This week’s article confirms an announcement recently made by the IRS. “You now have an extra month to lower your tax bill with contributions to your individual retirement account (IRA). Just like last year, the IRS has extended the 2020 tax filing deadline to May 17, allowing Americans an extra month to make IRA contributions that can potentially ease their IOU to Uncle Sam while also helping them save for retirement.” Do you need help deciding what is the right strategy for you with your retirement contribution? Call us. We’re always here to help.
This week’s article provides an easy answer to the question ‘What is an Indexed Annuity’? “An indexed annuity is a type of annuity contract that pays an interest rate based on the performance of a specified market index, such as the S&P 500. It differs from fixed annuities, which pay a fixed rate of interest, and variable annuities, which base their interest rate on a portfolio of securities chosen by the annuity owner. Indexed annuities are sometimes referred to as equity-indexed or fixed-indexed annuities.” If you are interested in learning more, or have any questions, call us. We’re always here to help.
With deadlines for filing tax returns approaching we are beginning to remind people that the deadline for making their permitted annual deposits into their retirement accounts is also approaching. Even if you have a Roth IRA you may want to consider the different options you have to both accumulate wealth for retirement, or if you are already retired and taking income from you savings, to obtain growth potential without being vulnerable to major long-term downturns in the market. Call us, we’re happy to explain some choices you have and discuss how they may fit into whatever stage of retirement planning you are in. We’re always here to help.
Lately we’re being asked about taxes and life insurance, and whether or not beneficiaries of a life insurance policy have to pay income taxes on that money, or whether the estate has to pay taxes on it. The simple answer is, usually, no. But because there can be nuances involved depending on how the life policy is owned, or how the beneficiary is identified we thought to share with you this week’s article. Take a look, and then call us if you have any questions. We’re always here to help.
A simple cure for that risk
This week’s article tells us “experts want you to start saving as soon as possible, no matter what amount you can afford to put away.” The first goal being to simply get into the habit of saving for the future because the future comes sooner than you think, and “the second is to take advantage of as many compounding returns as you can: The longer your money is invested in the market—even if it’s a smaller amount—the longer it has to grow and generate increasingly larger returns.” The article also tells us “this turns most of us into market watchers. The more gray hairs on your head and the fewer years left on the job, the more you may find yourself fixating on the stock market and praying for good fortune when it comes time to hang up your spurs. The obsession with markets is understandable, but it distracts retirement savers from what they should really be worrying about: outliving their money. And there’s a simple cure for that risk”. Reach out to us if you’d like to talk about a financial product that does not invest in the stock market, but which gets stock market type gains with no stock market losses or risk of the market causing your redemptions to be less than the original amount you set aside. And, which also provides an income you can’t outlive. Call us, we can tell you all about it. We’re always here to help.
“At a time when COVID-19 is generating massive financial uncertainty for individuals, companies, and societies, an important new report from Bank of America examines the unique saving and investing challenges facing women. It marks the launch of a new research series that applies a gender lens to financial behaviors”. Call us if you would like to discuss the financial behaviors that you have become comfortable with, but which may perhaps no longer create the best savings strategy for you. We have some ideas that may be of interest to you. And we’re always here to help.
If you are a Federal civil servant employee and contemplating putting in your retirement papers this year, you may want to verify what your lifetime benefits will be, and how they are calculated. It isn’t just a question of age, which is how most of us think about retirement, it is a question of your years on the job. Take a look at this week’s article, it may help you to have a better understanding of what your financial situation will look like in retirement. Call us if you have any questions or to discuss ways you can supplement the income you will receive. We’re always here to help.
Have you ever found yourself in the middle of a conversation with a financial professional and realized you have no understanding of the meaning of the words he is using? We try to keep things simple around our office, and go to great lengths to make sure that you understand what we are speaking about, but that doesn’t mean that others you may be dealing with in the financial community do the same. So I thought to share with you a dictionary of terms that you can keep on hand should you ever need them. Let us know if you come across a term or concept that you would like explained in further detail. We’re always here to help.
It always seems to be this time of year when clients begin to ask if they are on track for retirement. There are so many factors that go into answering that question, we thought to share with you several customizable calculators that will allow you to run different scenarios and discover how small adjustments could make a big difference for your retirement future. Let us know if you have any questions when you’re done using them. We may have some suggestions for how to tweak some of your planning or where to put some of your savings that will help you come up with a calculation that you feel good about. We’re always here to help.
This week’s article references back to a topic we have been reflecting on over the past few months and that is the understanding that “retirees face a number of challenges to their financial security, including living longer and facing the danger of depleting their savings too soon. The pandemic has further threatened retirement nest eggs, as a growing number of people need to take Social Security benefits early, before full retirement age, thus reducing those payments in the long run.” Following up on that topic, you may be interested in a study by Principal Financial Group in conjunction with the Stanford Longevity Project that discusses these and other problems that retirees face, and “provided at least one way this group can “spend their retirement savings in a predictable and responsible fashion,” the study states. One answer to the challenge of a longer retirement was “widespread adoption of guaranteed retirement income products to supplement Social Security” that include purchasing annuities.” Call us if you think this is something you’d like to explore. We’re happy to give you more information and discuss the options that might work for you. We’re looking forward to speaking with you more in 2021.