Damian Sylvia of Retirement Income Solutions is proud to present "Planning for the Best Retirement of Your Life." To learn more, visit www.RetirementSolutionsNJ.com.

1. This Presentation is brought to you by
Damian Sylvia
220 Monmouth Road
2nd Floor
Oakhurst, NJ 07755
www.RetirementSolutionsNJ.com

2. simple solutions for retirement

3. Housekeeping Matters
Please silence any cell phones
Restrooms are located through the door
in the front where you walked in
The seminar will last about 45 minutes
Please hold your questions until we come
around to your table – we have a lot of
information to cover
You will be offered a free consultation at
the conclusion of this seminar

4. Yesterday
Worked for employer
30 + years
Earned a pension thru
Employer’s Contribution
Earned Social Security
Saved addt’l money to
supplement pension and
social security
Today
Worked for Multiple
Employers
Entitled to little or no
Pension
Earned Social Security
Saved
money through 401K
to supplement
retirement
Saved more of your
own after-tax money
Yesterday vs. Today

5. Yesterday’s Retirement
Your Retirement Income sources used
to be*:
• 1/3 from your personal savings
• 2/3 from Employer and GovernmentPersonal
Savings
Social
Security
PENSION
From
Employer
http://ssa.gov/history/stool.html

6. Today’s Retirement
Your Retirement Income sources1 today:
Social
Security
36. 5 %
Earnings
29.6 %
Asset
Income
12.7%
Pensions
18.5 %
Other
2.7 %
1The above chart represents a breakdown of typical income sources for a current
retiree. Source: Social Security Administration, 2010

7. How Long will
it last?
Could it go
down in value?
Concerned
about running
out of money?
Survivor
Benefits?
Protected if a
health event?
Create a
Pension with
your IRA?
What Does Your Pension Look Like?
Do you have one?

8. • First Started in 1935
• In 1935, you were entitled to receive full retirement benefits at
• Want to guess what the life expectancy was at that time?
Social Security
Did you know?
LIFE
EXPECTANCY
In 1935? 64.5
Today?
Men
78
Women
81
*http://www.ssa.gov/history/

9. Why are so many concerned about
Running Out of Money?
Procrastination
Don’t want to
Face the problem
Hoping someone will
do it for them
Lack of knowledge as to what’s
available
Accumulation
vs.
Distribution
No Plan
for their money

10. Accumulation vs. Distribution
1st HALF of the Game of Life
Accumulation
Possibly Taking Risk
Making Systematic
Contributions to a savings
vehicle
2ND HALF of the Game of Life
Distribution
Reducing or Eliminating
Risk
Systematic Withdrawals of
Money from a Plan

11. Distribution
We Focus on Distribution of Assets
What we do well . . .
• show you how you can create income from your 401K / IRA / TSP.
• show you actuarially how long your money will last at very
conservative rates
• design an income stream that increases each year with the CPI
(consumer price index).
• show you how to do an IRA roll over and create a
for you and your spouse.

12. Case Study #1
Husband and Wife, both age 65.
Asset Amount
Husband’s Pension $ 80,000
Husband’s Social Security $ 20,000
Wife’s Pension $ 5,000
Wife’s Social Security $ 14,000
Wife’s Annuity Income $ 10,000
Total Income $129,000
• Wife has $200,000 in an IRA. She wants to protect her IRA from market loss and create a
guaranteed income stream. She purchases an annuity that produces $10,000 a year income for
life without annuitization. Wife takes income from annuity and buys $400,000 life insurance
policy on Husband.
*denotes income from annuity based on wife’s age 65 with use of a GIBR (Guaranteed Income Benefit Rider) from a A+ rated
insurance company. Based on the full faith and credit of the issuing carrier and is not FDIC insured. **Life insurance premium is $8,000
based on standard rating for Male, age 65, with an A+ insurance company. Withholding $2,000 of the annuity income to fund tax
obligation

13. Case Study #1 (cont.)
Husband and Wife
Asset Amount
Husband’s Pension $ 80,000
Husband’s Social Security $ 20,000
Wife’s Pension $ 5,000
Wife’s Social Security $ 14,000
Wife’s Annuity Income $ 10,000
Total Income $129,000
Now let’s look at what happens if . . .
Husband passes

