1. Life Insurance Retirement Planning A life insurance strategy that helps diversify your taxes during retirement
The conversation: “Pay them now, or pay them later!”
Hello, and welcome. Today we’re going to talk about how your clients can diversify the taxes on their retirement cash flow by incorporating life insurance into their plans. Many people simply contribute to their employer’s 401(k) plan without giving any thought to the income tax ramifications later, when they retire. Although this may not be a significant issue for everyday employees, it can be particularly significant for high-income-earners such as doctors, dentists, attorneys, CPA’s, veterinarians, chiropractors, funeral home directors, and numerous other occupations that tend to produce above-average income for its key employees.
Presenter Title

2. Today’s Focus
Today we’ll learn about income-tax diversification for your retirement savings
By discussing retirement plan taxation during contribution, accumulation and distribution
So that you can offer your high-income-earning clients and prospects a powerful supplemental retirement solution
So let’s look at our overarching agenda for the day. We’ll learn about income-tax diversification for your high-income-earning clients’ retirement savings by discussing retirement taxation during the contribution, accumulation, and distribution stages of retirement so that you can offer these clients and prospects a powerful supplemental retirement strategy.

3. History of Top Marginal Tax Rates
One major issue to consider is overall top marginal tax rates. Here you can see the top marginal income tax rates dating back to From 1933 through 1982 the top marginal tax rates were above 60%. After that point they reduced to near-historic lows, where’ they’ve held pretty constant ever since.
But what about future income tax rates? Many worry that with today’s economic issues, tax rates will need to go up in the future. Let’s talk a little bit about what that means to retirement strategy.

4. Pension Social Security Savings
Sources of Retirement Cash Flow
Let’s begin by discussing how sources of retirement cash flow have changed over the years.
30 years ago, pensions were still widely available, and people stayed with a single employer their entire career, retiring with a solid pension as the flagship component of their retirement cash flow. Next in line was Social Security, which was never intended to provide a full and lavish retirement but, when combined with a Pension Plan, enabled most people to live quite well in retirement relative to their pre-retirement lifestyle.
Personal savings were a very small part of the retirement picture. Because people had so much confidence in their employer’s pension plan, they didn’t feel it was necessary to set aside a lot of their own money. 401(k) plans and IRA’s were in their infancy, so there wasn’t a structure in place to promote personal retirement savings.
Let’s compare that to today. Today, most companies have eliminated their pension plans. Social Security still plays an important role, but isn’t sufficient to provide a retirement lifestyle equivalent to most investors’ pre-retirement lifestyle. However, there’s been an explosion of personally-owned retirement assets fueled by 401(k)s and IRAs. Today investors have become increasingly dependent on their personal savings to support their retirement, and the bulk of that money is in 401(k) plans that subsequently get rolled-over into IRA plans.
Clearly the two sides of this graphic tell a very different story about retirement planning. It means that, 30 years ago, financially secure retirees didn’t have assets to dispose of when they died. Today, successful investors commonly have lots of assets to dispose of at death.
Pension Social Security Savings
Pension Social Security Savings
30 Years Ago
Today 3

5. What has been the secret to success?
Pre-tax/Tax-Deductible Tax-Deferral 401(k), 403(b), 457, Traditional IRA
As people have accumulated this significant wealth in their employer-sponsored retirement plans, what has always been touted as the secret to success?
The idea has always been that you will be in a higher marginal tax bracket during your working years than you will in your retirement years. Therefore, you should contribute to your employer-plan rather than non-qualified assets because, in your employer-sponsored plan, you can have tax-deferral on pre-tax or tax-deductible dollars.
Intrigued by this notion, many employees have flocked to their 401(k), 403(b), 457, and traditional IRA plans to accumulate their retirement wealth. Let’s take a closer look at what that means.

6. What makes pre-tax/tax-deductible tax-deferral work?
Contribution
Distribution
High Tax Rate
Low Tax Rate
Big Tax Deduction/ Reduction
Lowest Possible Taxes
The subsequent slide is identical to this slide, except that it reveals information that is not visible in the current slide, but becomes revealed through the slide animations.
Let’s give a little more thought to what makes pre-tax/tax-deductible tax-deferral work. The basic premise is that, during the contribution phase, you want to be in a high tax bracket so that you maximize the value of your tax deduction / tax reduction on your contribution.
Alternatively, when you begin withdrawing the money during retirement you want to be in the lowest tax rate possible so that you pay very little income tax on the distribution.

