Progressive Strategies Financial Group
organize your finances. prepare for the unknowns. look forward with confidence.
MetLife Investors Insurance Company MetLife Investors USA Insurance Company First MetLife Investors Insurance Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 MetLife Securities, Inc. New England Securities Corporation 1095 Avenue of the Americas New York, NY 10036 ©2011, MetLife Inc. CLVA6921 L1111217806[1112]
Organize your finances. Prepare for the unknowns. Look forward with confidence. As you look to the future, are you confident that you’re prepared for whatever life may bring? Or, like most of us, could you use some additional preparation and organization? For example, do you know how much money you’ll need in retirement and how you’ll make your income last a lifetime? Are you prepared for the unexpected? Will your loved ones be taken care of if something happens to you? And do they know where all of your important documents are kept? This workbook can help you get started planning for the future, preparing for life’s unknowns and organizing your finances for yourself and for your loved ones.
• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency • Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value
What you’ll find in this brochure 3 Working together 3 * Including loved ones 3 * Working with a financial professional 3 Setting goals 4 Taking stock of what you have 4 * Your balance sheet 6 Working toward what you need 6 * Income and expenses 9 * Do you have an income gap? 11 Preparing for the unknowns 11 * Know who your advisors are 11 * Save and invest automatically for a rainy day 11 * Ensure income that lasts as long as you live 11 * Plan to live with dignity 11 * Protect and direct your loved ones 12 Managing newly acquired wealth 14 Giving to others 16 Organizing important documents
1
2
“confidence and courage come through preparation and practice.” - Unknown Author
Questions to ask yourself when setting goals •W ho is this goal for? Have I thought about goals for myself? My children? My spouse, partner or family?
• Is this goal realistic? Will it be a challenge to accomplish? Or will it be easy?
• Will I have to give up something in order to accomplish the goal? Am I willing to do that?
• How will I feel once this goal is accomplished?
Working together
Including loved ones.
Preparing for the future isn’t just about you. It will affect those around you, especially your loved ones.
Working with a financial professional.
As you go through this workbook, you may want to include your spouse, partner or other loved ones in the discussions and exercises, involve trusted family members and friends as a sounding board for your ideas, or work together with them to organize and prepare for the future.
There are some things you just wouldn’t do without the help of a professional. Financial preparation may be one of those things. If you don’t have a financial professional already, seek one out. Find one who knows the ins and outs of financial preparation, retirement strategies and ways to provide income and asset protection as you get older - one that you respect and trust.
Setting goals Goal
3
Take some time to think about what you’d like to accomplish during retirement, and why those goals are important to you. Write down whether each goal is short-, intermediate- or long-term. Then estimate how much money each may cost. This is an important first step in achieving your goals.
How long will it take?
Why is it important?
How much will it cost?
Taking stock of what you have
4
This exercise can help you figure out your approximate net worth by subtracting how much you owe from how much you have. You may find that you’re worth more than you thought – especially if you own your home.
Savings and Assets
Liabilities
Retirement Savings
Real estate
Workplace Plans (401(k), 403(b), 457, etc.)
$
Real Estate Mortgage (Home)
$
IRAs
$
Real Estate Mortgage (Rental)
$
Roth IRAs
$
Annuities
$ Investments
LOANS Student Loans
$
Credit Cards
$
Stocks
$
Personal Loans
$
Bonds
$
Business Loans
$
Mutual Funds
$
Bank Loans, Equity Line, etc.
$
Money Market Funds
$
Other Loans
$
Other
$
$
Bank Accounts
$
Savings/Money Market Accounts
$
$
Checking Accounts
$
$
Certificates of Deposit (CDs)
$
$
Real Estate
$
Primary Home Equity
$
$
Other Real Estate Equity
$
$
OTHER
$
Expected Inheritance/Gifts/ Settlements
$
$
Miscellaneous
$
$
Total Assets
$
Total Liabilities
Net Worth (Total Assets Minus Total Liabilities):
$ $
5
“good fortune is what happens when opportunity meets with planning.” - Thomas Alva Edison
Now that you know what you have for assets and liabilities, you may want to try to figure out your future income and expenses. Use the worksheet below to help calculate your future monthly living expenses and discretionary expenses, as well as your monthly income. Then, you can see if you have an “income gap” that you’ll need to fill.
