A New Look on Life
Supplemental Income Strategy
Planning for Retirement
Often, investors who have reached their qualified plan annual contribution limits are left looking for additional ways to create
sustainable retirement income. In addition to retirement planning, many individuals are concerned about how to best protect
their loved ones in the event of their untimely death. It is critical to create a solid financial strategy tailored to address all
your client’s specific needs. While there are many vehicles to choose from, it is important to know how each may impact your
client’s long-term financial goals. It is important to work with your client’s tax and legal advisors throughout the planning and
implementation process.
Tax Control Triangle
When individuals look at investment Tax-favored
options, a frequent concern is the
A
taxation of those vehicles, both today
ft
er
and during retirement. There are three n
F re e D is t ri b u t i o
Tax
general categories that dollars fall R
• oth IRA3
C o n t ri b u t i o n s
into: taxable, tax-deferred and tax- M
• unicipal Bond4
favored. C
• ash Value
Life Insurance1
Ta x
Clients should consider how to best
reallocate dollars between the different tax
categories to better suit their taxation needs
for today and their retirement years. Many These investments are made after taxes, may have the
clients have exhausted the options that option for tax-deferred growth and may be distributed
are available for the tax-deferred category, income-tax free.
either through contribution or income
limitations. This typically results in money Taxable Tax-deferred
being left in the taxable category. This can Ta
x
limit the growth potential of that asset
Af
De
te
compared to utilizing the tax-deferred or
n
du
• Cash
b le Distrib u tio
r Ta
4
• 01(k)/403(b)
ctib
b l e I n t e re s t
tax-favored category which can compound • Checking T
• raditional IRAs
x C o ntri b uti o n
over time. Non-qualified annuities are • CDs • EP/SIMPLE
S le Co ntrib ut
generally a combination of the taxable and • Money Market P
• ension
tax-deferred categories, offering after-tax • Non-Qualified Q
• ualified
a
Ta x
a
contributions, tax-deferred growth and Brokerage
Ta x
Retirement Plans
on i
s
taxable distributions.
s2
However, when looking for a vehicle that
These dollars are invested after tax and every year These dollars typically provide tax deductible
will provide: no income contribution limits,
the owner receives a 1099 form for any interest/ contributions and tax-deferred growth, but upon
immediate tax deferral, tax-favored access to dividends earned. This category is beneficial for its distribution, are taxed as ordinary income.
cash value through loans and withdrawals high liquidity.
and the needed protection of a tax free
death benefit, life insurance can be an
attractive option.1
For more information, contact Metlife today.
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For Producer or Broker/Dealer Use Only. Not for Public Distribution.
1
Loans and withdrawals will decrease the cash value and death benefit. Tax-free distributions assume that the life insurance policy is properly structured, is not a Modified Endowment
Contract (MEC), and distributions are made up to the cost basis and policy loans thereafter. If the policy has not performed as expected and to avoid a policy lapse, distributions may need
to be reduced, stopped and/or premium payments may need to be resumed. Should the policy lapse or be surrendered prior to the death of the insured, there may be tax consequences.
2
Traditional IRA contributions may be deducted if certain criteria are met.
3
Assuming the funds have been held in the account for at least five years and owner has reached age 59 ½ at the time withdrawals are taken
4
Municipal bond interest is generally tax-free for federal regular income tax purposes.
Prospectuses for Equity Advantage Variable Universal Life, and for the investment portfolios offered thereunder, are available
from MetLife. The policy prospectus contains information about the policy’s features, risks, charges and expenses. Investors
should consider the investment objectives, contract features, risks, charges and expenses of the investment company carefully
before investing. The investment objectives, risks and policies of the investment options, as well as other information about
the investment options, are described in their respective prospectuses. Clients should read the prospectuses and consider this
information carefully before investing. Product availability and features may vary by state.
MetLife life insurance policies have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee
that any of the variable investment options in this product will meet its stated goals or objectives. The cash value is subject to market fluctuations so
that, when withdrawn, it may be worth more or less than its original value. Guarantees are based on the claims paying ability and financial strength
of the issuing insurance company.
Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document
is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of
insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.
MetLife, its agents and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general
information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax
results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with
and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances.
Life insurance products are issued by MetLife Investors USA Insurance Company, Irvine, CA, Metropolitan Life Insurance Company, New York, NY, and in
New York only by First MetLife Investors Insurance Company, New York, NY. All guarantees are based on the claims-paying ability and financial strength
of the issuing insurance company. Variable products are distributed by MetLife Investors Distribution Company, Irvine, CA. All are MetLife companies.
June 2010
Insurance Products:
• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency
• Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value
MetLife Investors USA Insurance Company
MetLife Investors Distribution Company
5 Park Plaza, Suite 1900
Irvine, CA 92614
metlife.com
BDVL21051 L0210088845[exp0311]
© 2010 METLIFE, INC.
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For Producer or Broker/Dealer Use Only. Not for Public Distribution.