14. Asset Amount
Husband’s Pension $ 40,000
Husband’s Social Security $ 20,000
Wife’s Pension $ 5,000
Wife’s Annuity Income $ 10,000
Subtotal $75,000
Husband dies at age 75
• Husband’s Pension gets cut in half
• Wife loses her Social Security - she takes husband’s, the higher of the two.
• But did we just lose $54,000 a year? Is that a lot of money?
• How many here today are married?
Retire Now

15. Case Study #1 (cont.)
Husband and Wife (Husband deceased, Wife 65)
If you are married and age 65 . . .
there is a 53% chance that one
of you could
… you can look at your spouse and determine who that may be.
We are in an era today where you could spend more
time IN RETIREMENT than you actually did
working!
*According to IRS code 1.401 (a) (9) 2002 Joint and Last Survivor Table

16. Case Study #1 (cont.)
Husband and Wife (Husband deceased, Wife 65)
So if this could be the case, do you think it might
be helpful to map out your retirement income . . .
so you can eliminate the worry
about running out of money?
… it’s pretty easy if you
• know what to look for
• know the right questions to ask
Let us show you . . .

17. Case Study #1 (cont.)
Wife’s solution to losing $54,000 a year
* Denotes income from annuity based on Sally's age 65 with use of a GIBR
(Guaranteed Income Benefit Rider) from an A+ rated insurance company. Based
upon the full faith and credit of the issuing carrier and is not FDIC insured.
** denotes income 4% withdrawal from hypothetical account.
Asset Amount
Husband’s Pension $ 40,000
Husband’s Social Security $ 20,000
Wife’s Pension $ 5,000
Wife’s Annuity Income $ 10,000
Subtotal $75,000
Income from Life Proceeds ** $ 16,000
Total Survivorship Income $91,000

18. Our Solution is Here
A method to map out your retirement income for life.
Your life and your spouse’s life.
What if he goes first -- today, 5 years, 10 years or 20
years from now? What is her survivorship income
going to look like?
What if she goes first -- today, 5 years, 10 years or 20 years
from now? What is his survivorship income going to look
like?
A plan for each survivorship scenario is essential if you want to
eliminate the nagging worry of running out of money.

19. How it works
We’ve created a simple process.
1.
• Your Social Security Benefit
Statement Pages
2.
• Any pension you or your spouse are
entitled to receive
3.
• Any 401K / IRA / 403B / TSP/ IRA/
Simple IRA/ SEP IRA statements
4.
• Any non-IRA account statements (ie
Bank, Brokerage, Savings Bonds)
We will provide you with our Data Form to
assist you in assembling:

20. How it works
You assemble, we create.
Creating the Income for Life spreadsheet
 Many people say they have never seen this
easy-to-read-and-follow format
 This will start to answer the questions you
have had about where your income will
likely come in YOUR retirement.

21. Case Study #2
Husband and Wife, both age 65.
• Husband and Wife are classic do-it-yourselfers, they manage
their own portfolios
• They have recently gone through his father and her mother
in a Long Term Care situation
• They have no desire to have that repeated in their lives,
watching each of their parents spend down huge sums of
their estates
Let’s look at their financial situation. . .

22. Case Study #2 (cont.)
Husband and Wife, both age 65.
Asset Amount
Income from Assets $120,000
Husband’s Social Security $ 27,500
Wife’s Social Security $ 20,000
Total Income $167,500
• They realize they have enough income - provided they don’t
have to spend down their assets like their parents did.
• They would also like to leave some of their IRA money to
their children.

23. Case Study #2 (cont.)
Husband and Wife, both age 65.
• Apply for a $500,000 Life/LTC Combo Plan each that covers
them for up to $10,000 monthly, tax free LTC benefit*.
• Whatever portion they don’t use for LTC is paid out as an
income tax-free benefit to their named beneficiary.
• This protects each spouse for $500,000 so that they don’t
have to spend their assets down.
• Premiums are fixed and can never go up – and are funded
by Husband’s Social Security.
*Policy provides LTC rider that qualifies under section 7702b of HIPAA.

24. PASSING IRA MONEY TO THE CHILDREN
Understanding the Stretch IRA
Stretch IRA
We are not tax attorneys nor are we giving tax advice.
Please consult your tax professional.
As a non- spouse individual, the
beneficiary of an IRA may take required
distributions over their life expectancy.*
*Using Table 1 Appendix C Single Life Expectancy for
Beneficiaries on page 87 of IRS Publication 590 2011.

