $10,000 a year for 10 years and create almost identical benefits!

Annuities provide another chassis for linked benefit leverage. According to a 2009 Gallop survey of non-qualified annuity owners:

a. 83 % intend to use annuity as a financial resource to avoid being a financial burden on their children

b. 73% intend to use annuity as an emergency fund in the case of a catastrophic illness or for nursing home care

These numbers prove the opportunity that abounds for leveraging an existing annuity for LTC. We can show clients how they can use existing non-qualified annuities to purchase 3, 6, or 9 years of LTC coverage. Benefits are paid income tax free on both the spend down of the annuity or the continuation of benefits rider. Example: 70 year old male with a $100,000 non-qual annuity can purchase an LTC benefit of over $250k.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Monday, November 10, 2014

The State of Today’s LTC Market - Long Term Care

The Long Term Care market has evolved into an entire new environment dictated by longevity planning. For most Americans, some form of assisted living is inevitable. Long Term Care product lines offer different approaches to extended care coverage. Here's a quick look at the main categories.

  • Linked Benefit Life Hybrid: The leveraging power of existing assets is in the LTC benefit pool – LTC is the key reason for purchase; legacy assets are a secondary benefit
  • Linked Benefit Annuity Hybrid: Leveraging an annuity for multiplied value in a LTC benefit pool; if LTC is not needed the annuity benefit remains
  • Accelerated Benefit Life: Life insurance is the key driver in this concept – Access to the death benefit as a living benefit covers care expenses
  • Standalone LTC: Smaller annual premiums provide a greater benefit pool when care is needed

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Friday, November 7, 2014

How the New Type of LTC Planning Works - Long Term Care

Consultative, holistic and dynamic. There is no one fits all mentality when approaching long term care insurance options. This isn’t your grandmother’s long term care. 30 years ago, we didn’t know what an assisted living facility was. 20 years ago, care in your own home was for the fortunate few. 10 years ago we didn’t dream that today’s market would look the way it does. Some may think I’m nuts for saying this but the options and our market has never looked so good! We have evolved; we have responded to market shift, there are more concepts for planning available today than ever before. So why would we hope to approach clients today as we did 10 years ago?! We need to dive deep, find out what matters to our clients and then pick one-maybe two ideas to discuss.

Four key questions to start every client discussion on care planning (each of these will be described with reasons behind and benefits of)

  • Have you known someone who had an event?
  • What are your key objectives in planning?
  • What funding sources are available?
  • What kind of medications are you taking?

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Thursday, November 6, 2014

How The Economic Impact of a Care Event Can Effect the Ones You Love - Long Term Care

The question is simple: to self insure or purchase long term care coverage. The answer is found in the math and based on life expectancy. For most Americans, it just makes financial sense to own a long term care insurance policy that creates a pool of benefits for senior later living.

How to explain this to clients? Many of your clients will wonder if they can “self-insure” for a future LTC risk. This comparison of an LTC insurance purchase and the amount they would have to save to self-insure is a big eye opener. Clients need facts in order to make decisions. There is so much unknown about when someone might need care, how long, what type? We can’t see into the future but we can prepare for it. It doesn’t have to be a cover all approach. Tools such as these graphs won’t paint the whole picture and shouldn’t be positioned that way. What the client can expect is to know that LTC insurance options abound, we can’t pick one out of hat. There should be a fact finding segment to help advisors and clients understand what matters most to them about the economic…and emotional elements that come with care planning.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Wednesday, November 5, 2014

Why LTC Planning Makes Good Sense - Long Term Care

The emotion of care event speaks for itself. The financial impact should be explained. In detail. Over and over. Don’t stop until the client gets the picture. Cost of care in this country averages $80,000 for a Nursing home and $50,000 for part time coverage at home. Assisted Living falls somewhere in the middle. Twenty years from now, those costs will likely double. 20 years from now the last of the Baby Boomers will be entering their 70’s. LTC Planning shifts the risk off an individual and their family. Its better leverage on their money. Without shifting the risk, without planning, a person…by default is choosing to self-insure. When we can show a person how they can self-insure more effectively with insurance solutions, they can see the financial impact to their decision.

A typical standalone LTC policy costs $2,500 a year. Average monthly cost of care in this country is $5,000. So what’s more expensive? It makes good financial sense to shift the risk and do LTC planning. Concerned about having to lose in order to win? The market is ripe today with solutions that offer a promised benefit. Live to long, die too soon, maintain control over your premium. When clients have emergency money set aside for a retirement, which money can be multiplied in value…sometimes 2-4x for long term care? Why wouldn’t someone want to have their money work harder?

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Tuesday, November 4, 2014

How to Build Confidence & Earn Trust - Long Term Care

LTC inquiries are heavily consumer driven. Clients are aware now more than ever of the impact to a care event and they are seeking ways to solve the problem on their own. It can be surprising for a financial advisor who has worked with a client for years to learn that they the client sought outside resources to protect their future. Clients are eager to learn about what their options are to protect their retirement future. Many have lived through a care event for a loved one or are providing care themselves! (Fox Business News) According to a new study conducted by Caring.com, nearly half of family caregivers spend more than $5,000 a year on expenses associated with providing care. Of those spending more than $5,000, 16% are seeing costs of as much as $9,999 while 11% are spending as high as $19,999 and 5% are absorbing out of pocket expenses of as much as $49,999.

Less than 10% of Americans over age 65 have a long term care insurance policy. Think about that number and all that we know about demographics, cost of care, impact to family and friends. There is no reason to hold back from an ltc planning discussion. Consumers need it; advisors should be socially and morally obligated to inform clients of their choices. The market today is ripe with solutions that can be tailor fit to any client. So what’s holding us back? Confidence and Trust need to be built on the side of the advisor so that he/she feels prepared to have the discussion with the client. How do we do that?

