pinney retirement planning presentation

2266 Lava Ridge Court

Roseville, CA 95661

www.pinneyinsurance.com I N S U R A N C E

PINNEY

Disclaimer:

This material was not intended or written to be used, and cannot

be used, to avoid penalties imposed under the Internal Revenue

Code. This material was written to support the promotion or

marketing of the products, services, and/or concepts addressed in

this material. Anyone to whom this material is promoted, marketed,

or recommended should consult with and rely solely on their own

independent advisors regarding their particular situation and the

concepts presented here.

For financial professional use only. Not for client presentation.


Roseville, CA 95661


PINNEY

• What’s Your Number?

• Typical Funding Alternatives

• Hierarchy of Money

• Where Are Tax Rates Going?

• Are you in debt to the Government?

• Self Owned Life and Retirement

• IRA Rescue

Planning for Retirement



Roseville, CA 95661


PINNEY

• How many years can you make contributions?

• How much will you need to live on?

• How long will you need income (When will you die?)

• What Interest Rate will you earn before and during?

• What Inflation Rate would you like to factor?

• How much will the IRS tax your income?

• Do you believe Social Security will be there for you?

• Do you believe your Company’s Pension Plan will

be there for you?

What’s Your Number?



Roseville, CA 95661


PINNEY

• Individual Retirement Accounts

• Traditional

• Contributions deductible (maybe)

• Growth is Tax Deferred

• Distributions, less Basis, are Taxed (at what rate?)

• Roth

• Contributions are not deductible

• Growth is Tax Deferred

• Distributions are not Taxed

• Most of your clients are facing deductibility and contribution phase

outs due to income limitations

Typical Funding Alternatives



Roseville, CA 95661


PINNEY

• Employer Pension Plans

• Will the Employer still exist during your Retirement?

• Many Employers, particularly, Municipalities will have to restructure or

go Bankrupt.

• Other Government Sponsored Employee Benefits

• Non-Qualified Deferred Compensation

• Death Benefit paid to the Employer, not Employee’s family

• Administration and Compliance subject to 409a and 101j

• No flexibility on distributions

• No Portability

• Funding Limitations

Typical Funding Alternatives



Roseville, CA 95661


PINNEY

• Free Money

• 401k Employer Match

• Tax Free Money

• Roth IRA

• Life Insurance

• Tax-Deferred Money

• Roth and Traditional IRA’s

• Life Insurance

• Annuities

• Taxable Money

Hierarchy of Money



Roseville, CA 95661


PINNEY

• Record Spending Deficits

• Postal Service losing Billions

• Social Security going Bankrupt by 2020

• We are spending $500 Billion more than we earn

• www.usdebtclock.org

• Are Tax Rates going up or down?

• Would you rather be taxed now or later?

Where are Tax Rates Going?



Roseville, CA 95661


PINNEY

http://www.usdebtclock.org/

Are You in De bt to th e Fe de ral Gove rn m e n t?If You are Defer r ing Taxes in a Ret irement P lan , the Answer is Yes

Accumula t ion Phase Dist r ibut ion Phase

Borrowing Taxes From the IRS Paying Taxes To the IRS

Plan Deferred Tax @ Balance @ Plan Tax Payment @ Balance @

Year Age Contributions 28% 6% Year Age Distributions 28% 6%

1 40 10,000 2,800 10,600 26 65 (47,833) (13,393) 565,754

2 41 10,000 2,800 21,836 27 66 (47,833) (13,393) 548,996

3 42 10,000 2,800 33,746 28 67 (47,833) (13,393) 531,233

4 43 10,000 2,800 46,371 29 68 (47,833) (13,393) 512,403

5 44 10,000 2,800 59,753 30 69 (47,833) (13,393) 492,444

6 45 10,000 2,800 73,938 31 70 (47,833) (13,393) 471,287

7 46 10,000 2,800 88,975 32 71 (47,833) (13,393) 448,861

8 47 10,000 2,800 104,913 33 72 (47,833) (13,393) 425,090

9 48 10,000 2,800 121,808 34 73 (47,833) (13,393) 399,892

10 49 10,000 2,800 139,716 35 74 (47,833) (13,393) 373,182

11 50 10,000 2,800 158,699 36 75 (47,833) (13,393) 344,869

12 51 10,000 2,800 178,821 37 76 (47,833) (13,393) 314,858

13 52 10,000 2,800 200,151 38 77 (47,833) (13,393) 283,046

14 53 10,000 2,800 222,760 39 78 (47,833) (13,393) 249,326

15 54 10,000 2,800 246,725 40 79 (47,833) (13,393) 213,582

16 55 10,000 2,800 272,129 41 80 (47,833) (13,393) 175,693

17 56 10,000 2,800 299,057 42 81 (47,833) (13,393) 135,532

18 57 10,000 2,800 327,600 43 82 (47,833) (13,393) 92,960

19 58 10,000 2,800 357,856 44 83 (47,833) (13,393) 47,834

20 59 10,000 2,800 389,927 45 84 (47,833) (13,393) 1

21 60 10,000 2,800 423,923 (956,667) (267,867)

