Why My Fixed Annuity is My Smartest Investment
By Peter L. HeimdahlDes Moines, Iowa
Here's a testimonial on the great value of annuities.
Recently, a few misguided financial pundits have questioned the wisdom of buying annuities. Their concerns don’t hold up in the real world, however. I have diligently saved money for retirement, both in a 401(k) plan and post-tax vehicles, for almost 30 years. With a suspicion that my stock/bond fund returns have been substandard, I recently completed an eye-opening analysis of my investments.
What appalled me is just how miserably they performed. Let’s face the harsh truth. The vast majority of Americans do not have the ability or the discipline to manage their stock and bond fund investments. I made the same mistake, over and over, that most individual investors make. I placed my money in the trendy stock/bond funds of the moment. It is nearly impossible for the average investor to resist chasing high returns. The result is that we buy high, then panic and sell low when the formerly hot fund goes bust.
Given how much money I lost in my 401(k) stock funds (they still haven’t recovered from the 2000 crash), had I placed all my savings in a fixed annuity averaging 5%, instead of stocks, I would be almost $200,000 ahead. Yes, a plain old, non-sexy, often scorned by financial experts, fixed annuity. Fortunately, I did purchase a fixed annuity almost 10 years ago, which mitigated my financial fiasco. Through regular deposits, I channeled virtually all my non-401(k) plan savings into it and the balance spiked to $240,000. Granted, the interest rate is not spectacular, but it is respectable — varying from 5% to 6.5%.
Often swayed by media pundits, most Americans are horribly tempted to swing for "home runs" with their investment choices. Instead, we are almost guaranteed to strike out. The beauty of my annuity is that while I am not hitting home runs, I am hitting consistent base hits month after month, year after year, decade after decade — and with the power of compounding, it really adds up to big time money. The annuity further shines because it is tax deferred. Yes, CDs are finally offering attractive rates. But I will owe enormous taxes immediately on the interest.
For a single person, it doesn’t take much income to fall into the onerous top marginal Federal tax rate; which, when combined with state income taxes would decimate my earnings by almost 40%. With my annuity, however, when I retire, the power is in my hands to choose when and how much to withdraw to keep my taxes in a low bracket. And with the withdrawal options available, I could even have a guaranteed lifetime income, if I so choose. Also, I can add to my annuity at any time, a vital convenience not possible with most CDs. Annuities have been disparaged for their surrender fees. But these fees actually are good for many consumers.
They thwart impulse buying by lessening the temptation to yank annuity money and send it to risky funds frequently hyped by the media. Surrender fees, of course, work to the advantage of the annuity company, too. The fees reduce the volatility of the companies’ investments, allowing them to plan long term — which enables the interest rates they pay to usually be higher than those paid on CDs.
In any event, most surrender fees are structured to allow reasonable yearly withdrawals without penalty. Another great thing about my fixed annuity is the prudent care my annuity company, American Equity Investment Life Insurance Company (and, I suspect, most insurance companies) takes with investments. Unlike many stock fund companies, it doesn’t invest my money in mysterious — and you can bet, risky — financial vehicles. The company’s financial stability is reassuring; virtually all of its assets are in Treasuries and investment grade bonds.
Because typical buyers are in their 60s, annuities are perceived and marketed as a retiree product. Unfortunately, the working public is unlikely to find a fixed annuity as an option in their 401(k) plans. People in their 30s, 40s, and 50s, however, shouldn’t overlook annuities as key components of a diversified financial game plan. After maximizing their 401(k) plan contributions, I believe the smartest financial move young people can make is to put most of their post tax savings into a fixed annuity. This runs contrary to conventional wisdom, which is to place post tax dollars into index stock funds, because the capital gains tax is only 15%. I think the capital gains tax inevitably will be boosted sharply.
If anyone is under the delusion that bond funds are a safe haven, look at how they have tanked in the past couple of years. I love my annuity, and as the earnings pile up over the coming decades, savvy young people who buy annuities will love theirs, too. For the record, I do not work for an annuity company or sell annuities. I simply think they are fantastic products that have served me very well. Peter L. Heimdahl is president of a printing company. He does freelance writing as a serious hobby. What do you think about this article? What is keeping you up at night? What concerns do you have about your retirement? Have you been given and/or read wrong information or been told by your financial advisors to stay away from Annuities?
Planning for retirement is not easy but should be a top priority.
Cancer, the word can send one's heart racing!
Panic sets in and overtakes any clear thinking. The first question that pops up, what I am going to do now that I have been given the results. The second question and the most important, Will I Survive?
Your body is being invaded with cells that don't get along with the body's natural cells; it is taking over and making more room for other invaders. Time is of the essence and getting help upon the first diagnosis is the critical stage.
I know what you are saying what are my chances, no one can say for sure, but here are some things to consider:
Your chances:
Of having a house fire are 5 out of 1000
Of having an auto accident are 41 out of 1000
Of having cancer affects your family... 750 out of 1000
Motor vehicle accidents occur every 5 seconds
Residential fires occur every 76 seconds
A new cancer diagnosis occurs every 25 seconds...
There are few things as devastating as a diagnosis of cancer. Once cancer strikes, the pursuit of care and treatment can alter your day-to-day activities, and may affect your emotional, physical, and financial well-being.
At the first diagnosis of cancer, your medical expenses should be the least of concerns. Unfortunately, this is not always the case. Even if you are covered by a comprehensive health plan, a cancer diagnosis may lead to unexpected and exorbitant out-of-pocket costs. Such as deductibles, coinsurance, co-payments, some prescription drugs, treatment provided by out-of-network providers, costs related to obtaining treatment, for example, transportation, food, and lodging.
A solution is inquiring about the new product being offered in the market is Supplemental Insurance called First Diagnosis Cancer.
If you have questions contact me at lht21@comcast.net
Panic sets in and overtakes any clear thinking. The first question that pops up, what I am going to do now that I have been given the results. The second question and the most important, Will I Survive?
Your body is being invaded with cells that don't get along with the body's natural cells; it is taking over and making more room for other invaders. Time is of the essence and getting help upon the first diagnosis is the critical stage.
I know what you are saying what are my chances, no one can say for sure, but here are some things to consider:
Your chances:
Of having a house fire are 5 out of 1000
Of having an auto accident are 41 out of 1000
Of having cancer affects your family... 750 out of 1000
Motor vehicle accidents occur every 5 seconds
Residential fires occur every 76 seconds
A new cancer diagnosis occurs every 25 seconds...
There are few things as devastating as a diagnosis of cancer. Once cancer strikes, the pursuit of care and treatment can alter your day-to-day activities, and may affect your emotional, physical, and financial well-being.
At the first diagnosis of cancer, your medical expenses should be the least of concerns. Unfortunately, this is not always the case. Even if you are covered by a comprehensive health plan, a cancer diagnosis may lead to unexpected and exorbitant out-of-pocket costs. Such as deductibles, coinsurance, co-payments, some prescription drugs, treatment provided by out-of-network providers, costs related to obtaining treatment, for example, transportation, food, and lodging.