  • Work with LTC planning specialists
  • Take the time to know what’s available today
  • TALK TO YOUR CLIENTS
  • Document that you had the discussion…no matter what the client chooses

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Monday, November 3, 2014

Better Living Through Better Planning - Long Term Care

Retirement is meant to reap the rewards of a lifetime of work, savings, contributions and dreaming of a golden time. On our journey to Retirement we think about living life on our terms. We plan ahead to ensure we have enough income, enough savings and enough time to do all the things we couldn’t do before retirement. Travel, new hobbies, home improvements, education, relaxation…these are some of the things that come to mind. We prepared long in advance to live retirement on our own terms. The idea of that happy retirement should include protecting it along the way. Protecting the very house that we spent years building. The idea of better living through better planning means taking into account the longevity factor. We know that life expectancies are improving. As recent as 2011 the average life expectancy was 80 years. There are 43 million Americans today over age 65. Currently, there are approximately 55,000 centenarians in the U.S., according to the U.S. Census Bureau. That number is projected to grow to 442,000 in 2050.

There is much planning to do in order to ensure a better, happier way to live in retirement. Preparing clients for independent living, no matter what the future holds, is something that every financial advisor, planner, retirement specialist should be doing. A recent survey from Age Wave and Merrill Lynch noted five key findings among over 3,000 adults

  • Health care expenses are the top financial concern for retirement among Americans age 50+, regardless of their wealth level
  • Only 15% of pre-retirees have tried estimating how much money they might need for health care and long-term care in retirement
  • Just 7% of those 55 to 64 feel very knowledgeable about Medicare options; a mere 19% of Medicare recipients do
  • 71% of couples age 50+ haven’t discussed how much they need to save to pay for health care during retirement
  • Health problems were the No. 1 reason people retired earlier than expected
  • Knowing what we know today about living longer and the concerns of retirees, we have an obligation in our industry to provide information to clients so they can make an informed decision to ensure better living in their retirement.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Friday, October 31, 2014

How Knowing Tobacco Use & Cessation Guidelines can create opportunities - Underwriting Series



Tobacco use comes in many forms: cigar, pipe, chew, snuff and even Nicorette gum. But cigarettes are the most significant tobacco product that impacts life insurance pricing, especially smoking cessation.

Syndicated financial columnist and talk show host Steve Savant unpacks forms of tobacco and the underwriting protocols of life insurance underwriting with special emphasis on specific carriers.

Thursday, October 30, 2014

How selecting the right carrier can make all the difference - Underwriting Series



Although medical underwriting is touted as a science, the disparity in underwriting offers can vary dramatically. Even specific diseases can be treated more benevolently from one carrier to the next. That's why it's important to shop the entire life insurance market though brokerage outlets who specialize in impaired risk case placement.

Syndicated financial columnist and talk show host Steve Savant points out the carrier features to look for in life insurance underwriting. http://youtu.be/IZUil7xq57k

Wednesday, October 29, 2014

How lifestyle credits & shaving programs can place your case - Underwriting Series



Lifestyle credits are based on positive behavioral traits not necessarily cited in attending physicians statement nor reflected in a blood and urine analysis. Regular exercise and diet top the list of favorable activities that can credit an underwriting balance sheet.

Those credits reduce the rating applied to the underwriting offer and may qualify for table shaving programs that potentially could remove substandard charges altogether.

Syndicated financial columnist and talk show host Steve Savant escorts you through the basics of life insurance underwriting.

Tuesday, October 28, 2014

How to determine what type of underwriting to use - Underwriting Series



There are several approaches to the use of underwriting. But pre-qualifying a case based on premium tolerance can help direct the case to a variety of options like submitting an informal, simplified or guaranteed issue.

Syndicated financial columnist and talk show host Steve Savant addresses the typess you of life insurance underwriting.

Monday, October 27, 2014

Why the basics can help you place more cases - Underwriting Series

Understanding the basics of life insurance underwriting is a critical component in the sales process for financial advisers and insurance professionals. Syndicated financial columnist and talk show host Steve Savant walks you through the basics of life insurance underwriting.

Friday, October 24, 2014

What Life Insurance Companies Are Looking For - Preparing for a Life Insurance Exam



Some of the things you may be tested for through a blood and/or urine sample may include, but are not limited to levels of: Sugar, Protein, Cholesterol, Liver & Pancreas functions. Other items tested for are hepatitis, HIV, PSA, Kidney disorder, Diabetes, Nicotine, Cotinine, Drug Abuse, Immune disorders and certain prescription medications.

Syndicated financial columnist and talk show host Steve Savant interviews seasoned paramedical examiner Kevin Jensen on this week's series, Preparing for a Life Insurance Exam.

Thursday, October 23, 2014

How to Improve Your Exam Results - Preparing for a Life Insurance Exam



Many Americans have a phobia regarding needles that draw blood. Sometimes it's the size of the needle that is disconcerting to the prospective insured. A smaller needle known as the "butterfly" is used for those who experience discomfort with needles.

Certain medications, vitamins and herbs can alter the results in a life insurance exam. While prospective insureds are encouraged to maintain their prescribed medications, vitamins and herbal products may need to be eliminated 2-3 days before the exam.

Syndicated financial columnist and talk show host Steve Savant interviews seasoned paramedical examiner Kevin Jensen on this week's series, Preparing for a Life Insurance Exam.

Wednesday, October 22, 2014

Preparing for the Morning of Your Exam - Preparing for a Life Insurance Exam



There are several protocols before the morning of the paramed exam. Most life insurance medical examiners require no food for 12-14 hours before the exam as well as no coffee. The exam requires a resting period of 8 - 12 hours, i.e. no strenuous physical activity. Prospective insured, who maintain a high protein diet, will need to change their food intake to a minimal protein diet 3-5 days before the exam. Water and other fluids ( excluding alcohol ) are recommended to lower creatine levels. These are just a few of the basic preparations to ready the prospective insured for a life insurance exam.

