ANNUITIES & RETIREMENT

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10 Important Ages for Retirement Planning


The link below is to an article from the U.S New & World Report - Money section by Emily Brandon, with a breakdown of what you can do at different important ages in your life to boost your retirement benefits.

http://money.usnews.com/money/retirement/articles/2012/02/21/10-important-ages-for-retirement-planning


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews 


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

10 Things Social Security Won’t Tell You


Enlightening Wall Street Journal article by Jonnelle Marte regarding a lot of things you may not know about Social Security, but should. Also the article includes tips from how to keep your social security number safer even when you don't give it out, to saving money by following certain rules in order to get the most from Social Security. Click the link below to read more.

http://www.marketwatch.com/story/10-things-social-security-wont-tell-you-2013-06-28


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews 

4 Large Expenses You Should Consider When Planning For Retirement!


When planning for your retirement along with other normal expenses, etc., don’t forget to include these 4 large expenses in your budget:

  • Health Care
    According to a Nerdwallet / Associated Press article and Fidelity, the average 65 year old retired couple will need about $300,000 in after tax savings to handle health care costs in retirement.1
    Note: Of course your specific costs will depend on where you live, how long you live, and your overall health.

  • Long Term Care
    Note that 70% of people over the age of 65 will require Long Term Care during their lifetime!
    Long Term Care expenses can wipe out your entire life’s savings relatively quickly! Depending on where you live, how much you have in your savings, and how long you need to stay in a Long Term Care facility (or even just plain home health care). It is very expensive for even a short stay at a Long Term Care facility!
    Long Term Care Insurance is highly recommended while you are still healthy and relatively young, to keep premiums down.
    Examples of some AARP 2023 Annual “Estimated" examples for the local Sarasota, FL area are:

    Assisted Living Approx. $3,159 / Month and Up! ($4,500 / Month on average)
    Semi 
    Private Nursing Home Approx. $7,756 / Month and Up!
    Private Nursing Home Approx. $8,668 / Month and Up!

  • Dental Care
    The average senior on 
    Medicare using dental services paid nearly $900 a year out of pocket, according to Kaiser Family Foundation. 1 in 5 Medicare beneficiaries spend more than $1,000.1

  • Prescription Drugs
    Since 2015, at least 1 million enrollees per year in Medicare Part D (Prescription Drug Plan) have had drug costs high enough to exceed the 
    catastrophic coverage threshold. which was $7,050 in 2022.1
    The good news is that new laws have been recently put in place. Starting in 2025, the maximum out of pocket for Part D drugs will be capped at $2,000 annually.



1. Source: Nerdwallet/Associated Press article by Kate Ashford.

Note: Medicare Insurance information can be overwhelming and confusing to many people. As an independent licensed agent I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose and enroll in a plan that you feel fits your needs.

By the way, it doesn’t cost you any more if you enroll in a Medicare Insurance plan through me as an independent agent versus directly with an insurance company either over the phone or via the Internet, since I get paid by the insurance companies for your enrollment. Plus you will have personalized service by a local agent. If you would like my assistance, please call me at 941-404-5334.

By calling this number, I understand I will be directed to a licensed insurance sales agent.

Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Annuities - 5 Things You Should Know


I read an AARP Bulletin article by Ellen Stark about annuities and thought I’d share the information.

The very brief overview of the 5 points she mentioned in her article were:

  1. Annuities can be simple and/or they can be complicated, depending on what type you choose. Some fixed annuities such as MYGA’s (Multi-Year Guaranteed Annuities) are relatively basic. But all annuities aren’t basic and some can be actually quite complex. Annuites come in many varieties: variable, fixed, equity indexed and more. Some annuities can help defer taxes; while others allow people to invest in stocks and bonds while protecting against steep losses.

  2. Annuities require a long term commitment.
    Annuities can have high penalties (called Surrender Charges) if you decide to get out of an annuity earlier than the matured term set in your original annuity agreement. (In a way, similar to a penalty would you pay to break a CD at a bank to get out of a CD early, but generally with an annuity it will be an even higher penalty.)


  3. You need to know specifically what you want.
    You need to decide what type of annuity accommodates your needs before purchasing one.

  4. Safety can come at a cost, depending on what type of annuity and/or rider you purchase.

  5. Which agent or agency you use, matters! You can save yourself money by using an independent agent, since independent agents can shop multiple insurance companies for you at one time. You can also shop online, but won’t have the benefit of personalized service of a local independent agent that explains things and also should be able to get you the same rates as online. It is also very important to choose an insurance company with a high rating grade such as at least an A- (by one of the rating firms such as A.M. Best.) 