A solution is inquiring about the new product being offered in the market is Supplemental Insurance called First Diagnosis Cancer.
If you have questions contact me at lht21@comcast.net
Widowhood: The Overlooked Retirement Risk
As baby boomers enter their 60s, a new generation of women is beginning to retire. Many boomer women have worked outside the home, saved their own money for retirement and earned pension benefits from their employers. But their goal of a financially secure retirement may still be difficult to achieve.
Planning for retirement is hard; no one really knows how much money they will need to maintain the lifestyle they want for 20 to 40 years after leaving the workforce. It’s a difficult question because the answer depends on many things that will happen which no one can control, such as future inflation rates, future tax rates, long-term investment performance, the need to pay medical and nursing home expenses, family financial emergencies and length of life.
More risk in retirement
Retirement is not a gender-neutral stage of life. A 2006 study by The Society of Actuaries points out several reasons why women generally have more risk in retirement:
● They live on average 3 years longer than men.
● On average, they start their retirement saving later (by 2 to 4 years).
● Because many women serve as caregivers to other family members, they are in and out of the workforce more often and thus may give up their jobs or miss out on promotions, wage increases and pension or retirement plan contributions
Unmarried women
Single and divorced women can’t rely on anyone else to help them through retirement. They have to do the retirement planning and saving themselves. They may need to save more, work longer, invest more aggressively or reduce their retirement goals.
Married women
Retirement planning is seemingly easier for married women. In addition to their own assets, their husbands may have assets that can be used to pay expenses and produce income they can both spend. In reality, retirement planning for married women can be quite complicated. Their planning may need to consider 2 sets of assets, retirement dates, life spans, and different opinions on future goals, needs and spending. Widowhood is a retirement risk often overlooked.
The retirement savings of married couples may have to last for a long time. A LIMRA study published in 2005 notes that many people underestimate their life expectancy. Few understand the concept of joint life expectancy or recognize that life expectancy changes as they get older. With a married couple, both aged 70, there is an 88% chance that one will live beyond the male’s life expectancy and a 77% chance of living beyond the female’s life expectancy. They should consider setting an inflation-adjusted income target for 25 to 30 years. The probability of a wife surviving her husband means she has a greater risk that the remaining retirement assets will not be large enough to provide for her.
The role of life insurance
Life insurance coverage can be a critical component of a women’s long term financial security. Single women may be able to purchase a policy insuring a parent or sibling. Or, they can use cash value policies on themselves to grow tax-deferred funds that may be used for retirement income.
A married woman who survives her husband can’t know in advance how much of the retirement assets will remain for her to use. If the husband dies after an extended illness that creates medical or nursing home expenses, their retirement assets may be completely drained.
A life insurance policy insuring the husband can serve as a cash reserve to replace some of the lost assets. The income-tax-free policy death benefits can provide cash to shore up the widow’s finances. These death benefits can act as a “financial safety net” to maintain the widow’s financial security and peace of mind. A life insurance policy can provide a margin for error if their retirement plans don’t work out as anticipated.
Most husbands want their widows to be financially secure. When they understand the risks their wives face, they are usually open to insuring themselves to protect their wives’ financial freedom and standard of living. If they are insurable, they can feel good that they did what they could to provide a financially solid future.
There is no guarantee that the husband will die first. Sometimes, the wife is the first to die. If the husband bucks the odds and survives his wife, there are a variety of things he could do with the policy. He could use it to provide an inheritance to the children, donate it to his favorite charity, surrender it or sell in a life settlement.
Husbands sometimes object that they have the same potential risk if the wife becomes ill. Her medical expenses and nursing home costs could deplete their assets and leave him in financial difficulty. If he’s concerned enough, the husband should consider purchasing a life policy on her.
The stakes in retirement planning are potentially higher for women than they are for men. Married women in particular must walk a financial tightrope in planning for and living through their golden years. Events that take place after they retire can directly impact their quality of life and they may be powerless to do anything about it.
If they become widows, they may need a cash reserve to recover from unexpected losses. Life insurance is an excellent tool for bolstering the finances of the surviving spouse and securing a reasonable lifestyle for her or his remaining years.
As baby boomers enter their 60s, a new generation of women is beginning to retire. Many boomer women have worked outside the home, saved their own money for retirement and earned pension benefits from their employers. But their goal of a financially secure retirement may still be difficult to achieve.
Planning for retirement is hard; no one really knows how much money they will need to maintain the lifestyle they want for 20 to 40 years after leaving the workforce. It’s a difficult question because the answer depends on many things that will happen which no one can control, such as future inflation rates, future tax rates, long-term investment performance, the need to pay medical and nursing home expenses, family financial emergencies and length of life.
More risk in retirement
Retirement is not a gender-neutral stage of life. A 2006 study by The Society of Actuaries points out several reasons why women generally have more risk in retirement:
● They live on average 3 years longer than men.
● On average, they start their retirement saving later (by 2 to 4 years).
● Because many women serve as caregivers to other family members, they are in and out of the workforce more often and thus may give up their jobs or miss out on promotions, wage increases and pension or retirement plan contributions
Unmarried women
Single and divorced women can’t rely on anyone else to help them through retirement. They have to do the retirement planning and saving themselves. They may need to save more, work longer, invest more aggressively or reduce their retirement goals.
Married women
Retirement planning is seemingly easier for married women. In addition to their own assets, their husbands may have assets that can be used to pay expenses and produce income they can both spend. In reality, retirement planning for married women can be quite complicated. Their planning may need to consider 2 sets of assets, retirement dates, life spans, and different opinions on future goals, needs and spending. Widowhood is a retirement risk often overlooked.
The retirement savings of married couples may have to last for a long time. A LIMRA study published in 2005 notes that many people underestimate their life expectancy. Few understand the concept of joint life expectancy or recognize that life expectancy changes as they get older. With a married couple, both aged 70, there is an 88% chance that one will live beyond the male’s life expectancy and a 77% chance of living beyond the female’s life expectancy. They should consider setting an inflation-adjusted income target for 25 to 30 years. The probability of a wife surviving her husband means she has a greater risk that the remaining retirement assets will not be large enough to provide for her.
The role of life insurance
Life insurance coverage can be a critical component of a women’s long term financial security. Single women may be able to purchase a policy insuring a parent or sibling. Or, they can use cash value policies on themselves to grow tax-deferred funds that may be used for retirement income.
A married woman who survives her husband can’t know in advance how much of the retirement assets will remain for her to use. If the husband dies after an extended illness that creates medical or nursing home expenses, their retirement assets may be completely drained.
A life insurance policy insuring the husband can serve as a cash reserve to replace some of the lost assets. The income-tax-free policy death benefits can provide cash to shore up the widow’s finances. These death benefits can act as a “financial safety net” to maintain the widow’s financial security and peace of mind. A life insurance policy can provide a margin for error if their retirement plans don’t work out as anticipated.