Syndicated financial columnist and talk show host Steve Savant interviews seasoned paramedical examiner Kevin Jensen on this week's series, Preparing for a Life Insurance Exam.

Tuesday, October 21, 2014

How to Get Ready for an Exam - Preparing for a Life Insurance Exam



Life insurance premiums are priced based on the medical health of the prospective insured. To receive the best possible results from a life insurance exam, preparation is important. This episode introduces the traditional preparation for a life insurance exam and addresses the items that will be required for the paramedical exam.

Syndicated financial columnist and talk show host Steve Savant interviews seasoned paramedical examiner Kevin Jensen on this week's series, Preparing for a Life Insurance Exam.

Monday, October 20, 2014

What is a Paramedical Exam? - Preparing for a Life Insurance Exam

Tens of thousands of Americans seek life insurance coverage every year. Most coverage over $100,000 requires a paramedical exam which includes a blood and urine profile and many times an EKG. Blood pressure tests are taken as well as the height and weight of the prospective insured.

This episode explains the basics included in a 30-minute life insurance exam and the preparation techniques before the exam.

Syndicated financial columnist and talk show host Steve Savant interviews seasoned paramedical examiner Kevin Jensen on this week's series, Preparing for a Life Insurance Exam.

Friday, October 17, 2014

How to Command Respect with a Click



Secular media outlets can add significant authority to your practice and command respect with viewers and prospects. But it can be difficult to have your content displayed with nationally recognized news. But many advisers use insurance carriers who may allow their logos to be placed on adviser web sites. The increased authority of a carrier logo can help you build out your business. This episode highlights the power of third party connections.

Here's a quick link for Jeremiah's newest marketing tip on how to secure a major media that will feature your content.

Syndicated financial columnist and talk show host Steve Savant interviews Millennial marketer Jeremiah Desmarais, award winning business growth strategist and digital marketing guru.

Thursday, October 16, 2014

The 4 Step Lead Nurturing Funnel that Weeds Out Tire Kickers



This four step process that helps reduce and sometimes eliminate unqualified prospects in this simple strategy in securing new clients. The centerpiece to this strategy is an online giveaway like information viewers can download or a link to a video that explains a simple concept. This entire process,when completed, can link to your appointment calendar where clients can schedule an appointment based on open time slots.

Here's a quick link for Jeremiah's newest marketing tip on how to secure a major media that will feature your content.

Syndicated financial columnist and talk show host Steve Savant interviews Millennial marketer Jeremiah Desmarais, award winning business growth strategist and digital marketing guru.

Wednesday, October 15, 2014

The $40,000 YouTube Strategy

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This YouTube strategy can use a simple smart phone video camera to produce a quick and pithy video that can capture online traffic and generate leads. This episode displays the YouTube video template that walks you through the basic video protocols.

Here's a quick link for Jeremiah's newest marketing tip on how to secure a major media that will feature your content.

Syndicated financial columnist and talk show host Steve Savant interviews Millennial marketer Jeremiah Desmarais, award winning business growth strategist and digital marketing guru.

Tuesday, October 14, 2014

The Fast & Free LinkedIn Strategy that Generates 4 Leads a Day

LinkedIn has the highest quality prospects on any of the social media network. Lead buying strategies can work, but often can't be economically justified. Only a few vetted lead systems work. But this LinkedIn lead system is very unique and is highly ranked with Google. LinkedIn is a generally accepted business to business environment, but it actually is a credible consumer arena. This episode explains this lead generating strategy.

Here's a quick link for Jeremiah's newest marketing tip on how to secure a major media that will feature your content.

Syndicated financial columnist and talk show host Steve Savant interviews Millennial marketer Jeremiah Desmarais, award winning business growth strategist and digital marketing guru.

Monday, October 13, 2014

The 10-Minute, One-Line Email that Generates Leads & Good Will



It's rare to find a basic and easy online prospecting campaign that is a low budget and high impact strategy. Tapping into good will and maintaining it is a nurturing tactic that uses consistent contact with short messaging. Broadcast email is fundamentally dead. Leading with a personable and short one liner can generate surprising results.

Here's a quick link for Jeremiah's newest marketing tip on how to secure a major media that will feature your content.

Syndicated financial columnist and talk show host Steve Savant interviews Millennial marketer Jeremiah Desmarais, award winning business growth strategist and digital marketing guru.

Friday, October 10, 2014

How to Select & Retain Ideal Clients - Psychology of the Smart Advisor

You only have a few seconds to get a client or prospective client on board with you and it's not your products. You must sell yourself to the client before having any chance of selling your products or services. Active listening is the key to persuading the client to get on board.

In part 5 of The Psychology of the Smart Advisor, syndicated financial columnist and talk show host Steve Savant interviews sports psychologist Dr. Jack Singer and author of The Financial Advisor's Ultimate Stress Mastery Guide on Amazon.com Dr. Jack has been a special guest on ESPN Sports, CBS Sports, The Glen Beck show and many other media channels.

Thursday, October 9, 2014

How to Learn & Implement the Power of Affirmation - Psychology of the Smart Advisor

Every elite athlete has mastered the steps necessary to remaining mentally tough when challenges present themselves. This simple, yet powerful, formula will teach every sales professional how to accomplish this with less than 5 minutes of practice daily.

In part 4 of The Psychology of the Smart Advisor, syndicated financial columnist and talk show host Steve Savant interviews sports psychologist Dr. Jack Singer and author of The Financial Advisor's Ultimate Stress Mastery Guide on Amazon.com Dr. Jack has been a special guest on ESPN Sports, CBS Sports, The Glen Beck show and many other media channels.

