Total Wealth Management Plan

If You Live too Long and Become a Burden Options to Pay for Care

  1. Pay for Long-term care yourself when it happens:
    • Average cost of care -$8,600+ per month –cost will double in 10 years
    • The single largest risk to losing your estate –MANY GO BROKE
  2. Purchase a consumer advantaged Long-term care insurance policy ahead of time:
    • Pension protection act compliant annuity –leverage your dollars to pay for care
    • LTC/Life Insurance with a death benefit so that if you did not use it for Long-term care you would pass on a tax free death benefit to your Beneficiary(s)
  3. Set up Legal Planning with The Protector Trust –Pre crisis plan:
    • If you could not qualify, afford or want to pay for LTC insurance
    • Want to be prepared to protect assets for the unexpected in your later years
    • Qualify for Medical Assistance Benefits without losing all your assets

What is Covered for your Care

Once you or a loved one turns age 65, there is a 70% chance you will incur an unexpected expense such as for one of the following services:


ForeCare Annuity pays for Long-term care

The Pension Protection Act of 2006 (PPA)

pensionprotectionrvTax Free Money with ForeCare if Long-term care needed. If no care is needed you still have your principal and growth with no loss to your assets


Mathematics of Losing Money

The table below illustrates both time and returns required to get your nest egg back to where it was after experiencing a loss.


Diversifying Your Taxation

  • Free Money–Inheritances, 401(k) match, Employer Benefits/Pensions, Government Benefits
  • Tax-Free Money–Municipal Bonds (partially), Roth IRA, Life Insurance (totally)
  • Tax-Deferred Money–IRA’s, 401(k)’s, 403(b)’s, 408(c)’s, 457’s, Savings Bonds, Annuities
  • Taxable Money–Income/Wages, Earned Interest, Dividends/Capital Gains, Social Security (for some)

Death Taxes -Federal Estate Tax & Pennsylvania State Inheritance Tax

Federal Estate Tax

  • Federal Tax -marginal top rate 55%
  • 2016 -$5,340,000 Federal exemption per person
  • Total FET Exemption per couple $10,680,000
  • May gift $14,000 per year per person

Pennsylvania Inheritance Tax

  • 4.5% to children & grandchildren
  • 12% to siblings
  • 15% to friends, other
  • 0 % to Charities and Life Insurance

Estate Planning Goals

“I want to control everything I own all my life, and leave what I want, to whom I want, when I want, while saving every last court cost, legal fee, and tax dollar possible.

And protect assets in the event of illness or a Nursing Home stay, so my care will not cause financial hardship on my family.”

Durable Powers of Attorney

  • Financial and Asset Management
  • Health Care Management including
  • Advanced Directives –Living Will

Avoids losing control with an expensive Guardianship -rather than have a court appointed Power of Attorney, YOU appoint the individual(s) you want to make Financial and Medical Decisions for you if you become legally incapacitated or incompetent

Last Will & Testament

  • A legal, written document:
    • Names beneficiaries & who gets what
    • Names executor
  • Drawbacks:
    • Guarantees estate will go through probate
    • Doesn’t control jointly held assets or beneficiary designations
    • Does not help if incapacitated

5 Factors to Consider when Deciding When to Apply

  1. Health status
  2. Life expectancy
  3. Need for income
  4. Whether or not you plan to work
  5. Survivor needs

Why the Stop Loss Portfolio Was Built to Protect Portfolios From Losses

  • Implement equal weight S&P 500 ETF for equity exposure, not market weight (cap)
  • Stop the loss when diversification is not enough
  • Invest with a mechanical system that eliminates emotion when getting into or out of equities
  • Implement total U.S. Bond Market ETF for fixed income exposure
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