Most husbands want their widows to be financially secure. When they understand the risks their wives face, they are usually open to insuring themselves to protect their wives’ financial freedom and standard of living. If they are insurable, they can feel good that they did what they could to provide a financially solid future.
There is no guarantee that the husband will die first. Sometimes, the wife is the first to die. If the husband bucks the odds and survives his wife, there are a variety of things he could do with the policy. He could use it to provide an inheritance to the children, donate it to his favorite charity, surrender it or sell in a life settlement.
Husbands sometimes object that they have the same potential risk if the wife becomes ill. Her medical expenses and nursing home costs could deplete their assets and leave him in financial difficulty. If he’s concerned enough, the husband should consider purchasing a life policy on her.
The stakes in retirement planning are potentially higher for women than they are for men. Married women in particular must walk a financial tightrope in planning for and living through their golden years. Events that take place after they retire can directly impact their quality of life and they may be powerless to do anything about it.
If they become widows, they may need a cash reserve to recover from unexpected losses. Life insurance is an excellent tool for bolstering the finances of the surviving spouse and securing a reasonable lifestyle for her or his remaining years.
Women & Aging Letter Long-Term Care Insurance Revisited
It Won't Happen to Me
Most people are convinced that they will not need long-term care. Yet many people will need some form of long-term care sometime during their lifetime.
The help that is needed typically includes assistance with managing medications, getting in and out of bed, bathing, eating, dressing, or reminders as to how and when to eat or care for oneself. Long-term care is provided in a variety of settings -- including one's home, an adult day care center, an assisted living facility, and a nursing facility. Most long-term care is needed for a number of months up to many years. The average stay in a nursing facility is 2.5 years, but that is often preceded by a lengthy period of care at home.
A recent article in the New England Journal of Medicine estimates that once we reach our 65th birthday we have over a 40 percent chance of entering a nursing facility sometime during the rest of our lifetime. This risk is even greater for women. Over half the women in this country who live beyond age 65 are expected to spend some time in a nursing facility.
It is important to note that the New England Journal of Medicine study did not examine care at home. But that is where most people receive long-term care! So it is very likely that as we pass our 65th birthday we will have at least a 50/50 chance of needing long-term care either at home or in a facility.
Now, you may be thinking that you will be in the lucky 50 percent category that will not need long-term care. However, as you will see below, rolling the dice on long-term care can be costly if you lose. In addition, if you are fortunate enough never to need long-term care yourself, you likely won't escape having to take care of a loved one in need of long-term care. In fact, for many women, long-term care hits twice. First, in providing care for their loved ones, and later in life when they may need long-term care themselves.
Don't Rely on Medicare
Many people believe that their long-term care costs will be covered by Medicare. Unfortunately, this is not the case. For the typical person in a nursing facility, Medicare pays nothing. That's because Medicare was designed to pay only for skilled care (along with other requirements), while most people who need long-term care need personal care or custodial care. Custodial care is not covered by Medicare. The only government program that pays for long-term care is Medicaid. But Medicaid is means tested, and one must deplete most financial assets before being eligible to receive assistance.
Cost of Care
The average cost of care in nursing facilities across the United States for 2008 ranged from $90 to $400 per day. The national average was $140 per day or $51,100 per year. Many people assume that care at home will be less expensive than in a nursing facility. Unfortunately, care provided by licensed agencies at home can easily cost as much in a nursing facility. When care at home is provided in part by family members or friends (free of charge), then it is possible for home care to cost less than in a facility. However, the true "costs" are understated in these situations because many times informal caregivers have to give up full-time employment or time they would have spent with their immediate family in order to provide this "lower cost" care.
Giving and Getting Care
Long-term care has been around for thousands of years in the form of caring for our older family members. Many times this responsibility falls to women. For example, in modern society men typically live shorter lives and are likely to need care first. Their wives and/or daughters more often than not are the ones providing care. After the men in their lives die, women end up with fewer family caregivers to care for them.
Long-term care policies are complex -- most individuals need professional assistance in determining what coverage, if any, they would need from a long-term care insurance policy.
There are special issues women should consider in choosing long-term care insurance:
· Married women should not automatically buy the same amount of coverage as their spouses. Differences in health and age should be considered when determining what amounts each spouse should buy.
· Since many women may be called upon to care for family members at home, it is a good idea to make sure those family members have coverage that will complement your availability and life style. For example, your parents may need help getting in and out of bed, bathing, and preparing meals. Decide which of these tasks you could best handle given your own commitments and responsibilities. Then select a caregiver, paid by your parent's long-term care insurance, to provide the rest of their care.
· Finally, you may need long-term care yourself and should consider a comprehensive long-term care policy that will cover most, if not all, of your care at home, in the community, or in a facility, especially since family members may no longer be available to care for you.
It Won't Happen to Me
Most people are convinced that they will not need long-term care. Yet many people will need some form of long-term care sometime during their lifetime.
The help that is needed typically includes assistance with managing medications, getting in and out of bed, bathing, eating, dressing, or reminders as to how and when to eat or care for oneself. Long-term care is provided in a variety of settings -- including one's home, an adult day care center, an assisted living facility, and a nursing facility. Most long-term care is needed for a number of months up to many years. The average stay in a nursing facility is 2.5 years, but that is often preceded by a lengthy period of care at home.
A recent article in the New England Journal of Medicine estimates that once we reach our 65th birthday we have over a 40 percent chance of entering a nursing facility sometime during the rest of our lifetime. This risk is even greater for women. Over half the women in this country who live beyond age 65 are expected to spend some time in a nursing facility.
It is important to note that the New England Journal of Medicine study did not examine care at home. But that is where most people receive long-term care! So it is very likely that as we pass our 65th birthday we will have at least a 50/50 chance of needing long-term care either at home or in a facility.
Now, you may be thinking that you will be in the lucky 50 percent category that will not need long-term care. However, as you will see below, rolling the dice on long-term care can be costly if you lose. In addition, if you are fortunate enough never to need long-term care yourself, you likely won't escape having to take care of a loved one in need of long-term care. In fact, for many women, long-term care hits twice. First, in providing care for their loved ones, and later in life when they may need long-term care themselves.
Don't Rely on Medicare
Many people believe that their long-term care costs will be covered by Medicare. Unfortunately, this is not the case. For the typical person in a nursing facility, Medicare pays nothing. That's because Medicare was designed to pay only for skilled care (along with other requirements), while most people who need long-term care need personal care or custodial care. Custodial care is not covered by Medicare. The only government program that pays for long-term care is Medicaid. But Medicaid is means tested, and one must deplete most financial assets before being eligible to receive assistance.
Cost of Care
The average cost of care in nursing facilities across the United States for 2008 ranged from $90 to $400 per day. The national average was $140 per day or $51,100 per year. Many people assume that care at home will be less expensive than in a nursing facility. Unfortunately, care provided by licensed agencies at home can easily cost as much in a nursing facility. When care at home is provided in part by family members or friends (free of charge), then it is possible for home care to cost less than in a facility. However, the true "costs" are understated in these situations because many times informal caregivers have to give up full-time employment or time they would have spent with their immediate family in order to provide this "lower cost" care.