Wednesday, October 8, 2014

How Advisers Can Overcome The Impostor Fear - Psychology of the Smart Advisor

In part 3 of The Psychology of the Smart Advisor, syndicated financial columnist and talk show host Steve Savant interviews sports psychologist Dr. Jack Singer and author of The Financial Advisor's Ultimate Stress Mastery Guide on Amazon.com Dr. Jack has been a special guest on ESPN Sports, CBS Sports, The Glen Beck show and many other media channels.

Tuesday, October 7, 2014

How to Learn & Implement the Power of Affirmation - Psychology of the Smart Advisor

Sales professionals and financial advisors have to overcome the “internal obstacles” to their success before they can ever hope to reach their potential. Internal obstacles are the most powerful, yet least addressed issues in traditional sales training programs. There are powerful ways to take charge of that negative self-talk and unleash the giant within.

In part 2 of The Psychology of the Smart Advisor, syndicated financial columnist and talk show host Steve Savant interviews sports psychologist Dr. Jack Singer and author of The Financial Advisor's Ultimate Stress Mastery Guide on Amazon.com Dr. Jack has been a special guest on ESPN Sports, CBS Sports, The Glen Beck show and many other media channels.

Monday, October 6, 2014

How to Identify Job & Life Stressors Inherent in Advisors - Psychology of the Smart Advisor

Although there are common life stressors that are inherent to simply being human. Then there are specific vocational and domestic life stressors like professional sports or high producing advisers that generate unique challenges to maintaining success.

In part 1 of The Psychology of the Smart Advisor, syndicated financial columnist and talk show host Steve Savant interviews sports psychologist Dr. Jack Singer and author of The Financial Advisor's Ultimate Stress Mastery Guide on Amazon.com Dr. Jack has been a special guest on ESPN Sports, CBS Sports, The Glen Beck show and many other media channels.

Friday, October 3, 2014

Claiming Strategies for Widows, Divorcees & Singles - Social Security

There are incredible benefits available for widows, divorcees and singles that can really make an impact on their Social Security benefits. One key example in the show is divorcees who have been married 10 years or more may tap their ex spouses benefits.

In part 5 of The Strategies to Max Social Security Benefits, syndicated financial columnist and talk show host Steve Savant interviews Social Security strategist and expert Brian Doherty, author of Getting Paid to Wait (Bigger Social Security Benefits, the Simple and Easy Way)

Thursday, October 2, 2014

Claim Early Claim Late Strategies - Social Security

There are at least 81iteration calculations to review to quantify the best "claiming" strategies for Social Security recipients.Thankfully, there many software vendors that offer calculators to advisers. Some of these vendors have simplified the calculators for consumer use. Whether claiming early or late, the calculators can crunch the numbers and deliver the best options for Social Security benefit income.

In part 4 of The Strategies to Max Social Security Benefits, sydicated financial columnist and talk show host Steve Savant interviews Social Security strategist and expert Brian Doherty, author of Getting Paid to Wait (Bigger Social Security Benefits, the Simple and Easy Way)

Wednesday, October 1, 2014

The Power of COLA & Spousal Benefits - Social Security

Since 1975, the Social Security administration has credited a cost of living adjustment (COLA) to combat times of inflation. There has been only two years when the administration didn't assess a COLA raise in 2009 and 2010. COLA is assigned to the benefits filed by the Social Security recipient. Whatever age benefits start, the COLA will be assigned to that monthly income number. Waiting until age 70 would not only maximize your benefit, but the COLA would be benchmarked to that income number, further maximizing benefits.

In part 3 of The Strategies to Max Social Security Benefits, syndicted financial columnist and talk show host Steve Savant interviews Social Security strategist and expert Brian Dorherty, author of Getting Paid to Wait (Bigger Social Security Benefits, the Simple and Easy Way)

Tuesday, September 30, 2014

Women & Life Expectancy - Social Security

Survivorship benefits are very important to a surviving spouse. Female longevity exceeds their male counterparts more often than not. For 77% of married couples, the breadwinner is the husband (Pew Research, 2013). The breadwinner’s Social Security check counts for two lives. There are strategies to maximize Social Security benefits, especially targeting the surviving spouse.

In part 2 of The Strategies to Max Social Security Benefits, syndicated financial columnist and talk show host Steve Savant interviews Social Security strategist and expert Brian Doherty, author of Getting Paid to Wait (Bigger Social Security Benefits, the Simple and Easy Way)

Monday, September 29, 2014

Getting Paid to Wait by Resisting Early Payouts - Social Security

There are many reasons why seniors access Social Security at age 62: They don't want to work any longer. They were laid off in their later 50s or early sixties. They don't think Social Security will be around for them if they wait. But if they do wait, they'll get paid much more by delaying benefits. In part 1 of The Strategies to Max Social Security Benefits, Syndicated financial columnist and talk show host Steve Savant interviews Social Security strategist and expert Brian Doherty, author of Getting Paid to Wait (Bigger Social Security Benefits, the Simple and Easy Way).

Friday, September 26, 2014

Why advisers should be aware of underwriting & admin advantages - Business Owners & Executive Solutions

Many of the business strategies employed by advisers use insurance morality and morbidity insurance products like life insurance, annuities, disability insurance and long term care insurance. Underwriting the policy "insured" is a crucial item in moving forward with any planning as well as the administration of these plans and strategies. Syndicated financial columnist and talk show host Steve Savant interviews Sherry Flint, CLU on the the underwriting and administration in comprehensive business planning when using insurance products.

Thursday, September 25, 2014

Why advisers should market to C corps & family owned businesses - Business Owners & Executive Solutions

The majority of business entities have a corporate structure that they file under: C Corp, S Corp, LLC, etc. Many firms in the U.S. are closely held family businesses. There are always tax advantages and disadvantages to every filing entity. Syndicated financial columnist and talk show host Steve Savant interviews Sherry Flint, CLU on the some of these corprate entities that can benefit from comprehensive business planning.

