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According to the National Bureau of Economic Research, in 2015, 20 percent of Americans have an outstanding loan balance on their 401(k) and 37 percent have had loans in the past five years. Ten percent of those borrowers defaulted and a whopping 86 percent of borrowers left their company with an outstanding balance, according to…Read More »
There are many Americans who are not saving and, for these people, even a small unexpected expense will likely cause a financial setback. A survey of 1,000 Americans by Bankrate said nearly 60 percent of Americans would not be able to pay an unexpected emergency expense from their savings. Forty-five percent of those surveyed said…Read More »
What’s the best way to wreck your retirement budget? How about unexpected medical expenses? Ask any financial planner and, he or she will likely say that most couples are not prepared for the financial disruption that could come with an expected or catastrophic illness. Twenty-eight percent of Americans said their greatest fear in retirement is…Read More »
From The Experts
Fixed-indexed annuities are rising in popularity. I’ve seen that in the financial news, and I’ve seen that firsthand with how many people contact me asking about them. The timing is a bit surprising because the stock market has been notoriously volatile for the past few months.
Some financial planners will advise you never to do this because it’s redundant, but there are times when it might be beneficial, especially when it comes to managing your required minimum distributions later on. Before you write off purchasing an annuity in an IRA, you should consider how it could impact you for the life of your IRA.
Allocating retirement assets is a delicate balancing act and one that must be looked at on a deeper level than high risk and low risk. Instead, it might help to work backward and start with how much you need to live on to cover your mandatory and optional expenses. For some, fixed and fixed-indexed annuities can fit in by supplementing that income to cover some of those future mandatory costs.
Beneficiary of an Annuity? Help Lower Your Tax Burden with a Transfer to a Qualified Retirement Account
A beneficiary on an annuity has a number of choices to make — how you want to use the annuity you’ve inherited, as well as how you want to deal with the taxes.
by Rodney Brooks We all know that planning for retirement is no easy task: Whatever information we can get to help is welcome. There are literally thousands of websites tasked with helping Baby Boomers slide gracefully into retirement. A big part of the difficulty in planning for retirement is figuring out exactly where to go…
People who get lump sums of money for whatever reason don’t usually think of annuities as an option unless one is offered. Generally, it’s never recommended that you put all your eggs in one basket (or annuity), but if you’re dealing with a sudden lump sum, often an annuity can be a tax-efficient way to help protect your money.
by Rodney Brooks Many Baby Boomers are finding that they are not ready for retirement, but they are also not ready to ride off into the sunset. So, they are choosing to be entrepreneurs in their encore careers. Some have lost their jobs because they were laid off or bought out after spending years with…
The government uses fair market value to assess the value of real property in your estate. The value of these properties and business holdings could push you into a taxable territory. Your heirs could run the risk of having to liquidate your assets to cover your tax bill. To avoid that, some choose to use deferred annuities and trusts to reduce their total taxable estate.
A long-term care annuity is an immediate annuity with a long-term care benefit. In the event the individual needs long-term care, the benefit might boost the income payment to several times the initial amount. In addition, the portion of the income payment used towards qualifying long-term care expenses will be nontaxable.
An exclusion ratio will determine what portion of each year’s income payment is non-taxable on an immediate annuity. A lot of my clients like to know the specifics of how it’s calculated so they can estimate their taxes. What they don’t know is it can also be a good way to help lower their overall tax burden.