Working toward what you need
Look at monthly income sources – how much will you have? Monthly Guaranteed Income Sources
Current Balance of Non-Guaranteed Assets
Pension
$
Dividends from Stocks & Mutual Funds
$
Social Security Benefit
$
Bonds
$
U.S. Treasuries
$
Interest from CDs
$
Fixed Interest Accounts
$
401(k), 403(b), 457, etc.
$
Annuity Income Payments
$
IRA Rollover
$
Min. Required Distribution
$
Gifts / Miscellaneous Income
$
Part-time Employment
$
Other
$
Other
$
Other
$
Total Amount of Non-Guaranteed Assets
$
6
Total Monthly Guaranteed Income $
Call the Social Security Administration at 800-772-1213 or visit them online at www.socialsecurity.gov to determine your estimated Social Security benefit and the monthly income you are likely to receive.
Determine your monthly expenses – How much will you need? Monthly Expenses Essential Expenses Clothing and Personal Care
$
Food
$
Housing Mortgage / Rent
$ 7
Utilities
Home Equity Loans
$
HOA, Others
$
Gas / Electric
$
Telephone (Home & Cell)
$
Cable TV
$
Auto Loan / Lease Payment
$
Internet
$
Gas
$
Water and Trash
$
Maintenance
$
Other
$
Commuting Costs
$
Other
$
Other
$
Transportation
Monthly Expenses Essential Expenses (Continued) Medical and Healthcare Premiums and Copayments
$
Federal
$
Prescription Drugs
$
State
$
Other (e.g., Un-reimbursed Medical Bills, OTC Medications
$
Local
$
Property
$
Other
$
Insurance
8
Taxes
Long-term Care
$
Auto
$
Home / Renters
$
Credit Cards
$
Life
$
Personal Debts
$
Other
$
Other
$
Subtotal Essential Expenses Add All Essential Expenses
Total Essential Expenses
$
Debt Payments
Subtotal Essential Expenses Add All Essential Expenses
$ $
Monthly Expenses Discretionary Expenses Entertainment and Recreation Dining Out
$
Travel and Vacations
$
Hobbies
$
Other
$ Family Care
Support for Parents, Children, etc.
$
Other
$
Charitable Contributions
$
Other
$
Total Discretionary Expenses
$
Contingency Fund for Emergency $ or Unanticipated Expenses Total Essential Expenses From Page 8
Total Monthly Expenses Add Total Discretionary, Contingency Fund and Total Essential Expenses
Total Annual Expenses Multiply Total Monthly Expenses by 12
Determine Your Income Gap or Surplus* Total Monthly Guaranteed Income** From Page 6
Total Monthly Expenses From Page 9
Total Monthly Income Gap or Surplus Subtract Total Monthly Income and Total Monthly Expenses
Your Annual Income Gap or Surplus Multiply Total Monthly Gap or Surplus by 12
$ $
$
$
9 * A gap is a negative amount. A surplus is a positive amount.
** If your guaranteed income won’t cover your monthly living expenses, you have a potential “income gap” and may need an additional source of guaranteed income in order to pay your monthly expenses.
$ You and your financial professional may want to review your
$
personal financial situation to determine how much you can reasonably anticipate in income from your non-guaranteed assets.
$
You may be able to use those assets to cover your “income gap,” or together you can find other ways to help fill in the gap.
10
“by failing to prepare, you are preparing to fail.” - Benjamin Franklin
Preparing for the unknowns Life has a way of taking us by surprise, twisting and turning when we least expect it. You can prepare for the unexpected now – so you can enjoy whatever your future brings.
Know who your advisors are Keep track of who can help you when you’re faced with different and unexpected situations. Will your financial professional, attorney or tax advisor be able to help? Maybe a close personal friend will act for you in case of emergency. Write down their names and numbers, so you’ll know exactly who to call when.
Save and invest automatically – for a rainy day Have a portion of your paycheck put directly into a 401(k) or 403(b) plan, deposited into a special savings account or divided among a number of different investments in a brokerage account, so you will have money for emergencies and unexpected expenses. 11
Income that lasts as long as you live You could spend up to 30 years or more in retirement. Ask your financial professional about products that can help you turn your assets into a stream of income you cannot outlive.
