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Financial Services
Common sense planning for the future! We offer a range of products to help you build and secure your
future. Whether your finanacial future includes paying college tuition, purchasing a new home or retiring
with security, we look forward to helping you reach your goals.
Some of the products you might wish to consider:
● Traditional IRA
● IRA Rollover
● Roth IRA
● Education IRA
● 529 College Savings Plan
● Annuity
● Mutual Funds
● Employer Retirement Plans (i.e. 401 (k) plans, etc., see Business/Qualified Retirement Plans
● Variable Universal Life Insurance, see Life/Health Insurance
Traditional IRA: This is a tax favored account that allows anyone under the ago of 70 1/2 who has
earned income from employment to contribute up to $3,000/year, and is subject to certain income
conditions. These contributions are tax deductible, though earnings are tax-deferred. Withdrawals are
taxable and are required to begin at the age of 70 1/2. If you withdraw from the account prior to age 59
1/2 a tax penalty may apply and there are federal restrictions.*
IRA Rollover: This is a tax favored account which savings are transferred from an existing, qualified
retirement plan (i.e. 401 (k) plan) to a Traditional IRA. Though contributions and withdrawals follow the
guidelines as a Traditional IRA.*
Roth IRA: This is a tax favored account that allows anyone, regardless of age, with earned income
from employment to contribute up to $3,000/year, and is subject to certain income conditions.
Contributions are not tax deductible. Earnings are tax deferred. Withdrawals are tax-free under certain
conditions, but if you withdraw from the account prior to age 59 1/2 a tax penalty may apply and there
are federal restrictions.*
Education IRA: A tax favored account that allows anyone to contribute on behalf of a child. These
contributions can not exceed $2000/child per year. Limitations do exist on the contribution of any one
person.*
529 College Savings Plan: This is a national college savings program authorized and created under
Section 529 of the IRS code that enables individuals to save and invest on a tax deferred basis at a
variable rate of return to fund college or graduate school expenses. Parents, grandparents and others
are able to contribute up to $10,000/year per beneficiary.*
Annuity: This is a contract with an insurance company that you agree to deposit a specific amount of
money with that insurance company. The insurance company agrees to pay a fixed rate of interest on
your funds, as long as the contract exists. The interest you earn accumulates as tax deferred. Also
available are variable annuities which pay a variable rate of return. Withdrawals are taxable and if you
withdraw from the account prior to age 59 1/2 a tax penalty may apply and there are federal restrictions.
*
Mutual Funds: This is an open-end management investment company that combines the money of
many investors and hires an investment manager to invest that money
in an attempt to gain one or more financial objectives. These financial objectives can be classified as
current income, capital growth and capitol preservation.*
*Our agency does not provide legal or tax advice. For specific legal or tax advice based on your
situation, please contact your attorney of tax advisor.
Financial Services
● Business Group Plans
● Estate Planning
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Estate Planning
The primary reason of Estate Planning is to accomplish the distribution of assests, to whom you wish
minimizing taxation. Having a successful estate plan assures your wishes for your heirs. The initial
planning process includes taking an inventory of your assests, discussing with trusted advisors, such
as attorneys and accountants, your goals for the future.
Below is a brief list of items that should be considered to when taking inventory of your assests:
● Real Estate (home or other real estate ventures)
● Savings (bank accounts, CD’s or money markets
● Investments (stocks, bonds, mutual funds)
● 401(k), IRA, pension and other retirements accounts
● Life insurance policies/annuities
● Ownership in a business(es)
● Motor vehicles (cars, boats, planes)
● Jewelry
● Other personal property of worth
The planning process is one that takes time and is ever changing. However, most people assume that
estate planning is for the wealthy. Your loved ones are at risk of losing all that you have built in your
lifetime, without proper planning, you are in danger of the following:
● The transferring of your assests will be decided by the laws that govern your state.
● Court appointed administrators make the decision; where, who and how much of your assests
are distributed. As well as receiving expenses for their work and a deduction to the total
amount that could be given to your loved ones.
● When children are involved, it could result in a court appointed guardian.
● A family owned business could be sold without the families consent.
● Unneccesary estate taxes can be relinquished and administrative services can be incurred and
deducted from your assests.
Financial Services
AGENCY LICENSE # XXXXXX Copyright © 1999-2006, Diversified
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Business Group Plans
Types & Uses of Retirement Plans for Business/Group/Employees*
Simplified Employee Pension (SEP) Plan: For self-employed people and small business owners who
wish to make tax-deductible contributions of up to $40,000 or 25% of their income, whichever is less,
and that of their eligible employees.
Simple IRA Plan: For firms of 100 or fewer employees to establish an employee savings program for
pre-tax contributions of up to $7,000 per year.
Profit Sharing Plan (Keogh** Plan) : For business owners who wish to make tax-deductible
contributions of up to 15% of each participant's pay, and have vesting and loan schedules not available
with a SEP.
Money Purchase Pension Plan (Keogh** Pension Plan): For business owners with predictable
incomes who wish to make pre-determined tax-deductible contributions of up to 25% of each
Participant's pay.
Age-Weighted or Comparability Plan: For business owners who are older and more highly paid than
most of their employees and wish to allocate contributions under a formula based on both age and
salary.
Defined Benefit Pension Plan: For business owners who wish to contribute enough money each year
to provide a specific benefit upon retirement. This may be beneficial to older employees with a high,
stable income who need a rapid accumulation of assets over a short period of time.
401(k) Plan: For employers who wish to allow employees to make pre-tax contributions through payroll
deductions of up to $11,000 per year or 25% of their pay, whichever is less.
Safe Harbor or DASH 401(k) Plan: For business owners who wish to give their employees the
advantages of a 401(k) plan, while maximizing the amount they can put away for themselves.
403(b) Plan: For employees of public schools, non-profit hospitals and other certain tax-exempt
organizations. Also known as a Tax-Sheltered Account.
Our agency does not provide legal or tax advice. For specific legal or tax advice based on your
situation, please contact your attorney of tax advisor.
** The term "Keogh" or "HR-10" describes any type of retirement plan established by an nincorporated
business - whether it be a profit sharing, money purchase or defined benefit plan.
Financial Services
AGENCY LICENSE # XXXXXX Copyright © 1999-2006, Diversified
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