1 Retirement Challenges Retirement Challenges WE WELCOME YOU WE WELCOME YOU Securities and advisory s ervices offered through SMH Capital, Inc. Member FINRA/SIPC. Securities and advisory s ervices offered through SMH Capital, Inc. Member FINRA/SIPC. This Firm is not a CPA Firm -- This Firm is not a CPA Firm -- www.HoustonRetirementCoach.com www.HoustonRetirementCoach.com
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Securities and advisory services offered through SMH Capital, Inc. Member FINRA/SIPC.Securities and advisory services offered through SMH Capital, Inc. Member FINRA/SIPC.This Firm is not a CPA Firm --This Firm is not a CPA Firm --www.HoustonRetirementCoach.comwww.HoustonRetirementCoach.com
This seminar presentation is intended for This seminar presentation is intended for general informationgeneral information
purposes only and does not and is not intended to providepurposes only and does not and is not intended to provide
specific investment advice or recommendations’ for anyspecific investment advice or recommendations’ for anyindividual. It is suggested that you consult with your tax, legalindividual. It is suggested that you consult with your tax, legal
and/or financial services professional regarding your individualand/or financial services professional regarding your individual
situation.situation. The views expressed are those of the presenter and may not The views expressed are those of the presenter and may not
necessarily reflect those held by SMH Capital, Inc. Materialnecessarily reflect those held by SMH Capital, Inc. Materialpresented is believed to be from a reliable sources and SMHpresented is believed to be from a reliable sources and SMHCapital, Inc. makes no representation as to it accuracy orCapital, Inc. makes no representation as to it accuracy orcompleteness. Not all of the concepts and ancillary programscompleteness. Not all of the concepts and ancillary programsdescribed in this seminar are available through SMH Capital,described in this seminar are available through SMH Capital,Inc., but are only available exclusively through OutlookInc., but are only available exclusively through Outlook
Financial Group, LLC.Financial Group, LLC. The examples that you are about to see in this presentation The examples that you are about to see in this presentationare hypothetical and a taxpayer/investor should note theare hypothetical and a taxpayer/investor should note thefollowing:following:
Strategies suggested may not return the results illustrated asStrategies suggested may not return the results illustrated asstrategies and risks will differ from client to clientstrategies and risks will differ from client to client
AN ELDER LAW & LIVING TRUSTATTORNEY AVAILABLE A FULLTIME CPA ON CALL
FULL ADVISORY AND ESTATEPLANNING SERVICES
OUR STATE-OF-THE-ARTFACILITY
IS A ONE-STOP FINANCIALIS A ONE-STOP FINANCIALCENTERCENTER
Elder Law & Living Trust Attorney and CPA services described in this seminar are notavailable through SMH Capital, Inc. but are only available through Outlook Financial Group,LLC.
IS A ONE-STOP FINANCIALIS A ONE-STOP FINANCIALCENTERCENTER
INSURANCE SPECIALISTS FOR EVERY
TYPE OF PERSONAL INSURANCE
LONG-TERM CARE
HOME HEALTH INSURANCELIFE INSURANCEESTATE INSURANCE
…AND MORENot all Insurance services described above are available through SMH Capital,Inc. but are only available exclusively through Outlook Financial Group, LLC.
Will you out live your retirement income?Will you out live your retirement income?
Will your retirement money keep paceWill your retirement money keep pace
with inflation? (purchasing power risk)with inflation? (purchasing power risk) Will you need to pay for Long Term Care?Will you need to pay for Long Term Care?
Will there be anything left for your lovedWill there be anything left for your loved
ones?ones? Will taxes on social security erode your Will taxes on social security erode your
•AGI= Total Income minus non-taxable Social Security Income
•Standard Deduction- $12,300
•Effective Tax Rate-13.30%
•Cash Generating Interest -$400,000
•Assumed Interested Rate- 5%
Strategies suggested may not return the results illustrated as strategies andrisks will differ from client to client including those with fewer or greaterassets or income. Results will vary depending on your specific situation. Thesestrategies are not designed to be a substitute for specific tax, legal,investment or other professional advice. For specific assistance the servicesof an appropriate professional should be sought.
