Retirement Security Planning
Our Story...
Retirement Security Planning is an association of financial planners who work exclusively with seniors and retirees. It is led by 2 principals, Mike Marshall and Chris Herchold, who together possess more than 50 years of experience in retirement, insurance and estate planning.
Recognizing that seniors have an entirely different set of needs and challenges and a shorter time horizon than younger investors, we recommend only guaranteed solutions to clients' needs. We appreciate that seniors cannot afford losses. In contrast to many financial advisors and stockbrokers who casually respond to investment losses by saying, "Don't panic, hang in there, it'll come back", we believe that seniors cannot afford any losses because those losses may never be recouped and because they may significantly undermine a retirement lifestyle. Therefore our recommendations are focused on guaranteed programs.
We are affiliated with a national organization (Blueprint Financial) which was founded in 1964 and operates in 50 states. Retirement Security Planning has associates working from 5 locations (Scottsdale, AZ., Yuma, AZ., Tacoma, WA., Las Vegas, NV., and Dallas, TX.) serving client needs in the southwest and northwest. Recognizing the seasonal travel patterns of our clients, R.S.P. is committed to our winter visitor clients in Arizona and Nevada in the winter months and then servicing their accounts in the northwest during the summer. Our 2 prinicpals work with financial planning associates throughout the western states.
We Focus on the Following Senior Issues:
Mouseover for more information
-
Avoid probate of assets
-
Vehicles with beneficiary designations such as tax deferred annuities automatically avoid probate because the proceeds of those vehicles are paid directly to the beneficiaries.
-
Pay nursing home costs with creative long term care solutions (ie. Premiums are returned to heirs when benefits are not used)
-
Some companies offer products that act as accumiulation annuities but if the investor has to enter a nursing home, some multiple of the original deposit (usually 3 times) is available for nursing home costs. If this nursing home benefit is not used the entire account value is available to the investor. These products contrast with traditional long term care insurance which operates on a "use it or lose it" proposition.
-
Provide rock solid guarantees in investment portfolios
-
A portion of retirees' or seniors' investment portfolios should be guaranteed. Products are available which guarantee the principal and should be part of a diversified portfolio.
-
Maximize inheritance and minimize tax loss for heirs
-
Tax deferred vehicles enable the principle of compound interest to maximize the amount available for heirs and over the lifetime of the investment may significantly reduce the cumulative tax paid.
-
Recieve stock market gains without risk and never lose when markets decline
-
Tax deferred annuities such as fixed indexed annuities enable investors to obtain interest reflective of market indices but also incorporate the "guarantee of principal" feature that prevents any loss if those indicies decline.
-
Lower Income Taxes
-
There are guaranteed alternatives to taxable certificates of deposit. Utilizing tax deferred products eliminates current taxation and results in larger account values at the time of withdrawl.
-
Lower or eliminate income tax on social security
-
Under current tax law, two financial products are exempt from being included in the income tax calculation on social security. The interest growing in tax deferred annuities and Series EE bonds is not counted as income in the tax calculation.
-
Stop paying income tax on income not used in one's monthly budget
-
Interest gain not currently needed for income should not be currently taxed. Tax deferred vehicles prevent current taxation.
-
Create "multigenerational" (or "stretch") IRAs to pass maximum amounts of IRA funds to heirs
-
It is possible to give the next two family generations the option of taking required minimum distributions over their lifetimes rather than forcing them to spend down the IRA in 5 years if the "multigenerational" feature is not selected.
-
Increase interest yield from CDs by using the principle of triple compounding
-
A tax deferred vehicle enables an investor to receive interest on the principal, interest on interest, and interest on the amount not paid out in taxes (as it would have been in a CD).
-
Safeguard assets from creditors and lawsuits
-
Tax deferred annuities are creditor proof in most states. This means that they are immune from creditors, lawsuits, bankruptcies and divorce settlements.
Christopher R. Herchold, CLU, ChFC
R. Mike Marshall, CSFP
Chartered Senior Financial Planner