Giving and Getting Care
Long-term care has been around for thousands of years in the form of caring for our older family members. Many times this responsibility falls to women. For example, in modern society men typically live shorter lives and are likely to need care first. Their wives and/or daughters more often than not are the ones providing care. After the men in their lives die, women end up with fewer family caregivers to care for them.
Long-term care policies are complex -- most individuals need professional assistance in determining what coverage, if any, they would need from a long-term care insurance policy.
There are special issues women should consider in choosing long-term care insurance:
· Married women should not automatically buy the same amount of coverage as their spouses. Differences in health and age should be considered when determining what amounts each spouse should buy.
· Since many women may be called upon to care for family members at home, it is a good idea to make sure those family members have coverage that will complement your availability and life style. For example, your parents may need help getting in and out of bed, bathing, and preparing meals. Decide which of these tasks you could best handle given your own commitments and responsibilities. Then select a caregiver, paid by your parent's long-term care insurance, to provide the rest of their care.
· Finally, you may need long-term care yourself and should consider a comprehensive long-term care policy that will cover most, if not all, of your care at home, in the community, or in a facility, especially since family members may no longer be available to care for you.
Final Expense can be any of the following:
Loans, credit card debt, estate costs, the funeral... most of us will leave behind unpaid expenses when we die, expenses that, if left unattended, will be a burden on our families. Final expense insurance is life insurance that pays off these debts, ensuring that everything is taken care of if the worst should happen.
Why is Final Expense Insurance so important?
The average funeral costs between $5,000 and $10,000. Add to that existing personal debts as well as legal and medical bills that may result from your death and the number can quickly break the bank. Ask yourself, "If I died tomorrow, could my family afford it all?"
If the answer is no, then final expense insurance is essential. With a final expense insurance policy in place, you can rest easy knowing that your debts will never add to your family's grief. Everything, from the cost of burial to the hospital bills to the probate attorney fees, will be paid for. It's not just the responsible thing to do; it's a gift to your loved ones in their time of need.
You can obtain a free final expense insurance quote by e-mailing us at: lynn.tomaro@comcast.net.
Our team of highly skilled specialists will work with you to develop a plan that fits your budget and coverage needs.
Loans, credit card debt, estate costs, the funeral... most of us will leave behind unpaid expenses when we die, expenses that, if left unattended, will be a burden on our families. Final expense insurance is life insurance that pays off these debts, ensuring that everything is taken care of if the worst should happen.
Why is Final Expense Insurance so important?
The average funeral costs between $5,000 and $10,000. Add to that existing personal debts as well as legal and medical bills that may result from your death and the number can quickly break the bank. Ask yourself, "If I died tomorrow, could my family afford it all?"
If the answer is no, then final expense insurance is essential. With a final expense insurance policy in place, you can rest easy knowing that your debts will never add to your family's grief. Everything, from the cost of burial to the hospital bills to the probate attorney fees, will be paid for. It's not just the responsible thing to do; it's a gift to your loved ones in their time of need.
You can obtain a free final expense insurance quote by e-mailing us at: lynn.tomaro@comcast.net.
Our team of highly skilled specialists will work with you to develop a plan that fits your budget and coverage needs.
Long Term Care Insurance
First it's a good idea to tell you what Long Term Care Insurance (LTC) is about and how it works.
Long Term Care is the medical and/or social services term for helping people who develop disabilities or chronic care needs? For example if you or a family member needs help walking, getting dressed, eating or bathing.
The services provided may be brief with full recovery, or they can be ongoing for years. The services are provided in the home, a residential facility, nursing or assisted living or in the community.
Long Term Care Insurance pays for the services needed, so you don’t have to. Policies vary in terms of what they will cover and insurance companies do require that applicants qualify for the coverage.
A good LTC policy delivers broad and flexible benefits that provide the services when needed.
Reasons for purchasing LTC:
* Relieve the burden on the loved ones
* Make certain they have a choice of quality care
* They maintain their independence
* Avoid Medicaid
* Protect assets
* Proactively make decisions that protect their family and themselves
Having Long Term Care Insurance could save your retirement dollars.
If you have any questions or would like a free quote contact us at:
lynn.tomaro@comcast.net
First it's a good idea to tell you what Long Term Care Insurance (LTC) is about and how it works.
Long Term Care is the medical and/or social services term for helping people who develop disabilities or chronic care needs? For example if you or a family member needs help walking, getting dressed, eating or bathing.
The services provided may be brief with full recovery, or they can be ongoing for years. The services are provided in the home, a residential facility, nursing or assisted living or in the community.
Long Term Care Insurance pays for the services needed, so you don’t have to. Policies vary in terms of what they will cover and insurance companies do require that applicants qualify for the coverage.
A good LTC policy delivers broad and flexible benefits that provide the services when needed.
Reasons for purchasing LTC:
* Relieve the burden on the loved ones
* Make certain they have a choice of quality care
* They maintain their independence
* Avoid Medicaid
* Protect assets
* Proactively make decisions that protect their family and themselves
Having Long Term Care Insurance could save your retirement dollars.
If you have any questions or would like a free quote contact us at:
lynn.tomaro@comcast.net
A caring and smart financial decision-
Life insurance is unique among financial instruments. It is one of, if not the only financial instrument that is based on caring and love. Even though there can be personal advantages to having life insurance, the real driving force for this decision is the love for those we care about the most and to make sure they are taken care of when we die. So, applaud yourself for taking the time to learn about this subject and please follow up with action. By delaying can be more costly than necessary.
Interestingly, while one is taking care of the financial needs and wants of your loved ones or the next generations, life insurance can also develop and build one’s personal financial goals while living. For example, because you have sufficient life insurance, you might be able to use more of your assets to enjoy life in retirement. Why is that? Because if you know you have sufficient life insurance you won’t feel that you are lowering the inheritance by spending some of your principal. You may actually “pay down principal” to some degree to yourself, especially if you have lifetime permanent life insurance as a backup.
There are various types of life insurance but they all have some common attributes. You pay an insurance company what are called premiums. At your death, the life insurance company pays an amount to the people you named in your policy, called beneficiaries. When did you last review you current policy to make sure the beneficiaries are current, has there been a divorce, new partner, death, or other lifestyle changes?
Also a note of important interest, your beneficiaries will receive the insurance face amount free of income tax.Can you image your beneficiaries’ reaction when they receive the check from the insurance agent, knowing that you took the time to make sure they would be taken care of for that just in case.
You have paid it forward!
Some types of life insurance have cash benefits available while you’re living. In these types, a portion of your premium goes into a cash reserve and builds on a tax deferred basis. You can access this money, called cash value. Some people use it to help education costs, enhance retirement cash flow or for any reason. Two of the most common types of “permanent life insurance” are called whole life insurance and universal life insurance.
