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Help your clients keep their assets safe from government taxation and long term care providers

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THE STORY

Most people are distracted now…
January 1, 2020: The US Government passed a new tax act called the SECURE Act.
The act was meant to give the government increased taxes and reduced deficits, not to make the American citizen more secure. If the government needed their money before the pandemic, they really need their money now! One of the largest assets of the American people are their retirement plans, and this pool of money has never been taxed.

The government not only wants more of your clients’ assets. They want them quicker.

DID YOU KNOW?

The new tax act of January 1, 2020 destroyed any multi-generational planning for qualified funds.

The SECURE Act will make seniors insecure.

What does that mean to your client? Taxes. Taxes. Taxes. This affects qualified money: IRA, 401K, 403B, 457, and SEPs

Two parts to the SECURE Act every senior needs to know:

  • The Stretch IRA was eliminated
  • It extends the RMD age to 72 73-75 over the next 10 years
What Does This Mean?

THE CONSEQUENCES

Consequences of Stretch IRA Elimination
Forced Distributions = Ten Year Tax Curse
  • Higher tax bracket for surviving spouse
  • Higher taxes for children or other beneficiaries
  • Biden has promised to raise taxes in wealthier income brackets
  • The stock market is unpredictable
Consequences of RMD Extension to 72 73 to 75 over the next 10 years
Forces larger distributions, which are more taxable
The following common realities compound the need for seniors to take larger distributions:
  • 47% of seniors aged 65 will pass away before life expectancy
  • 70% of people over 65 will need extended care
  • 90% of couples over 65 will need extended care for one or both members
  • Most seniors will scramble for money
What Do Clients Want?

At least one spouse in 90% of American couples age 65 and older will either need extended care or die before life expectancy.

DID YOU KNOW?

CLIENTS’ CONCERNS

  • Running out of money before running out of breath
  • Losing their assets and income stream to market losses, or the need for extended care
  • The taxation of their income
  • Leaving the most money possible to their beneficiaries instead of to the government
The Solution

INTRODUCING

The Protected IRA Plus Program ™

The Protected IRA Plus Program is a combination of products that have the following components:
DISTRIBUTION
PROTECTION
TAX FREE ACCUMULATION & INCOME
There are different versions of the Protected IRA Plus Program to address different concerns:
  • Guaranteed income
  • Meeting potential extended care
  • Tax free income in the future

DID YOU KNOW?

We concentrate on having a spending plan, not a budgeting plan. There are some good assets to take to the L-ord and some not.

AN EXAMPLE

The following example is just one of the designs. This design guarantees income after taxes to the client for their lifetime and protects the asset from market loss or if the client needs extended care.

All designs return at least the original amount back to the beneficiaries tax free, if that is what the client desires.

The client always has the choice of leaving less to their heirs and obtaining a higher guaranteed income for life. (Tradeoffs particular to the client of either leaving more to heirs or having higher guaranteed income). 

GRAPHIC ELEMENT (LATER)

Now What?
The range of revenue for this plan is usually between 7% -10% of assets ($500,000 = $35,000-$50,000 in revenue). This program differentiates you from the competition who focuses only on products!

What can we do for you and your client?

We are focused on clients over age 60 who have more than $500,000 in their IRA or other qualified plans. These clients usually have no restrictions on moving assets, and they likely have potential Social Security of over $25,000/yr.
We give you:
  • An introduction brochure for your firm to engage the client
  • A succinct Fact Find that pinpoints their concerns
This is then divided into different components:
  • Distribution
  • Protection
  • Tax Free Accumulation/Tax Free Distribution
We give you a two-page effective presentation, backed up by shopping of over 40 companies. This analysis can be presented to any trust officer, attorney, accountant or client with the knowledge that we canvassed the market for the client.
If needed we will help you close the sale.

Successful Cases

An uninsurable man of 80 who had 2 heart attacks had $500,000 in his plan, married to a 60 year young lady. He knew it was much more efficient to $500,000 get out of his name while alive in a married bracket versus handicapping his wife in a single bracket when he dies. We transformed the IRA money to potentially paid tax free income for the spouse.
A single 70 year young lady that had 3 daughters. She was uninsurable, but her daughter lived close and took care of her. She needed guaranteed income so we used the arbitrage of her and her daughter.
A doctor is worth over 15 million and has 5 million in his plan and he is still working at age 82 and spouse is has dementia. He can’t figure out how to have the income he has as a doctor. We showed how he could have more tax free and transfer to grandchildren through a dynasty trust, skipping generation taxes and stopping work or slowing down.

Fill out our Fact Find

The Protected IRA Plus Program will benefit someone who wants:
  • more net income after taxes and expenses
  • protection from market loss
  • coverage for the needs of extended care
  • coverage that pays for the state + succesion tapes
All designs return at least the original amount tax free to beneficiaries. Each plan is customized for your client’s concerns. For a complete Protected IRA Plus Program analysis, contact us! Expect a call back from Paul or a staff member to follow up.
Contact

paul@himmelsteinfinancial.com