Hypothetical Example: Married Couple Social Security TaxHypothetical Example: Married Couple Social Security Tax
Hypothetical Example: Married Couple Social Security TaxHypothetical Example: Married Couple Social Security TaxSource: IRS tax formSource: IRS tax form 10401040 / Publication 17/ Publication 17
Income from CD’sIncome from CD’s
Interest $20,000Interest $20,000
Social Security $20,000Social Security $20,000
Pension $30,000Pension $30,000
Total IncomeTotal Income $70,000$70,000 Taxable Social SecurityTaxable Social Security
IncomeIncome $12,800$12,800
Adjust Gross Income $62,800Adjust Gross Income $62,800
Taxable IncomeTaxable Income $43,900$43,900Total Federal TaxTotal Federal Tax $5,830$5,830
Interest Income & Tax Management
Bank Certificates of Deposit are FDIC Insured. This example isprovided for illustrative purposes only and is not intended to reflectan actual investment or predict future returns. It is designed to
illustrate the mathematical concepts being discussed. An investmentin any security will fluctuate in value and may be worth more or less
Hypothetical Example: Married Couple Social SecurityHypothetical Example: Married Couple Social Security
Hypothetical Example: Married Couple Social SecurityHypothetical Example: Married Couple Social SecurityTax Source: IRS tax form 1040 / Publication 17Tax Source: IRS tax form 1040 / Publication 17
Income from Municipal BondsIncome from Municipal Bonds
InterestInterest $20,000$20,000
Social SecuritySocial Security $20,000$20,000
PensionsPensions $30,000$30,000
Total IncomeTotal Income $70,000$70,000 Taxable Social SecurityTaxable Social Security
IncomeIncome $12,800$12,800
Adjusted Gross Income $42,800Adjusted Gross Income $42,800
Taxable Income $23,900Taxable Income $23,900 Total Federal TaxTotal Federal Tax $2,830$2,830 $3,000 Tax$3,000 Tax
SavingsSavings
Interest Income & Tax Management
Please consider investment objectives, risks, charges, and expensesassociated with municipal bonds. The issuers official statement contains moreinformation and should be read carefully before investing. This example isprovided for illustrative purposes only and is not intended to reflect an actual
investment or predict future returns. It is designed to illustrate themathematical concepts being discussed. An investment in any security will
Hypothetical Example: Married Couple Social Security TaxHypothetical Example: Married Couple Social Security Tax
Hypothetical Example: Married Couple Social Security TaxHypothetical Example: Married Couple Social Security TaxSource: IRS tax form 1040 / Publication 17Source: IRS tax form 1040 / Publication 17
Deferred Income From an AnnuityDeferred Income From an Annuity
Total IncomeTotal Income $50,000$50,000 Taxable Social SecurityTaxable Social Security
IncomeIncome $4,000$4,000
Adjusted Gross IncomeAdjusted Gross Income $34,000$34,000
Taxable Income $15,100Taxable Income $15,100 Total Federal TaxTotal Federal Tax $1,510$1,510 $4,320 Tax$4,320 Tax
SavingsSavings
Interest Income & Tax Management
This example is provided for illustrative purposes only and is notintended to reflect an actual investment or predict future returns. Itis designed to illustrate the mathematical concepts being discussed.
An investment in any security will fluctuate in value and may be
Annuity Is?Annuity Is?•Annuity and Life Insurance products are issued by life insurance companies and are not insured bythe FDIC. They are backed by the claims paying ability of the issuing insurance company. Anywithdrawals may be subject to income tax and/or surrender charges and, prior to age 59½, a 10%federal penalty tax may apply . Withdrawals from the annuity are subject to ordinary income tax.