Combined with investments, retirement and estate planning, a life insurance policy is a cornerstone of a sound financial plan. By looking into this area, you are making an intelligent and caring financial decision for your family. It is important that you have life insurance and have enough to protect those you care about. Make it a goal to review your current life insurance or get the coverage you need, it is easy and painless. Planning is the essential smart tool for a sound future.
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Life insurance is unique among financial instruments. It is one of, if not the only financial instrument that is based on caring and love. Even though there can be personal advantages to having life insurance, the real driving force for this decision is the love for those we care about the most and to make sure they are taken care of when we die. So, applaud yourself for taking the time to learn about this subject and please follow up with action. By delaying can be more costly than necessary.
Interestingly, while one is taking care of the financial needs and wants of your loved ones or the next generations, life insurance can also develop and build one’s personal financial goals while living. For example, because you have sufficient life insurance, you might be able to use more of your assets to enjoy life in retirement. Why is that? Because if you know you have sufficient life insurance you won’t feel that you are lowering the inheritance by spending some of your principal. You may actually “pay down principal” to some degree to yourself, especially if you have lifetime permanent life insurance as a backup.
There are various types of life insurance but they all have some common attributes. You pay an insurance company what are called premiums. At your death, the life insurance company pays an amount to the people you named in your policy, called beneficiaries. When did you last review you current policy to make sure the beneficiaries are current, has there been a divorce, new partner, death, or other lifestyle changes?
Also a note of important interest, your beneficiaries will receive the insurance face amount free of income tax.Can you image your beneficiaries’ reaction when they receive the check from the insurance agent, knowing that you took the time to make sure they would be taken care of for that just in case.
You have paid it forward!
Some types of life insurance have cash benefits available while you’re living. In these types, a portion of your premium goes into a cash reserve and builds on a tax deferred basis. You can access this money, called cash value. Some people use it to help education costs, enhance retirement cash flow or for any reason. Two of the most common types of “permanent life insurance” are called whole life insurance and universal life insurance.
Combined with investments, retirement and estate planning, a life insurance policy is a cornerstone of a sound financial plan. By looking into this area, you are making an intelligent and caring financial decision for your family. It is important that you have life insurance and have enough to protect those you care about. Make it a goal to review your current life insurance or get the coverage you need, it is easy and painless. Planning is the essential smart tool for a sound future.
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Why My Fixed Annuity is My Smartest Investment
By Peter L. HeimdahlDes Moines, Iowa
Here's a testimonial on the great value of annuities.
Recently, a few misguided financial pundits have questioned the wisdom of buying annuities. Their concerns don’t hold up in the real world, however. I have diligently saved money for retirement, both in a 401(k) plan and post-tax vehicles, for almost 30 years. With a suspicion that my stock/bond fund returns have been substandard, I recently completed an eye-opening analysis of my investments. What appalled me is just how miserably they performed. Let’s face the harsh truth. The vast majority of Americans do not have the ability or the discipline to manage their stock and bond fund investments. I made the same mistake, over and over, that most individual investors make. I placed my money in the trendy stock/bond funds of the moment. It is nearly impossible for the average investor to resist chasing high returns. The result is that we buy high, then panic and sell low when the formerly hot fund goes bust.
Given how much money I lost in my 401(k) stock funds (they still haven’t recovered from the 2000 crash), had I placed all my savings in a fixed annuity averaging 5%, instead of stocks, I would be almost $200,000 ahead. Yes, a plain old, non-sexy, often scorned by financial experts, fixed annuity. Fortunately, I did purchase a fixed annuity almost 10 years ago, which mitigated my financial fiasco. Through regular deposits, I channeled virtually all my non-401(k) plan savings into it and the balance spiked to $240,000. Granted, the interest rate is not spectacular, but it is respectable — varying from 5% to 6.5%.
Often swayed by media pundits, most Americans are horribly tempted to swing for "home runs" with their investment choices. Instead, we are almost guaranteed to strike out. The beauty of my annuity is that while I am not hitting home runs, I am hitting consistent base hits month after month, year after year, decade after decade — and with the power of compounding, it really adds up to big time money.
The annuity further shines because it is tax deferred. Yes, CDs are finally offering attractive rates. But I will owe enormous taxes immediately on the interest. For a single person, it doesn’t take much income to fall into the onerous top marginal Federal tax rate; which, when combined with state income taxes would decimate my earnings by almost 40%. With my annuity, however, when I retire, the power is in my hands to choose when and how much to withdraw to keep my taxes in a low bracket. And with the withdrawal options available, I could even have a guaranteed lifetime income, if I so choose. Also, I can add to my annuity at any time, a vital convenience not possible with most CDs. Annuities have been disparaged for their surrender fees. But these fees actually are good for many consumers. They thwart impulse buying by lessening the temptation to yank annuity money and send it to risky funds frequently hyped by the media. Surrender fees, of course, work to the advantage of the annuity company, too. The fees reduce the volatility of the companies’ investments, allowing them to plan long term — which enables the interest rates they pay to usually be higher than those paid on CDs. In any event, most surrender fees are structured to allow reasonable yearly withdrawals without penalty.
Another great thing about my fixed annuity is the prudent care my annuity company, American Equity Investment Life Insurance Company (and, I suspect, most insurance companies) takes with investments. Unlike many stock fund companies, it doesn’t invest my money in mysterious — and you can bet, risky — financial vehicles. The company’s financial stability is reassuring; virtually all of its assets are in Treasuries and investment grade bonds.
Because typical buyers are in their 60s, annuities are perceived and marketed as a retiree product. Unfortunately, the working public is unlikely to find a fixed annuity as an option in their 401(k) plans.
People in their 30s, 40s, and 50s, however, shouldn’t overlook annuities as key components of a diversified financial game plan. After maximizing their 401(k) plan contributions, I believe the smartest financial move young people can make is to put most of their post tax savings into a fixed annuity.
This runs contrary to conventional wisdom, which is to place post tax dollars into index stock funds, because the capital gains tax is only 15%. I think the capital gains tax inevitably will be boosted sharply.
If anyone is under the delusion that bond funds are a safe haven, look at how they have tanked in the past couple of years. I love my annuity, and as the earnings pile up over the coming decades, savvy young people who buy annuities will love theirs, too.
For the record, I do not work for an annuity company or sell annuities. I simply think they are fantastic products that have served me very well.
Peter L. Heimdahl is president of a printing company. He does freelance writing as a serious hobby.
What do you think about this article? What is keeping you up at night? What concerns do you have about your retirement?
Have you been given and/or read wrong information or been told by your financial advisors to stay away from Annuities? Planning for retirement is not easy but should be a top priority.
By Peter L. HeimdahlDes Moines, Iowa
Here's a testimonial on the great value of annuities.
