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Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Considering Your Retirement AssetsConsidering Your Retirement Assets
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
“…I wish we had a retirement plan that didn’t require matching six numbers.”
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Potential retirement pitfallsRetirement income sources
Longevity riskInflation risk
Asset allocation risk
SOURCE OF retirement income?
Most people need approximately 70% of their current income to maintain their current standard of living in retirement
Most people need approximately 70% of their current income to maintain their current standard of living in retirement
Other 3%
Social Security39%
Pensions19%
Part-timeWork 25%
Personal savings14%
Source: Income of the Aged Chartbook 2002, SSA Publication No. 13-11727, Social Security Administration (September 2004).
Potential retirement pitfallsRetirement income sourcesLongevity riskInflation riskAsset allocation risk
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
*This hypothetical example does not reflect the effects of taxation, fees, and inflation.
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Financial Planning Process
1. Determine where you are going
2. Know where you are
3. Develop & follow a retirement plan
- Set goals & objectives
- Take inventory of existing assets
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Whendo you want to retire?
Whatdo you want to do in
retirement?
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Short-term Payments-
Should not exceed 20% of after-tax income
Mortgage Payments-
Should not exceed 28% of monthly gross income
Combined Monthly Debt Payments-
Should not exceed 36% of monthly gross income
Manage Your Monthly Debt payments
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Will I Need a Lump Sum of Money at retirement?
Repairs to your house
Pay off bills
College tuition
Retirement vacations
Start a business?
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Roadblocks to Retirement Security
Inflation
Taxes
Procrastination
Longer Life Expectancy
Market Risk
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Consider This…
‐ Life expectancy has increased
‐ You may well be retired longer than you work
182125293438
838180797978
656055504540
Average Life Expectancy for Men in 2007
Current Age
Avg Life Expectancy
Additional Years
Source: Social Security Administration
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
SummaryWhere Do I Want to Go?
When will I retire?
What will I do?
How much do I need to live on?
Consider: taxes, inflation, and risk
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Where am I Now?
Taking Inventory
Social Security
Company Benefits
Personal Investments
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
“You’ll find how to live on Social Security over there in the fiction section.”
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Social Security: Then and Now
$1,079.00$22.60
50,000,000<1,000
$102,000$3,000
12.4%2%
1940 Today (2007)
Payroll Tax
Earnings Cap
Beneficiaries
Average Benefit
Source: Social Security Administration
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
DISTRIBUTION Choices:
1. Pay Taxes
Ordinary Income
2. Defer Taxes
Indirect Rollover
Direct Rollover
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Defer taxes
IRA Rollover
No current taxes on distribution
Tax deferral continues on interest and/or dividends
Stock can be sold without current tax liability
Can have numerous investments in rollover account
No probate, with appropriately designated beneficiary
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
TWO TYPES OF Rollover distributions
Direct Rollover Transfer
Indirect Rollover
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Direct Rollover Transfer
Employer sends directly to IRA, new plan or custodian
Simplest method of rollover
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Rollover Process
Step 1:
Fill out company paperwork, request Direct Rollover to avoid Taxes and Penalties
Step 2: •Invest money into various securities
Step 3: •Take distributions when you are ready. Distributions will be subject to taxes and possibly 10% penalties.
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
How Do I Receive My Monthly Income?
IRA
Your Bank
Account
Pension Other Income Social Security
Your Retirement Paycheck
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Regions FinancialCorporate Footprint
1,400 Regions Bank Locations
400+ Morgan Keegan Locations(66 full service and 234 satellites in Regions Banks
20 Regions Insurance Group Locations
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Our firm’s entrepreneurial culture promotes innovation and dedication to serving every financial need of our clients.
