Wealth Preservation and Retirement Planning.
Newsletter Contents:

3. ROI

Please visit our social sites for more...
View our profile on LinkedInLike us on FacebookFollow us on TwitterFind us on Google+Visit our blog 
It Pays To Know.

Our business is a business about serving others. It is this aspect of our business that is most gratifying for us. The reason we offer this newsletter is to share what we believe you will find interesting, helpful and worthwhile. The things we find interesting may not always be about succession planning or retirement strategies. For example, one of our clients introduced us to a company that is revolutionizing the concept of wheel chairs. Matia Robotics creates devices that allow disabled people to get around in an upright position, like a Segway. For those confined to traditional chairs, this can be life changing. Pass this along to anyone who might benefit.

In The News:

Words do matter. A few critical termsWordsMatter needing clarity:

Permanent Life Insurance. Coverage that provides protection for your entire life, or as long as you want, is known as permanent life insurance. Whole Life, Universal Life, Guaranteed Universal Life and Variable Life are all forms of permanent life insurance. Each one stays inforce until 
you decide to drop the coverage. You will never have to re-qualify or prove insurability once the policy is issued. Some permanent products build up cash value, some do not. Some permanent products have fixed premiums, some have flexible premiums. 

Term Insurance. Term products are designed only to  provide coverage for a specified period of time, 1-35 years. The rates are guaranteed and the policies do not ever build up a cash reserve. As you get older, the duration of term insurance you can buy is reduced. For example, a 30 year old can buy a 35 year term policy. A 55 year old cannot. More than 95% of term policies never pay a claim because they are not inforce at time of death. 
What Would You Do?WhatToDo

Try this simple word problem to understand the differences between permanent and term:

You have run out of gas on an unfamiliar road. You don't know for certain what lies ahead but you need to get at least 100 miles to reach EZ Street. Good news is that you have run out of gas pulling into a station with two pumps. Bad news - you only have $5 for the rest of the trip, including for gas. 
Pump A costs $2 to go exactly 100 miles, no more. Pump B costs $5 for the 100 mile trip and has a reserve to go a little further, if necessary. Whichever pump you choose, A or B, you cannot switch in the future.
Before deciding on Pump A or B, there's a catch. 
Once you've reached EZ Street, if you wish to keep going, there is no certainty  Pump A will have gas. In fact, it is most likely to not have gas. If it does, the cost for Pump A is a buck per gallon while pump B has all the gas you want at 10 cents per gallon. 

Which pump is best, for you?

The Best 'Things to Do' List
The Last One You'll Ever Need.

One day, you will find this planning tool to organize the 'end of life' loose ends to be the most comprehensive document of its kind. Email Ted and we'll send you a PDF right away. Or call Deborah at 561-988-8984 x2.

Ask for  the Checklist.

ROI = Reliability Of IncomeROI

Would you create guaranteed income for life  without taking any risk? The New York Times  suggests you can:

"Consider an  annuity"...  [you] will always have enough to cover essential living expenses, no matter how long [you] live or how badly [your] investments perform."

The key to this statement is "no matter how long [you] live or how badly [your] investments perform." The annuity contract provides  downside protection for the two biggest risks we face in retirement. The risk of living well beyond life expectancy and poor investment performance is a lethal combination. With the right income producing contract, both of these risks can be mitigated to nothing. Think of this as sleep insurance.

The principal is protected while you receive guaranteed income for life. The amount of income increases and will not level off until you begin to draw a paycheck from the contract. 

These contracts are not popular among stock brokers and wealth managers who receive annual commissions and fees from your retirement assets. When you buy principal protected contract from an insurance company, you take assets away from a company that is earning annual compensation on those assets.  With indexed annuities, NO commission is paid from your assets. Commissions are paid by the insurance company, from their balance sheet, not your investment.

No other solution offers 100% principal protection, market gain participation, tax deferral, favorable taxation on distribution, liquid from day one and no commissions paid from your account.

 Is it for you? Consider this:
  1. Do you have retirement assets and want dependable, predictable results for life? 
  2. 100% principal protection; no losses.
  3. Single?
  4. Seeking safety that is built entirely on guarantees?
  5. Demand transparency, disclosure and regulated products?
  6. Want the maximum amount of guaranteed income?

More is better when it comes to retirement income. The number one goal with retirement assets is converting them to the maximum guaranteed income for life. This concept is finally beginning to receive mainstream attention by economists and professors at the major retirement centers across the world. Neither  market fluctuations, economic conditions, real estate valuations or Geo-political threats can threaten your income from these contracts. Everything is guaranteed.

If you would like to discuss this with us, please email Ted Bernstein or call us directly at: 561-869-4500


Why Wealthy People Buy Life Insurance For Life.

