Services
Estate Planning
Although it’s not something you necessarily want to think about, estate planning is an extremely important process that walks you through determining where your assets go in the event of death or incapacitation.
The last thing you want is to leave your family in a state of chaos as they try to sort out your estate. We can provide you with references to professionals in the area that can help you plan and protect your future. The difference between a will and estate planning is that estate planning outlines your wishes regarding your health, finances, and more - even while you’re still living.
Long Term Care
Do you have plans for yourself and your spouse if one of you has to go into a retirement home or into an assisted living facility? Maybe you’ll never need it, but the time to think about your long-term care plan is before it becomes your reality. For seniors, home health care can cost $50,000 or more per year, and nursing home care can run as high as $80,000 per year. (Genworth 2012: Cost of Care Survey). Are you prepared for these kinds of health bills?
Every plan is different. We will help evaluate whether or not you should purchase a long-term care insurance policy to help you feel more confident in your financial future. There is no rulebook for how life should look after a certain age. They don’t teach this in school. It is up to you to reach out and make an effort to protect your health, longevity and assets.
Trusts
A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary (Investopedia, 2020). While there are many different types of trusts and they can seem somewhat difficult to set up, they can be quite advantageous when it comes to leaving behind a legacy for your close relatives. If you’re interested in learning more about trusts, we can refer you to a specialist who can help you determine if a trust is right for you.
Probate
Probate is the legal process of proving a last will and testament, which means verifying that the will is legal and the deceased person’s intentions are carried out. Probate also occurs when there is no will and a probate court must decide how to distribute the assets of the deceased’s estate to his or her loved ones (PolicyGenius, 2020). To avoid having the state determine what happens to your estate, get in contact with an industry professional that will help you with your will, estate planning, and/or establishing a trust. We have a list of referrals if you are interested in this service.
Tax Minimization
As you get closer to retirement, you should start to take into consideration different ways to reduce your taxes through various tax breaks and investments. Minimizing taxes is an important step when it comes to prepping for retirement. If you’re interested in learning more about tax minimization, reach out and we will get you in contact with a tax professional to help you prepare for this portion of retirement.
Charitable Giving
You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent of limitations apply in some cases (IRS, 2020). Charitable giving is a great way to fill your cup by donating to a corporation you are passionate about while providing you with multiple tax breaks.
IRA Legacy PLanning
It is always smart to have a plan. If you have been contributing to your IRA and don’t foresee yourself using it during retirement, you may want to consider an IRA legacy plan. This a great way to protect your heirs as a safety net while minimizing taxes and potentially increasing the payout.
A properly structured IRA may provide your beneficiary a regular stream of income while leaving the balance of IRA assets invested for tax-deferred growth. The result may yield substantially more money paid out over the course of your beneficiary’s lifetime. (True Wealth, 2020)
Lower Expenses/Pay Off Debts
Simplify your expenses by cutting where you can as you pay off your debts and work to lower your mortgage. The time is now. There are many other things you can do to minimize your taxes as you get closer to retirement. If this area of service interests you please don’t hesitate to reach out for additional information.
Wealth Preservation
Life Insurance
Life insurance isn’t for those that have passed away - it is for the loved ones that are left behind. Protect your family by leaving them with some sense of financial security as they cover their upcoming expenses like funeral and estate costs. There are two main types of life insurance, term and whole life. Term life insurance, as the name states, will cover the insured for a specific duration of time. The premium rates are susceptible to change when you renew at the end of your coverage date. Whole life is a policy where the premium remains the same cost throughout your entire life.
Wealth Accumulation
The longer you invest, the more potential you have for your money to grow through compound interest. Regardless of where you’re at in life, it is never too late to start investing. If you are looking to rapidly invest you might lean more toward using an aggressive approach to make up for lost time; however, recognize that there are always calculated risks when putting money into the stock market.
Keeping the fluctuating market in mind, more conservative retirement strategies will typically only invest a portion of their assets into the stock market. Annuities are another conservative way to provide you with supplemental income during retirement due to having minimum guarantees back. An annuity is a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future. (Investopedia, 2020)
If you are interested in learning more about the different ways to accumulate wealth toward retirement, we will happily get you in contact with an industry professional that will walk you through the different options.
Asset Protection
Since the stock market is not 100% guaranteed, protecting your assets is a must. Establishing annuities is a great way to do this by protecting your investments from loss during an economic downturn and market losses. The goal of an annuity is to provide a steady stream of income, typically during retirement. Funds accrue on a tax-deferred basis an—like 401(k) contributions—can only be withdrawn without penalty after age 59½ (Investopedia, 2020). Having a diversified portfolio will further help protect your assets. We have a list of referrals if you are interested in learning more about asset protection as you near retirement.
Retirement Income
Everyone should have some kind of retirement income plan established regardless of their income level. As you get closer to retirement, your strategy is more likely to switch from growth-seeking products to conservative, fixed-income products. This is to minimize risk and hopefully create a longer-lasting retirement income for folks that could potentially outlive their retirement income strategy. According to a recent study, for a married couple age 65, there is now a 50 percent chance that at least one spouse will live to age 94. This means that you may need to plan for your retirement savings to potentially last 25 to 30 years.
We can help you design a guaranteed* retirement income strategy that incorporates insurance and annuity vehicles to create opportunities, as well as guarantee* income, throughout your retirement.
*Guarantees are backed by the financial strength and claims-paying ability of the issuing company and may be subject to restrictions, limitations or early withdrawal fees. Annuities are not FDIC insured.
IRA & 401(K) Assets
Have you been investing in a 401(K) or an IRA? When you get ready to retire you generally have four options when it comes to dispersing the money you’ve invested into your employer’s retirement plan.
- Leave the money where it is
- Take the cash and pay income taxes (and perhaps a 10 percent additional federal tax if you are younger than age 59½)
- Transfer the money to another employer plan (if the new plan allows)
- Roll the money over into an IRA
Rolling your money into an IRA will give you the opportunity to continue growing your investment except now it will be tax-deferred.
Annuities
An annuity is a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future. Funds accrue on a tax-deferred basis an—like 401(k) contributions—can only be withdrawn without penalty after age 59½ (Investopedia, 2020).
In today’s day and age, the responsibility of paying for expenses after retirement falls more so on the retiree than ever before. Employers are beginning to shift from pension payouts to more defined benefit contribution plans that is based upon different levels of individual participation. This is another good reason to have some kind of guaranteed fixed income (like an annuity) incorporated into your strategy.