Take Control with IRA Preservation Planning

							    Take Control with
 IRA Preservation Planning



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                       Variable Annuities issued by: Western Reserve Life Assurance Co. of
                                                      Ohio
                                                  AMD040-04/01
What can proper planning
provide?
 • Security in knowing you’ve
   provided:
    – A comfortable lifestyle for
      you and your spouse
    – Meaningful inheritance for
      your children and
      grandchildren
PLANNING
The Greatest Impact on
Wealth
•   Planning to defer taxes during
    your life time
•   Planning to provide a lifestyle for
    your heirs and not revenue for
    tax agencies
Traditional Estate Planning
Can Fall Short

  Wills and Trusts
  Gifting
  Life insurance
  Charitable plan
  Not IRA’s
IRA’s Importance

•   Your IRA has grown due to:
      – Tax-deferred growth
      – Great stock market
        performance
      – Retirement plan - 401(k) -
        rollovers
•   Your IRA may be your biggest
    liquid asset
•   Your IRA may be your most
    vulnerable asset
Control Your IRA
•   Protect your largest liquid asset
•   IRAs must be managed to:
     – Avoid unnecessary taxation
     – Avoid unnecessary depletion
     – Ensure longest period of tax
        deferral
     – Ensure proper beneficiary
        designations
     – Ensure greatest distribution
        to your heirs
Traditional Estate Planning
Total Taxable Estate

•  Home and other real estate
• Investments and personal assets
• Business interests
• IRA assets
  Traditional Estate Planning

Marginal Estate Tax Rates
          37%-55%
   Traditional Estate Planning

 IRA Growth in Value
        subject to
   Federal Income Tax
State and Municipal Taxes

       40% - 50%
Traditional Estate Planning
•   Your IRA could suffer a 75% loss
    in value
•   Your IRA could be worth less than
    1/4 of its pre-death value
•   A $1,000,000 IRA could be
    reduced to less than $250,000
•   There is hope…
•   IRA Preservation Planning
New Rules for IRA
Simplify Planning
 Decisions regarding RMD no longer
 irrevocable after 70 1/2
   – You can now change your
      beneficiary without effecting
      your RMD
   – RMD can now be calculated
      using the new rules even if
      over 70 1/2
A Better Way
•   Assumptions
     – IRA of $1 million
     – The value of the account will
        grow 8% annually*
     – The IRA does not have to be
        consumed for living, because
        there is sufficient non-IRA
        income
    *Assumes IRA grows at the rate of 8% per year. This rate is
    hypothetical and does not reflect the return of any particular
    investment. Investment returns fluctuate and there is no
    assurance that a single rate of return will be sustained over an
    extended period of time.
Advanced IRA Planning

• Dad takes minimum
  distributions until his
  death totaling over
  $1,000,000
• Mom now 82 rolls into her
  own IRA
• Names 40 year-old son as
  beneficiary
Advanced IRA Planning
•   Mom takes minimum distributions until
    her death
•   IRA could lose over $845,000 to Estate
    Taxes
•   Son is now 43 and elects minimum
    distributions based on his life
    expectancy totaling over $11,000,000
There is an even
better approach. . .

    Take Control
        with
  IRA Preservation
      Planning
IRA Preservation Planning

Includes analysis of
  * Splitting an IRA
  * Roth conversion
  * Rollovers
  * Required
  Minimum
  Distributions
IRA Preservation Planning

 Splitting Dad’s IRA

 $500,000 - IRA # 1: Dad and Mom
 $350,000 - IRA # 2: Dad and Child
 $150,000 - IRA # 3: Dad and
 Grandchild
Take Control with
IRA Preservation Planning
$500,000 - IRA #1: Dad and Mom
Total distribution: Over $6 Million with
    proper planning - including sufficient
    life insurance
Take Control with
IRA Preservation Planning
 $350,000 IRA #2: Dad and Son
Total Distribution: Over $4 Million with proper
                     planning
Take Control with
IRA Preservation Planning
  • $150,000 - IRA #3: Dad and
      Grandchild (Roth IRA)
Total distribution : Over $13 Million with proper
                       planning
Take Control with
IRA Preservation Planning
With proper planning, that $1 million IRA
     has the potential to produce over
              $24 Million
           in total distributions
          over three generations.
Take Control with
IRA Preservation Planning
• Will you leave a multi-
  generational legacy?
• What’s going to happen to your
  IRA?
• Have you considered the new
  rules?
• When did you last review your
  documents?
When should you take control?



                   NOW
IRA Preservation Planning
A dedicated team can help you realize the benefits of proper planning.

   * Concerned Client
   * Qualified Advisor
   * Knowledgeable Provider
 The Ultimate Client
• Cares about family,
• Cares about future planning for his
  or her survivors, and
• Is motivated to plan today for
  tomorrow.
The Ultimate Advisor
•   Specializes in IRA Preservation
    Planning
•   Has expertise and resources for
     – Wealth preservation
     – Tax management
     – Investment counseling
The Ultimate Provider
•   Promotes IRA Preservation
    Planning
•   Has IRA documents with
    preservation friendly defaults
•   Allows maximum flexibility in
    administrating IRA preservation
    plans
•   Is committed to keeping IRA
    preservation plans current
The Ultimate IRA Plan
• Meets your objectives:
   – Protects your assets
   – Protects your heirs
• Allows flexibility
• Allows you to maintain control
• Provides maximum tax deferral
Take Control of Your IRA

Start planning NOW
   Leave a better legacy                 Get the IRA
        Ask questions                  Preservation Fact
        Read the material              Gathering Sheet
        Complete the Client Profiler
        Book your appointment



Look at the Chart for the IRA Setup
Take Control with
IRA Preservation Planning
                Thank you
     for taking your valuable time to
          attend our presentation

          Western Reserve Life Assurance Co. of Ohio
           Distributor: AFSG Securities Corporation
            Administrative Office: P. O. Box 5038
                  Clearwater, FL 33758-5068
                 Home Office: Columbus, Ohio