Plan to live with dignity Approximately 60-70% of people over age 65 will need long-term care services at some point in their lives1.
Protect and direct your loved ones • You may want to purchase disability and life insurance to cover your expenses if you become disabled or provide money for your family if you should die suddenly. • Let your loved ones know your wishes if you should become incapacitated by putting together a health care directive, a durable power of attorney for finances, and other legal documents such as a will and living trust.
1 According to the National Clearinghouse for Long-Term Care Information (U.S. Department of Health and Human Services, 2009), about 70% of individuals over age 65 will require at least some long-term care services during their lifetimes.
Managing newly acquired wealth
Whether you’ve inherited money from a parent or received assets in a divorce, it’s important to manage it wisely. It’s easy to overspend when you receive a lump sum – but you may regret it later.
Here are a few suggestions for managing acquired wealth:
12
Spend It: Keep a little bit to spend on yourself, loved ones or a favorite charity.
$
Invest It: If you invest the money, you’ll put it to work for you – and your future.
$
Plan for Charitable Giving: Instead of giving a big sum right away, plan out your annual giving, how much you’d like to give and to whom. You can use the worksheet on the next page to help you.
$
Total Newly Acquired Wealth
$
Notes
13
Whether you already give to a local charity or would like to donate time, energy or money to a worthy cause, giving to others can bring you great happiness.
Giving to others
Use the chart below to keep track of your donations or as a way to discover how you’d like to give back.
Charity
Average annual gift
Why do/would you enjoy giving to this charity? How does it fit your values?
14
Need to do some research? Here are some resources: www.justgive.org www.give.org www.guidestar.org www.irs.gov (find out from the IRS whether or not your charity is a bona fide tax-exempt organization)
15
“It takes as much energy to wish as it does to plan.” - Eleanor Roosevelt
Organizing important documents
16
Keeping your important papers in one place can not only save you time, but can save your loved ones a lot of time and energy if they need to find them quickly. In the back of this workbook, you’ll find a checklist to help you get started in organizing your files. You may want to get a file box or expandable file folder system so you can put everything in one place.
Things to think about when organizing your important documents • Where will you keep them? Somewhere safe and fireresistant may be a good idea. • How often will you review them? Once a year may be often enough. Choose a day in the middle of the year since year-end is often too hectic. • Who will help you prepare, organize and review your documents? Establish a trusted committee of family, friends and/or advisors to help. Keep them informed of any changes and let them know where everything is in case something happens to you unexpectedly. • Be careful about what you keep and what you get rid of. Identity theft happens, so make sure your important documents are only accessible to those you trust.
Look to the future with confidence By organizing your finances and preparing for life’s unknowns, you are taking an important step in getting ready for the future and whatever life may bring. Contact your financial professional today for more information about the available products and strategies that may help you.
1 | THE BASICS Check off the items you’ve located and stored in your special file.
Birth certificates
Passports
Name
Birth Date
Name
Birth Date
Name
Birth Date
Name
Birth Date
organize. prepare. look forward.
Marriage certificate
Person’s Name Expiration Date Person’s Name Expiration Date Person’s Name Expiration Date
Divorce decree
Credit cards/ATM CARDS
Type (VISA, MC, ) Issuing Company Credit Card Number Customer Service Phone Number (In Case of Loss or Theft)
Deed to house Location of House Location of House
Type (VISA, MC, ) Issuing Company Credit Card Number Customer Service Phone Number (In Case of Loss or Theft)
Deed to land Location of Land Location of Land
Vehicle titles Type of Vehicle Type of Vehicle Type of Vehicle Type of Vehicle
Make/Model/Year Make/Model/Year Make/Model/Year Make/Model/Year
Type (VISA, MC, ) Issuing Company Credit Card Number Customer Service Phone Number (In Case of Loss or Theft) Type (VISA, MC, ) Issuing Company Credit Card Number Customer Service Phone Number (In Case of Loss or Theft)
17
2 | Taking care of you and your family Check off the items you’ve located and stored in your special file.
Life insurance policies / Disability Policies Legal will Living trust Health care directives Durable power of attorney for finances
18
Other
Other
Other
organize. prepare. look forward.
3 | Financial documents Check off the items you’ve located and stored in your special file.
Checking/Savings accounts
organize. prepare. look forward.