Wednesday, September 24, 2014

Why advisers should sell executive and key person insurance - Business Owners & Executive Solutions

Corporate recruiting and retention of highly compensated executives is a critical component in building a successful executive team. Benefits beyond bonuses can be the difference in maintaining quality personnel from competitive companies seeking top employees. Syndicated financial columnist and talk show host Steve Savant interviews Sherry Flint, CLU on the corporate benefits of executive and key person compensation within a comprehensive business plan.

Tuesday, September 23, 2014

Why advisors should look at buy/sell strategies to penetrate businesses - Business Owners & Executive Solutions

There are many strategies in business succession planning: Buy?sell, Cross Purchase, Stock Redemption, Esops, & Wait and See Trusts.Knowing the business owner's goals and personal aspirations can help an adviser select the right strategy to accomplish the owner's goal. Syndicated financial columnist and talk show host Steve Savant interviews Sherry Flint, CLU on the virtues of the comprehensive business planning.Syndicated financial columnist and talk show host Steve Savant interviews Sherry Flint, CLU on the value of succesion stratgeies within comprehensive business planning.

Monday, September 22, 2014

Why advisors should take the comprehensive business planning approach - Business Owners & Executive Solutions

The vast majority of planners appear to take the piece meal approach to the business market. But that methodology could countermand other areas of the business, including the business owners personal finances. A comprehensive game plan is the most effective and impactful solution. Syndicated financial columnist and talk show host Steve Savant interviews Sherry Flint, CLU on the virtues of the comprehensive business planning.

Friday, September 19, 2014

The Shannon Proegler Story - When Business Becomes Personal

Platform speaker and author of Living a Life of Significance Joe Jordan talks about the culture of helping families and businesses as a corporate characteristic of Tim Ash and his organization including a personal story of Shannon Proegler, who lost her father.

Thursday, September 18, 2014

The Daren Elmer Story - When Business Becomes Personal

Platform speaker and author of Living a Life of Significance Joe Jordan speaks about the story of Daren Elmer and critical illness coverage that created a cash reserve when he had cancer.

Wednesday, September 17, 2014

The Ira Horowitz Story - When Business Becomes Personal

Platform speaker and author of Living a Life of Significance Joe Jordan addresses the generational impact of life insurance. The lost of a child impacted other children, children who couldn't afford education. One tragedy turned into hope for many others. That's the power of life insurance.

Tuesday, September 16, 2014

The Mark Anderson Story - When Business Becomes Personal

Platform speaker and author of Living a Life of Significance Joe Jordan shares Mark Anderson's incredible story of his son Reid, who died in a car accident. At MDRT Joe met a young women named Melina Ahmadour, who was so impressed with with his presentation that she became a financial adviser.

Monday, September 15, 2014

Joe Jordan's Personal Story - When Business Becomes Personal

Platform speaker and author of Living a Life of Significance Joe Jordan tells his personal story of the impact on his family after his father's death and how it formed his passion for life insurance.

Friday, September 12, 2014

Which Life Insurance Chassis is the Best - Life Insurance for Tax Free Income

Cash value life insurance has several crediting methods based primarily on the risk tolerance of the policy owner: interest rates, indices and sub accounts. Generally, policy owners are committed mid to long range contributions when using life insurance for tax free income. Syndicated financial columnist and talk show host Steve Savant talks about life insurance crediting options for income with insurance product expert Mike McGlothlin.

Thursday, September 11, 2014

Is a Qualified Plan Better than a Non Qualified Life Insurance Plan - Life Insurance for Tax Free Income

Qualified plans that offer employer contribution match is a great opportunity to save for retirement or if you're in a high tax bracket or both. But most middle class Americans that participate in a qualified plan are not in a high tax bracket or receive an employer contribution match. So for those middle class Americans non qualified life insurance could be a better alternative than a qualified plan. Syndicated financial columnist and talk show host Steve Savant talks about qualified plans versus non qualified life insurance for income with insurance product expert Mike McGlothlin.

Wednesday, September 10, 2014

How Forms of Income Correlate on a 1040, But Not Life Insurance - Life Insurance for Tax Free Income

Many forms of income can trigger taxation on Social Security benefits. So it's important to point out that a non MEC life insurance cash value policy may be able to generate tax free income via policy loans that will not be cited on a 1040 form and thus will have no correlation to Social Security benefits. Syndicated financial columnist and talk show host Steve Savant talks the non taxable event of life insurance in an income scenario with insurance product expert Mike McGlothlin.

Tuesday, September 9, 2014

How to Measure Product Expense Cost - Life Insurance for Tax Free Income

Almost all financial products have some cost born by the purchaser. Assessing all expenses to determine the real net return is a necessary step in the purchasing process and this includes life insurance. Syndicated financial columnist and talk show host Steve Savant talks about the cost life insurance in income scenarios with insurance product expert Mike McGlothlin.

Monday, September 8, 2014

How to Design Policies - Life Insurance for Tax Free Income

Tax advantaged income using life insurance is gaining more acceptance with advisers, but which mortality chassis should be used? Now a risk tolerance test is a pre-approach to selecting the right type of life insurance for income. In addition, managing the cost of insurance to minimum TAMRA compliant levels is the single most important design item to adjust policy performance. Syndicated financial columnist and talk show host Steve Savant talks about design features of life insurance for income with insurance product expert Mike McGlothlin. http://youtu.be/9rn-XVwwGBQ

Friday, September 5, 2014

How advisers use education in the life settlements to recruit clients - Life Insurance Settlement Series

Most advisers are looking for opportunities to expand their practice and build out their business, especially with unique product or planning ideas. Marketing life settlements to seniors could be a significant entree' to the retirement market with an idea that may generate cash. Steve Savant interviews Darwin Bayston, President and CEO of the Life Insurance Settlement Association on Let's Get Down to Business.

