USA Today recently featured an article, “How will you spend your time in retirement?” that discussed using retirement coaches to help maximize the enjoyment of the free time retirement brings. Ready-2-Retire is one of the great tools available to assist that process.

Many retirees and pre-retirees don’t know how they’ll spend their free time after retirement. Ready-2-Retire kick starts the retirement planning process by helping retirees and pre-retirees envision retirement life and create plans to mitigate the risks retirees face.

Posted March 18, 2017 filed under Uncategorized.

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WinFlex and PlanFacts together, in real time, shows how the proposed life insurance quote solves the survivor shortfalls and provides protection for the client’s family or business. Creating a personal financial story for the client along with the sales illustration helps the agent close more life sales! The PlanFacts presentation provides easy to understand content with colorful graphs designed for the client to understand why they need life insurance and feel comfortable about the purchase of the product being presented by the agent or advisor.

If you are a BGA, IMO, broker dealer or carrier back office, Impact has available consumer fact finders that the agent can send to their client to complete so that the back office sales specialist can run the illustration and import it into a powerful presentation in PlanFacts, which the agent can then present to their client. For those agents and advisors who use WinFlex and PlanFacts at point of sale, you can quickly and easily import the illustrations. PlanFacts tools are optimized for mobile devices, such as an iPad, with a slick interface designed to engage the client at the point of sale.

Cash Flow Decision

In WinFlex 6.5, you can export an illustration and import it into any of Impact’s PlanFacts tools when you are proposing life insurance. If you are proposing a permanent product like Index Universal Life for example, the premium, death benefit, loans, withdrawals and cash value of the illustration can be quickly imported into any of the PlanFacts tools where you are proposing life insurance. The PlanFacts tools that can import WinFlex illustrations are: Retirement Road Map, Cash Flow Decisions, Qualified Plan Concepts, and Business Succession Planning.

WinFlex 6.5 Illustration Export and Import into PlanFacts—Easy to Setup and Use

Winflex Impact sample

Have your WinFlex administrator or Ebix support turn on the Impact export feature in WinFlex 6.5. You can also contact Impact Product Support at 704-688-4000 or email to support@impact-tech.com.

  1. After you calculate the life illustration in WinFlex 6.5, you will see an Impact button next to the illustration PDF on the results Summary screen. See theWinFlex screen above.
  2. Click the Impact button and save the link file on your computer or network.
  3. When you are in PlanFacts tools proposing life insurance, such as Cash Flow Decisions, there will be an option to import the link file. Select Load Illustration from Link File in PlanFacts and then the Import file button to browse to the WinFlex file you saved and select the illustration file. See below.
CFD Import illustration 2

Posted February 9, 2017 filed under Uncategorized.

George C. Van Dusen presenting Ken with the 2016 NAILBA Chairman’s Award.

George C. Van Dusen IV, 2016 Chairman of the National Association of Independent Life Brokerage Agencies (NAILBA), has selected Ken Leibow, Senior Vice President of Impact Technologies Group, Inc. as the recipient of the 2016 NAILBA Chairman’s Award. The honor was presented this morning at the association’s annual meeting, NAILBA 35, in Dallas, Texas.
The award, created in 2009, was developed to recognize the efforts of a NAILBA volunteer who has performed “over and above” normal expectations during the Chairman’s term.
In presenting the award to Leibow, Van Dusen shared, “[Ken’s] broad and deep understanding of the technology initiatives and solutions necessary to move the brokerage community forward has been demonstrated and well known for many years. Most notable, of course, is his commitment to and passion for the Life Brokerage Technology Committee, an independent working group whose purpose is to exchange information about technology related systems and services related to the marketing, sale, and servicing of insurance in independent distribution channels.”
He continued, explaining, “In addition to his work with the LBTC, he has served as contributor to Perspectives, a liaison and advocate with NAILBA for the LBTC, and in the past year, as a technology consultant to NAILBA’s members-only online community, NAILBA Network,” concluding, “We are delighted to continue working with you and the LBTC on your efforts to improve technology advances in the brokerage community.”

Posted November 17, 2016 filed under Uncategorized.

Posted November 10, 2016 filed under In The News, News, Uncategorized.

KLbiopicLeibow’s career spans more than 29 years with an extensive background in distribution technology and back office systems. He previously worked for Genworth Financial, Mutual of Omaha and VP of Operations at Diversified Underwriters Services, Inc. As COO of Integrated Insurance Technologies, Ken built the largest life insurance data exchange hub in the industry, processing over 1 million policies a year and 30 billion dollars of annuities. Innovation in Quoting & Illustration tools, CRMs, Agency Management Systems, eApp platforms, and ePolicy Delivery are some key initiatives implemented by Ken during his career.

