Insurance
- 1x or 2x is enough?
- Covered only while you work there
- Cost
"Much of my retirement savings is in my current 401(k). I'm 60 but can't do anything until I retire or leave my current employer."
In-service distribution.
"My estate plan is all set; I have a will"
Have fun in probate court ...
Married couple w/ children
"I have a stay-at-home spouse, so I only need coverage on myself."
If your spouse didn't come home tomorrow ...
- are you able to work the same hours/travel. Do you want to?
- do you want control over when you HAVE to go back to work?
- What's it going to cost to hire someone to do all your spouse did at home?
"I'll probably begin social security when I turn 62"
- Also planning to continue working at/after 62?
- Age of spouse?
- Best move, financially?
After a great first meeting with a married couple, you're reviewing their account statements in preparation for the next meeting. You notice they have a bank account and taxable investment that is individually owned ...
No TOD/POD?
Probate
In retirement, I don't need any life insurance
Living benefits?
Social security replacement?
LI is legacy - can spend your assets without worry
Taxable estate?
"I just save as much as I can into my 401(k)"
- Traditional or Roth?
- Company match?
- Age?
- Investment options?
"I have my kids (8 and 11 years old) as beneficiaries of my life insurance and retirement accounts."
Minors cannot inherit assets.
"If I become disabled long-term, I am covered through my employer"
Typical group DI coverage
- 50 to 60% of income (usually base salary only)
- Taxable to you (employer paid)
"I'll be in a lower tax bracket in retirement"
- Lifestyle/Spending?
- RMDs
- What deductions?
Your client, an Illinois resident, has the following:
- $3.5M in assets
- $1M in life insurance death benefit
- Home worth $750k
Do they have an estate tax issue?
Illinois - $4million
- everything they own INCLUDING life insurance death benefits.