In the first phase of retirement planning, the emphasis is on accumulation as our clients strive to build the foundation of their retirement portfolio. Many investment and financial vehicles are used to accomplish this objective—some tax-qualified and others non-qualified.
So when an individual reaches the second phase of retirement planning—distribution—many choices emerge for providing a stream of income, including IRAs, 401ks, 403bs and deferred annuities. However, these solutions can have tax consequences when there are substantial gains over basis. For many, these funds are the last to be utilized for retirement income because of these tax consequences.
The other two issues we must consider are extended care and legacy. For many, extended care, or long-term care, is a consequence of longevity and with it brings a heavy price on not just the individual and the retirement plan, but on their family’s health and finances. For many advisors a recommendation of “self-insuring” has been an accepted protocol.
But what if there was a way to mitigate the risks of an extended care event by leveraging non-income-producing assets? In addition, what if the unused funds that were earmarked for LTC could be passed on to the family at death?
This is how asset-based LTC works. It has many advantages including:
The type of asset that funds the plan determines the best product solution. OneAmerica’s portfolio was developed to leverage the benefits while minimizing tax burdens.
The LTC Planning department can assist you in identifying the best solutions for your clients.
With SMS LTC Planning, you don’t have to be an expert to be professional.