Financial and/or estate plan
Type of Account (Checking/Savings/Money Market) Bank Account #
Financial Professional Address Phone #
Type of Account (Checking/Savings/Money Market) Bank Account #
Accountant Address Phone #
Type of Account (Checking/Savings/Money Market) Bank Account #
Attorney Address Phone #
19
Safety deposit box information
Bank Box # Location of key
Tax returns
Retirement accounts/pensions Type of Account Financial Institution
Account # Phone #
Type of Account Financial Institution
Account # Phone #
Type of Account Financial Institution
Account # Phone #
Government benefits Type of Account Agency Handling Account Phone #
Account #
3 | Financial documents Check off the items you’ve located and stored in your special file.
Social security statements
Investment accounts
Type of Account Institution
Account # Phone #
Type of Account Institution
Account # Phone #
Type of Account Institution
Account # Phone #
20
Annuity contracts
Type of Account Institution
Account # Phone #
Type of Account Institution
Account # Phone #
Type of Account Institution
Account # Phone #
organize. prepare. look forward.
Notes
21
Investment Performance Is Not Guaranteed. Prospectuses for variable annuities issued by a MetLife insurance company, and for the investment portfolios offered thereunder, are available from your financial professional. The contract prospectus contains information about the contract’s features, risks, charges and expenses. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The investment objectives, risks and policies of the investment options, as well as other information about the investment options, are described in their respective prospectuses. Please read the prospectuses and consider this information carefully before investing. Product availability and features may vary by state. Please refer to the contract prospectus for more complete details regarding the living and death benefits. Variable annuities are long-term investments designed for retirement purposes. MetLife variable annuities have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee that any of the variable investment options in this product will meet their stated goals or objectives. The account value is subject to market fluctuations and investment risk so that, when withdrawn, it may be worth more or less than its original value. All contract and rider guarantees, including optional benefits and any fixed account crediting rates or annuity payout rates, are backed by the claims-paying ability and financial strength of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities, and none makes any representations or guarantees regarding the claimspaying ability and financial strength of the issuing insurance company. Similarly, the issuing insurance company and the underwriter do not back the financial strength of the broker/dealer or its affiliates. Please contact your financial professional for complete details. Withdrawals of taxable amounts are subject to ordinary income tax and if made before age 59½, may be subject to a 10% Federal income tax penalty. Withdrawals will reduce the living and death benefits and account value. Withdrawals may be subject to withdrawal charges. Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor. 22
MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances. Variable annuities other than Preference Premier® are issued by MetLife Investors Insurance Company on Policy Form Series 7150 (12/00), by MetLife Investors USA Insurance Company on Policy Form Series 8010 (11/00); both at 5 Park Plaza, Suite 1900, Irvine, CA 92614 and in New York, only by First MetLife Investors Insurance Company on Policy Form Series 6010 (02/02) and 4506 (06/02); 200 Park Avenue, New York, NY 10166 (collectively and singly, MetLife Investors). The Preference Premier variable annuity is issued by Metropolitan Life Insurance Company on Policy Form Series PPS (07/01); 200 Park Avenue, New York, NY 10166 and is offered through MetLife Securities, Inc. and New England Securities Corporation; both at 1095 Avenue of the Americas, New York, NY 10036. All products are distributed by MetLife Investors Distribution Company; 5 Park Plaza, Suite 1900, Irvine, CA 92614. All are MetLife companies. December 2011
• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency • Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value
Organize your finances. Prepare for the unknowns. Look forward with confidence. As you look to the future, are you confident that you’re prepared for whatever life may bring? Or, like most of us, could you use some additional preparation and organization? For example, do you know how much money you’ll need in retirement and how you’ll make your income last a lifetime? Are you prepared for the unexpected? Will your loved ones be taken care of if something happens to you? And do they know where all of your important documents are kept? This workbook can help you get started planning for the future, preparing for life’s unknowns and organizing your finances for yourself and for your loved ones.
• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency • Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value
organize your finances. prepare for the unknowns. look forward with confidence.
