Making The Most Of Retirement Assets 2008 Compliance Approved

Considering Your Retirement Assets

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Copyright © 2005 Morgan Keegan & Company, Inc Members NYSE, SIPC

“…I wish we had a retirement plan that didn’t require matching six numbers.”


SOURCE OF retirement income?
Other
3%

Personal savings
14%

Social Security
39%
Potential retirement pitfalls
Retirement income sources
Longevity risk
Part-time Inflation risk Potential retirement pitfalls
Asset allocation risk
Work 25% Retirement income
sources
Longevity risk
Inflation risk
Pensions Asset allocation risk
19%

Most people need approximately 70% of their current income
to maintain their current standard of living in retirement
Source: Income of the Aged Chartbook 2002, SSA Publication No. 13-11727, Social Security Administration (September 2004).


*This hypothetical example does not reflect the
effects of taxation, fees, and inflation.

Financial Planning Process

1. Determine where you are
going
- Set goals & objectives
2. Know where you are
- Take inventory of existing
assets
3. Develop & follow a
retirement plan


When
do you want to retire?

What
do you want to do in
retirement?


Manage Your Monthly Debt payments

Short-term Payments-
Should not exceed 20% of
after-tax income
Mortgage Payments-
monthly gross income
Combined Monthly Debt
Payments-
monthly gross income


Will I Need a Lump Sum of Money at retirement?

Repairs to your house
Pay off bills
College tuition
Retirement vacations
Start a business?


Roadblocks to Retirement Security

Inflation
Taxes
Procrastination
Longer Life
Expectancy
Market Risk


Consider This…
‐ Life expectancy has increased
‐ You may well be retired longer
than you work

Average Life Expectancy for Men in 2007
Current Age 40 45 50 55 60 65

Avg Life Expectancy 78 79 79 80 81 83

Additional Years 38 34 29 25 21 18

Source: Social Security Administration


SWhere Do I Want to Go?
ummary

When will I retire?
What will I do?
How much do I need to
live on?
Consider: taxes,
inflation, and risk


Where am I Now?

Taking Inventory
Social Security
Company Benefits
Personal Investments


“You’ll find how to live on Social Security over there
in the fiction section.”

Social Security: Then and Now

1940 Today (2007)

Payroll Tax 2% 12.4%
Earnings Cap $3,000 $102,000
Beneficiaries <1,000 50,000,000
Average Benefit $22.60 $1,079.00

Source: Social Security Administration


DISTRIBUTION Choices:
1. Pay Taxes
Ordinary Income

2. Defer Taxes
Indirect Rollover

Direct Rollover


Defer taxes

IRA Rollover
No current taxes on distribution
Tax deferral continues on interest and/or dividends
Stock can be sold without current tax liability
Can have numerous investments in rollover account
No probate, with appropriately designated beneficiary


TWO TYPES OF Rollover distributions

Direct Rollover Transfer
Indirect Rollover


Direct Rollover Transfer

Employer sends directly to
IRA, new plan or custodian
Simplest method of rollover


Rollover Process
Step 1:
Fill out company paperwork, request Direct
Rollover to avoid Taxes and Penalties

Step 2:
•Invest money into various securities

Step 3:
•Take distributions when you are ready.
Distributions will be subject to taxes and
possibly 10% penalties.


How Do I Receive My Monthly Income?

IRA Pension Other Income Social Security

Your Bank
Account

Your Retirement Paycheck

Regions Financial
Corporate Footprint
1,400 Regions Bank Locations
400+ Morgan Keegan Locations
(66 full service and 234 satellites in Regions Banks

20 Regions Insurance Group Locations


• Morgan Keegan & Company
• Founded in 1969 in Memphis, Tennessee
• Full service investment banking and securities brokerage firm
Our firm’s • Serving the diverse financial needs of individual investors in the
entrepreneurial Southern United States and corporate and institutional clients
culture throughout the US and abroad
promotes • 400+ offices in 19 states
innovation and • Member NYSE, SIPC
dedication to • Wholly owned subsidiary of Regions Financial Corporation
serving every
financial need of • Regions Financial Corporation
our clients. • Among top 10 largest financial services companies in the nation
• $140 billion in assets
• Over $27 billion market capitalization
• 5 million households
• 1,400 locations in 16 states
• Listed on NYSE (symbol:RF)
• Member FDIC
• Member of the S&P 100 Index and Forbes’ “Platinum 400” list of
America’s best big companies