7. It worked before. . . Tax rates were high in the 1940’s – 1970’s
Tax rates dropped dramatically in the 1980’s
Lower retirement income meant lower
retirement tax rate
With pensions and Social Security, retirees
didn’t own the assets and, therefore, didn’t
pass them on to their children
Contribution
This slide contains all of the same bullets as the next slide, but they can’t be seen behind the graphic of the historical tax rates. “When played on-screen with the animations, it all makes sense. However, to read the bullets that accompany the narrative below, you need to see the bullets on the next slide. The next slide is hidden from view during the presentation, but can be seen when the presentation is printed.
This concept of pre-tax/tax-deductible tax-deferral worked in the past. When employees were working, and were in the high tax rates that existed in the 1940’s through the 1970’s, their tax deductions were very valuable. Then, when they retired any time after the early 1980’s, they enjoyed taking the income out at a much lower tax rate.
Remember the tax rate graph we talked about previously?
But there’s another issue looming that many investors don’t think much about.
Back in the day when the primary sources of retirement cash flow were pensions and Social Security, retirees didn’t actually own the assets that supported them in retirement. Frequently there were no assets to be passed-on – and taxed – to their children. As such, historically, the beneficiary’s income tax rate was generally not an important part of the equation.
Distribution

8. Will it work now?
401(k) contributors had much lower tax rates from 1980’s through today
Pressure for tax rates to increase
Increasing levels of wealth for financially successful retirees
Because of personal savings in 40(k)s, IRAs, etc., retirees now own significant assets that will be passed to their children
Children’s tax rates are rising, creating significant income tax implications
But today the landscape is entirely different. Because of the historically low tax rates from the early 1980s until today, employees have found themselves in very low tax brackets during their working years. What does that mean about the impact of their tax deduction? That, too, is much less important, relatively speaking.
Meanwhile, due to economic circumstances, there is significant pressure for tax rates to increase. And, because of employer-sponsored retirement plans, financially successful retirees now OWN the vast majority of the assets that provide their retirement cash flow.
For many successful retirees, they won’t spend their entire nest egg. Rather, they’ll pass it along to their children. What does that mean?
It means that the children will be inheriting these assets – commonly while they are in their 50’s and 60’s, which are likely to be their peak income-earning years – and, with increasing pressure for rising tax rates, may end up paying taxes at a much higher rate than the tax bracket their parents were in when they originally took a tax deduction on their contribution.
This virtually turns pre-tax/tax-deductible tax-deferral upside-down! Contributions that defer income taxes expecting lower tax rates on distributions (to the children) are a formula for disaster. Under that scenario, the income tax “leverage” of pre-tax/tax-deductible tax-deferral is lost.

9. Contribution, Accumulation, Distribution
Every dollar put towards retirement goes through three phases:
The bad news is:
You must pay taxes on at least one of these three phases
The good news is:
You get to decide which one
It depends on the investments you choose
Contribution
Accumulation
Distribution
So let’s talk a little bit about this concept. Essentially, every dollar that goes towards your retirement goes through three phases:
The contribution phase, where you put money in,
The accumulation phase, where you grow it, and
The distribution phase, where you take it out.
With regards to those three phases I have good news and I have bad news:
The bad news is that the IRS will require you to pay taxes on at least one of these three phases.
The good news is that YOU get to decide which one. It all depends on the investments you choose.

10. Your assets continue to grow throughout each phase
Successful Investing
In a successful retirement investment strategy,
consistent long-term investment growth means:
Your assets continue to grow throughout each phase
With that in mind, in a successful retirement investment strategy, consistent long-term investment growth means that your assets continue to grow through each phase. Therefore, your contribution should be the smallest, as it grows it should be worth more at the end of the accumulation phase. And with continued growth it should distribute even more.
By way of example,
If you invested $10,000 per year for 25 years from age 40 to age 65, you would have contributed a total of $250,000.
If we assume a consistent 6% growth rate, at the end of 25 years that investment would be worth $581,564 (ignoring taxes for the moment).
If we continued with a 6% growth rate assumption, you could take annual distributions of $42,800 per year for 25 years (from age 65 to age 90) and still not completely exhaust the funds.
Assumptions: $10,000 annual contribution for 25 years. $42,800 distributions for the next 25 years. 6.00% growth rate

11. Successful Investing
If the choice was yours, which would you pay taxes on?
Now that you know the choice is yours – that you can choose to pay taxes on the contribution phase, the accumulation phase or the distribution phase – which would you prefer?
Most people will answer, “I choose to pay tax on the smallest number, the contribution”.
Assumptions: $10,000 annual contribution for 25 years. $42,800 distributions for the next 25 years. 6.00% growth rate

12. Ask yourself: “Which phase would I rather pay taxes on
Ask yourself: “Which phase would I rather pay taxes on?” It’s likely your answer will be: “The lowest dollar figure!”
So you might ask yourself: “Which phase would I rather pay taxes on?”
It’s likely that your answer will be: “The lowest dollar figure!”