MetLife Investors Insurance Company MetLife Investors USA Insurance Company First MetLife Investors Insurance Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 MetLife Securities, Inc. New England Securities Corporation 1095 Avenue of the Americas New York, NY 10036 ©2011, MetLife Inc. CLVA6921 L1111217806[1112]
MetLife Investors Insurance Company MetLife Investors USA Insurance Company First MetLife Investors Insurance Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 MetLife Securities, Inc. New England Securities Corporation 1095 Avenue of the Americas New York, NY 10036 ©2011, MetLife Inc. CLVA6921 L1111217806[1112]
Organize your finances. Prepare for the unknowns. Look forward with confidence. As you look to the future, are you confident that you’re prepared for whatever life may bring? Or, like most of us, could you use some additional preparation and organization? For example, do you know how much money you’ll need in retirement and how you’ll make your income last a lifetime? Are you prepared for the unexpected? Will your loved ones be taken care of if something happens to you? And do they know where all of your important documents are kept? This workbook can help you get started planning for the future, preparing for life’s unknowns and organizing your finances for yourself and for your loved ones.
• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency • Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value
What you’ll find in this brochure 3 Working together 3 * Including loved ones 3 * Working with a financial professional 3 Setting goals 4 Taking stock of what you have 4 * Your balance sheet 6 Working toward what you need 6 * Income and expenses 9 * Do you have an income gap? 11 Preparing for the unknowns 11 * Know who your advisors are 11 * Save and invest automatically for a rainy day 11 * Ensure income that lasts as long as you live 11 * Plan to live with dignity 11 * Protect and direct your loved ones 12 Managing newly acquired wealth 14 Giving to others 16 Organizing important documents
1
2
“confidence and courage come through preparation and practice.” - Unknown Author
Questions to ask yourself when setting goals •W ho is this goal for? Have I thought about goals for myself? My children? My spouse, partner or family?
• Is this goal realistic? Will it be a challenge to accomplish? Or will it be easy?
• Will I have to give up something in order to accomplish the goal? Am I willing to do that?
• How will I feel once this goal is accomplished?
Working together
Including loved ones.
Preparing for the future isn’t just about you. It will affect those around you, especially your loved ones.
Working with a financial professional.
As you go through this workbook, you may want to include your spouse, partner or other loved ones in the discussions and exercises, involve trusted family members and friends as a sounding board for your ideas, or work together with them to organize and prepare for the future.
There are some things you just wouldn’t do without the help of a professional. Financial preparation may be one of those things. If you don’t have a financial professional already, seek one out. Find one who knows the ins and outs of financial preparation, retirement strategies and ways to provide income and asset protection as you get older - one that you respect and trust.
Setting goals Goal
3
Take some time to think about what you’d like to accomplish during retirement, and why those goals are important to you. Write down whether each goal is short-, intermediate- or long-term. Then estimate how much money each may cost. This is an important first step in achieving your goals.
How long will it take?
Why is it important?
How much will it cost?
Taking stock of what you have
4
This exercise can help you figure out your approximate net worth by subtracting how much you owe from how much you have. You may find that you’re worth more than you thought – especially if you own your home.
Savings and Assets
Liabilities
Retirement Savings
Real estate
Workplace Plans (401(k), 403(b), 457, etc.)
$
Real Estate Mortgage (Home)
$
IRAs
$
Real Estate Mortgage (Rental)
$
Roth IRAs
$
Annuities
$ Investments
LOANS Student Loans
$
Credit Cards
$
Stocks
$
Personal Loans
$
Bonds
$
Business Loans
$
Mutual Funds
$
Bank Loans, Equity Line, etc.
$
Money Market Funds
$
Other Loans
$
Other
$
$
Bank Accounts
$
Savings/Money Market Accounts
$
$
Checking Accounts
$
$
Certificates of Deposit (CDs)
$
$
Real Estate
$
Primary Home Equity
$
$
Other Real Estate Equity
$
$
OTHER
$
Expected Inheritance/Gifts/ Settlements
$
$
Miscellaneous
$
$
Total Assets
$
Total Liabilities
Net Worth (Total Assets Minus Total Liabilities):
$ $
5
“good fortune is what happens when opportunity meets with planning.” - Thomas Alva Edison
Now that you know what you have for assets and liabilities, you may want to try to figure out your future income and expenses. Use the worksheet below to help calculate your future monthly living expenses and discretionary expenses, as well as your monthly income. Then, you can see if you have an “income gap” that you’ll need to fill.
