As times change, Social Security lessens and people continue to live longer, your clients strive to find new ways to maximize their funds. Some are able to simply save enough in retirement and live happily ever after. They own enough assets that they’re able to live well above their means. These individuals and couples are looking to pass their wealth down in the most tax-efficient way possible.
Of course not all have that luxury.
In a 2013 survey, Bankrate.com established that more than 50 percent of Americans are saving the same for retirement as they were last year and 17 percent say they’re saving less than they did one year ago. With each passing year and the potential for inflation, it’s important to save more to ensure comfortable retirement living and the ability to transition wealth to the next generation.
The old strategy involved throwing large sums into CDs and waiting for it to slowly increase. Another strategy involves entering into the stock market, but with its volatility, that can be dangerous.
Most of us can provide for ourselves just fine. But shouldn’t we do whatever we can to leave as much as we can to our children?
Luckily, there are alternative strategies that can be taken advantage of.
The process for each is somewhat similar, and the outcome helps clients get the most out of their assets, whether it is a pension, an IRA, Social Security, an annuity, a CD, etc. The goal is to maximize one to allow it the ability to earn anywhere from three to eight times as much money. The number one benefit of maximizing these assets—any one of them—is that the client doesn’t have to do anything special to increase their worth. The process is simple.
So when it comes to estate planning and wealth transfer plans, there are not many better options than asset maximization.
Your client will earn more with no additional work or funds required, they will be able to give annual monetary gifts without fear of losing retirement money, and they will not have to worry about federal and state estate taxes when they pass their legacy on to beneficiaries.
You've learned what it is. Now learn how to help your clients utilize the strategy. Or just give us a call at (800) 823-4852.