25. Case Study #3
Husband age 68, Wife age 65.
They have
never had a
traditional
pension
plan.
They have
paid for
three of their
children to
go to
college.
They are ready
to retire as
they have no
more debt,
both college
and mortgage
are gone.
They have
different
philosophies
toward their
money.

26. • He has $375,000 and figures
he can manage account
himself
• He figures he can withdraw
4% a year for life, wants to
pick his assets
Social Security $24,000
Asset Income $15,000
Total Income $39,000
• He feels he will pass first and
she will get his Social Security
since hers is the smaller
account.
Case Study #3
Husband age 68, Wife age 65.
• She has $400,000 and has no
desire for anything except
safety
• She has found an annuity that
pays her $20,000 a year with
an Income Rider*
Social Security $18,000
Asset Income $20,000
Total Income $38,000
*Income Rider guarantees her $20,000 a year
for her life without giving away her money.
Based on the full faith and credit of the issuing
company. Not FDIC insured.
Husband (Aggressive) Wife (Conservative)

27. Husband’s Social Security $24,000
Wife’s Annuity Income $20,000
Sub Total $44,000
Inherited IRA Income* $10,000
Total Survivorship Income $54,000
*Let’s assume that Husband took distributions from his plan and his
assets decreased to $250,000. Wife receives a 4% return from
a hypothetical account.
WIFE’S SURVIVORSHIP INCOME
Case Study #3 (cond)
Husband age 68, Wife age 65.

28. Caring for a Parent or Child
With Special Needs
• Nearly 1/3 of retirees still have at least one parent living
and that may have a huge bearing as to when and where
we retire.
• Many people may also have a child that has a special
needs situation.
• Often times it is recommended to have a Special Needs
Trust* initiated with specific language that will insure the
person in question is properly cared for.
* Please contact your personal attorney to create a Special Needs
Trust.

29. • Wife has a $100,000 IRA that she can put in a longevity
annuity that will pay her $6,000 a year for life
• Husband is 72 and in average health
• Wife uses $5,000 of her annuity payment ($1,000 is held
for taxes) to purchase a $150,000 life insurance policy on
Husband’s life
• When husband passes, Wife still gets her $6,000 annuity
payment but also receives $150,000 in income tax free
insurance proceeds that could produce $6,000 in
additional income
Using your RMD’s to Create Tax
Free Money
Through Life Insurance

30. Roth Conversion
• Benefits vs. Drawback
• Re-Characterization
Notify Custodian in Writing
File an Amended Tax return
Due by October 15 deadline of year after
the initial conversion
Please check with your tax advisor about your individual
situation, as we cannot give tax advice.

31. • Do you know who your beneficiaries are?
• Have any of your beneficiary’s changed in the
last 10 years?
• Do you do an annual beneficiary audit?
• Supreme Court ruled 9-0 in the Kennedy Case
• What about old life insurance policies, annuities,
bank IRA’s, group life insurance through
employers – all of these have beneficiaries
Beneficiary Forms
Monitoring and Tracking

33. Your Needs,
Goals,
Desires
PLAN
A
Protect Her Money
He Self-Manages
PLAN
B
Protect Her Money
Protect Some of His
He Self-Manages Some
PLAN
C
Protect Some Money
Client Self-Manages Some
Look at Health Care Event
Life/LTC Combo
How We Assist You
Determining Your Needs, Goals, Desires

34. Your Next Step
Letting Us Know If We Can Be Of Help
 Please fill out our evaluation form
 Decide for yourselves if there is an indication of
interest
 If yes, you will receive this special package that
explains the items you would need to bring in for
your complimentary initial consultation
 There is no charge for an initial consultation
if you have attended this seminar
 A staff member will be in the back or will visit
your table to set up an initial consultation.

35. Your Next Step (cont.)
Letting Us Know If We Can Be Of Help
 If you are setting up a consultation today, we would like to
leave you with your
 It contains our folder with
informative reading materials
We look forward to meeting you soon at our office.
 With a packet to help you
organize

36. What To Expect
When you visit us
 We will meet for less than 60 minutes
 We never do business on an initial meeting
 We will discuss your situation
 We will show you on our Flat Screen what you
could expect if we design a plan for you