Working toward what you need
Look at monthly income sources – how much will you have? Monthly Guaranteed Income Sources
Current Balance of Non-Guaranteed Assets
Pension
$
Dividends from Stocks & Mutual Funds
$
Social Security Benefit
$
Bonds
$
U.S. Treasuries
$
Interest from CDs
$
Fixed Interest Accounts
$
401(k), 403(b), 457, etc.
$
Annuity Income Payments
$
IRA Rollover
$
Min. Required Distribution
$
Gifts / Miscellaneous Income
$
Part-time Employment
$
Other
$
Other
$
Other
$
Total Amount of Non-Guaranteed Assets
$
6
Total Monthly Guaranteed Income $
Call the Social Security Administration at 800-772-1213 or visit them online at www.socialsecurity.gov to determine your estimated Social Security benefit and the monthly income you are likely to receive.
Determine your monthly expenses – How much will you need? Monthly Expenses Essential Expenses Clothing and Personal Care
$
Food
$
Housing Mortgage / Rent
$ 7
Utilities
Home Equity Loans
$
HOA, Others
$
Gas / Electric
$
Telephone (Home & Cell)
$
Cable TV
$
Auto Loan / Lease Payment
$
Internet
$
Gas
$
Water and Trash
$
Maintenance
$
Other
$
Commuting Costs
$
Other
$
Other
$
Transportation
Monthly Expenses Essential Expenses (Continued) Medical and Healthcare Premiums and Copayments
$
Federal
$
Prescription Drugs
$
State
$
Other (e.g., Un-reimbursed Medical Bills, OTC Medications
$
Local
$
Property
$
Other
$
Insurance
8
Taxes
Long-term Care
$
Auto
$
Home / Renters
$
Credit Cards
$
Life
$
Personal Debts
$
Other
$
Other
$
Subtotal Essential Expenses Add All Essential Expenses
Total Essential Expenses
$
Debt Payments
Subtotal Essential Expenses Add All Essential Expenses
$ $
Monthly Expenses Discretionary Expenses Entertainment and Recreation Dining Out
$
Travel and Vacations
$
Hobbies
$
Other
$ Family Care
Support for Parents, Children, etc.
$
Other
$
Charitable Contributions
$
Other
$
Total Discretionary Expenses
$
Contingency Fund for Emergency $ or Unanticipated Expenses Total Essential Expenses From Page 8
Total Monthly Expenses Add Total Discretionary, Contingency Fund and Total Essential Expenses
Total Annual Expenses Multiply Total Monthly Expenses by 12
Determine Your Income Gap or Surplus* Total Monthly Guaranteed Income** From Page 6
Total Monthly Expenses From Page 9
Total Monthly Income Gap or Surplus Subtract Total Monthly Income and Total Monthly Expenses
Your Annual Income Gap or Surplus Multiply Total Monthly Gap or Surplus by 12
$ $
$
$
9 * A gap is a negative amount. A surplus is a positive amount.
** If your guaranteed income won’t cover your monthly living expenses, you have a potential “income gap” and may need an additional source of guaranteed income in order to pay your monthly expenses.
$ You and your financial professional may want to review your
$
personal financial situation to determine how much you can reasonably anticipate in income from your non-guaranteed assets.
$
You may be able to use those assets to cover your “income gap,” or together you can find other ways to help fill in the gap.
10
“by failing to prepare, you are preparing to fail.” - Benjamin Franklin
Preparing for the unknowns Life has a way of taking us by surprise, twisting and turning when we least expect it. You can prepare for the unexpected now – so you can enjoy whatever your future brings.
Know who your advisors are Keep track of who can help you when you’re faced with different and unexpected situations. Will your financial professional, attorney or tax advisor be able to help? Maybe a close personal friend will act for you in case of emergency. Write down their names and numbers, so you’ll know exactly who to call when.
Save and invest automatically – for a rainy day Have a portion of your paycheck put directly into a 401(k) or 403(b) plan, deposited into a special savings account or divided among a number of different investments in a brokerage account, so you will have money for emergencies and unexpected expenses. 11
Income that lasts as long as you live You could spend up to 30 years or more in retirement. Ask your financial professional about products that can help you turn your assets into a stream of income you cannot outlive.
Plan to live with dignity Approximately 60-70% of people over age 65 will need long-term care services at some point in their lives1.