13. Successful Investing
Where are the bulk of your retirement assets currently invested?
401(k), IRA
Which phase will you pay taxes on with those plans?
Now let’s think for a moment about where the bulk of your retirement assets are currently invested.
That’s right, they’re in your 401(k), IRA, or some similar kind of plan.
So the big question is this: With those assets, which of these three phases will you be taxed on?
That’s right, the distribution phase. And the tax rate on those funds, especially if they get left to your children in their peak career earnings years, will be taxed at a very high rate.
Is that what you want for ALL of your retirement assets? Do you have too many eggs in one basket?
Assumptions: $10,000 annual contribution for 25 years. $42,800 distributions for the next 25 years. 6.00% growth rate

14. What makes pre-tax/tax-deductible tax-deferral work?
Contribution
Accumulation
Distribution
Traditional Qualified Plan/ IRA Tax Treatment
Non-Taxable / Deductible
Tax-Deferred
Taxable
Your Desired Tax Treatment
Taxable /
Non-Deductible
Tax-Free
This slide is identical to the next slide, except that this slide hides information that is revealed through the slide animations. All of the information is visible on the subsequent slide, and although it’s not readily visible in the PPT except in “slide show” mode, the subsequent slide appears in the printed version.
So let’s take a look at the most common options available.
Many people are accumulating their retirement savings in traditional qualified plans and IRAs. What does that tax treatment look like?
You make the contributions with pre-tax dollars.
The accumulations are tax-deferred, so there are no taxes as long as you leave the dollars in the plan.
The distributions are taxable to the extent of gain. If you didn’t make any non-deductible contributions, your entire balance could be subject to income tax, at ordinary income tax rates (not long-term capital gains rates) when the money is ultimately distributed to you or to your beneficiaries.
And, although pre-tax contributions is good news, you just indicated that you don’t want to pay taxes – nor do you want your beneficiaries to pay the taxes – on your distributions. Your desired tax treatment is to:
Forego the deduction on the front end. That means you pay taxes on your contribution.
Retain tax-deferral on the accumulation.
And take out your distributions income-tax-free.

15. Wouldn’t it make sense to position a portion of your retirement assets to add tax diversification to your portfolio?
So the big question is: Wouldn’t it make sense to diversify at least a portion of your retirement assets so they’ll be taxed the way you want?
Let’s explore the options.

16. Option 1: Roth-IRA Pros Cons Accumulates tax deferred
No tax on qualified distributions
No RMDs for Roth-IRA owners
Income-tax-free inheritance to beneficiaries
Limited amount you can contribute per year
Cannot make-up missed contributions
If your income is too high you cannot contribute
Tax penalty may apply to withdrawals prior to age 59½
RMDs for Roth-IRA beneficiaries
No death benefit for “self-completing”
When it comes to paying taxes on the contribution, and then enjoying the benefit of tax-free treatment on the accumulation and distribution, the first thought that comes to mind for most people is a Roth-IRA. The beauty of the Roth-IRA is that it’s taxed the way you want – on the contribution, not the accumulation or distribution. Another attraction for the Roth-IRA is that you aren’t required to begin taking money out when you reach age 70 ½.
However, stacked up against those two primary advantages are several important disadvantages.
There are limits on how much you can contribute per year. In 2013 you couldn’t contribute more than $5,500 per year unless you were over age 50, in which case you could contribute $6,500.
If you choose to skip a Roth-IRA contribution in any year, you can’t make-up for that contribution in the next year. For example, if you don’t contribute $5,500 in 2013, you don’t get to “double-down” and contribute $11,000 in 2014.
The real deal-breaker for high-income-earners is that, if your gross income is too high (over $188,000 for joint-filers in 2013), you can’t make any contributions to a Roth-IRA at all!
With Roth-IRAs, there are income-tax-penalties attributable to accessing the money in your Roth-IRA account prior to age 59 ½.
Even though you don’t have RMDs as the IRA owner, your children, when they inherit your Roth-IRA, are required to begin taking distributions, and must empty their inherited Roth-IRA account by the end of their life expectancy, according to tables published by the IRS.
With Roth-IRAs, there’s no death benefit. Therefore, if you die before you complete the funding, your beneficiaries simply end up with less money, perhaps far less than they needed, which could leave your heirs financially strapped.