The article is no longer available online, but was originally located at:

https://www.aarp.org/retirement/retirement-savings/info-2019/annuities-buying-advice.html


Source: AARP Bulletin January/February 2019
https://www.aarp.org/retirement/retirement-savings/info-2019/annuities-buying-advice.html


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

Annuities - Pros, Cons, and Levels Of Risk



I read an article in the Washington Post by Thomas Heath and I thought I’d share.

The article discusses some of these basic topics: 

  • There are many types of annuities that can be used for various goals. But ultimately, annuities are the only type of product that can be turned into lifetime income.
  • Guaranteed Lifetime Income Annuities (Guaranteed checks come every month.)
  • SPIA (Single Premium Immediate Annuities - You can start getting guaranteed monthly checks immediately.)
  • Joint Life Annuity (Payments last until the death of the surviving spouse.)
  • Some annuities are taxed and some are not, depending on the source of money.
  • Annuities have pros and cons. So he neither endorses them or warns you to stay away from them either. (As they say, one size doesn’t fit all. You need to review your individual circumstances to decide if an annuity is the right fit for you.)
  • There are many different types of annuities. (It is important to understand the particulars of the type of annuity, as well as the details of your specific annuity, before signing up for one.)
  • Annuities can be relatively simple or they can be complicated, depending on the type you choose.


Excerpts from his article:

"The dumbed-down definition of an annuity — the one I am most comfortable with — is a fixed amount of money paid to someone each month. You typically purchase an annuity from a financial services company, and the firm guarantees income the rest of your life.

Buying an annuity is buying insurance. You pay a company to give you a guaranteed paycheck instead of paying yourself from assets that are exposed to the whims of the stock market. How well or poorly the annuity-issuer invests the money, or the condition of the stock market, is not your problem. You get your fixed payment whatever happens.”1



Final Note: Annuities are long time contracts and they generally have large penalties, if you try to get out of them early before they mature. (Similar to a CD, where there is a penalty for early withdraws before the CD matures.) So you shouldn’t put “all" your money into an annuity, since it will be locked up for a long period of time.  You should diversify by having some liquid savings for emergencies, as well as for future planned expenses.


Please click on the web link below to read the entire article:

https://www.washingtonpost.com/business/economy/when-it-comes-to-annuities-there-are-pros-cons-and-certain-levels-of-risk/2019/07/05/c6caa588-9f3d-11e9-9ed4-c9089972ad5a_story.html


1. Source:  Thomas Heath / The Washington Post
https://www.washingtonpost.com/business/economy/when-it-comes-to-annuities-there-are-pros-cons-and-certain-levels-of-risk/2019/07/05/c6caa588-9f3d-11e9-9ed4-c9089972ad5a_story.html


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 


Annuity Dreams And Contractual Realities


A Wall Street Journal article by Stan Haithcock made some good points about annuities. One thing to keep in mind is to base your decisions and expectations on the guarantees within the policy. Don't base your decisions only on the best case scenarios and set yourself up for possibly disappointing results. Also understand that there are many type of Annuities. 

According to the article, fixed indexed annuities were actually designed to complete with CD returns. It goes on to say that the good news about an indexed annuity is that it is a fixed annuity, which means that your principal is protected. In addition, gains (if any) are locked in on an annual basis and typically on the contract anniversary date. He tells people that the upside to an indexed annuity is that there is no downside (which is a good thing), and the downside is that there is typically very limited upside (i.e. CD type returns). You can't have it all, which is OK when you align your return expectations with the realities of the policy.

Unfortunately his original web article is no longer available, but the original source web link is below.

Source: http://www.marketwatch.com/story/annuity-dreams-and-contractual-realities-2013-10-22/print?guid=E75291F6-772A-40E9-B94E-8DD76E4B7FAF


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

Benefits of IRA Accounts & Some of The Rules


An informative MarketWatch article by Bill Bischoff regarding how IRA accounts are tax smart and better then before.

This article mentions that making meaningful contributions to IRAs have gotten a lot easier over the past years and also goes over the ground rules for both traditional IRAs and Roth IRAs.

The bottom line is that you can contribute more to IRAs than in the past, so it is definitely worth the effort.

Click on link below to read the entire article:

IRA accounts are tax-smart and better than ever


Click below to read related article:

1. Everything You Need To Know About Your IRA

2. Understanding the IRA mandatory withdrawal rules


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Claiming Social Security: Should You Wait?


Informative Wall Street Journal article by Anne Tergesen regarding the age that is best for you to claim Social Security. The gist for most retirees is that they are going to be better served delaying Social Security until full retirement age or later. Although to determine the best strategy for you it is worth hiring an independent financial advisor.

http://blogs.marketwatch.com/encore/2013/04/23/claiming-social-security-should-you-wait/tab/print/

Also a link, that was mentioned in the article, is pasted below to Social Security's web site that shows when you are entitled to full retirement  (Full retirement age is the age at which a person may first become entitled to full or unreduced retirement benefits.)

http://www.ssa.gov/retire2/retirechart.htm


Related Blog Post:

Taking Social Security Too Soon Can Cost You


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Don’t Ignore Your Social Security Statement


I found this MarketWatch article by Kerry Hannon (NextAvenue.org) to be very informative. It briefly guides you through your Social Security statement and tells of the importance of actually reading it.

