Savvy US individuals purchased over $17 Billion in 2013. What do they Know, that you don't?

Savvy individuals and investors purchased $17 B of one type of product this year. That represents almost 7% increase over last year. The investors did it to control risk, earn a decent rate of return and in many cases to guarantee lifetime income or at least guarantee income for a fixed period of time. How does that sound to you?  How about Zero market risk! Is that important to you?

These products are offered by some of the strongest financial companies in the world. The companies I recommend did not lose money in 2001, 2008 or 2009. They did not require any government bailout!  They actually made money in 2008-9. They are well positioned to weather the next market downturn which we all know  will happen! We just can  not say when.

These products work with both qualified and non qualified money. They work in  ROTH and Traditional IRA accounts, SIMPLE Plans, SEP Plans or even within ROTH or Traditional 401K Plans that I run for my clients. They can be used in Trusts, can fund charitable contributions or work within estate plans.

What About Required Minimum Distributions (RMD's)? Any Alternatives?

Many people have assets in their retirement plans that they do not need to use for their retirement. They want to leave those dollars for a family legacy or a favorite charity. Unfortunately most Qualified plans include a requirement that the owner begin taking Required Minimum distributions begin when the reach age 70.5. The penalties for not taking the RMD are very severe and are designed to be Punitive in Nature. There are only a couple of ways to  avoid these withdrawals or the Punative taxes. First  you avoid that if your funds are within a ROTH IRA or A ROTH 401K account. But there is a way to  avoid taking the withdrawal and avoids the taxable nature of the  distribution. With Your Tax professional I can help you accomplish this. It involves a charitable contribution using some of your assets but does not increase your income or your income tax.

Lets assume that your retirement plan is large enough so you need to  take a $20,000 withdrawal this year. If you  don't take the withdrawal you tax penalty is $10 K. If you do take the Withdrawal your tax bill would be increased by $5 K assuming a 25% tax rate. That  would leave you  with $15 K after tax. By taking the  withdrawal you might also find that you have been pushed into a higher tax bracket!! You may also  find yourself caught with the new increases in taxes due to OBAMACARE. This may make it go from bad to  worse. So in taking a distribution you  did not want or need you will end up with maybe less than $10-15K.  Lets say you have a favorite charity. If you gave them money here is an alternative  scenario. The  charity  gets $20 K which is guaranteed to  turn into no less than $21 K by the end of year one. You  get no tax increase, you get no tax penalty, you are entitled to a tax deduction for your donation and you don't increase your income reducing your tax liability and not increasing the income subject to Medicare tax, or OBAMACARE Taxes.  This is just one of a number of possible financial scenarios that you, your tax preparer  and I can establish. This sounds like a WIN-WIN scenario!
If this is interesting to you lets talk.