Identify and address financial planning opportunities at milestone ages.
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Taking the time to offer smart retirement planning strategies to clients and prospects in their 50s,
Milestone Marketing® can help you identify and address key retirement planning issues through the decades.
This age-based opportunities program provides you with
Clients and prospects in their 50s may be in their last decade of being able to accumulate assets for retirement. It is also an important time for them to consider a retirement income strategy, especially if they are looking to retire early.
Call all of your
Opportunities to target include
“I want to make sure we do all we can today to add more to your retirement plans so we have more to work with when you retire. Let’s take a look at your catch-up contribution opportunities.”
Affluent clients considering retiring early could potentially use Separation from Service after Age 55 to withdraw assets from their 401(k) plan and pay only ordinary income tax on the amount withdrawn with no penalty.
“Before you decide what to do with your retirement plan, let’s make sure your CPA, your attorney and I review what’s in your plan and when and how you plan to use your funds. We want to make sure we help you avoid unnecessary taxes or penalties.”
Let clients and prospects know they can now withdraw assets from retirement plans without a 10% penalty from the IRS. Invite them in for a retirement income planning session.
Opportunities to uncover may include
“You’re approaching a key milestone in terms of retirement planning, and there are interesting options allowed by the IRS. I’d like to get together with you and your tax advisor to review what this means to you and make sure we’re on track for helping you meet your retirement goals.”
Your clients in their 60s now need to understand the importance of building a distribution strategy to maximize income in a tax-efficient way.
62 is the age most individuals start taking Social Security benefits. However, clients who take advantage of this date will receive a 25% permanent benefit reduction. Be sure to call clients several months in advance of their 62nd birthday to alert them to the reduction, as well as Social Security taxation and limited distribution strategy consequences.
Opportunities to target may include
“You’re approaching the age
Make sure your clients sign up for Medicare on or before their 65th birthday.
Some opportunities to consider:
Send a birthday card three to four months before each client’s 65th birthday. Include a note that says, “Happy early 65th birthday. Your Medicare enrollment clock is ticking! Let’s meet to make sure you know what this means for you.” Or call and say, “This is a big birthday in terms of retirement planning. Let’s meet for lunch to review what’s coming up.”
First-wave boomers (those born from 1943 to 1954) are eligible for full Social Security benefits at age 66.
Some opportunities to consider:
“Now that you have decided to begin taking your Social Security benefits, I thought it would be a great time for us to review your retirement income strategy with your CPA. We may have to make adjustments to account for the taxation of your Social Security benefit.”
Tax-efficient income distribution becomes paramount when clients are in their 70s. At this time they may also want to discuss their beneficiary designations and consider their legacy strategy.
At age 70 Social Security maxes out. This is your last chance to help clients reposition assets before required minimum distributions (RMDs) begin. Once RMDs begin at 701 /2, strategies for tax-efficient management become more limited.
Opportunities to pursue now include
Call clients several weeks before their 70th birthday and say, “This is a major milestone, and I would love to celebrate it with you. How about a birthday lunch next week?” Encourage them to invite a friend or two. (If a client’s plan is to wait until he or she turns 70 to begin Social Security benefits, make this call six months prior to his or her 70th birthday to review the current income plan.)
Make sure your clients are aware of the RMDs from their traditional IRAs and perhaps other retirement plan accounts. Help them avoid the high price of failing to take their RMDs — a 50% tax penalty on the amount that should have been taken. You, your clients and their CPAs will need to determine the aggregate RMD from their traditional IRAs.
Some clients will be required to take an RMD that is more than they need.
Consider using the
“Happy early half-birthday! You have a major milestone approaching at 701 /2. That’s the age that the IRS makes you start taking required minimum distributions. I’d like to suggest we meet to make sure you’re on track to start taking your required IRA
Comprehensive retirement income planning support material is available for you. Call MFS at 1-800-343-2829.
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