The article mentions that if you receive your statement from the Social Security administration, don’t just toss it out or file it away unread. It is very important and probably one of the most crucial financial planning documents for every American to review and understand. 

For those of you that didn’t get a Social Security statement in the US Mail in a long while, you can set up an account at SocialSecurity.gov and log in online to find the same information.

The main reason to read your statement (whether a paper copy that came in the mail or electronic version by logging on and viewing online) is to give you an idea how much you can expect to receive from Social Security, which will depend on the age you apply for benefits. This information can help you decide when to start claiming your Social Security benefits.

It is also very important to verify that your earnings record information is correct. If your earnings record is incorrect, you may not receive all the Social Security benefits you are entitled to receive.

It read the full article, click on the web link below.

http://www.marketwatch.com/story/dont-ignore-your-social-security-statement-2015-01-13


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Everything You Need To Know About Your IRA


This MarketWatch article by Bill Bischoff is very informative and should be a must read for those that aren’t that familiar with rules regarding their own IRA!

The articles expands on the following topics:

  • Who is eligible for traditional IRAs 
  • Who is eligible for Roth IRAs
  • How much you can contribute
  • Taxes due after age 59 1/2
  • Early Withdrawal (before 59 1/2) for higher education expenses
  • Early Withdrawal (before 59 1/2) for first time home purchase
  • Early Withdrawal (before 59 1/2) for death or disability
  • Early Withdrawal (before 59 1/2) for other reasons
  • SEP & SIMPLE IRAs for self employed folks and small business owner
    • Eligibility
    • Contribution limits for 2015
    • Withdrawals after age 59 1/2
    • Withdrawals before age 59 1/2
    • What is AGI?
    • What is earned income?


To read the full article, click on the web link below.

Everything You Need To Know About Your IRA


Click below to read related articles: 
1. IRA accounts are tax-smart and better than ever

2. Benefits of IRA Accounts & Some of The Rules

3. Understanding the IRA mandatory withdrawal rules


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

If Social Security is Plan A, it’s time for Plan B


Link below to an article from Wall Street Journal's Marketwatch by Robert Powell, advising folks to reconsider on how to handle their planning for retirement and not to just depend on Social Security. Basically saying if you’re retired, don’t worry; if you’re under 40, worry!

http://www.marketwatch.com/story/if-social-security-is-plan-a-its-time-for-plan-b-2012-04-25


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Important Documents To Get In Order While You Are Still Healthy & Able To!


Below is a list of some of the important legal documents you should prepare now while you are still healthy!

  • Durable Power Of Attorney
    (For Legal Matters - It allows you to name someone to act on your behalf for any legal task and it stays in place if you become unable to make your own decisions.)

  • Advance Directives
    (Let you make arrangements for your care if you become sick.)

    There are two ways to do this:

    1. Durable Power Of Attorney For Health Care 
      (For Medical Decisions - It lets you name the person you want to make medical decisions for you if you can’t make them yourself.) Note: Make sure the person you name is willing to make those decisions for you.

    2. A Living Will
      (For Medical Decisions  - It gives you a say in your health care if you become too sick to make your wishes known. In a living will, you can state what kind of care you do or don’t want. This can make it easier for family members to make tough healthcare decisions for you.


  • Wills and Trusts
    (They let you name the person that you want your money and property to go to after you die.)


NOTE: It is best not to attempt to complete these documents yourself, but rather work with an attorney you can trust. Each state may have different laws and may interpret these documents differently and in some cases can be voided if completed incorrectly.


Source: https://www.nia.nih.gov/health/publication/getting-your-affairs-order


Other Related blog posts and articles:

Get these documents in order while you’re healthy and able to

The Essential Pieces of Estate Planning Paperwork You Need



Note: Both Medicare and Life Insurance can be overwhelming and confusing to many people. As an independent licensed agent I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose and enroll in a plan that you feel fits your needs.

By the way, it doesn’t cost you any more if you enroll in an insurance plan through me as an independent agent versus directly with an insurance company either over the phone or via the Internet, since I get paid by the insurance companies for your enrollment. Plus you will have personalized service by a local agent. If you would like my assistance, please call me at 941-404-5334.

By calling this number, I understand I will be directed to a licensed insurance sales agent.

Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Indexed Annuities Are Becoming More Popular Again

This web page has been deleted!

Is It Better to Buy Annuities vs. Life Insurance When Planning for Retirement?


