Primerica, Inc. · NYSE:PRI
Primerica — Primerica webinar May 2015
19 slides from Primerica's conference presentation, May 2015
Slide 1: Investment risk disclosure
All Investments involve risk, including possible loss of principal. Your clients should carefully consider a fund’s investment goals, risks, charges and expenses before investing. They should carefully read the prospectus before they invest or send money. To obtain a prospectus, which contains this
Slide 2: Social Security: Key Concepts & Sophisticated Strategies to Maximize Benefits
Gail Buckner CFP®, CRPS National Financial Planning Spokesperson Social Security: Key Concepts & Sophisticated Strategies to Maximize Benefits Dealer Use Only. Not for Distribution to the Public.
Slide 3: What is “Social Security”?
2 What is “Social Security”? A Government-Guaranteed Inflation-Adjusted Lifetime Annuity Dealer Use Only. Not for Distribution to the Public.
Slide 4: Help, It’s Fallen and It Won’t Go Up!
3 Help, It’s Fallen and It Won’t Go Up! OASDI Income, Cost, and Expenditure as Percentages of Taxable Payroll Cost: Scheduled and Cost: Scheduled but not payable benefits. fully payable benefits. Payable benefits as % Income of scheduled benefits: Expenditures: Payable benefits = income after trust
Slide 5: SS Is Not at a “Fiscal Cliff”
4 SS Is Not at a “Fiscal Cliff” “For the 75-year projection period, the actuarial deficit is 2.88 percent of taxable payroll, 0.16 percentage point larger than in last year’s report.”1 2014 Social Security Trustees Report “The shortfall is manageable but…action should be taken soon to avoid larger t
Slide 6: These are totally separate decisions!
5 “Two of the most important decisions people make are when to stop working and when to claim Social Security benefits. These decisions have lasting consequences for the financial security of retirees and their spouses.” — Virginia Reno Vice President for Income Security National Academy of Social I
Slide 7: Think Carefully About When to Begin Benefits
7 Think Carefully About When to Begin Benefits Monthly Benefit $1,800,000 Start at Age 70 $1,440,000 Start at Age 66 $1,080,000 Start at Age 62 $720,000 BOTTOM LINE: If you expect to live to average LE or longer, $360,000 you come out ahead by delaying. $0 62 68 75 81 88 94 Age Social Security Benef
Slide 8: Timing Is Everything!
8 Timing Is Everything! 601 62 65 66 FRA2 70 Earliest age Earliest age Sign up for • 100% of own benefit (PIA) Latest age to receive to claim own Medicare • 50% spousal benefit to file (reduced) or spousal widow(er) (reduced) benefit • 100% widow’s benefit benefit • Option to “file and suspend” • Op
Slide 9: It’s All in the Family- Meet the Diggers
9 It’s All in the Family- Meet the Diggers Clem & Goldie have three children. CHALLENGE Two of them are from her ■ Clem’s second hip surgery was previous marriage. a wake-up call. He decided to Clem finally retire from a lifelong career AGE ► 64 as of June 15th, 2014 in advertising. CAREER ► Partner
Slide 10: It’s All in the Family- Meet the Diggers
10 It’s All in the Family- Meet the Diggers The Full Retirement Age (FRA) for Clem Digger is 66 WHAT ARE Monthly benefit at FRA: THE Clem: $2,200 OPTIONS? Clem files for Social Security to begin the month he turns 64: $1,906/month Goldie’s benefit: $412/month Clem, Jr. Benefit: $412/month Matt’s ben
Slide 11: Social Security for Unequal Earners
11 Social Security for Unequal Earners Bob & Carol have been married for CHALLENGE 40 years. ■ Between Bob’s teaching job and income from other sources, they have Bob more than enough money to cover their AGE ► 66 as of January core living expenses. CAREER ► Several big-name technology firms. ■ Bob
Slide 12: Social Security for Unequal Earners
12 Social Security for Unequal Earners The Full Retirement Age (FRA) for both Bob and Carol is 66 WHAT ARE Monthly benefit at FRA: THE Bob: $2,000 Carol: $700 OPTIONS? Carol files based on her own work record: $525/month Carol files for spousal benefits based on Bob’s work record: $0/month Bob files
Slide 13: Social Security for High-Powered DINKS
13 Social Security for High-Powered DINKS Ted & Alice pursued well-paying careers. CHALLENGE ■ Ted and Alice would like a couple of thousand dollars a month in extra Ted income so they can afford to take some AGE ► 66 major trips while Alice is still physically able to do so. Additionally, they want
Slide 14: Social Security: More Options at FRA!
14 Social Security: More Options at FRA! The Full Retirement Age (FRA) for both Ted & Alice is 66 CHALLENGE WHAT ARE Monthly benefit at FRA: Alice: $2,5001 THE Ted: $1,800 OPTIONS? Option A2 Today Age 70 Age 78 Option B2 Today Age 70 Age 78 Alice files to “restrict the Alice begins Social scope of h
Slide 15: Social Security & D-I-V-O-R-C-E
15 Social Security & D-I-V-O-R-C-E Warren is a self-described artist. He is divorced from Joanne, an attorney, after 12 years. Warren HEALTH ► The years have taken their toll on Warren—who looks a lot older than 59 CAREER ► 16 years as a motorcycle mechanic which provided 40 quarters of Social Secur
Slide 16: Social Security & D-I-V-O-R-C-E
16 Social Security & D-I-V-O-R-C-E Warren will be 59 in 2013 The Full Retirement Age (FRA) WHAT ARE THE for Warren is 66 + 4 months CRITERIA? Years of marriage needed to collect on ex-spouse’s work record: 10 Minimum length of divorce: 2 Years Maximum benefit: 50% of ex-spouse’s benefit Earliest age
Slide 17: Social Security & Widows
17 Social Security & Widows1 Warren will be 59 in 2013 The Full Retirement Age (FRA) WHAT ARE THE for Warren is 66 + 4 months CRITERIA? Years of marriage needed for widow1 to 9 months, collect on deceased spouse’s work record: however there are exceptions Earliest age widow can file: 602 Maximum ben
Slide 18: Resources
18 Resources Social Security www.ssa.gov • Social Security Retirement Benefits Brochure • Benefit Calculator • Life Expectancy Calculator • Benefit Reduction Based Upon Age • Windfall Elimination Calculator • Government Pension Offset Calculator Franklin Templeton www.franklintempleton.com (Advisors
Slide 19: Franklin Templeton Distributors contact
Franklin Templeton Distributors, Inc. One Franklin Parkway San Mateo, California 94403-1906 franklintempleton.com Dealer Use Only. Not for Distribution to the Public. © 2014 Franklin Templeton Investments. All rights reserved. RSS FAPPT 08/14