Variable annuities are long-term investment vehicles designed for retirement where all
interest, dividends, and capital gains accumulate tax deferred. Taxable distributions and
certain deemed distributions are subject to ordinary income tax. Early surrender chargesmay also apply. In addition to tax deferral, variable annuities offer death benefits,
income protection benefits, annuity payout options, and professionally
managed equity based and fixed income investment options. Please note that there are
certain fees and charges associated with variable annuities such as mortality and expense
risk charges, administrative charges, and fund operating expenses. As with other
variable investments, the investment return and principal value of an investment will
fluctuate, therefore when redeemed, an investors units, may be worth more or less than
the original cost. In addition, any guarantees associated with the variable annuity are
based on the claims-paying ability of the issuing company and do not apply to the
investment performance or safety of the underlying funds in the variable annuity. The
prospectus contains details on the variable annuity, the sub accounts, the contractfeatures, the investment company, fees, charges, expenses and other pertinent
information. The prospectus can be obtained from your investment representative or the
issuing insurance company. Please read then carefully before you invest or send money.
Fixed annuities are a contract between you and anFixed annuities are a contract between you and an
insurance company. Fixed annuities are designedinsurance company. Fixed annuities are designedfor long-term investing to help meet retirement andfor long-term investing to help meet retirement and
other long-range goals. Fixed annuities are notother long-range goals. Fixed annuities are notsuitable for short term goals because substantialsuitable for short term goals because substantial
tax penalties and early surrender charges maytax penalties and early surrender charges mayapply if you withdraw your money early.apply if you withdraw your money early.
•Investing in a tax-advantaged retirement plan such as an IRA, you willget no additional tax advantage from the fixed or variable annuity. Under these circumstances, you should only consider buying a fixed or variableannuity if it makes sense because of the annuity's other features, such aslifetime income payments and Death Benefit protection. These features
Tax Deferred exchange may not be appropriate for everyone. In most cases a new lifeinsurance and Annuity policy will have a new surrender charge schedule , which mayextend beyond that of the original policy. The cash value will be reduced by premiums
paid and other costs and charges for the new policy. There may be unfavorable taxconsequences caused by surrendering an existing policy, such as a potential tax on
outstanding policy loans.
HOW MANYPEOPLE HERE
KNOW ABOUTFORM 1035?
Tax Deferred exchange may not be appropriate for everyone. In most cases a new lifeinsurance and Annuity policy will have a new surrender charge schedule , which mayextend beyond that of the original policy. The cash value will be reduced by premiums
paid and other costs and charges for the new policy. There may be unfavorable taxconsequences caused by surrendering an existing policy, such as a potential tax on
• You should carefully consider investment objectives, risks, and charges and expenses of
Mutual Funds before investing. This and other information can be found in the fund'sprospectus, which can be obtained from your investment representative or by calling the fund
This example is provided for illustrative purposes only and isnot intended to reflect an actual investment or predict futurereturns. It is designed to illustrate the mathematical conceptsbeing discussed. An investment in any security will fluctuate
in value and may be worth more or less than the purchase
Percentage of Americans reaching age 65Percentage of Americans reaching age 65that will require Long Term Care Insurancethat will require Long Term Care Insurance
U.S. Department of Health & Human Services Centers forMedicare & Medicaid Services 2006. This example is providedfor illustrative purposes only and is not intended to reflect an
actual investment or predict future returns. It is designed to
Representative is not an attorney but can help review the documents and recommend a local attorney that specializesRepresentative is not an attorney but can help review the documents and recommend a local attorney that specializes
in Estate planning. Estate planning can involve a complex web of tax rules and regulations. You should consider thein Estate planning. Estate planning can involve a complex web of tax rules and regulations. You should consider the
counsel of an experienced estate planning professional regarding your individual situation before implementing anycounsel of an experienced estate planning professional regarding your individual situation before implementing anystrategy.strategy.