Most insurance companies provide annuities and life insurance products. The main difference between “life insurance” and an “annuity” is how the payments are paid out.

An overly simple explanation is: An annuity is almost like the opposite of life insurance. It continues to pay you a stream of income until you pass away. Life insurance on the other hand pays out to your beneficiaries once you pass on. So the difference between annuity and life insurance lies in the benefits and the timing of it. An annuity intends to support the investor's future income requirements while in life insurance, meets the need of the beneficiaries. Life insurance is mainly a financial product which protects your loved ones when the insured has passed away.

Annuities pay a stable steady income to secure your future income needs. It is a safe, secure stable source of income, ideal for retirees. You can start receiving payments “immediately” or “deferred.” Annuities can provide tax-deferred savings for retirement.

Life insurance generally pays out one “lump sum” payment to the beneficiaries, upon death. It is absolutely essential to provide for the future needs of surviving loved ones so you can meet, or even exceed their expenses such as: living costs, covering the cost of the funeral, or to satisfy any other financial obligation you desire for your loved ones after you pass away.

Both annuity and life insurance products provide death benefits. For example if you pay $100 to an insurance policy, when you die, your surviving beneficiaries could receive up to several hundreds of thousands of dollars. With an annuity, when you pay $100 as premium and die, your beneficiaries will only receive paid premium with interest, minus any payouts made. So if your main need is a death benefit, opt for life insurance.


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

Longevity Annuities - What are they?


A longevity annuity provides protection against outliving your money late in life. Also known as an advanced life delayed annuity, this type of annuity requires you to wait until you reach age 80 or so to begin receiving a payout. Once the payout begins, the annuity provides a guaranteed, regular amount of income for the rest of your life.1

As with any deferred annuity, your money in a longevity annuity grows until you start receiving payouts. The later you choose to begin your payments, the larger your payments will be.1

Buying a longevity annuity is like buying a homeowner’s or health insurance policy with a very large deductible. You’re insuring yourself against a catastrophic risk you can’t handle on your own – in this case, running out of money late in life – while holding your premium to a minimum. You typically would invest just a portion of your retirement nest egg in a longevity annuity – say, 10% to 25% – and leave the rest in your other retirement accounts. It’s only worth tying up a small portion of your savings in a longevity annuity, because should you die before you start receiving payouts, the entire balance of your account will be lost.2

Click the web links below to read more:


1. Source: CNN Money http://money.cnn.com/retirement/guide/annuities_longevity.moneymag/index.htm

2. Source: Time Money http://time.com/money/collection-post/2791259/what-is-a-longevity-annuity/


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

MYGA - What is a MYGA?


MYGA is short for Multi-Year Guaranteed Annuity and is a type of fixed annuity.

A MYGA has a fixed interest rate that is applied to invested funds for multiple years in a row.   MYGAs are kind of like bank CD’s (certificates of deposit) in many ways. One similarity of MYGA’s to CDs are that they grow funds at a fixed interest rate for a set period of time and have a penalty for early withdrawals. MYGA’s are some of the simplest forms of annuities.1

A Withdrawal Provision is a feature of almost all MYGA’s. (Although there are some exceptions in some MYGA’s that do not allow penalty free withdraws until full maturity, but most MYGA’s do offer up to 10% withdrawals per year that are penalty free.) The Withdrawal Provision allows you to withdraw a percentage of your account value. For example, if a MYGA had a 10% Free Withdrawal Provision at the end of each year you could withdraw up to 10% of your account value each year penalty free. If you withdraw more of your money earlier then the MYGA agreement allowed, then you would have to pay substantial surrender charges to the insurance company, as well as possible tax penalties. (Withdrawal of any funds prior to age of 59 1/2 are subject to an IRS Penalty of 10% of the funds withdrawn. This is in addition to any penalties incurred as part of the annuity contract.)

MYGA’s are usually purchased by people in retirement or nearing retirement. The reason why MYGA’s are typically purchased by people older than 55 is because of the tax treatment of annuity funds mentioned above.

MYGA’s have several strengths over bank CDs. Probably the most significant strength is that their fixed interest rates tend to be quite a bit higher for MYGA’s than for CD’s of the same number of years. Another key advantage is that MYGA’s grow funds on a tax-deferred basis. That means you do not have to pay taxes on gains each year. With MYGA’s, funds grow tax-deferred within the annuity and no taxes are due until your funds are withdrawn. However on the other side with CD’s, you are taxed each year on the interest earned.

How do you buy a MYGA? Since MYGA’s are insurance products, they may be purchased through a licensed insurance agent. You can call me directly at 941-404-5334 if you like to purchase a MYGA or if you just have any questions.


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews


1. Disclosures:  I have provided this information as courtesy service. The material on this page for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law, please consult with an attorney. 