Recently, a few misguided financial pundits have questioned the wisdom of buying annuities. Their concerns don’t hold up in the real world, however. I have diligently saved money for retirement, both in a 401(k) plan and post-tax vehicles, for almost 30 years. With a suspicion that my stock/bond fund returns have been substandard, I recently completed an eye-opening analysis of my investments. What appalled me is just how miserably they performed. Let’s face the harsh truth. The vast majority of Americans do not have the ability or the discipline to manage their stock and bond fund investments. I made the same mistake, over and over, that most individual investors make. I placed my money in the trendy stock/bond funds of the moment. It is nearly impossible for the average investor to resist chasing high returns. The result is that we buy high, then panic and sell low when the formerly hot fund goes bust.
Given how much money I lost in my 401(k) stock funds (they still haven’t recovered from the 2000 crash), had I placed all my savings in a fixed annuity averaging 5%, instead of stocks, I would be almost $200,000 ahead. Yes, a plain old, non-sexy, often scorned by financial experts, fixed annuity. Fortunately, I did purchase a fixed annuity almost 10 years ago, which mitigated my financial fiasco. Through regular deposits, I channeled virtually all my non-401(k) plan savings into it and the balance spiked to $240,000. Granted, the interest rate is not spectacular, but it is respectable — varying from 5% to 6.5%.
Often swayed by media pundits, most Americans are horribly tempted to swing for "home runs" with their investment choices. Instead, we are almost guaranteed to strike out. The beauty of my annuity is that while I am not hitting home runs, I am hitting consistent base hits month after month, year after year, decade after decade — and with the power of compounding, it really adds up to big time money.
The annuity further shines because it is tax deferred. Yes, CDs are finally offering attractive rates. But I will owe enormous taxes immediately on the interest. For a single person, it doesn’t take much income to fall into the onerous top marginal Federal tax rate; which, when combined with state income taxes would decimate my earnings by almost 40%. With my annuity, however, when I retire, the power is in my hands to choose when and how much to withdraw to keep my taxes in a low bracket. And with the withdrawal options available, I could even have a guaranteed lifetime income, if I so choose. Also, I can add to my annuity at any time, a vital convenience not possible with most CDs. Annuities have been disparaged for their surrender fees. But these fees actually are good for many consumers. They thwart impulse buying by lessening the temptation to yank annuity money and send it to risky funds frequently hyped by the media. Surrender fees, of course, work to the advantage of the annuity company, too. The fees reduce the volatility of the companies’ investments, allowing them to plan long term — which enables the interest rates they pay to usually be higher than those paid on CDs. In any event, most surrender fees are structured to allow reasonable yearly withdrawals without penalty.
Another great thing about my fixed annuity is the prudent care my annuity company, American Equity Investment Life Insurance Company (and, I suspect, most insurance companies) takes with investments. Unlike many stock fund companies, it doesn’t invest my money in mysterious — and you can bet, risky — financial vehicles. The company’s financial stability is reassuring; virtually all of its assets are in Treasuries and investment grade bonds.
Because typical buyers are in their 60s, annuities are perceived and marketed as a retiree product. Unfortunately, the working public is unlikely to find a fixed annuity as an option in their 401(k) plans.
People in their 30s, 40s, and 50s, however, shouldn’t overlook annuities as key components of a diversified financial game plan. After maximizing their 401(k) plan contributions, I believe the smartest financial move young people can make is to put most of their post tax savings into a fixed annuity.
This runs contrary to conventional wisdom, which is to place post tax dollars into index stock funds, because the capital gains tax is only 15%. I think the capital gains tax inevitably will be boosted sharply.
If anyone is under the delusion that bond funds are a safe haven, look at how they have tanked in the past couple of years. I love my annuity, and as the earnings pile up over the coming decades, savvy young people who buy annuities will love theirs, too.
For the record, I do not work for an annuity company or sell annuities. I simply think they are fantastic products that have served me very well.
Peter L. Heimdahl is president of a printing company. He does freelance writing as a serious hobby.
What do you think about this article? What is keeping you up at night? What concerns do you have about your retirement?
Have you been given and/or read wrong information or been told by your financial advisors to stay away from Annuities? Planning for retirement is not easy but should be a top priority.
Term is simple. You pay a premium for a period of time (the term) from one to thirty years and if you die during that time the insurance is paid to the person or persons you designate to receive it - called the beneficiary(ies).
Term life insurance usually has the lowest premium in the early years, making it the most affordable life insurance - initially. Term does not build cash value.
It covers you for a specified period of time (usually from 5 to 30 years, you choose). If you purchase a $1,000,000 term life insurance policy for 20-year period and you die in any of those 20 years, your beneficiary receives the million dollars.
If you are still living at the end of the term, your insurance policy is over unless you can renew the policy. When you renew (assuming your policy has that feature) it will renew at a higher price reflecting your now older age. Term insurance has no buildup of cash as with whole life insurance. Some term life insurance policies do offer a return of premium. See section on Return of Premium
We are committed to making it as easy and convenient as possible for you to purchase quality, low-cost term life insurance for you and your family and to helping you make intelligent choices regarding your insurance choices.
What do you think? Reply or e-mail me at lynn.tomaro@comcast.net for more information.
Term life insurance usually has the lowest premium in the early years, making it the most affordable life insurance - initially. Term does not build cash value.
It covers you for a specified period of time (usually from 5 to 30 years, you choose). If you purchase a $1,000,000 term life insurance policy for 20-year period and you die in any of those 20 years, your beneficiary receives the million dollars.
If you are still living at the end of the term, your insurance policy is over unless you can renew the policy. When you renew (assuming your policy has that feature) it will renew at a higher price reflecting your now older age. Term insurance has no buildup of cash as with whole life insurance. Some term life insurance policies do offer a return of premium. See section on Return of Premium
We are committed to making it as easy and convenient as possible for you to purchase quality, low-cost term life insurance for you and your family and to helping you make intelligent choices regarding your insurance choices.
What do you think? Reply or e-mail me at lynn.tomaro@comcast.net for more information.
How an Annuity is Structured
In general, there are three parties to an annuity (plus the insurance company): the owner, the annuitant and the beneficiary.
The owner controls incidents of ownership in an annuity. They have the right to the cash surrender value. They can also name the beneficiary, assign the policy, and make withdrawals. Oftentimes, the owner is also the annuitant. The owner may be an individual or a trust.
Most importantly, the owner is the person (or trust) who receives the tax benefit of the annuity during the accumulation phase of the contract. (The accumulation phase is the period of time that the annuity is growing; the income phase is the period of time when you are taking money out of your annuity.) The owner does not pay taxes on the income earned (the tax-deferral), however, owners do pay the taxes on withdrawals made during the accumulation phase. The owner is normally the person who receives the payments during the income phase, but he can also assign these payments to the annuitant.
The annuitant is the person on whose life the terms (depending on the particular annuity, it could be their age, gender or state of residence) of the annuity are measured. Again, the annuitant may also be the owner. As in other life insurance policies, the beneficiary is the recipient of the death benefit, should it be paid out.
In general, there are three parties to an annuity (plus the insurance company): the owner, the annuitant and the beneficiary.
The owner controls incidents of ownership in an annuity. They have the right to the cash surrender value. They can also name the beneficiary, assign the policy, and make withdrawals. Oftentimes, the owner is also the annuitant. The owner may be an individual or a trust.
