20 Questions for Clients


Retirement (7):

Are you waiting until 72 1/2 to take Required Minimum Distributions?  That could get expensive.

Do you run the risk of having too much money in a qualified plan or IRA when you reach retirement?  What if tax rates are higher in the future than they are today?  Do you have a plan to have tax free sources of income as well?

Up to 85% of your social security payment can be included in your taxable income during retirement.  Are you aware of the current income limits that exempt your social security from taxation?  Do have any plans for tax free income sources to protect you from the government recapturing some of your social security?

The cost of Medicare part B can get very expensive if you have a more than a certain level of taxable income.   Are you aware of the current income limits that will begin to impact the cost of Medicare Part B?  Do have any plans for tax free income sources to protect you from the governments charging you more for your health insurance during retirement?

What is your source of tax-free income in retirement?  Do you feel that you will have enough tax-free income?

Have you decided at what age you will take Social Security?  Have you reviewed your sources of taxable and tax-free income to understand how many years during your retirement you may be able to avoid paying taxes on your social security?

Were you aware that the tax treatment of income from insurance and annuity products can be very different?  Some products distribute taxable policy gains first before returning your initial investment (cost basis).  Some are subject to a 10% penalty tax for distributions prior to 59 1/2. Some distribute both gains and cost basis together.  Other distribute all policy proceeds tax free. 

Pension Recipients (1):

Did you know there may be a better option than taking your pension plan’s joint and survivorship option?  Can I show you how taking the greatest amount of income available and buying a life insurance policy may be a better choice for you, your spouse and your heirs?  This decision could provide more income, more flexibility, and additional benefits like chronic illness or long term care benefits.

Wealth Transfer (4):

Are you not selling assets simply because of a large capital gain?  There are ways to sell these assets without realizing the gain and getting a reliable income stream for life.

When the last time the trustee of your irrevocable life insurance trust reviewed the policy(ies)?  The low interest rate environment has impacted many of the policies that have been issued in the last 20 years. Also, many carriers had strict premium receipt policies.  If a trustee was just a few days late paying the premium some policies can be dramatically impacted.

Do you own an annuity that you have now decided you will not need in retirement?  If so, would you like to learn more about ways to efficiently transfer the value of that annuity to your heirs.

Did you know that 17 states (including CT, NY, NJ, MA, RI, PA) currently have estate or inheritance taxes (or both)?  Just because your assets are currently valued below the Federal limits doesn’t necessarily mean you do not have a significant tax liability.  

Insurance through work versus individually owned (2):

Would you be surprised to find out that, more often than not, individual term insurance policies are less expensive than the ones you can get through your employer?

Would you be surprised to find out that in many cases individual disability insurance policies are less expensive than the ones you can get through your employer? 

Business Owners (4):

Does your business have a will?  How will your business continue if you die suddenly?

C Corporations are now taxed at 20%.  Have you explored how financial planning at the corporate level may be more advantageous than planning at the individual level?

Did you know that corporate retirement plans can own life insurance?  Putting life insurance in a qualified plan may give you the ability to increase your annual contributions while providing the protection your family and business needs.

Is anyone on your team so critical that if they died or became disabled your business would suffer?  How are you planning for that?  Do you have a plan in place that rewards them to stay, as well?

Long Term Care and Chronic Illness (2):

Do you know the difference between indemnity policies and reimbursement polices?  Have you ever thought about which one  you think you would prefer?

If I could show you a way to protect your estate from the enormous costs associated with long term care, and it was fully refundable at any time, no questions asked. And if you never needed long term care your heirs would get the full refund.  Would that interest you?

If you have questions about the any of the questions…  Call Paul