An annuity is an insurance product that can be used as part of a retirement strategy. Annuities are not FDIC insured, not bank guaranteed, and may lose value if surrendered early. An annuity is subject to the claims-paying ability of the issuing insurance company. Before buying an annuity, consider the objectives, risks, charges, and expenses of the annuity. Please read all disclosures carefully before buying an annuity. Please review your issued annuity policy during any “free look” term offered by the insurance carrier to ensure accuracy. 


Source: http://www.montanalifegroup.com/2014/05/myga



Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

Nice Increase Expected For 2023 Social Security Checks!


I thought I would share some good news that I read in a recent USA Today Newspaper article by Paul Davidson. It is predicted that there will be a 8.3% increase in Social Security checks! (With all the inflation recently, every little bit helps!)

Excerpts:

"The roughly 70 million people – retirees, disabled people and others – who rely on Social Security could receive an 8.6% cost-of-living adjustment, or COLA, next year, according to an estimate from Mary Johnson, a policy analyst for the Senior Citizen League, an advocacy group.

For the average retiree who got a monthly check of $1,657 this year, the bump would mean an additional $142.50 a month in 2023, boosting the typical payment to $1,800.”1


To read the entire article, click on the web link below:

https://www.usatoday.com/story/money/2022/05/13/cola-2023-social-security-cost-living-boost-inflation/9762924002/


1. Source: USA Today Article by Paul Davidson
https://www.usatoday.com/story/money/2022/05/13/cola-2023-social-security-cost-living-boost-inflation/9762924002/


Note: Medicare Insurance information can be overwhelming and confusing to many people. As an independent licensed agent I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose and enroll in a plan that you feel fits your needs.

By the way, it doesn’t cost you any more if you enroll in a Medicare Insurance plan through me as an independent agent versus directly with an insurance company either over the phone or via the Internet, since I get paid by the insurance companies for your enrollment. Plus you will have personalized service by a local agent. If you would like my assistance, please call me at 941-404-5334.

By calling this number, I understand I will be directed to a licensed insurance sales agent.

Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Older People Fear This More Than Death!


I read an interesting MarketWatch article by Catey Hill regarding that the number one thing that scares older people the most is running out of money in retirement. 

8 Things older people fear about retirement:

  1. Outliving savings and investments 43%
  2. Declining health that requires long-term care 38%
  3. Social Security will be reduced or won’t exist 33%
  4. Lack of access to adequate and affordable health care 27%
  5. Cognitive decline, dementia and Alzheimer’s 25%
  6. Finding meaningful ways to spend time and stay involved 11%
  7. Being laid off/not being able to retire on my own terms 10%
  8. Feeling isolated and alone 9%

Source: Transamerica Center for Retirement Studies


To read the entire article click on the weblink below:

http://www.marketwatch.com/story/older-people-fear-this-more-than-death-2016-07-18


My suggestion to avoid running out of money during retirement:
One solution that gives you an option to receive steady income in retirement is purchasing an annuity well in advance of retirement. However, there are many different types of annuities. For example: deferred annuities if you have years before retirement versus an immediate income annuities for those that need monthly income right away, etc.


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews 


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

Retirement - Keep More Of Your Savings

This web page has intentionally been deleted

Retirement costs confuse soon-to-be retirees


An interesting Wall Street Journal's MarketWatch article by Anna Andrianova that states one third of people close to retirement said that they don't know how much money they will need to cover basic expenses in retirement, according to a new study. Click on link below to find out more.

http://www.marketwatch.com/story/retirement-costs-confuse-soon-to-be-retirees-2012-07-31


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Simple Annuity Guarantees You A Consistent Monthly Income As Long As You Live


I read this MarketWatch article by Michael Edesess and found the latter part very informative, so I thought I’d share.

Excerpts:

A simple annuity, also called a “Single Premium Immediate Annuity" (SPIA), is a financial instrument that guarantees you a consistent monthly income as long as you live. It should not be confused with the much more complicated, expensive, and much less useful annuities with other names, such as variable annuities or fixed-income annuities.1

His calculations show that for an investor to be 95% certain of not running out of money with a safe withdrawal strategy from a 60%/40% stock-bond portfolio, the strategy would be to withdraw 3.5% of the initial investment in real (inflation-adjusted) dollars each year.1

If the portfolio started with $500,000, for example, the average annual lifetime income would be $23,000. With the SPIA, the average annual lifetime income would be $33,500, and the certainty of achieving it is greater than 95%.1

Thus, both the certainty of not running out of money, and the lifetime income, are much greater with the SPIA than with the “safe withdrawal” strategy. This, of course, assumes that the investor has essentially zero interest in leaving a bequest. But this is the case for many baby boomers. Their children are independent, or they want them to be, or they have no children.1

In these times of relative hardship for most middle-class retirees, the majority of baby boomers in the United States are more concerned that they will not have enough money to live out their years with a degree of relative comfort than they are with leaving a legacy. Given this objective only, it’s almost impossible to beat a simple annuity.1


Note: It is important to know that there are some payout options for SPIA’s that are not mentioned in the article. One important payout option is that you still can leave a legacy (via a beneficiary) however that will cost you a little bit more by lowing the amount of your monthly payout.