Even the wealthiest families with the most sophisticated plans are relieved when there is an infusion of cash at death. The death of a mother or father is hard on families and uncertainty can make things even harder. Estate assets may not be easily be liquidated. Or, the time might not be optimal to liquidate them.  Life insurance proceeds provide a stabilizing liquidity cushion that helps make the best decisions possible.

Income replacement. If one is earning consistent income at the time of death, insuring that loss is always helpful. We have many high income earning clients with significant wealth who purchase insurance to replace their income. If their income were to stop suddenly, it could create immediate pressure for their family, their business, or both.

Wealth transfer.  There may be elaborate estate plans in place. Even in those cases, an injection of insurance proceeds is helpful to the family counselors to carry out the plans. If the planning goal is to treat heirs equally and minimize post death anxiety until the distributions of assets is made, there is nothing like life insurance to ensure a smooth transfer and equalize amounts.
"Whole life is more expensive than term."WholeLife

Is it?

Permanent insurance builds Cash Value in the policy. The more cash value a policy creates, the better it is. The real cost is the total premiums minus the cash value, or the net cost. 

Term insurance builds nothing. Its net cost is the sum of the premiums paid. It has no intrinsic value. Before buying a life insurance policy, do a net cost comparison. 

Call Deborah Bernstein at 561-988-8984 to arrange a discussion with us or to receive a free quote. Or, email Deborah.

Answer just one question to learn which policy is right for your needs:Question

Do you want coverage for life?

No. When you're certain that you need coverage only through age 65, you are a term insurance buyer. Some people have no interest in leaving insurance to a spouse or children once they have reached age 65. One example is that you may be single with grown children who will not be economically affected upon your death. Owning a permanent policy for life is not necessary in this case. A  No answer means you don't feel you have the  need for a policy for life.

Maybe. If there is a chance you may need coverage in the future, a maybe answer means you are a permanent insurance buyer. Interestingly, this is the response I hear most often and it makes perfect sense. Our lives change from age 35 to age 60 and those changes often impact life insurance planning decisions. How much, what type, for how long and what are the differences of each? These are tough questions for people to tackle alone. Considering and owning life insurance touches on many complex issues such as asset protection, retirement planning and succession planning. If and when you become more certain, a permanent policy will provide you with the most options. 

Yes . You are a permanent life insurance buyer when you know you want a life insurance policy for life. The type of permanent policy to own depends on several factors. Only a life insurance professional should help you decide between Whole Life, Universal Life, Indexed Universal Life, Guaranteed Universal Life, Variable Life or a combination of these. Permanent life insurance is an amazing financial services tool. It's bad rap is not warranted. It offers asset protection, tax deferred growth, protection from creditors (business and personal), guaranteed returns, retirement income, dividends, favorable tax treatment for withdrawals and it is income tax free to your beneficiaries. 

Buying the wrong policy, especially the wrong term policy if you are a term buyer, can be costly. There is a growing number of term insurance buyers who mistakenly purchased a 10 or 20 year policy in their 30's and 40's. At the time, they wanted coverage until they reached retirement or their kids were financially secure. The term insurance has termed out or it is expiring with no good options. Now, in their 50's and 60's, they want life insurance protection for life or for another 10 or 20 years. It is either too costly or unavailable due to health reasons, or both. 

There are options if you find yourself in this category. The sooner you explore them, the better.  Call either Deborah Bernstein or me to arrange a discussion. We can be reached at 561-869-4500.

RulesThe 10 Rules  for Retirement Assets
  1. Principal Protection - No Losses, ever
  2. Minimal or No Surrender Penalties
  3. Guaranteed Lifetime Income
  4. Low Fees
  5. Risk Adjusted Performance
  6. Inflation Protection
  7. Tax Deferral
  8. Strongest Guarantors
  9. Maximum Flexibility
  10. Avoid Probate
Please visit our social sites for more...
View our profile on LinkedInLike us on FacebookFollow us on TwitterFind us on Google+Visit our blog 
Heart Attack & Stroke

Critical Care Coverage!

Are you aware of protection that pays a LUMP SUM upon diagnosis for the medical problems that worry us most. Coverage is now available for each of the 3 or they can be combined into an inexpensive package; all from the country's largest health insurance carriers. The rates are guaranteed.

Call Deborah Bernstein at 561-988-8984 x2 for an overview of these plans and a free quote. Or email Deborah.

Protect Your Online Assets.

Ask your estate planning attorney about RUFADAA - new laws in several states that allows your estate fiduciary to manage, and access, your digital accounts. However, they must properly consent. As this is not a Federal law, it is important to speak with an attorney who can properly update your documents. Referred to as "the most important law you've never heard of."
Ted & Deborah Bernstein
Life Cycle Financial Planners
 tb@lifecycleplanners.com| 561-869-4500 | Life Cycle Planners
Newsletter Contents:

3. ROI