Step 1 of 6 16% Prepared for: {Client Name:1} on 10/12/2024 THE PROCESSOur process is designed to help our clients achieve simplicity and confidence during their retirement years. It’s focused around 5 key areas of your current financial life. INCOME PLANNING Once your income plan is established, we will create an investment plan for the remaining assets that you do not need to draw from month to month. This typically includes: Assessing your Risk Tolerance Adjusting your portfolio to reduce fees Volatility Control Evaluate ways to reduce risk while still working towards your goals Longevity Protection INVESTMENT PLANNING Our goal is to help ensure your expenses can be paid month to month with reliability and predictability for the rest of your life. This typically includes: Social Security Maximization Income & Expense Analysis Inflation Plan Spousal Plan Comprehensive Institutional Money Management TAX PLANNING Any comprehensive Retirement Plan will include a strategy for decreasing tax liabilities. This typically includes: Assessing the taxable nature of your current holdings Possible I.R.A. Planning Strategizing ways to include tax-deferred or tax-free money in your plan Strategize which tax category to draw income from first to potentially reduce tax burden Discussing ways to leverage your qualified money to leave tax-free dollars to your beneficiaries HEALTH CARE PLANNING We will create a plan to help you address rising healthcare costs with a minimum of expense, including: Looking at all aspects of Medicare, Parts A, B and D Analyzing options for a Long-Term Care Plan LEGACY PLANNING It is important to ensure your hard-earned assets go to your beneficiaries in the most tax efficient manner. By working collaboratively with a qualified Estate Planning Attorney, our goal will be to help you: Maximize your estate and income tax planning opportunities Protect any assets in trust and ensure they are distributed to your beneficiaries probate free Prevent your IRA and qualified accounts from becoming fully taxable to your beneficiaries upon your death OverviewClient Name* THOUGHTS FROM YOUR FINANCIAL PROFESSIONAL I’ve enjoyed the opportunity to get to know you, understand your concerns for your money, and your goals for creating your own ideal retirement. You’ve done a great job working hard to accumulate a comfortable amount of wealth. As you read through the strategies and solutions in our report there may be some problem areas we recommend addressing. First and foremost, my team and I are going to address your concerns and goals. We look forward to a life-long relationship!Concerns & GoalsPotential ProblemsTOTAL ESTATE VALUETOTAL AVAILABLE ASSETSCURRENT INCOMETAX STATUS OF DOLLARSTAXABLETAX DEFERREDTAX FREECURRENT ASSET ALLOCATIONAT RISK SECURE CURRENT FEES & EXPENSESRETIREMENT INCOME GOAL Income PlanMONTHLY INCOME GOALGOALCURRENT MONTHLY INCOMESOCIAL SECURITYPENSIONINVESTMENT INCOMEOTHER INCOMETOTAL MONTHLY INCOMETOTALSHORTFALLS/SURPLUSIN GOOD ORDERIncome Plan In good order Distribution Plan in Place Income sufficient to meet retirement expenses Income drawn from assets not vulnerable to loss No major debt Current income exceeds current expenses Well-established income target and expenses Good pension Other Other NEEDS ADDRESSEDIncome Plan Needs Addressed Current income insufficient to meet future expense Distribution and/or income plan currently not in place Income currently drawn from assets vulnerable to market loss Too few streams of steady and reliable income No plan for inflation No spousal plan None at this time Other Other ACTION PLANIncome Plan Acton Plan Build a solid foundation of retirement income that compensates for inflation Consolidate accounts in order to create an additional stream of stable income Develop a distribution plan to ensure predictable and sustainable income in retirement Develop a plan to address spousal income needs in the event of the death of one spouse Discuss social security claiming strategies including delaying social security Implement income plan that will allow you to organize, track and test Other Other ADDITIONAL NOTESAny references to safety, protection benefits or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. As financial professionals we are able to provide you with information but not guidance or advice related to Social Security benefits. Our firm is not affiliated with the US government or any governmental agency. Investment PlanTOTAL AVAILABLE ASSETSTotalCURRENT ASSET ALLOCATIONAT RISK SECURE DETAILED ASSET ALLOCATIONEQUITIES/FUNDSBONDALTERNATIVESPRINCIPAL PROTECTEDVARIABLE ANNUITIESCASHTAX STATUS OF ASSETSTAXABLETAX DEFERREDTAX FREEFEESCURRENTIN GOOD ORDERInvestment Plan In Good Order Good amount of assets saved No major debt / liabilities Portion of investable assets protected from loss due to market fluctuations Risk allocation consistent with Rule of 100 Not overpaying fees Emergency funds established Other Other NEEDS ADDRESSEDInvestment Plan Needs Addressed Portfolio has % Risk. Recommend lowering assets subject to market volatility Asset risk allocation exceeds the Rule of 100 Currently not taking advantage of institutional money management Fees are hidden within the accounts; lack of transparency Portfolio lacks consolidation and ease of management Current Risk allocation not consistent with Risk Tolerance / Number Need a strategy for Required Minimum Distributions Other Other PLAN OF ACTIONInvestment Plan Plan of Action Consolidate assets Consider dividends, bucket theory or fixed strategies Utilize managed portfolios without commissions, loads and hidden fees Reposition a portion of cash accounts in order to earn a reasonable rate of return Reposition a portion of funds to align with the Rule of 100 Create a plan for proper balance (safety, income and growth potential) Other Other Based on the rule of 100, we suggest that a prudent person would not have an exceptionally high amount of money “at risk” based on their age. To determine the maximum amount of money you should have “at risk” in the markets, you should follow this formula: 100 – Your Age = Maximum %. So, if you’re 58, then your maximum allocation is 42% (100 – 58 = 42%).The rule of 100 is a general