22 61 10,000 2,800 459,958

23 62 10,000 2,800 498,156

24 63 10,000 2,800 538,645

25 64 10,000 2,800 581,564

250,000 70,000

• The combination of all of the unique attributes of a Life Insurance

Policy used to supplement a Retirement Plan

• Can be Privately or Employer funded

• Utilizing the “Select” Loan feature of ING’s Global Plus eliminates

out of pocket expenses to pay Taxes

• This is NOT 162 Bonus where the Employer Bonuses the

Employee, the Employee pays Taxes and puts the balance in a

Life Insurance Policy.

• The Employer pays the Bonus directly to ING, the Employee

takes a loan against the policy to pay taxes.

Self Owned Life & Retirement



Roseville, CA 95661


PINNEY

• Employers get a current Tax Deduction

• Employees get the Cash Values and the Death Benefit

• The plan is completely portable

• There is no additional cost for Administration

• Retirement Income is taken when the Employee wants it

• Retirement Income is taken Tax Free

• There are no Compliance issues with 409a or 101j

Self Owned Life & Retirement



Roseville, CA 95661


PINNEY

• There are $5 Trillion in IRA Assets

• Everyone wishes it was 100% in a Roth

• The Government waived the 10% Penalty if you wanted to

convert to a Roth in 2010

• Most, if not all, of you recommended to your clients that they

should convert

• Nobody did it

• Why?

• No one wanted to write the check

IRA Rescue



Roseville, CA 95661


PINNEY

• Why does an IRA need rescuing in the first place?

• Participant doesn’t have control over the timing and amount of

distributions

• All distributions are taxable

• If the client is worth more than $10mm, then IRA assets are subject to

Income AND Estate Taxes

• Plan Assets are all that family gets if there is an early death

• Three Scenarios

• The 72t IRA Rescue

• The 5 Year Liquidation IRA Rescue

• The RMD IRA Rescue

IRA Rescue



Roseville, CA 95661


PINNEY

• Case Study – Male Age 50, Preferred Non-Tobacco in a 35% Tax

Bracket

• His Current IRA Balance is $500,000

• He will take 72t distributions for 10 years, then liquidate the

balance over the next 5 years

• He will take retirement distributions from 70 to 95

• http://www.ingpresents.com/Sec72tCalc/Sec72tCalcInput.aspx -

ING’s Tool to Calculate the three 72t Options

IRA Rescue using 72t



Roseville, CA 95661


PINNEY

http://www.ingpresents.com/Sec72tCalc/Sec72tCalcInput.aspx

http://www.ingpresents.com/Sec72tCalc/Sec72tCalcInput.aspx

SOLAR IRA RESCUE 72(t)


Roseville, CA 95661

www.pinneyinsurance.com

• The Worst Birthday Card Ever

• Clients in their 60’s and 70’s all have IRA’s

• Required Minimum Distribution

• IRS telling your clients what to do and how much

• Many clients don’t need this income which can

trigger additional taxes on Social Security

• They want to leave a legacy for kids/grandkids

• Life Insurance can provide significant leverage

IRA Rescue for RMD’s



Roseville, CA 95661


PINNEY

• Case Study – Male 70 Years Old, Preferred Non-Tobacco in a 35%

Tax Bracket

• Current IRA Balance of $1,000,000, earning 4%

• He doesn’t need his IRA for Income and wants to pass it on to his

heirs

• If he takes RMD’s to Age 101 and uses the after-tax income @ 28%

to buy GUL to 101, he can buy $1,215,578

• Instead, he liquidates his IRA over 5 years by withdrawing $216,000

for Five Years and taking Loans from ING’s Global Plus policy,

generating $2.7mm of DB at Age 101

IRA Rescue Using RMD’s



Roseville, CA 95661


PINNEY

RMD IRA RESCUE Using Solar


Roseville, CA 95661


Start Selling SOLAR IRA Rescue


Roseville, CA 95661



Roseville, CA 95661


Start Selling SOLAR IRA Rescue

The Power of Hindsight


Roseville, CA 95661


Sample IUL Global Statement


Roseville, CA 95661


Paul Sanfilippo Brokerage Director

Contact Paul:

• Phone: (800) 823-4852 x8760

• E-mail:

[email protected]

• Web: www.PinneyPlatforms.com

www.EZLifeSales.com

• Connect with Pinney:


Roseville, CA 95661


PINNEY

mailto:[email protected]

http://www.pinneyplatforms.com/

http://www.ezlifesales.com/


Roseville, CA 95661


PINNEY

pinney retirement planning presentation

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