Impact has always maintained a start-up mindset with its staff and Leibow knows what it takes to thrive in our environment.

“Impact’s success and longevity is due entirely to the talent and enthusiasm of our staff. Ken’s skills, experience, and energy perfectly complement our team. His deep industry knowledge will help us tap new market opportunities and broaden the market for our existing products and services. I’m excited to have him on board as a member of our senior leadership team,” — Heather Vaartjes, President and COO, Impact Technologies Group, Inc.

Posted April 11, 2016 filed under Uncategorized.

by Gretchen K. Smith, CLU, ChFC

Less than 20% of retirees today have the traditional 3-legged stool, requiring some new strategies.

Good retirement income planning looks at all the resources a person has available for retirement, intending to utilize the available income efficiently and provide for the retirement lifestyle desired.

Traditionally, retirement planning revolved around the 3-legged stool concept with Social Security, a company pension and personal savings providing retirement income. Times have changed – less than 20% of future retirees can count on a pension.1

In this changing environment both Social Security retirement benefits and personal savings become even more important. Social Security maximization is the latest buzzword in financial planning, with nearly 10,000 baby boomers turning 65 each day.

Googling “Social Security maximization” returns thousands of hits from many sources, showing that it’s important to many: planners, financial institutions and future retirees. Changes in the ability to utilize maximization strategies in the recent Bipartisan Budget Act of 2015 has increased the need for planning.

When do retirees tend to start benefits? Studies show the two most popular ages are age 62 and Full Retirement Age (or FRA). In 2013, 36% of men and nearly 40% of women turning 62 claimed benefits.2 An additional one-third tend to claim between 65 and FRA. Only 4% of women and 2% of men in 2013 were age 70. According to this study, close to 90% claim at or before FRA. The trend to file early seems to be on the decline since 2005, but is still a significant proportion of retirees. Reasons vary, but the need to educate retirees on claiming ages and strategies remains.

A Typical Example

Let’s look at a typical married couple in their mid-50s. Bill is 55 and Maria is 54. Both work and have Social Security benefits at full retirement age of $2371 and $2000, per month. According to the life expectancy tables used by Social Security, Bill should live to 80 on average and Marie to age 83.

Using Social Security maximization software3, we enter their information. To get the maximum total benefits we find that Maria should file for benefits at age 66 and Bill should wait until age 70.4

But what if they live longer? Bill’s parents are both over 80 and healthy, and most of his relatives live into their mid-80s. Maria has several grandparents who lived to be 90. We can adjust their ages to 85 and 90. In that case, the software suggests that both wait until age 70 to maximize their potential benefits.

The difference between both starting Social Security at the earliest age (62) and waiting until age 70 is substantial, nearly one-half million in total benefits received over their lifetimes. Social Security planning is important to a retiree’s success in retirement.

Social Security is only one part of planning. Retirees also must consider their investments, the effect of taxes, and how to use all their resources together as a whole. A retirement cash flow plan must use resources effectively, not only Social Security but also assets, pensions and other incomes to provide a desired retirement lifestyle.

Let’s look at our retirees’ lifestyle requirements for income (Figure 15). Maria and Bill estimate $8000 a month for expenses in today’s dollars and inflation at 2.5%. They have an estimated $690,000 in various accounts with a 5% average rate of return before taxes. Bill and Maria each earn $95,000 a year and plan to retire at age 65. Putting this all together, we find they are reasonably well off, but will run out of money in their 80s with a shortfall in today’s dollars of close to $50,000 (present value calculated at 5%.)

Figure 1

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We can optimize further (Figure 2). A good cash flow analysis considers cash flow, taxation and the order in which assets are utilized. We find that Bill and Maria can start benefits earlier, at Bill’s age 69 and Maria at 68. The calculation results suggest the optimal order to use assets, which in turn cuts the shortfall to just under $39,000, most of it occurring after Bill’s assumed death at 85.5

Figure 2

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What if Maria lives longer, say to 95 or 100? We can measure the amounts needed at Bill’s death and find it is somewhere between $300,000 to over $1,000,000 depending on when Bill dies and how long the survivorship period lasts between deaths. Solving the survivorship needs is one way to solve the shortfall throughout their retirement.