Thursday, September 4, 2014

How advisers can expand their practice using the life settlement market - Life Insurance Settlement Series

The NAIC has reported no significant consumer complaints in recent years. Advisers are increasingly more comfortable with the asset in a market that calls for full disclosure and a meaningful code of ethics. Even so, consumers appear unaware of life settlements as a policy owner option to generate cash. Steve Savant interviews Darwin Bayston, President and CEO of the Life Insurance Settlement Association on Let's Get Down to Business.

Wednesday, September 3, 2014

Why the rules of engagement are important in the life settlement market - Life Insurance Settlement Series

The National Council of Insurance Legislators created the NCOIL Model Act and the National Association of Insurance Commissioners established the NAIC Model Act. The NCOIL model has been widely adopted by state legislators. 43 states passed legislation that covers 90% of the market. Steve Savant interviews Darwin Bayston, President and CEO of the Life Insurance Settlement Association on Let's Get Down to Business.

Tuesday, September 2, 2014

How advisers can profit by the history of life settlements - Life Insurance Settlement Series

The benefit of a life settlement for the seller is cash beyond their payment or surrender cash value. But what of the buyer or investor? The benefit of investing in life settlements is that it's practically a non correlated asset. And if the investor willing to take a mid to long term range position with life settlements, the returns could be similar to a zero coupon bond.Steve Savant interviews Darwin Bayston, President and CEO of the Life Insurance Settlement Association on Let's Get Down to Business.

Monday, September 1, 2014

Life Insurance Settlement Update for 2014 - Life Insurance Settlement Series

The big picture for seniors in retirement includes all forms of cash and assets that can be liquidated for income purposes. Many retirees have policies they no longer need and may be able to convert them to cash. Surprisingly, many older policy holders let their coverage lapse and may be inadvertently throwing money away. Steve Savant interviews Darwin Bayston, President and CEO of the Life Insurance Settlement Association on Let's Get Down to Business.

Friday, August 29, 2014

What Advisors Need to Know about Indexed Annuities - Indexed Annuities

The indexed annuity market is occupied by hundreds of carriers attempting to gain market share in one of the fastest growing segments of retirement planning. This episode highlights some of the best indexed annuities in the market place. Steve Savant interviews nationally recognized annuity expert Mike McGlothlin on Let's Get Down to Business.

Thursday, August 28, 2014

Income Riders with Indexed Annuities - Indexed Annuities

There are a variety of income riders. Some are free and embedded in the policy and others are an additional expense. Some income riders are benchmarked to the account value, while others are tied to the phantom future account. This episode addresses these riders and their applications in retirement planning. Steve Savant interviews nationally recognized annuity expert Mike McGlothlin on Let's Get Down to Business.

Wednesday, August 27, 2014

Crediting Methods with Indexed Annuities - Indexed Annuities

There are three basic crediting methods used in indexed annuities: Spreads, Participation Rates and Rate Caps. Some indexed polices use a combination of crediting methods.This episode seeks to define these crediting methods and their applications to educate the adviser. Steve Savant interviews nationally recognized annuity expert Mike McGlothlin on Let's Get Down to Business.

Tuesday, August 26, 2014

How Options Work with Indexed Annuities - Indexed Annuities

Option trading can be a complex concept to grasp, especially as it relates to annuities. This episode attempts to outline the financial fundamentals of index options, such as the S&P 500, that delivers protection against market losses and participation in market gains. Steve Savant interviews nationally recognized annuity expert Mike McGlothlin on Let's Get Down to Business.

Monday, August 25, 2014

The Basics of Indexed Annuities - Indexed Annuities

Indexed annuities are one of the most popular financial products offered by insurance carriers and the most understood product among financial advisers. The talking points of this episode lays out a firm foundation for understanding the basics of indexed annuities. Steve Savant interviews nationally recognized annuity expert Mike McGlothlin on Let's Get Down to Business.

Friday, August 22, 2014

Rescuing Defined Benefit Plan Participants - Defined Benefits and Structured Settlements

Some plan participants are being offered lump sum payments to roll over into a qualified IRA. What happens if your defined benefit plan terminates? Is there really protection the government agencies like the Pension Benefit Guaranteed Corporation? Is my company offering an alternative like a defined contribution plan such as a 410(k)? Defined Benefit Plan expert Steve Pilger is interviewed by Steve Savant, syndicated financial columnist and talk show host on Let’s Get Down to Business.

Thursday, August 21, 2014

Accessing Untapped Defined Benefit Markets - Defined Benefits and Structured Settlements

There are 3,000 plans with $280 billion in assets that represent a sector of the defined benefit arena that face daunting financial challenges like investment risk, longevity risk and regulatory risk. Structured Settlements markets have two subsets: qualified and non qualified. Those qualified or court ordered settlements and defined benefit plans may be an attractive business environment for an adviser with annuity solutions. Defined Benefit Plan expert Steve Pilger is interviewed by Steve Savant, syndicated financial columnist and talk show host on Let’s Get Down to Business.

Wednesday, August 20, 2014

Structured Settlement Opportunities - Defined Benefits and Structured Settlements

There are several markets to consider that present unique opportunities for an adviser’s practice. Structured settlements are comprised of a sizable attorney and claimant population with several categories of litigation: Disabled plaintiffs, minor children, wrongful death, severe injury and workman’s compensation. Just to name a few. Defined Benefit Plan expert Steve Plilger is interviewed by Steve Savant, syndicated financial columnist and talk show host on Let’s Get Down to Business.

Tuesday, August 19, 2014

Frozen Defined Benefit Plan Opportunities - Defined Benefits and Structured Settlements

Some defined benefit plans are in trouble because of poor investment returns, even with recent market gains. And with the economy still in recovery, funding pension obligations can be difficult. The regulatory environment is restrictive and costly. So some plan administrators are freezing their defined benefit plans and opting for alternative solutions. Defined Benefit Plan expert Steve Pilger is interviewed by Steve Savant, syndicated financial columnist and talk show host on Let’s Get Down to Business.

