Pre Retirement / Retirement

 What's the Retirement Opportunity?

Today's retiring boomers are facing unprecedented challenges. Not only do they have to fund a retirement that may last 20-30 years, they must protect themselves from the potentially devastating effects of medical and long-term care expenses that can accompany today's longer life expectancies. And many often have to do it without the  benefit of an employer pension.

 The Paradigm Shift

The paradigm shift occurring now is taking us beyond the concept of saving and accumulating enough money. It's requiring people to become more responsible with how they handle that pool of money and answering the question:
"How do we use the money we've saved to make it an income that lasts a lifetime?"

We have to help adjust the current mindset, help them understand the need to not only have enough income, but to make it last a lifetime:

• Turn Assets Into Income;
• Manage Risk, Not Just Money; and
• Make the Most of What You Have.

Our clients' need for a retirement safety net is more than a great opportunity for us—it's a responsibility we must assume.

Plan of Action

We at MetLife are in a position to offer the assistance they need. Our knowledge and years of expertise can help provide the education and support they seek, while our available products can help support their goals.

We can achieve these objectives by focusing on, educating clients about, and promoting the following financial strategies:

Social Security - Guaranteed Income for Life

Medicare/Medicaid - Does Not Cover All Aspects of Health and Long-Term Care

ROTH IRA CONVERSION

In 2010 all individuals (regardless of income) were  allowed to convert their traditional IRA or qualified retirement plan to a Tax-Free Roth IRA. Individuals, including many of your existing clients, will be seeking your guidance on what they should do. While the 2010 two year tax-spreading opportunity is no longer available, a new one exists starting in 2011: the Small Business Job Act of 2010 allows participants in 401(k), 403(b) and governmental 457(b) plans to make in-plan Roth conversions of their pre-tax employee contributions.

Click here for the newly updated FAQ regarding MetLife's annuities and Roth IRA Conversions.

IRAs

The federal government established Individual Retirement Arrangements (IRAs) to encourage people to save for retirement. Depending on the type of arrangement, you or your employer (depending on the type of IRA), may set up the IRA at a financial organization such as a financial services firm, bank, credit union, or savings and loan institution.

IRAs allow you to invest your money and let it grow tax deferred, and in some cases tax free. Deferring the payment of taxes on your earnings is a tremendous advantage to you because all of the money that would have been paid as taxes can continue to grow in your retirement plan year after year.

This booklet provides an overview of the various types of IRAs and how you might use them to build financial freedom. It is not intended to give specific tax advice. You should consult your tax professional regarding your own individual situation. Depending upon your circumstances, you might elect to set up any of the following five Individual Retirement Arrangements:

Traditional IRAs contributions may be tax-deductible (your IRA contribution deduction may be reduced or eliminated if you or your spouse is an active participant in a qualified employer retirement plan and your modified adjusted gross income for your filing status exceeds certain thresholds for the year). Tax-deductible contributions will be deducted yearly and will not be taxed on the money invested—or the gains on that money—until you withdraw the funds, usually at retirement. Non-deductible contributions are also permitted. If you withdraw funds before age 59½, a 10 percent tax penalty may apply. Withdrawals will be taxed as ordinary income.

Roth IRA contributions are made with after-tax dollars, meaning you cannot deduct them from taxable income. Withdrawals are generally free of income tax, provided you withdraw Roth IRA funds after the qualified distribution 5-tax-year holding period and satisfy one of the other requirements (e.g., withdrawals occur on or after the Roth IRA owner reaches age 59 1/2 or the owner's death).

Spousal IRA contributions can be made for a spouse who does not work or does not have sufficient compensation (or earned income).

Education IRA (now referred to as a Coverdell ESA) contributions made with after-tax dollars will grow tax-deferred in an education savings account for an under-18 beneficiary and distributions for qualified education expenses are tax-free.

IRA-Based Employer Retirement Plans. In addition to IRA plans that an individual might set up, some employers may have established IRA-based retirement plans for employees. Employer contributions to these plans enhance retirement savings at no cost to the employee. IRA-based employer retirement plans offered by some employers include the Simplified Employee Pension plan (SEP-IRA) and the Savings Incentive Match Plan for Employees (SIMPLE IRA).

Social Security