A Full Service Financial Institution

Morgan Keegan Morgan Keegan Morgan Keegan Regions
Private Equity Fixed Income Bank
Client Group Capital Markets
Retail Brokerage Sell-Side Advisory Public Finance Loans
Portfolio Buy-Side Advisory Mortgage Finance Mortgages
Management Fairness Opinions Fixed Income Research Leases
Financial Planning Private Placements Fixed Income Trading Insurance
Executive Services
Public Equity Cash Management
Insurance Institutional Sales
Corporate Debt International Services
Retirement Planning Asset/Liability
Equity Research Commercial Services
Family Office Management
Institutional Sales Other Banking Services
Support Portfolio Accounting
Private Equity Funds


Issue: Process:
1. Investments Provide an asset allocation and portfolio review.

2. Insurance Analyze existing life, disability, long-term care and liability insurance.

3. Liabilities Review the terms, creditors, collateral, etc., for all debt.

4. Qualified Retirement Plan/IRA Review current contribution amounts, investment alternatives and plan limits.

5. Stock Options Prepare an exercise strategy for qualified and non-qualified stock options.

6. Business Succession Planning Develop succession plan that meets client’s stated goals.

7. Durable Power of Attorney Review existing Powers of Attorney.

8. Gifting to Children/Descendents Establish gifting plans for wealth transfer to heirs.

9. Charitable Gifting During Life Establish optimal charitable giving plan.

10. Titling of Assets Review current titling of assets to meet client’s estate planning objectives.

11. Executor/Trustee Review existing executor/trustee designations.

12. Distribution Plan at Death to Review existing estate planning documents in light of a client’s expressed goals and
Spouse/Descendents objectives.

13. Charitable Inclinations at Death Consider alternative gifting strategies to meet charitable goals.

Morgan Keegan has identified 13 Wealth Management Issues‐ some of the these may not presently apply to
your situation or you may choose to focus on only the most pressing issue at this time.


Investment Management Philosophy


MY Delivery TO YOU:

• Preparation of an analysis of your choices under
YOUR retirement program

• Analysis will consider your other assets as well

• Your retirement goals will drive the process

• Investment recommendations premised upon your
risk profile and time horizons


I believe the most rewarding investment experience comes from making the
investor the focus rather than the market. Investors, unlike markets, have
goals. We can position your investments relative to your goals, while taking
into account the inevitable market fluctuations which will occur along the way.
This approach has been shown to increase your likelihood of success.

My Management Program My Professional Discipline

Investor-Centered Investments based on client’s clearly defined goals,
vs. Market-Centered consistent with their values, understood within their total life-plan

Reason vs. Emotion Responsive to changes in goals or
life events, rather than reactive to market events

Long-term Process vs. Investing and Investment decisions understood within
Short-term Event the context of a life and a life time rather than a single day or event

Relational vs. Transactional Investment decisions based on comprehensive knowledge of the
client and their interests, achieved through ongoing consultation


My Commitment to You

As a Morgan Keegan financial advisor, I have the resources, personnel, and
backing of one of the nations largest full service investment firms. It is my
responsibility to create, grow, protect, preserve, or utilize your wealth
regardless of the prevailing investing environment. I can also help you plan
for the distribution of your wealth in a tax‐advantaged way both during your
life and beyond. This is done by building a plan specific to your family’s
dynamics, hopes, and dreams.


Morgan Keegan & Company
Members NYSE, SIPC
50 N. Front Street
Memphis, Tennessee 38103
800-366-7426

Disclaimer: The information and opinions expressed are intended for
general information only. Morgan Keegan & Company, Inc. does not
assume liability for any loss, which may result from the reliance of
any person upon any such information or opinions. Such information
and opinions are subject to change without prior notice. The general
information is not intended as an offer or solicitation with respect to
the purchase or sale of any security or offering, nor is it deemed
individual or personalized advice.


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