17. Is there another way? Maximum Funded Life Insurance
So if a Roth-IRA can’t give your high-income-earning clients what they’re looking for, is there any other way to do it?
The answer is a resounding “YES”!
I call it “Maximum Funded Life Insurance.”
Let’s talk about how it works.

18. Life Insurance The list of benefits is long and powerful!
Income-tax-free death benefit for beneficiaries*
No defined IRS limitation on premiums*
No limit on gross income affecting your ability to
contribute premiums
Missed premiums may be “made up” at a later time*
Tax-deferred accumulation*
Distributions using withdrawals and loans are
income-tax-free when structured properly*
Access to your values prior to age 59½
Take distributions as needed*
No required minimum distributions (RMDs) for owners
Self-completing upon death
Death benefit exceeds account value
It shares the tax benefits of the Roth-IRA, but also has a long list of advantages, many of which aren’t available in any other financial vehicle that’s offered today.
The death benefits of the policy provide an income-tax-free inheritance to your beneficiaries at the time of your death. So, in addition to everything you withdraw and borrow from the policy income-tax-free, the residual net death benefits are generally paid to your beneficiaries income-tax-free.
The IRS doesn’t impose any annual contribution limit on the amount of premium you can contribute to a life insurance policy. The amount you can contribute is really only limited by your health and your financial circumstances.
As a sub-point to that, keep in mind that, once you purchase the policy, there will be a maximum amount of premium you can contribute based on the amount of death benefit you purchased.
There is no limit on the amount of income you can earn, and still be able to contribute premiums. Unlike Roth-IRA’s, there’s no such thing as “making too much money to contribute.”
With a maximum-funded life insurance policy, you can skip contributions, in part or in whole, and you can make-up for those contributions in the future, essentially “catching up” on your missed contributions. Do remember that you shouldn’t skip a premium if it would cause the policy to lapse or to lose any other valuable benefits.
The policy’s account value grows income-tax-deferred, so no taxes are paid as it grows each year.
* Policy must comply with IRS requirements to qualify as a life insurance contract. Total premiums in the policy cannot exceed funding limitations under IRC Withdrawals during the first 15 years of the contract may be treated as income first and includible in policyholder’s income. If the policy is classified as a modified endowment contract (see IRC 7702A), withdrawals or loans are subject to regular income tax and an additional 10% tax penalty may apply if taken prior to age 59 ½. Distributions will reduce policy values and may reduce benefits. Availability of policy loans and withdrawals depend on multiple factors including but not limited to policy terms and conditions, performance, and fees or expenses.

19. Case Study: Darren Johnson
Age: 40, good health
Occupation: Chiropractor
Annual W-2 Income: $400,000
Targeted Retirement Age: 67 (full Social Security benefits)
Targeted Annual Retirement Savings:
10% of W-2 income = $40,000
Current annual contributions to 401(k): $17,000
Additional annual amount targeted to contribute: $23,000
To give some credence to the many things we’ve discussed so far, let’s put the theory into practice by examining a brief case study.
Let’s talk about Darren Johnson, a 40-year-old chiropractor in good health. Darren’s successful practice provides him an annual income of around $400,000.
As a 40-year-old, Darren knows that his “normal retirement age” for purposes of Social Security benefits is age 67. He enjoys his career, and sees no reason why he would stop working prior to that.
Darren has always been a pretty good saver. He has always maximized his contributions to the 401(k) he created for himself and his employees. But he has always targeted socking away at least 10% of his annual income. 10% of his $400,000 annual income would suggest a targeted savings goal of $40,000 per year.
Darren maximizes what he can contribute to his 401(k), currently investing $17,000 per year, and doesn’t know what to do with the other $23,000 he needs to invest each year to achieve his target of setting aside 10%, or $40,000, per year.