Below are some payout options that many insurance companies offer.

  • Period certain: (Fixed Number of Years)
  • Single life only
  • Single life with period certain:
  • Single life with cash refund
  • Single life with installment refund
  • Joint life with survivorship
  • Joint life with survivorship and period certain


Definitions of each of the options listed above: (Each insurance company the options may vary)

• Period certain only: This option provides income 
for a fixed number of years set at the beginning of the annuity. If the annuitant passes away during that
 time, payments would continue.


Single life only: Payments are only during the 
life of the annuitant. If the annuitant passes away, then 
no further payments are made to an estate or any 
other person.


• Single life and period certain: Selecting this 
option provides income for the life of the annuitant
 - with a guaranteed payment period for a fixed number of years set at the beginning of the annuity. If the annuitant passes away
 before the period ends, payments will continue 
for the remainder of that period.


Single life with installment refund: This option 
guarantees that payments will continue during the 
life of the annuitant. After the annuitant passes 
away, payments continue until the total payments
 are equal to the single premium originally paid.


Single life with cash refund: Payments are only 
during the life of the annuitant. If the annuitant
 passes away before the total payments received
 equal the premium, a lump-sum payment is made
 equaling the difference between the original single
 premium and any payments already received.


Joint life with survivorship: Selecting this option
 creates an income stream paid for the life of the 
annuitant and the lifetime of his or her spouse.
 After the annuitant passes away (or his or her
spouse), payments continue for the remainder
 of the surviving spouse’s life.


• Joint life with survivorship and period certain: 
This option provides income for the annuitant and 
his or her spouse’s lifetime – with a guaranteed 
payment period for a fixed number of years).
Should the annuitant or his or her spouse pass
 away, payments continue for the remainder of
 the surviving spouse’s life. If both annuitants 
pass away before the period ends, payments 
will continue for the remainder of the period.


Click on the web link below to read the entire article OR just scroll about half way down the article to the heading section called "Simple Annuity."

https://www.marketwatch.com/story/this-one-investment-move-can-give-you-lifetime-yearly-income-in-retirement-2019-04-29


1. Source: MarketWatch article by Michael Edesess
https://www.marketwatch.com/story/this-one-investment-move-can-give-you-lifetime-yearly-income-in-retirement-2019-04-29


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews 


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

Social Security - 12 Top Things to Know


After reading an AARP Bulletin article by Kenneth Terrell, I wanted to share what he considered the 12 top things to know about Social Security and he busts some of the incorrect myths about Social Security.

Below is quick bullet point list:

  • Social Security is not going bankrupt
  • Congress probably will not take up Social Security reform anytime soon
  • Some ideas to reform funding are starting to take shape
  • Lawmakers do not raid the trust fund
  • Many believe it can be run better
  • Your Social Security benefits can be taxed
  • Social Security is not meant to be a retiree's sole source of income
  • The purchasing power of social security is diminishing
  • You can work and get Social Security
  • Social Security has gone digital
  • Social Security is not just a retirement program
  • Most people get back more than they put in


For details on each of the bullet points above and to read the entire article, click on the web link below:

https://www.aarp.org/retirement/social-security/info-2018/12-fact-about-ss.html

Source: AARP Bulletin November 2, 2018 Article by Kenneth Terrell https://www.aarp.org/retirement/social-security/info-2018/12-fact-about-ss.html


Click on web link below for related topic:

Top Social Security Questions Answered


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Social Security Tips For Married Couples (Includes A Video)


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Taking Social Security Too Soon Can Cost You


I recently read some interesting articles from both CNBC and U.S. News regarding taking Social Security too early and how it can affect you. I thought I’d share the articles.

Basically everybody's circumstances are different and when you should start taking Social Security is based on many factors. They suggested that it is best to contact a financial advisor to help you decide well in advance before making any decisions.

One excerpt from the U.S. News article by Emily Brandon:
"Your Social Security benefit increases by approximately 7 percent each year you delay taking it from age 62 to 66 and by 8 percent a year until age 70, Kotlikoff found.“


Click on the web links below for each of the articles you would like to read.

