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25 Items Advisors Need

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Advisors Can Find Opportunities with Their Clients…   and Look like a Hero at the Same Time


If you read this and it sparks attention please don’t be afraid to call or email

  1. Waiting or talking RMDs only at retirement. If they hate paying taxes now they will hate it more when it doubles at later ages.
  2. Having too much in their Qualified Plan, IRA This is better known having the IRA for The IRS
  3. Not wanting to sell asserts because of the concern of the significant potential capital gains. There are ways of selling that instead of paying taxes one gets a substantial deduction and a stream of income for the rest of their lives
  4. TRUST owned life insurance that hasn’t been reviewed Most policies are not performing as originally illustrated and that is not unique as most policies including whole life, universal life, variable universal life, survivorship life
  5. Assuming group term or association insurance is cheaper and a better bet than individual policies. Group and Association are temporary and many times cost more. (if not outright premium but the taxes if it was employer paid). Most people are unaware that these have mandatory cutbacks at later ages and higher costs.
  6. Having a multi-life disability plan. Although it may be one of the ways to procure it becomes unisex most of the time and the guys are paying more for the girls
  7. Having annuities with large gains and not planning to distribute during lifetime. Most advisors are unaware that if someone goes to the lord prematurely with annuities in their name that they have an ORDINARY INCOME on the gain and without having exclusions on Estate tax. IRD assets such as IRA and Annuities have this problem.
  8. Counting on taking too much tax deferred income at retirement. Many advisors are unaware that Social Security may be taxed up to 80% of the income coming in and Medicare Part B has a substantially higher cost with certain levels of income.
  9. Having too much tax free municipals believing that one won’t pay tax. Like everything that is great having too much can really hurt. AMT tax
  10. Not planning to have any tax free income that keeps up with inflation at retirement. Many people are aware of how great ROTH IRA’s might be but realize that there are few people who can take advantage of them. They also realize if eligible that they can’t contribute a lot of money to the plan. They have not considered having their term insurance with the tax shelter underneath the plan such as permanent plans can.
  11. Assuming that one will never need insurance at majority age and have planned using term insurance to solve the long term need.
  12. Assuming to take the automatic option at retirement form their pension plan. Many people are unaware that the decision of joint and survivor income is equivalent to buying a very expensive term insurance plan at retirement to cover the shortfall of the spouse. This same decision also disinherits any children and of course if they are protecting their spouse who goes prematurely they can never ask the custodian to step back up the 30% plus income loss they took for electing such an option.
  13. Clients with real corporations (C) who use their own higher taxed dollars to plan than to use the lesser taxed dollars from their corporation.
  14. Assuming one can’t gift more than one property at the same time. Many people assume that life insurance may eat up the total gifting ability when in fact there are ways of minimizing the life insurance gift to pennies on the dollar and at the same time retain the cash value of the insurance in their own name (for security or retirement purposes. (Private Spilt dollar or demand loan split dollar)
  15. Not being aware that a number of qualified plans can own life insurance (of course IRA, Simple IRA, SEP is excluded).
  16. Assuming that since there is currently over 5 Million in assets one can go to the lord with without having estate taxes and double for a couple doesn’t always work for the affluent. Besides possibly having huge state inheritance taxes from their domiciled state (many are at the 1 – 2 million threshold) Many people also don’t split assets properly and thus could have the aggravated stepped up taxes without the deduction when the final spouse dies.
  17. Assuming all income streams is equal. Most people are unaware that most of the annuities sold today with these income benefits that the gain comes out first at the highest tax as opposed to be able to have significant amount excluded.
  18. Assuming that their life insurance policies are only for dying. Not assuming that it can have linked benefits for chronic care or as well as having policies pay tax free income at the older ages.
  19. Not understanding that if there is a divorce that there is a tax free way of dividing qualified assets and for the impoverished spouse being able to take income at younger than 59.5 without IRS penalty.
  20. Assuming that long term care policies are never going to increase in price and assuming these are the only way that one can plan to cover the expenses
  21. Not realizing that a single life policy only worth is the cash value or in case of term not having any value and dropping it before considering other options.
  22. Not realizing if insurance isn’t needed for spouse anymore that one can get permanent insurance on both the husband and wife and many times getting 3 X the original life insurance value on this kind of insurance with reduced or eliminated premiums.
  23. Believing that everybody has disability coverage at work and that it is adequate. Even if one took it out a while ago, their income could have gone up and their group insurance doesn’t cover bonuses, overtime, or cover the 401 k contributions. Many people really don’t understand that they have little if any disability income at work.
  24. Assuming that return of premium term is the most efficient form of insurance when in fact many newer permanent policies could have a higher potential gain and be completely tax free income while maintaining keeping the policy past the original planned ending date
  25. All permanent policies are equal. Many of the great polices have horrible distribution during lifetime options and just because someone accumulated it that all id there. Many policies crash if income is taken for more than 20 years and an outright surrender can yield a substantial tax liability.