20. Case Study: Darren Johnson
Life Insurance Policy Assumptions (VUL):
Minimum death benefit (Initially $600,000)
Underwriting Class: Preferred
Option B increasing death benefit during contribution phase
Option A level death benefit during distribution phase
Assumed average annual growth rate (gross): 7.00%
Weighted annual average fund expense: .76% (76 bps)
Pay premiums to age 67
Withdrawals and loans for 20 years beginning at age 68
Policy endows at age 100 on a “current assumption” basis
Let’s review how we could help Darren out, using a maximum-funded life insurance strategy.
When using life insurance with a focus on retirement accumulations, protected by the policy’s death benefits, it’s common to structure the strategy with a minimum death benefit. That death benefit is normally significantly more than the annual contributions. In Darren’s case, he can contribute premiums of $23,000 per year if he has a death benefit of at least $600,000. That’s over 25 times greater than his annual contributions, which is the “self-completing” portion of Darren’s plan.
Because of his good health, we’ll assume that Darren qualifies for the “Preferred” underwriting class.
During Darren’s premium-paying years, we’ll use what we call an “option B – increasing” death benefit. This means that Darren’s death benefit will exceed his account value by $600,000 during the entire funding period. At age 67, when Darren stops paying premiums and begins taking distributions, the plan will be “fully funded” and we no longer need to pay the expense of an increasing death benefit. So, at age 67, we’ll change the policy to a level death benefit for the balance of his life.

21. Case Study: Darren Johnson
Life Insurance Policy Non-Guaranteed Values:
Premiums: $23,000 per year for 27 years = $621,000
Illustrated Accumulated Value: At age 67 = $1,334,772
Distributions: $130,000 per year for 20 years = $2,600,000
We’ve talked a lot about “contribution, accumulation, and distribution.” Let’s see what this hypothetical illustration would do.
Total premiums are $23,000 per year for 27 years, totaling $621,000 of aggregate premiums. That’s our “contribution.”
The policy’s “accumulation” is measured by it’s account value at age 67, which is hypothetically $1,334,772. Notice that this accumulated value is well in excess of double the total contributions made (ie: premiums paid).
Lastly, the projected hypothetical “distributions” are $130,000 per year for 20 years, totaling $2,600,000, all of which was received income-tax-free. Also notice that the total distributions are nearly double the age 67 accumulated value.
Take note of this “doubling” effect because we’ll be referencing it again later in our discussion.

22. Case Study: Darren Johnson
Maximum Funded Life Insurance may be
the only way to achieve these results!
Will Darren be glad he paid tax
on the $621k and not the $2.6M?
This slide is identical to the next slide, but the text boxes are overlapped, making them difficult to read. When presenting this slide in “slide show mode,” these text boxes appear clearly, because they show up one-at-a-time due to the slide animations. To read them clearly in printed form, please refer to the next slide. To see the effect, simply run this slide in “slide show mode.”
Here is a graphical representation of Darren’s plan. For visual learners, you can see graphically that Darren’s accumulation is more than double his contribution, and his distribution is nearly double his accumulation.
If this scenario were to actually “play out” this way, do you think Darren will be glad he paid tax on the $621,000 contribution (after-tax premiums) rather than on his distributions of $2.6 million? Mathematically he has taken out, income-tax-free, more than four-times what he put in.
Maximum-funded life insurance may be the only way to achieve results like these. Why? Because of the tax advantages of life insurance.
Assumptions: $23,000 annual contribution for 27 years. $130,000 distributions for next 20 years. 7.00% growth rate

23. Now, let’s tell the story…..
Contribution – Accumulation – Distribution “The Napkin Sale”
Now that you have an understanding of the nuts-and-bolds of how maximum-funded life insurance can work, let’s talk about how you can convey this message to a client on a legal pad, white-marker-board, or even a cocktail napkin!

24. $5 $10 $20 Additional Benefits: Self-Completing at owner’s death
No set limit on contributions1
Pre age 59 ½ access
No income tax or penalty tax2
Catch-up on missed contributions
No RMDs for owners
No RMDs for beneficiaries $5
$10
$20
To get the conversation started, I simply write $5, $10, and $20 on the corner of the napkin or piece of paper. I then tell my prospect that this represents their retirement plan. (Remember how we just noticed, in Darren’s case study, that the accumulation was more than double the contribution, and the distribution was nearly double the accumulation?)
I go on to tell them that every dollar of their retirement goes through three phases: the contribution phase, the accumulation phase, and the distribution phase. For purposes of our conversation I’m going to represent the contribution phase with the $5, the accumulation phase with the $10, and the distribution phase with the $20.
Now, as pertains to these three phases, I have good news and I have bad news:
The bad news is that the IRS will require you to pay taxes on at least ONE of these three phases.
The good news is that the IRS doesn’t dictate which one it will be. They leave that decision up to you, based on the investments you choose.
Now that you know the choice is up to you, please circle which one of these three you’d prefer to pay taxes on! This literally never fails. People tend to circle the $5 contribution.
To that I respond with: Well, isn’t that interesting. Allow me to ask you a question: where is the bulk of your retirement assets currently invested?
Most will respond that the majority of their retirement savings is in their employer-sponsored plan (401(k), etc.).
To which I respond: And which of these numbers is going to get taxed on those assets? They, of course, recognize that they’re going to pay tax on the $20 distribution.
If you had access to a retirement strategy that provided you with the tax
treatment you want, and you could put in as much money as you want,
how much would you put into a plan like that every year?
Where are the bulk of your retirement assets currently invested?
Which of the numbers above is going to get taxed?
Wouldn’t it make sense to diversify a portion of your portfolio?
The Bad News: You must pay tax on one of these three
The Good News: You get to choose
Policy must comply with IRS requirements to qualify as a life insurance contract. Total premiums in the policy cannot exceed funding limitations under IRC 7702.
Assumes the policy is not a Modified Endowment Contract Withdrawals during the first 15 years of the contract may be treated as income first and includible in policyholder’s income.