Retirees pay for claiming Social Security too early

http://www.cnbc.com/2015/08/26/retirees-pay-for-claiming-social-security-too-early.html

When to file for Social Security retirement benefits early

http://www.cnbc.com/2015/08/07/when-to-file-for-social-security-retirement-benefits-early.html?trknav=articlecarousel:inline:1:102945654

Taking Social Security Too Soon Can Cost You

http://money.usnews.com/money/retirement/articles/2008/01/09/taking-social-security-too-soon-can-cost-you


Related Blog Post:

Claiming Social Security: Should You Wait


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

The Essential Pieces of Estate Planning Paperwork You Need


I read this informative Money (time.com) article by Jill Schlesinger regarding estate planning and thought I’d share.

One important take away is that you need to prepare these items now, so they will be available if and when needed. Many people mistakenly like to put off this task until another time down the road.

"Below is their checklist:

Estate Planning Documents

Note: Parents should complete the following legal paperwork.

  • Will: A legal document that ensures that your assets are passed to your designated beneficiaries, in accordance with your wishes. In the drafting process, you'll name an executor, who is the person or institution that oversees the distribution of your assets. If you have minor children, you need to name a guardian for them.
  • Power of attorney: Allows you to appoint someone to act as your agent in a variety of circumstances, like withdrawing money from a bank, responding to a tax inquiry or making a trade.
  • Health care proxy: Allows you to appoint someone to make health care decisions on your behalf if you lose the ability to do so.
  • Trusts (if applicable): Depending on your family needs and tax situations, you may have either revocable (changeable) or irrevocable (not-changeable) trusts. One factor is the size of your estate: For 2016, the first $5.45 million of an estate is exempt from federal estate taxes. If an estate is above the threshold (or twice that for married couples), a revocable trust may be suitable.
  • "DNR" order (if applicable): You may need to complete a "do not resuscitate" order each time you enter a hospital or nursing home.


Account List

You should also complete, and share, a list of multiple accounts that heirs might need to access.

  • Bank and brokerage accounts
  • 401(k) accounts
  • IRAs and Roth IRAs
  • All auto-pay accounts, with name and contact information for each payee
  • Safe-deposit boxes
  • Pension documents
  • Annuity contracts
  • Savings bonds (with copies of the actual bonds)
  • Life insurance policies
  • Long Term Care insurance policies

If there are related online usernames and passwords that someone will need to access, print out a list, stash it in a safe or other secure location, and then (this is important)  make sure that your executor or heirs know how to find it.


Other Documents

Finally, there are several other pieces of paperwork that, if applicable, can be quite helpful to heirs.

  • Previous three year's tax returns
  • Housing, land and cemetery deeds
  • Mortgage accounts
  • Proof of loans made
  • Vehicle title
  • Partnership and corporate operating agreements
  • Marriage license and/or divorce papers, if applicable
  • Military discharge information

Important contacts: Names and current addresses for all people named in the legal documents, as well as the contact information for the estate attorney and CPA who will be handling the estate.”1


Click on web link below to read their entire article and view video:

http://time.com/money/4300166/checklist-estate-planning-documents/


1. Source: Money web article “24 Essential Pieces of Estate Planning Paperwork You Need” by 
Jill Schlesinger located at: http://time.com/money/4300166/checklist-estate-planning-documents/


Click below web link to read one of my related blog posts:

Important Documents To Get In Order While You Are Still Healthy & Able To


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

Top Social Security Questions Answered


After reading an AARP Bulletin article by Stan Hinden, I wanted to share what he considered the top Social Security Questions and his answers.

  • When should I start Social Security?
  • How much money will I get?
  • Can I keep working after taking my benefits? Is there a limit on my earnings?
  • I am divorced. Can I get benefits from my former spouse’s work record?
  • I was a stay-at-home mom and never worked, but my husband did. Can I get Social Security benefits?
  • If my spouse dies before taking Social Security, can I still get a widow’s benefit?
  • Do I pay federal taxes on my payments?
  • Can I have federal taxes withheld from my payments?
  • What is Social Security disability insurance (SSDI) and how does it work?
  • What can my spouse and I do to increase our benefits?


For the answers to the above questions, click on the web link below and then click on the right arrow of the picture to move to the next slide:

https://www.aarp.org/work/social-security/info-2014/social-security-questions-photo.html#slide1

Source: https://www.aarp.org/work/social-security/info-2014/social-security-questions-photo.html#slide1


Click on web link below for related topic:

Social Security - 12 Top Things to Know


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Turning 50? Time For A Retirement Tuneup


This Wall Street Journal Article by Elizabeth O'Brien gives a wake up call as well as advice on evaluating whether you are on track to enjoy financial and physical well-being when you retire. At age 50, experts say, there is still time to play catch up and make adjustments if needed for the next phase of your life. She goes on to say that you should fight the impulse to put retirement on the back burner in your early 50's. Advisers say that the timing may not be opportune at that age, but it is actually the most critical time! She includes a checklist in the article to help 50-year olds stay on track for a healthy retirement. Click the link below to read more.

http://www.marketwatch.com/story/turning-50-time-for-a-retirement-tuneup-2013-06-11


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

What Happens To Your Debt When You Die?


