CLIENT EDUCATION GUIDE 2016: The 4 Cornerstones of Financial Freedom and Prosperity

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1 CLIENT EDUCATION GUIDE 2016: The 4 Cornerstones of Financial Freedom and Prosperity John T. Halterman, Certified Wealth Strategist, AIF, ChFEBC, RFC, CEP 607 East Pike Street, Clarksburg, WV Phone: Toll Free: jhalterman@bwmwv.com

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3 Financial Freedom and Prosperity Challenge Did you know: 88% of all Americans are worried about maintaining a comfortable standard of living in retirement up from 73% in According to a survey by Americans for Secure Retirement 1

4 The responsibilities of personal finances have shifted. No fiscal education. We live in an instant gratification society. The media and sales people create confusion.

5 Planned Vison, Organization and Management A vision without action is but a dream. Action without vision is chaos. But vision with action can change the world! PLANNING: Determining what you want to accomplish and developing approaches to achieving your objectives.

6 The 4 Cornerstones of Your Financial House Tax Reductions Strategies are the centerpiece at all times 2

7 Monthly Cash Flow Emergencies and Rainy Day Health and Disability Death 21

8 PLANNING TIPS: We recommend a family to maintain 6 months of net income for emergencies. If you become incapacitated, it is important to have a Durable and Medical Power of Attorney in Place Be sure your family s lifestyle is adequately protected Be sure to have an appropriate type of insurance plan 21

9 Education for Child or Grandchild Investment Opportunities Future Business Opportunities Retirement Accumulation 21

10 PLANNING TIPS: Plan your child or grandchild s education through a 529 College Savings Plan, Education IRA, UTMA/UGMA, and Cash Value Life Insurance Take the time NOW to envision how you want to spend your retirement. Average Annual Portfolio Return Summary of Ending Account Balance at Age 65 Assumptions: 25 year-old with $40,000 salary, 40 year investment period, varying rates of return and savings Total Annual Savings Rate (% of Salary ) 2% 4% 6% 8% 10% 6% $123,810 $247,619 $371,428 $495,238 $619,048 8% $207,245 $414,490 $621,736 $828,981 $1,036,226 10% $354,074 $708,148 $1,062,222 $1,416,296 $1,770,370 12% $613,673 $1,227,346 $1,841,019 $2,454,793 $3,068,366 These examples are hypothetical and for illustrative purposes only. The rates of return do not represent any actual investment and cannot be guaranteed. Any investment involves potential loss of principle. 21

11 Income Threshold Income Strategy Rising Healthcare Costs Understand Tax Laws 21

12 Do you have answers to these questions? How much income do we need? When will we need it the most (60 s, 70 s, 80 s) Where will the income come from? How long will it last? What impact will inflation have on us? Do we invest the same as before? Etc 21

13 Maximize Lifetime Savings to Heirs Minimizing Probate and Taxation Basic Essentials Avoiding Probate Asset Protection 21

14 1. Basic Essentials Will Durable POA Medical POA Living Will HIPPA Document Beneficiary Designations Inherited IRA 2. Avoiding Probate Revocable Living Trust Non Qualified Annuities 3. Asset Protection Retirement Trust Irrevocable Trusts ILIT Trust Special Needs Trust 21

15 Our Blueprint Process Securities offered through Cambridge Investment Research, a broker-dealer, member FINRA/SIPC. Investment advisory services offered through Cambridge Investment Research Advisors, a Registered Investment Adviser. Beacon Wealth Management operates independently of Cambridge.

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