Protect and direct your loved ones • You may want to purchase disability and life insurance to cover your expenses if you become disabled or provide money for your family if you should die suddenly. • Let your loved ones know your wishes if you should become incapacitated by putting together a health care directive, a durable power of attorney for finances, and other legal documents such as a will and living trust.
1 According to the National Clearinghouse for Long-Term Care Information (U.S. Department of Health and Human Services, 2009), about 70% of individuals over age 65 will require at least some long-term care services during their lifetimes.
Managing newly acquired wealth
Whether you’ve inherited money from a parent or received assets in a divorce, it’s important to manage it wisely. It’s easy to overspend when you receive a lump sum – but you may regret it later.
Here are a few suggestions for managing acquired wealth:
12
Spend It: Keep a little bit to spend on yourself, loved ones or a favorite charity.
$
Invest It: If you invest the money, you’ll put it to work for you – and your future.
$
Plan for Charitable Giving: Instead of giving a big sum right away, plan out your annual giving, how much you’d like to give and to whom. You can use the worksheet on the next page to help you.
$
Total Newly Acquired Wealth
$
Notes
13
Whether you already give to a local charity or would like to donate time, energy or money to a worthy cause, giving to others can bring you great happiness.
Giving to others
Use the chart below to keep track of your donations or as a way to discover how you’d like to give back.
Charity
Average annual gift
Why do/would you enjoy giving to this charity? How does it fit your values?
14
Need to do some research? Here are some resources: www.justgive.org www.give.org www.guidestar.org www.irs.gov (find out from the IRS whether or not your charity is a bona fide tax-exempt organization)
15
“It takes as much energy to wish as it does to plan.” - Eleanor Roosevelt
Organizing important documents
16
Keeping your important papers in one place can not only save you time, but can save your loved ones a lot of time and energy if they need to find them quickly. In the back of this workbook, you’ll find a checklist to help you get started in organizing your files. You may want to get a file box or expandable file folder system so you can put everything in one place.
Things to think about when organizing your important documents • Where will you keep them? Somewhere safe and fireresistant may be a good idea. • How often will you review them? Once a year may be often enough. Choose a day in the middle of the year since year-end is often too hectic. • Who will help you prepare, organize and review your documents? Establish a trusted committee of family, friends and/or advisors to help. Keep them informed of any changes and let them know where everything is in case something happens to you unexpectedly. • Be careful about what you keep and what you get rid of. Identity theft happens, so make sure your important documents are only accessible to those you trust.
Look to the future with confidence By organizing your finances and preparing for life’s unknowns, you are taking an important step in getting ready for the future and whatever life may bring. Contact your financial professional today for more information about the available products and strategies that may help you.
1 | THE BASICS Check off the items you’ve located and stored in your special file.
Birth certificates
Passports
Name
Birth Date
Name
Birth Date
Name
Birth Date
Name
Birth Date
organize. prepare. look forward.
Marriage certificate
Person’s Name Expiration Date Person’s Name Expiration Date Person’s Name Expiration Date
Divorce decree
Credit cards/ATM CARDS
Type (VISA, MC, ) Issuing Company Credit Card Number Customer Service Phone Number (In Case of Loss or Theft)
Deed to house Location of House Location of House
Type (VISA, MC, ) Issuing Company Credit Card Number Customer Service Phone Number (In Case of Loss or Theft)
Deed to land Location of Land Location of Land
Vehicle titles Type of Vehicle Type of Vehicle Type of Vehicle Type of Vehicle
Make/Model/Year Make/Model/Year Make/Model/Year Make/Model/Year
Type (VISA, MC, ) Issuing Company Credit Card Number Customer Service Phone Number (In Case of Loss or Theft) Type (VISA, MC, ) Issuing Company Credit Card Number Customer Service Phone Number (In Case of Loss or Theft)
17
2 | Taking care of you and your family Check off the items you’ve located and stored in your special file.
Life insurance policies / Disability Policies Legal will Living trust Health care directives Durable power of attorney for finances
18
Other
Other
Other
organize. prepare. look forward.
3 | Financial documents Check off the items you’ve located and stored in your special file.
Checking/Savings accounts
organize. prepare. look forward.