Life insurance can provide the funds for the survivor’s cash needs. Total Social Security benefits will decrease after Bill dies, as well as pensions may cease or be reduced. The life insurance death benefit provides a source of funds for the surviving spouse, and may also provide additional income during the policy holder’s lifetime.

Since Bill is more likely to die first, we have selected a 10-pay whole life policy on Bill’s life, with surrenders and loans providing a tax-free6 annual income starting at age 65 of $32,000 a year. Ten annual premiums of $56,430 will be paid using some of the existing assets and salaries.7

Look at the results (Figure 35): assuming death at ages 85 and 90, the life insurance erases the shortfall and leaves over $300,000 to heirs at Maria’s death. If she lives longer, the deficit is smaller than without the life insurance. If Bill dies earlier, Maria’s survivorship needs are met.

Figure 3
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If Maria dies before Bill, the policy has a substantial cash surrender value that Bill could use as needed to supplement his other income sources. Plus, they have turned some of their assets into a $32,000 a year supplemental income source and at the same time reduced overall lifestyle needs.Retirement income planning is a complicated and fluid process. Just maximizing Social Security is a start, but many other factors can affect cash flow. The type of asset used can produce different taxation, including what percent of Social Security benefits are subject to tax.

Originally published in Life Health Advisor:
http://www.lifehealth.com/using-permanent-insurance-complement-social-security-planning/

  1. “From 1980 through 2008, the proportion of private wage and salary workers participating in DB pension plans fell from 38 percent to 20 percent (Bureau of Labor Statistics 2008; Department of Labor 2002).” Source: The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby Boomers, United States Social Security Administration 2009
  2. Trends in Social Security Claiming, May 2013 by Alice H. Munnell and Anqi Chen, Center for Retirement Research at Boston College.
  3. Social Security Pro (SSPro) is a maximization software program offered by Impact Technologies Group, Inc. www.impact-tech.com
  4. Assumes an annual 2.5% Cost of Living adjustment, close to the historical average of 2.8% annually for benefits.
  5. The values in this case study were obtained by using Cash Flow Decisions, a retirement income software program offered by Impact Technologies Group, Inc. www.impact-tech.com
  6. Under current federal tax law, surrenders up to basis, then loan proceeds are not subject to income tax.
  7. Male age 55, non-smoker, sample whole life policy with dividends reinvested annually.

Posted February 3, 2016 filed under Articles.

New Intensity Grid Showing Social Security Cumulative BenefitsSocial Security Pro has a new Total Benefits Intensity Grid for clients too young to use ‘File Restricted’ and ‘File and Suspend’ strategies. The Bipartisan Budget Act eliminated the File and Suspend strategy for married individuals born after May 1, 1954 and eliminated ‘File and Suspend’ for any one born after May 1, 1950 and filing for benefits between now and May 1, 2016. For those individuals, Social Security Pro will continue to display its patented Social Security grid that indicates the best strategy for each age combination. However, for those not eligible for those strategies, Social Security Pro displays the new Total Benefits Intensity Grid.

The new Grid, similar to the previous one, calculates all the benefits for each age combination. The cell for each age combination indicates its relative value by showing darker green for the higher values and a lighter green for the lower values. Instantly, you and your clients will see the age combinations that will provide the greater incomes, and the ones that will not. The very highest age combination is shown with a star. Change any variable, and all values re-calculate and the resulting values are displayed.

The new graphic makes it easy to determine if a slight adjustment in filing ages will make a significant difference, or just a little. You and your clients will quickly see that it is not just a matter of the longer you wait the more you get. The differences may be tens or even hundreds of thousands dollars. This is a perfect beginning to the retirement planning process.

The new graph is just one part of the Impact’s entire update of Social Security related products. All changes for the new law that was signed into law November 2, were in place the morning of November 6. The products updated in addition to Social Security Pro, were Social Security Explorer, Social Security Lead Gen, Cash Flow Decisions, and Retirement Road Map.

Cash Flow Decisions, which contains a version of Social Security Pro within it, becomes even more valuable for incorporating Social Security claiming strategies into the total retirement plans of the clients. It optimizes Social Security, while considering taxation of the Social Security benefits and the other retirement income—including required minimum distributions from IRAs and 401(k) Plans, and it determines the best order of asset distributions considering all of these items. It also shows how the retirement income floor can be increased with annuity income, and that permanent life insurance is the best tool for protecting against longevity risks.

Using Take a free trial, start retirement planning by determining how and when to take Social Security benefits. Then using Cash Flow Decisions, coordinate all retirement income into the best retirement plan.

Posted November 19, 2015 filed under Articles.