I just read an interesting MarketWatch article by Karen Carr and thought I’d share it.


The article covers these main topics below:

  • Who has to pay the debt?
  • What if the estate is broke?
  • When family members must pay


Excerpt:

"When someone passes away, their estate — or cumulated assets — is generally responsible for paying any outstanding debts. It’s up to the executor of an estate (the person who has been deemed legally in charge of taking care of the estate after someone passes away) to see that debts are paid.

Most debts must be paid back, provided there is enough money in the estate. The types of debts that must be paid back include credit card debt, car loans, private student loans (federal student loans are discharged at death), home equity lines of credit, and mortgages.

If you owe money on a mortgage at the time of your death, things can get a little complicated.”1


Click the link below to read full article:

http://www.marketwatch.com/story/what-happens-to-your-debt-when-you-die-2016-03-14


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews


1. Source: MarketWatch Online Article by Karen Carr
http://www.marketwatch.com/story/what-happens-to-your-debt-when-you-die-2016-03-14

What To Do If You Inherit Your Spouse’s IRA


I read an informative MarketWatch article regarding "what to do if you inherit your spouse’s IRA" by Bill Bischoff and thought I’d share it.

The article mentions that you could have huge tax implications by doing the wrong thing with your inherited IRA. You should NOT just sit on your hands. Because if you fail to withdraw at least the required minimum amount from your inherited IRA, you will be charged a penalty equal to 50% of the shortfall! It is very important to pay attention and read his article to learn how to calculate required minimum withdrawals from an IRA you inherited from your spouse.


Click on web link below to read the entire article:

http://www.marketwatch.com/story/what-to-do-if-you-inherit-your-spouses-ira-2015-03-18

What’s the Best Age to Retire?


Ever wonder what age would be best age to retire? No matter if your retirement dreams are supposedly right around the corner or way down the road in life for you, this article should be helpful. Click on the link below to read the article from The Wall Street Journal's MarketWatch by Robert Powell and find out more about helping you plan properly.

http://www.marketwatch.com/story/whats-the-best-age-to-retire-2012-09-13


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews

Why It Might Be Better To Take Social Security At Age 66 Instead Of Age 70


I read an informative MarketWatch article by Mark Hulbert regarding what age you may want to start taking Social Security and I thought I’d share it.

Some excerpts:

Most financial planners recommend that if you can afford to do so, you should wait until age 70 to begin receiving your Social Security benefits. Your monthly payment in such an event will be 32% higher than if you begin receiving benefits at age 66. As long as you live to your early 80's, those higher monthly payments should make up for the foregone income over the four years from age 66 to 70.1

A couple of reasons on why that conventional strategy could be wrong:

For the first reason, click this web link to read this related article:

When it’s best to claim Social Security before age 70

An additional reason traces to Social Security’s uncertain fate at the hands of our elected officials. If you take at face value some of the proposals being given serious consideration in Congress and in President Trump’s administration that reduce future Social Security benefits, then the financial planners could be giving the wrong advice to wait until age 70.1


For more information, click on web link below to read the entire article:

https://www.marketwatch.com/story/why-it-might-be-better-to-take-social-security-at-age-66-instead-of-70-2018-02-02


1. Source: MarketWatch online article by Mark Hulbert
https://www.marketwatch.com/story/why-it-might-be-better-to-take-social-security-at-age-66-instead-of-70-2018-02-02


Disclaimer: I am not a financial advisor or social security advisor. I am insurance licensed only, thus regarding social security advice always be sure to check with your financial advisor or social security advisor first for your individual situation before making any decisions.


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334. 

Younger Adults Can Buy Fixed Annuities, Too


This AnnuityNews.com article by Linda Koco mentions that fixed annuities purchased by buyers under the age of 50 has been increasing recently. Not just under 50, but also under 40, and even under 30 years old!

Many advisors and agents don’t even think of offering annuities to people under the age of 50. One main reason is that they just don’t want to sell annuities to people who might face a tax penalty if they withdraw their annuity funds before age 59.5. It goes on to say that as far as the 59.5 penalty concerns, the same can be said for IRA’s, however younger adults still purchase IRA’s.

The younger purchasers that can benefit from purchasing fixed annuities, could be people that have exhausted their maximum contributions to their 401(k) or other defined contribution retirement plans since they are using fixed annuities to supplement their retirement savings.

To read the full article, click on the link below.

http://insurancenewsnet.com/print.aspx?id=551141


Please take a few seconds to read what my actual clients have to say about my personalized service in their own words by clicking this link. Insurance Agents Reviews


Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334.