Most importantly, the owner is the person (or trust) who receives the tax benefit of the annuity during the accumulation phase of the contract. (The accumulation phase is the period of time that the annuity is growing; the income phase is the period of time when you are taking money out of your annuity.) The owner does not pay taxes on the income earned (the tax-deferral), however, owners do pay the taxes on withdrawals made during the accumulation phase. The owner is normally the person who receives the payments during the income phase, but he can also assign these payments to the annuitant.
The annuitant is the person on whose life the terms (depending on the particular annuity, it could be their age, gender or state of residence) of the annuity are measured. Again, the annuitant may also be the owner. As in other life insurance policies, the beneficiary is the recipient of the death benefit, should it be paid out.
Why Is My Social Security Being Taxed?
In this series of blogs I'm going to attempt to explain how to minimize your social security taxes. Most seniors can avoid paying higher taxes on social security by simply moving money that you are not using and getting taxed on into something tax differed. If you are single and make less than $25,000.00 a year or married and make less than $32,000 you should not have to pay any taxes on your social security. If you make 25k-34k and single you would pay 50% or 32k-44k and married you would pay 50% taxes. There are other levels and we will touch them over the next couple of weeks. Once again today we will talk about how you can save your social security from taxation with a little preplanning. Lets say that you have a 401k that you plan on using for some type of income. You also have been putting away money over the years into various taxable accounts, such as C.D.'s money market accounts and mutual funds.
What you need to do first is put a plan together. Find out what your social security benefits are, find out how much money a month or year you need to live on. Take a portion of the taxable income from your other investments and buy an immediate annuity. Your advisor can figure out what your monthly payments would be, so you can implement that into your preplanning.
Then take a majority of the rest of your assets from your 401k and other investments and start to ladder them with annuities, I would suggest a 5 year 7 year and 10 year. By doing this you give yourself tax deferral. This means that your money will not be taxed until you withdrawal it. This also would give you access to your money at different times of your life. It also gives you liquidity to move money into better products with higher rates without locking all of your money up for a longer set period of time.
If you have questions or want more info just email me at lynn.tomaro@comcast.net.
In this series of blogs I'm going to attempt to explain how to minimize your social security taxes. Most seniors can avoid paying higher taxes on social security by simply moving money that you are not using and getting taxed on into something tax differed. If you are single and make less than $25,000.00 a year or married and make less than $32,000 you should not have to pay any taxes on your social security. If you make 25k-34k and single you would pay 50% or 32k-44k and married you would pay 50% taxes. There are other levels and we will touch them over the next couple of weeks. Once again today we will talk about how you can save your social security from taxation with a little preplanning. Lets say that you have a 401k that you plan on using for some type of income. You also have been putting away money over the years into various taxable accounts, such as C.D.'s money market accounts and mutual funds.
What you need to do first is put a plan together. Find out what your social security benefits are, find out how much money a month or year you need to live on. Take a portion of the taxable income from your other investments and buy an immediate annuity. Your advisor can figure out what your monthly payments would be, so you can implement that into your preplanning.
Then take a majority of the rest of your assets from your 401k and other investments and start to ladder them with annuities, I would suggest a 5 year 7 year and 10 year. By doing this you give yourself tax deferral. This means that your money will not be taxed until you withdrawal it. This also would give you access to your money at different times of your life. It also gives you liquidity to move money into better products with higher rates without locking all of your money up for a longer set period of time.
If you have questions or want more info just email me at lynn.tomaro@comcast.net.
Top 5 Annuity Benefits
Benefit #1: You pay less in income taxes. With money in taxable alternatives, you pay income taxes on all earnings whether you leave them in or take the earnings out. With an annuity, you pay income taxes on your schedule, typically when you want to take money out.
Benefit #2: You can have more money with an annuity than with a taxable alternative. This is because earnings accumulate three ways inside an annuity. Earnings compound on principal, earning compound on earnings and earning compound on money you would otherwise pay in taxes.
Benefit #3: You have three ways to withdraw money. You can take 10% of the value out each year. You can surrender your annuity, from which there may be a surrender charge. The third is called annuitization. When you want monthly income, for whatever time period you desire, you annuitize the policy.
Benefit #4: You enjoy the tax advantages set up by the government for non-qualified annuities. You could say that the annuity picks up where your IRA left off. It is just like an IRA. Earnings accumulate without tax consequences and income taxes are paid when you choose to withdraw money. However, unlike your IRA, there is no limit to how much non-qualified dollars you can put into annuity.
Benefit #5: You choose how your earnings grow. You can receive an interest rate guarantee for one or more years or your earnings can be tied to an index like the S&P 500. The question is; When would your like to reduce paying income taxes on your earnings?
Benefit #1: You pay less in income taxes. With money in taxable alternatives, you pay income taxes on all earnings whether you leave them in or take the earnings out. With an annuity, you pay income taxes on your schedule, typically when you want to take money out.
Benefit #2: You can have more money with an annuity than with a taxable alternative. This is because earnings accumulate three ways inside an annuity. Earnings compound on principal, earning compound on earnings and earning compound on money you would otherwise pay in taxes.
Benefit #3: You have three ways to withdraw money. You can take 10% of the value out each year. You can surrender your annuity, from which there may be a surrender charge. The third is called annuitization. When you want monthly income, for whatever time period you desire, you annuitize the policy.
Benefit #4: You enjoy the tax advantages set up by the government for non-qualified annuities. You could say that the annuity picks up where your IRA left off. It is just like an IRA. Earnings accumulate without tax consequences and income taxes are paid when you choose to withdraw money. However, unlike your IRA, there is no limit to how much non-qualified dollars you can put into annuity.
Benefit #5: You choose how your earnings grow. You can receive an interest rate guarantee for one or more years or your earnings can be tied to an index like the S&P 500. The question is; When would your like to reduce paying income taxes on your earnings?
Equity Indexed Annuities- Short Term Surrenders.
When shopping for an EIA consider a short term product. Shorter terms allow for the freedom to re-evaluate financial situations sooner. Some insurance companies are now offering contracts with durations as short as three years.
We all want to opportunity to benefit from market growth, with no downturn risk on a tax-deferred basis. I also like the idea of being able to change my mind, as far as products, in the shortest amount of time possible.
Short term EIAs are an excellent choice not only because of the growth with no loss, but the fact that they guaranty and income stream that cannot be outlived. EIAs have a better chance of keeping up with inflation that CDs and traditional fixed annuities. If you need to play catch up and offset previous losses, this is a very viable option.
Many of the new generation EIAs are very straight forward and not at all difficult to understand. The easier they are to understand the more apt we are to buy, and the insurance industry knows this.
Most of our financial goals involve accumulation, which makes the tax-deferred growth of an EIA a very attractive benefit. On the other hand we are also looking for flexibility. Being wary of market ups and downs is natural. EIAs protect us from losses that other products cannot deliver. You will lose money in financial products that have a potential for loss.