Monday, August 18, 2014

Pension Plan Risk Transfer & Structured Settlements - Defined Benefits and Structured Settlements

There are over 26,000 U.S. defined benefit plans, with some shortfalls and others with dire deficits. Many plan administrators are freezing these plans to reduce their under funded exposure and ongoing liabilities. On the structured settlement front, there appears to be an ever-increasing need for structured payments based on court judgments, i.e. annuities. The news here is that this market has gone mainstream and now is accessible to advisers. Defined Benefit Plan expert Steve Pilger is interviewed by Steve Savant, syndicated financial columnist and talk show host on Let’s Get Down to Business.

Friday, August 15, 2014

How deferred compensation generates sales opportunities from existing plans - Deferred Compensation



There are several inroads that can accommodate new deferred compensation plans with existing qualified plans. Lack of high touch service and cumbersome administration can be a pain point for employers and a door opener for advisers. Online syndicated financial columnist Steve Savant interviews nationally recognized business expert Sherry Flint, CLU on Let's Get Down to Business.

Thursday, August 14, 2014

How deferred compensation generate sales opportunities for new plans - Deferred Compensation

Adding new non qualified deferred compensation plans is fairly easy to do once the budget for excess plans beyond traditional ERISA options. Flexibility, investment choices and simplicity are key aspects attractive to small closely held businesses and work well with deferred compensation plans. Online syndicated financial columnist Steve Savant interviews nationally recognized business expert Sherry Flint, CLU on Let's Get Down to Business.

Wednesday, August 13, 2014

How deferred compensation plans work - Deferred Compensation



Non qualified deferred compensation is very flexible once you understand the rules of engagement. Compensation can also come in many forms W2 or 1099 and for a variety of unconventional ideas like college funding & retirement home. There are also financial funding options that can maintain a degree of liquidity. Online syndicated financial columnist Steve Savant interviews nationally recognized business expert Sherry Flint, CLU on Let's Get Down to Business.

Tuesday, August 12, 2014

Why deferred compensation plans offer solutions to business owners - Deferred Compensation



There are various types of deferred compensation plans, some for non profits and for profit entities. Companies for profit are looking for "excess plans," concepts beyond the traditional defined contribution and defined benefit plans under ERISA. Non profit and profit companies are looking to recruit and retain quality key executives. Additional non qualified deferred compensation plans are significant selling points in executive team building. Online syndicated financial columnist Steve Savant interviews nationally recognized business expert Sherry Flint, CLU on Let's Get Down to Business.

Monday, August 11, 2014

Why advisers should look at deferred compensation plans - Deferred Compensation

Non qualified deferred plans are being reintroduced because of three employment drivers: Higher tax brackets, qualified plan limitations and head hunting for highly compensated executives create an opportunity for deferred comp sales.. Much of the deferred comp market is subject to Sec 409a and with punitive penalties for non compliance, it's important to know the regs and rules of engagement. Online syndicated financial columnist Steve Savant interviews nationally recognized business expert Sherry Flint, CLU on Let's Get Down to Business.

Friday, July 25, 2014

The Cost of Waiting - Summer Sales Ideas for 2014

To read the complete blog article which provides details and sample illustrations supporting the content in the video above, go here

What follows is an abbreviated version of the blog content:

To be certain of having life insurance when you need it, you should acquire it before you need it.  So an important factor to consider involves the advantage of acquiring your policy now -- while your health may be the best it ever will be.  Of even greater importance, should something unexpectedly happen to you in the short term, your family will be protected.

Here is another reason for acquiring life insurance early:  Harvey Pierce, MD, is an internal medicine physician.  He is age 45 and has determined that the participating policy loan features of an Indexed Universal Life (IUL) policy can provide him with a superb retirement supplement.  The death benefit of the policy, while certainly valuable to him and his family, is not the primary reason for his interest.

His adviser is encouraging him to purchase the policy now.  Dr. Pierce asks, "I will commit to this, but does it really make much difference if I do it now or in a couple of years?"

This question can be easily answered using the Cost of Waiting module available on the Personal Insurance tab in the InsMark Illustration System.

We'll compare the following two alternatives:

  • $500,000 increasing death benefit IUL issued at age 45 (max-funded with 20 annual premiums of $23,717 -- just short of a MEC -- with policy loans starting at age 65)
  • $500,000 increasing death benefit IUL issued at age 47 (max-funded with 18 annual premiums of $25,384 -- just short of a MEC -- with policy loans starting at age 65)

To read the complete blog article which provides details and sample illustrations supporting the content in the video above, go here

Thursday, July 24, 2014

Equity Rescue Plan Made Easy - Summer Sales Ideas for 2014

To read the complete blog article which provides details and sample illustrations supporting the content in the video above, go here.

What follows is an abbreviated version of the blog content:

Can Indexed Universal Life (IUL) compete with an equity account? In some ways, it's an apples vs. oranges comparison in view of the equity account's potential for gain in excess of the participation cap of the IUL. On the other hand, the downside protection against loss of IUL gives it a competitive advantage, and for some clients, this is an overwhelming plus.

Let's just compare them using the same interest rate, say, 7.50%. We'll also credit the equity account with a 1.00% dividend since IUL typically excludes dividends from the crediting rate of the selected index. (Some companies may offer this feature, but I am unaware of any.) As you will see, the IUL outperforms the equity account by a wide margin.

The reason for this is the significant difference in the items that retard the growth of the equity account vs. those that impact the IUL.

Equity Account Limitations

  • Management fees
  • Income tax on dividends
  • Income tax on realized short term gains
  • Capital gains tax on realized long-term gains
  • Turnover: Income tax and/or capital gains tax

Indexed Universal Life Limitations

  • Haircut on the index used
  • No credit for a dividend
  • Mortality charges

Case Study

Tom and Anne Murray are both age 45. Among other assets, they have an equity account currently valued at $250,000 with a cost basis of $200,000. They are interested in acquiring more life insurance on Tom's life for the protection of their three children and are evaluating IUL as an appropriate policy.