rule of thumb to provide an estimate only; individual circumstances and objectives will vary. Investing involves risk, including the loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any references to safety, protection benefits or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.ADDITIONAL NOTES Tax PlanIN GOOD ORDERTax Plan In Good Order Currently using a tax advisor for pro-active advice Current life insurance will aid in avoiding potential state estate tax Tax buckets established Trust in place to help reduce estate taxes Currently lowering taxable income with contributions Other Other OBJECTIVES ADDRESSEDTax Plan Objectives Addressed Missing tax savings due to lack of management Large % of assets are currently fully taxable Taxes could be a concern on future retirement income Tax deferred assets, including insurance are underutilized for tax planning purposes Tax liability when transferring wealth to beneficiaries may be a concern Other Other ACTION PLANTax Plan Action Plan Meet with qualified estate planning attorney to establish an estate plan Set up an estate plan to help reduce taxes to heirs Develop tax bracket assumptions Consider life insurance to reduce tax liability when transferring wealth to beneficiaries Consider charitable donations Annually discuss with your tax accountant the potential to transfer IRA accounts to Roth Consider using life insurance policy to protect estate and leave tax free money to heirs Other Other Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. ADDITIONAL NOTES Healthcare PlanIN GOOD ORDERHealthcare Plan In Good Order Long-term care policies up to date and in force Annuities include benefits for long-term care Health Insurance covered through work Cash value of current insurance policies sufficient Adequate assets to self-insure Medicare is available Medicare / Medicaid supplemental in place Other Other OBJECTIVES ADDRESSEDHealthcare Plan Objectives Addressed Plan for Long-Term Care not in place Cost of insurance may exceed other potential alternatives Long-Term Care access plan not in place Medicare Need to have a plan for covering expenses not covered by basic Medicare Other Other According to the Employee Benefit Research Institute (EBRI), a 65-year-old couple with median prescription-drug expenses who retire this year will need $168,000 to enjoy a 50% chance of being able to pay all their remaining lifetime medical bills and $270,000 to have a 90% chance.1 ACTION PLANHealthcare Plan Action Plan Craft a comprehensive strategy to help fund any extended health care costs Consider a life insurance and/or annuity policy with LTC benefits included. Discuss plan for Long-Term care with family members Explore Medicaid planning with qualified estate planning attorney Weigh the pros and cons of self-insuring versus purchasing Long-Term Care insurance (some annuities and/or life insurance policies have benefits that can assist with LTC costs) Maximize wealth with LTC products Other Other Additional Notes1Paul Fronstin, Jack VanDerhei.EBRI. May 28, 2020. “A Bit of Good News During the Pandemic: Savings Medicare Beneficiaries Need for Health Expenses Decrease in 2020.” https://www.ebri.org/content/a-bit-of-good-news-during-the-pandemic-savings-medicare-beneficiaries-need-for-health-expenses-decrease-in-2020. Accessed Sept. 21, 2020. Legacy PlanUse a qualified Estate Planning Attorney to provide pro-active advice. We have a network of referrals we highly recommend and can assist you in preparing for that meeting so make sure that you have all the information and questions you need. TOTAL ESTATE VALUEPREVIOUS YEAR FEDERAL TAX BILL Suggested objectives to discuss with estate planning attorney: Discover the most useful means of owning property (transfer on death, etc.) Distribute your estate in a manner that meets your legacy objectives Provide enough money to meet known and expected settlement expenses at death Preserve the assets you have worked hard to accumulate Provide a satisfactory income for surviving spouse Reduce estate and income taxes, administrative expenses, executor’s fees and attorney fees IN GOOD ORDERLegacy Plan In Good Order Beneficiaries are up to date Durable General Power of Attorney in place Revocable Living Trust in place Healthcare Power of Attorney in place Life Insurance in place Will in place Currently using an estate planning attorney for pro-active advice Other Other NEEDS ADDRESSEDLegacy Plan Needs Addressed No formal estate plan Last Will & Testament needs updating Trust Outdated Durable General Power of Attorney not in place Healthcare Power of Attorney not in place Beneficiaries need to be updated Your qualified account(s) may become fully taxable to your children/heirs upon your death Beneficiaries may not be listed correctly on retirement accounts Beneficiaries have the option to receive lump-sum distribution on many of the assets Other Other ACTION PLANLegacy Plan Action Plan Set up a meeting with a qualified estate planning attorney Review / Obtain copies of all beneficiary designations Review / Update Estate Planning documents with a qualified estate planning attorney Work with tax advisor, attorney and our firm to find ways to transfer wealth in a tax efficient method. Consider “Stretch IRA’s” Review & consider re-titling your accounts to include POD and TOD Use a qualified Estate Planning Attorney to provide pro-active advice and review ways to protect your assets from probate Other Other Additional NotesNeither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. By signing below I/we are acknowledging receipt and acceptance of this Retirement Roadmap plan custom- designed by SHP Financial to help me achieve my/our financial goals. I/We hold SHP Financial and its representatives harmless for recommended actions not carried out by me/us. SHP FINANCIAL CLIENT Signature(s) & Date SHP FINANCIAL ADVISOR Signature & Date We are an independent financial services firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This report utilizes and relies upon information shared by the client with respect to the client’s income, expenses and asset holdings. Information is believed to be reliable, but the accuracy of the information cannot be guaranteed.