Shorter contract durations give us the power to decide if our financial choices today are still the right choice tomorrow and for years to come.
When shopping for an EIA consider a short term product. Shorter terms allow for the freedom to re-evaluate financial situations sooner. Some insurance companies are now offering contracts with durations as short as three years.
We all want to opportunity to benefit from market growth, with no downturn risk on a tax-deferred basis. I also like the idea of being able to change my mind, as far as products, in the shortest amount of time possible.
Short term EIAs are an excellent choice not only because of the growth with no loss, but the fact that they guaranty and income stream that cannot be outlived. EIAs have a better chance of keeping up with inflation that CDs and traditional fixed annuities. If you need to play catch up and offset previous losses, this is a very viable option.
Many of the new generation EIAs are very straight forward and not at all difficult to understand. The easier they are to understand the more apt we are to buy, and the insurance industry knows this.
Most of our financial goals involve accumulation, which makes the tax-deferred growth of an EIA a very attractive benefit. On the other hand we are also looking for flexibility. Being wary of market ups and downs is natural. EIAs protect us from losses that other products cannot deliver. You will lose money in financial products that have a potential for loss.
Shorter contract durations give us the power to decide if our financial choices today are still the right choice tomorrow and for years to come.
Business Owners do you have the following Retirement concerns:
Outliving your Income or Nest Egg, Longer Life Expectancy, Future of Social Security, Future Cost of Prescription Drugs, Future Cost of Long Term Care, Future Income Tax Increases.
Do you want to find out about this little known "Secret" that the IRS doesn't want You to know about, this program has been used by Top Executives in major corporations for years. It's totally legal and can be worth Millions of Dollars in Tax Free Distribution. Private Pension Plans, "Exclusively for Business Owners and Key Executives"
Funding the Roth IRA Alternative Plan. You can maximize your retirement income (Qualified and Non Qualified) for Business Owners, Key Executives, and High Net Worth Clients.
Image if you had the power to create the perfect retirement plan for you...
How would you design it? Would you like :
Unlimited Contribution, Tax Free Distribution, 100% Discretionary, 100% Discriminatory ,No IRS Guidelines
No Third Party Administration, Account Value increases when the Market is up, Account Value that does NOT decrease when Market is down, All previous your gains are lock in and credited to your account.
Now you can with the Roth IRA Alternative. Roth IRA: Contributions are based upon after tax dollars. Distribution is Income Tax Free. But, there are problem with Roth IRA. If you income is over $100,000 you do qualify. If you make less than $100,000 you are limited to the dollars you can contribute.
Stand alone program for business owners and key executives. Unlimited contributions regardless of income or qualified retirement plan contributions. After tax contributions / tax free distribution, no third party administration, no IRS guidelines, immediate diversification, S&P 500 Index representing the top 500 companies in the U.S. Plus a self-completing feature to protect your family prior to retirement. What product can provide all these benefits? The plan is not designed to replace your current plan; it is designed to work in addition to your current plan. Since the plan provides Tax Free Distributions, most Business Owners use our plan to Hedge against future taxation.
Sooner or later everyone reaches that time in life when working 24/7 is no longer an option. What are Your Goals? Whether it is a cabin in the woods, a summer home, world travel, or just a worry free comfortable life, you will need a continued income to fulfill your dreams. But, at the same time you must be prepared and seek out a professional.
Outliving your Income or Nest Egg, Longer Life Expectancy, Future of Social Security, Future Cost of Prescription Drugs, Future Cost of Long Term Care, Future Income Tax Increases.
Do you want to find out about this little known "Secret" that the IRS doesn't want You to know about, this program has been used by Top Executives in major corporations for years. It's totally legal and can be worth Millions of Dollars in Tax Free Distribution. Private Pension Plans, "Exclusively for Business Owners and Key Executives"
Funding the Roth IRA Alternative Plan. You can maximize your retirement income (Qualified and Non Qualified) for Business Owners, Key Executives, and High Net Worth Clients.
Image if you had the power to create the perfect retirement plan for you...
How would you design it? Would you like :
Unlimited Contribution, Tax Free Distribution, 100% Discretionary, 100% Discriminatory ,No IRS Guidelines
No Third Party Administration, Account Value increases when the Market is up, Account Value that does NOT decrease when Market is down, All previous your gains are lock in and credited to your account.
Now you can with the Roth IRA Alternative. Roth IRA: Contributions are based upon after tax dollars. Distribution is Income Tax Free. But, there are problem with Roth IRA. If you income is over $100,000 you do qualify. If you make less than $100,000 you are limited to the dollars you can contribute.
Stand alone program for business owners and key executives. Unlimited contributions regardless of income or qualified retirement plan contributions. After tax contributions / tax free distribution, no third party administration, no IRS guidelines, immediate diversification, S&P 500 Index representing the top 500 companies in the U.S. Plus a self-completing feature to protect your family prior to retirement. What product can provide all these benefits? The plan is not designed to replace your current plan; it is designed to work in addition to your current plan. Since the plan provides Tax Free Distributions, most Business Owners use our plan to Hedge against future taxation.
Sooner or later everyone reaches that time in life when working 24/7 is no longer an option. What are Your Goals? Whether it is a cabin in the woods, a summer home, world travel, or just a worry free comfortable life, you will need a continued income to fulfill your dreams. But, at the same time you must be prepared and seek out a professional.
If you would like further information on this Private Pension Plan, contact me at: lynn.tomaro@comcast.net.
Preparing for the future has been made easier.
It is going to keep happening:
ATLANTA -- Delta Air Lines has filed a formal request in bankruptcy court to terminate its pilots' pension plan, effective Sept. 2.
The move comes as President George W. Bush prepares to sign a bill aimed in part at helping the struggling carrier save its other employees' pensions.
If the court, in New York, approves Delta's request, the government's pension insurer would take over the plan and pay pilots a reduced benefit based on when they retire and other factors. Delta notified the Pension Benefit Guaranty Corporation in June of its intent to seek termination of the plan.
The 6,000 pilots, as part of a $280 million concessions agreement with the company first reached in April, have agreed not to oppose the pension termination request, though other groups may oppose it.
This is going to keep happening, what are the pilots going to do? Retirement and the plans being offer are not what our parents were used to.
ATLANTA -- Delta Air Lines has filed a formal request in bankruptcy court to terminate its pilots' pension plan, effective Sept. 2.
The move comes as President George W. Bush prepares to sign a bill aimed in part at helping the struggling carrier save its other employees' pensions.
If the court, in New York, approves Delta's request, the government's pension insurer would take over the plan and pay pilots a reduced benefit based on when they retire and other factors. Delta notified the Pension Benefit Guaranty Corporation in June of its intent to seek termination of the plan.
The 6,000 pilots, as part of a $280 million concessions agreement with the company first reached in April, have agreed not to oppose the pension termination request, though other groups may oppose it.
This is going to keep happening, what are the pilots going to do? Retirement and the plans being offer are not what our parents were used to.
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