25. What is this incredible tool?
It’s a life insurance policy!
So what is this incredible tool that can do all of this for you?
It’s a life insurance policy!
At that point you can, of course, digress into additional conversations about how to structure this plan for someone like Darren, the chiropractor, as well as for other employees in his company.

26. Today’s Focus
Today we’ll learn about income-tax diversification for your retirement savings
By discussing retirement plan taxation during contribution, accumulation and distribution
So that you can offer your high-income earning clients and prospects a powerful supplemental retirement solution
So let’s reflect back on what we set out to do during our time together, and see if we achieved our goals.
We said that today we would learn about income-tax diversification for your retirement savings
by discussing retirement plan taxation during contribution, accumulation, and distribution
so that you can offer your high-income-earning clients and prospects a powerful supplemental retirement solution.
Would you agree that we accomplished what we set out to do? I think so!
So where do we go from here?
You need to tell the story.
But to who? ? ?

27. Target Audiences Doctors Funeral Home Directors Dentists
Successful business owners
Attorneys
CPAs
High-income business executives
Chiropractors
Veterinarians
Look at your existing clients, as well as local business professionals, in the following areas of business, and create an opportunity to deliver this simple napkin story as an additional solution in their overall retirement planning strategy. Think about:
Doctors
Dentists
Attorneys
CPA’s
Chiropractors
Veterinarians
Funeral Home Directors
Successful business owners
High-income business executives
How many of these peoples’ offices do you drive past everyday? How many are NOT currently your clients?
This story can get you in front of these very desirable clients and prospects. And once you show them what you can do for their retirement plan, you have the chance to gather up and manage all of their other assets.
And who do these high-income-earners hang out with when they’re not working? That’s right. . . other high-income-earners! That’s a referral network you’d love to have!
So how do you make it happen? Invite them for a cup of coffee. Tell them that you specialize in providing a broadly available but seldom discussed tax-advantaged retirement solution specifically designed for people with six-digit annual incomes. Tell them that it will only take 5 minutes for you to describe to them how it works and, if they’re interested, you can talk longer than that. It’s up to them.

28. Questions or Comments
I know that was a lot of information to cover in a relatively short amount of time. . . Does anyone have any questions?

29. The conversation: “Pay them now, or pay them later!”
A life insurance strategy that helps diversify your taxes during retirement
Thank you for joining us for today’s discussion about “Diversifying Taxes During Retirement with Life Insurance.” I hope you learned some valuable ideas you can use to build your business while helping your clients and prospects achieve new levels of retirement confidence and security.
The conversation: “Pay them now, or pay them later!”

30. Important Information
Policies issued by American General Life Insurance Company (AGL), a member of American International Group, Inc. (AIG)
The underwriting risks, financial and contractual obligations and support functions associated with the products issued by AGL its responsibility. Guarantees are subject to the claims-paying ability of the issuing insurance company. AGL does not solicit business in New York.
Policies and riders not available in all states. Keep in mind that American General Life Insurance Company and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Individuals should seek the advice of an independent tax advisor or attorney for more complete information concerning their particular circumstances and any tax statements made in this material.
©2014. All rights reserved.
AGLC
Here are some important disclosures pertinent to today’s discussion. Please take a moment to read through this important information.

31. Life Insurance Illustration
Appendix
In the appendix below you will find the pages of an illustration that support the numbers used in the hypothetical for Darren Johnson used in this presentation.
Life Insurance Illustration