Financial and/or estate plan
Type of Account (Checking/Savings/Money Market) Bank Account #
Financial Professional Address Phone #
Type of Account (Checking/Savings/Money Market) Bank Account #
Accountant Address Phone #
Type of Account (Checking/Savings/Money Market) Bank Account #
Attorney Address Phone #
19
Safety deposit box information
Bank Box # Location of key
Tax returns
Retirement accounts/pensions Type of Account Financial Institution
Account # Phone #
Type of Account Financial Institution
Account # Phone #
Type of Account Financial Institution
Account # Phone #
Government benefits Type of Account Agency Handling Account Phone #
Account #
3 | Financial documents Check off the items you’ve located and stored in your special file.
Social security statements
Investment accounts
Type of Account Institution
Account # Phone #
Type of Account Institution
Account # Phone #
Type of Account Institution
Account # Phone #
20
Annuity contracts
Type of Account Institution
Account # Phone #
Type of Account Institution
Account # Phone #
Type of Account Institution
Account # Phone #
organize. prepare. look forward.
Notes
21
Investment Performance Is Not Guaranteed. Prospectuses for variable annuities issued by a MetLife insurance company, and for the investment portfolios offered thereunder, are available from your financial professional. The contract prospectus contains information about the contract’s features, risks, charges and expenses. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The investment objectives, risks and policies of the investment options, as well as other information about the investment options, are described in their respective prospectuses. Please read the prospectuses and consider this information carefully before investing. Product availability and features may vary by state. Please refer to the contract prospectus for more complete details regarding the living and death benefits. Variable annuities are long-term investments designed for retirement purposes. MetLife variable annuities have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee that any of the variable investment options in this product will meet their stated goals or objectives. The account value is subject to market fluctuations and investment risk so that, when withdrawn, it may be worth more or less than its original value. All contract and rider guarantees, including optional benefits and any fixed account crediting rates or annuity payout rates, are backed by the claims-paying ability and financial strength of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities, and none makes any representations or guarantees regarding the claimspaying ability and financial strength of the issuing insurance company. Similarly, the issuing insurance company and the underwriter do not back the financial strength of the broker/dealer or its affiliates. Please contact your financial professional for complete details. Withdrawals of taxable amounts are subject to ordinary income tax and if made before age 59½, may be subject to a 10% Federal income tax penalty. Withdrawals will reduce the living and death benefits and account value. Withdrawals may be subject to withdrawal charges. Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor. 22
MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances. Variable annuities other than Preference Premier® are issued by MetLife Investors Insurance Company on Policy Form Series 7150 (12/00), by MetLife Investors USA Insurance Company on Policy Form Series 8010 (11/00); both at 5 Park Plaza, Suite 1900, Irvine, CA 92614 and in New York, only by First MetLife Investors Insurance Company on Policy Form Series 6010 (02/02) and 4506 (06/02); 200 Park Avenue, New York, NY 10166 (collectively and singly, MetLife Investors). The Preference Premier variable annuity is issued by Metropolitan Life Insurance Company on Policy Form Series PPS (07/01); 200 Park Avenue, New York, NY 10166 and is offered through MetLife Securities, Inc. and New England Securities Corporation; both at 1095 Avenue of the Americas, New York, NY 10036. All products are distributed by MetLife Investors Distribution Company; 5 Park Plaza, Suite 1900, Irvine, CA 92614. All are MetLife companies. December 2011
• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency • Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value
Organize your finances. Prepare for the unknowns. Look forward with confidence. As you look to the future, are you confident that you’re prepared for whatever life may bring? Or, like most of us, could you use some additional preparation and organization? For example, do you know how much money you’ll need in retirement and how you’ll make your income last a lifetime? Are you prepared for the unexpected? Will your loved ones be taken care of if something happens to you? And do they know where all of your important documents are kept? This workbook can help you get started planning for the future, preparing for life’s unknowns and organizing your finances for yourself and for your loved ones.
• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency • Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value
organize your finances. prepare for the unknowns. look forward with confidence.
MetLife Investors Insurance Company MetLife Investors USA Insurance Company First MetLife Investors Insurance Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 MetLife Securities, Inc. New England Securities Corporation 1095 Avenue of the Americas New York, NY 10036 ©2011, MetLife Inc. CLVA6921 L1111217806[1112]