• Morgan Keegan & Company
• Founded in 1969 in Memphis, Tennessee• Full service investment banking and securities brokerage firm• Serving the diverse financial needs of individual investors in the
Southern United States and corporate and institutional clients throughout the US and abroad
• 400+ offices in 19 states• Member NYSE, SIPC• Wholly owned subsidiary of Regions Financial Corporation
• Regions Financial Corporation• Among top 10 largest financial services companies in the nation• $140 billion in assets• Over $27 billion market capitalization• 5 million households• 1,400 locations in 16 states• Listed on NYSE (symbol:RF)• Member FDIC• Member of the S&P 100 Index and Forbes’ “Platinum 400” list of
America’s best big companies
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
A Full Service Financial Institution
Retail BrokeragePortfolio
Management Financial PlanningExecutive Services
InsuranceRetirement Planning
Family Office Support
Morgan KeeganPrivate
Client Group
Public FinanceMortgage Finance
Fixed Income ResearchFixed Income Trading
Institutional SalesAsset/Liability Management
Portfolio Accounting
Morgan KeeganFixed Income
Sell-Side AdvisoryBuy-Side AdvisoryFairness OpinionsPrivate Placements
Public EquityCorporate Debt
Equity ResearchInstitutional Sales
Private Equity Funds
Morgan Keegan Equity
Capital Markets
LoansMortgages
LeasesInsurance
Cash ManagementInternational ServicesCommercial Services
Other Banking Services
RegionsBank
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Review current titling of assets to meet client’s estate planning objectives.10. Titling of Assets
Review existing executor/trustee designations.11. Executor/Trustee
Review existing estate planning documents in light of a client’s expressed goals and objectives.
12. Distribution Plan at Death to Spouse/Descendents
Prepare an exercise strategy for qualified and non-qualified stock options. 5. Stock Options
Develop succession plan that meets client’s stated goals.6. Business Succession Planning
Review existing Powers of Attorney.7. Durable Power of Attorney
Establish gifting plans for wealth transfer to heirs.8. Gifting to Children/Descendents
Establish optimal charitable giving plan.9. Charitable Gifting During Life
Process:Issue:
Consider alternative gifting strategies to meet charitable goals.13. Charitable Inclinations at Death
Review current contribution amounts, investment alternatives and plan limits.4. Qualified Retirement Plan/IRA
Review the terms, creditors, collateral, etc., for all debt.3. Liabilities
Analyze existing life, disability, long-term care and liability insurance. 2. Insurance
Provide an asset allocation and portfolio review.1. Investments
Morgan Keegan has identified 13 Wealth Management Issues‐ some of the these may not presently apply to your situation or you may choose to focus on only the most pressing issue at this time.
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Investment Management Philosophy
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
MY Delivery TO YOU:
• Preparation of an analysis of your choices under YOUR retirement program
• Analysis will consider your other assets as well
• Your retirement goals will drive the process
• Investment recommendations premised upon your risk profile and time horizons
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
I believe the most rewarding investment experience comes from making the investor the focus rather than the market. Investors, unlike markets, have goals. We can position your investments relative to your goals, while taking into account the inevitable market fluctuations which will occur along the way. This approach has been shown to increase your likelihood of success.
My Management ProgramMy Management Program
Investor-Centeredvs. Market-Centered
Reason vs. Emotion
Long-term Process vs. Short-term Event
Relational vs. Transactional
MyMy Professional DisciplineProfessional Discipline
Investments based on client’s clearly defined goals,consistent with their values, understood within their total life-plan
Responsive to changes in goals or life events, rather than reactive to market events
Investing and Investment decisions understood withinthe context of a life and a life time rather than a single day or event
Investment decisions based on comprehensive knowledge of theclient and their interests, achieved through ongoing consultation
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
As a Morgan Keegan financial advisor, I have the resources, personnel, and backing of one of the nations largest full service investment firms. It is my responsibility to create, grow, protect, preserve, or utilize your wealth regardless of the prevailing investing environment. I can also help you plan for the distribution of your wealth in a tax‐advantaged way both during your life and beyond. This is done by building a plan specific to your family’s dynamics, hopes, and dreams.
My Commitment to YouMy Commitment to You
Members NYSE, SIPCCopyright © 2005 Morgan Keegan & Company, IncNOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Morgan Keegan & CompanyMembers NYSE, SIPC
50 N. Front StreetMemphis, Tennessee 38103
800-366-7426
Disclaimer: The information and opinions expressed are intended for general information only. Morgan Keegan & Company, Inc. does notassume liability for any loss, which may result from the reliance of any person upon any such information or opinions. Such information and opinions are subject to change without prior notice. The general information is not intended as an offer or solicitation with respect to the purchase or sale of any security or offering, nor is it deemed individual or personalized advice.