Tom and Anne intend to use the equity account to supplement their retirement income. Their adviser suggests using the equity account as a source of premiums for the IUL and accessing the IUL cash value to enhance retirement cash flow. They want to examine this strategy.

To establish the premium pattern for the IUL, we used a calculator in our Wealthy and Wise® System to determine the level amount of after tax cash flow that could flow from the $250,000 equity account. We directed the calculator to deplete the account over five years taking into account the limitations noted above.

Wealthy and Wise Equity Calculator Prompt

This calculator is located on the Equity Account sub-tab located on the Liquid Assets tab.

The calculator determined the equity account could produce $53,304 a year for five years (after tax) which we will use to fund the IUL. Starting at age 65, they will begin accessing cash flow from the IUL. Below is a graphic of the IUL results over 50 years (Source: Illustration of Values module in the InsMark Illustration System):

Click here http://insmarkblog.com/downloads/Blog-21-%28IUL%29.pdf to review the entire IUL illustration. Pay particular attention to Pages 2 and 3 where after tax retirement cash flow of $50,000 a year is illustrated (withdrawals to basis; loans thereafter). Note also that a substantial amount of death benefit is available in all years, a feature not associated with the equity account.

The next step is to compare the IUL with continuing the equity account with the identical after tax cash flow of $50,000 a year from each Strategy starting at their age 65. For this, I used Wealthy and Wise, and below are the graphics from that System showing the comparisons of net worth and death benefit.

Net Worth Comparison

(After Providing $50,000 a Year in After Tax Retirement Cash Flow from Both the Equity Account and the IUL)

Death Benefit Comparison

(After Providing $50,000 a Year in After Tax Retirement Cash Flow from Both the Equity Account and the IUL)

Equity rescue? You bet it is!

Click here to review the Wealthy and Wise reports.

A Wealthy and Wise case typically requires input of all a client's financial information. This is not the case with an Equity Rescue Plan (or an Annuity Rescue Plan as described in Blog #10) http://insmarkblog.com/blog-10-annuity-rescue-made-easy.html . Both can be illustrated with minimal data input. An ancillary benefit is that it gives you a platform to discuss other planning opportunities with what is likely to be a very impressed client.

Conclusion

Click here for a testimonial from one of our licensees. For a license to use and InsMark System or Wealthy and Wise, contact Julie Nayeri at InsMark at julien@insmark.com or (888) InsMark (467-6275). Institutional inquiries should be made to David A. Grant, Senior Vice President -- Sales at (925) 543-0513 or dag@insmark.com. For the best life insurance carrier and appropriate product selection, contact the Ash Brokerage nationwide Life Team at (800) 589-3000.

Wednesday, July 23, 2014

The Pothole in Wealth Management - Summer Sales Ideas for 2014

To read the complete blog article which provides details and sample illustrations supporting the content in the video above, go here

What follows is an abbreviated version of the blog content:

Real wealth involves sustainable after tax cash flow coupled with maximum net worth invested at comfortable yields.  Note the use of the phrase "after tax cash flow" not "after tax income".  This often means accessing principal from weaker assets while allowing stronger assets to accrue as long as possible.

Case Study Video, Good Logic vs. Bad Logic™ (8 minutes)

For the full version of this video (17 minutes), please click on the link at the end of this blog post.

Example:  Simon and Ann Scott are age 55 and 50 and plan to retire in 10 years.  They have almost $6.5 million in net worth (IRAs, CDs, Munis, Equities) and $900,000 in home value and personal property.  They want $25,000 in monthly, after tax, retirement cash flow indexed at 3.00% as an inflation offset.  It's the first day of the first month of their retirement, and they need $25,000 for the month.

But now the pothole ...

From which account do they take it?  And does it make any difference?  You bet it does.  They can take it out smart (we call this Good Logic) or they can take it out using guesswork (we call this Bad Logic).

In their case, both Good Logic and Bad Logic produce the needed level of after tax cash flow over their years of joint life expectancy (40 years in this example); however, net worth is a different story.

The result is a difference in long-range net worth of $12.5 million in favor of Good Logic.  If you were their adviser and didn't help them determine this, you had better hope a competitor doesn't.

So, how do you do this calculation for your client?  Well, you could program Excel to do a factorial solve (1 x 2 x 3 x 4 = 24 solves each year for 40 years in this example).  If you have, say, 10 asset classes, it would take 3,628,800 million solves each year for 40 years.  You probably don't want to have Excel do that.

If this is your initial introduction to Wealthy and Wise®, you may want to watch the Comprehensive version of our "how to" video where we take your through the sample case step by step using our Wealthy and Wise® planning system.

Comprehensive version including the Case Study (17 minutes)

Good Logic vs. Bad Logic™ Video (Comprehensive)

If you are licensed for InsMark's Wealthy and Wise® and would like to review the menu prompts we used for this analysis, please email us at bob@insmarkblog.com and we will get the Case Data file (Workbook) right out to you, (be sure to ask for the Workbook for the Blog #8: "The Pothole in Wealth Management, Good Logic vs. Bad Logic™").

For a license to use Wealthy and Wise®, go to https://www.insmark.com/products/wealthy-and-wise-system or contact Julie Nayeri at InsMark at julien@insmark.com or 1-888-InsMark (467-6275).  Institutional inquiries should be made to David A. Grant, Senior Vice President -- Sales at dag@insmark.com or 925-543-0513. For the best life insurance carrier and appropriate product selection, contact the Ash Brokerage nationwide Life Team at (800) 589-3000.

About Steve Savant

Steve Savant

As the National Marketing Spokesperson for Ash Brokerage, Steve Savant looks forward to meeting financial professionals in every way possible - in person or by video through conferences and social media.

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