This week’s article offers up a good recap to the changes in the tax laws that have come into play for the first time with 2020 returns whose filing deadline is now May 17, and also changes that acknowledge that COVID impacted the finances of many of us. You might want to take a glance at the list in this article just in case they bring to mind topics you will want to talk to your tax preparer about, or questions you have about money you’ve withdrawn. You can also call us if you have any questions about your income during retirement. We are always here to help.
Did you hear? A major insurance carrier is offering a larger than ever BONUS on one of its products that they previously told you about. It’s too good, and only offered for a limited time, to risk not knowing about it. Call us so we can provide you with all of the updated information.
Retirees sometimes get to the point where, as the saying goes “it is what it is” and there “is” only so much money in their retirement savings account, and it won’t or can’t get any bigger. So then the question becomes what can be done with that savings to last through what is hopefully a very long retirement? We have told you in the past about different articles that discuss financial products that exist that can turn a retirement savings account into an income stream that you can’t outlive. But, did you know that there are new ways to increase that lifetime income by up to 25% off of that same sum of money? It’s not magic, and it’s not too good to believe. It’s just something you may not be aware of. Call us, we’re always here to help, and that means trying to make sure you are aware of new and different lifetime income options that may be available to you.
If you are a small business owner, this week’s article might be of interest to you. It mentions that “the 401(k) has become the go-to retirement plan for many Americans and continues to gain traction. The flexibility, tax savings and scale of 401(k) plans have made it attractive to employers and employees alike.” But it goes on to tell us that “a common misunderstanding with 401(k)s is that there’s a minimum age of 21. The minimum-participation rules state that a plan must not impose a minimum age condition beyond 21, and nothing in federal law precludes setting a plan’s minimum age at a younger age. These choices are ultimately up to the plan’s sponsor.” It’s never too soon to start to save for retirement. Call us if you’d like more ideas on how to do just that. We’re always here to help.
Did you know that the National Institute on Retirement Security, “Examining the Nest Egg: The Sources of Retirement Income for Older Americans,” January 2020 reports that 40.2% of older Americans only receive income from Social Security? We believe in supplementing that retirement income with additional income you can’t outlive. Call us if you are interested in hearing more about a product that provides this, and also protects your principle from market losses. We’re always here to help.
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.