20 YEARS HAS TO MEAN SOMETHING
“Over the last 20 years, FIAs have been a part of the longest and strongest bull market in U.S. history, as well as witness to two of the worst bear markets since the Great Depression. Through it all, indexed annuities have done exactly what they were designed to do — provide the potential for a little more interest than a stated-rate annuity would pay while still protecting premium and credit interest from market risk.” This week’s article discusses Annuities from the view point of different market environments.. If you would like to discuss where Annuities might fit into your retirement plans, give us a call. We’re here to help.
ULTIMATE GUIDE TO RETIREMENT
CNN had an article I thought to share with you this week on the Ultimate Guide to Retirement. It spoke about Annuities being “a popular choice for investors who want to receive a steady income stream in retirement”, and it reviewed how the income you receive from an annuity “can be doled out monthly, quarterly, annually or even in a lump sum payment.” There are various choices available to you, so take a look at what the article discusses, and then let us know if you have any questions. As always, we’re here to help!
PAY FOR YOURSELF ERA
Families often find themselves in the middle of conversations about finances with members of a younger generation. This week’s article states that “according to a recent report, a third of U.S. workers nearing retirement are destined to live in or near poverty when entering retirement. An underlying cause of this is the sharp decline in employer-sponsored retirement plans over the past 15 years.” Given “the shift in the retirement landscape toward more of a “pay-for-yourself” era”, we thought to offer out our services to younger members of your family who may want to know what options are available to them in planning for their future. Feel free to give them our contact information. We are always here to help.
EDUCATE YOURSELF
We thought this week’s article would be of particular interest to you because “every industry has its own vocabulary, and it’s no different for retirement planning. Understanding this sometimes confusing language is crucial as you begin making financial decisions that will impact your lifestyle once your working years are over.” We know how difficult it is to make decisions involving your retirement money, especially when family and friends always want us to believe that they know more than we do! Use this article to help you take control of those uncomfortable conversations, and call us if you have any questions. We’re always here to help.
AMONG THE CONTENDERS
I encourage you to read this week’s article written by a Law Professor and an Associate Dean of a Law School, each with years of experience in the investment world. The two wrote an article expressing their opinion that, “As advisors and clients continue to search for reliable retirement income alternatives, one bright star has emerged among the many contenders: the fixed indexed annuity .” We think the same way. As you plan for your retirement and try to understand all of the options available to you, call us so that we can tell you of some that we find useful in these difficult times. We look forward to speaking with you, and are always here to help.
HOW OFTEN SHOULD I REVIEW MY ANNUITY PORTFOLIO?
I often read the Insurance Information Institute’s memos because their goal is to improve the public’s understanding of insurance. This week they provided information which relates to a question I am often asked. The Instituted stated, “You should review your annuity portfolio as often as you would your other investments. Depending on the type of annuity, you should review it at least once a year. Of course, a major change in your family such as a serious illness, a new baby or even starting a business should trigger a call to your insurance agent or company representative to discuss changes in your financial planning.” Call us if you would like to review what you own, as we are always here to help you.
REGARDLESS OF WHERE YOU LIVE
This week’s article is interesting because it answers the question that many of us are afraid to ask; “Is there any system out there that is going to take care of me when I retire?” This week’s article spoke of a wide study and analysis of just this. We are told in the article that “One common denominator we found across the regions and through the survey data: regardless of where you live and who you are, your golden years will depend on your willingness to taking financial planning into your own hands.” We have some ideas that may help you in your planning. Call us to see if they will work for you. We’re here to help.
CONVERT SAVINGS INTO LIFETIME INCOME
The U.S. Government Accountability Office (GAO), a federal agency has released a report entitled Ensuring Income throughout Retirement Requires Difficult Choices. The two most important choices involve “delaying the age when you elect to start receiving Social Security payments”; and “the other big piece of advice in the GAO report is that middle-class retirees should convert at least half of their retirement savings into a lifetime income annuity.” Call us if you are interested in learning how to convert your savings into lifetime income. We’re here to help, and always enjoy hearing from you.
RETIREMENT PLANNING CHANGES FOR 2015
With every year filled with new and different tax law changes, I thought to share with you this week’s article. It provides what I thought is a very concise explanation of the new 2015 law reducing the number of IRA to IRA rollovers that can take place before an adverse tax consequence comes into play. The article states “Individuals are allowed to receive a distribution from an IRA and roll the funds over to another IRA, or the same IRA, within 60 days to avoid any taxation issues. In prior years, the IRS’s position was that this rule applied to each IRA. This meant if you have five IRAs, you could take a distribution from each IRA and roll it over to the same or another IRA within 60 days without any issues. However, the code was very clear that a rollover from an account was allowed only once in a twelve month period. After the recent Babrow v. Commissioner tax court decision, the 12-month one rollover limitation now applies to all IRAs, meaning that only one 60-day rollover is allowed per 12-month period no matter how many IRAs an individual owns.” These are the type of details we like to keep you informed about. Call us, we’re here to help you navigate through the difficulties of retirement planning.
RETIREMENT AND TAX TIME TIPS
Since tomorrow is officially “Tax Day”, and we all think retirement at one point or another, I thought to share with you an article describing ways to minimize the tax burden on retirement income. The article states that “A Fixed Indexed Annuity, or FIA, can play an important role in your retirement planning process as it provides a low-risk vehicle that can provide guaranteed lifetime income. What’s more, FIAs can help you minimize your tax burden. This tax deferral is important because it allows even faster growth of the annuity. In addition, FIAs don’t have government-mandated contribution limits. That means you are allowed to save as much as you would like. Finally, once you begin to withdraw (or annuitize) the funds, only the interest will be taxed – leaving your principal tax-free when you need guaranteed income the most.” Call us if you would like to discuss other aspects of an FIA, we’re here to answer any questions you may have.