Not may people know that most of Obama Care enabling legislation didn't deal with health care at all. Most of the bill actually dealt with new and onerous tax increases needed to fund the bill. Did you know that all females have maternity coverage burried in the cost of premiums. Thats a mixed blessing of course. If a woman is Sexually active, married and in child bearing age. Its not necessary to add the cost of the premium for a woman who isnt sexually active or is beyond child bearing age. However courtesy of Obama its in there!
Did you know that every real estate transaction will involve a better than 3% federal tax on a home sale. We are not talking about a tax on short or long term gains. We are talking about a new massive tax incurred even if you loose money on a home sale. There are dozens and dozens of these new Taxes, Fines and Fees hidden in the 1000 plus pages of this legislation.
That just doesn't seem right to me.
What do you think???
Saturday, March 23, 2013
Friday, March 22, 2013
Would you be interested in 6.25% for 34 yrs?
Would you be interested in turning $383,000 into a guarantee income stream for 34 year and paying a total of $1,607,000. The transaction is only available to one client. when its sold its gone. There are other similar deals available with diferent amounts, diferent payment schedules, various durations and different nominal interest rates. Smaller deals are also available. The payment streams are guaranteed by Billion dollar Insurance Companies that are highly rated and very well known. This particular opportunity is issued by an A rated American insurance company.
Whats the catch?
You must qualify to purchase the deal.
You must have adequate liquidity to afford the transaction.
You get a schedule of monthly income checks thats is modest for the first 14 years then increases every year until the maturity in 2047
You cant change the monthly payment amounts. The payment schedule is available for review
You must have a very long term focus.
Im guessing the ideal client would be a professional with high net worth possibly a lawyer, doctor or business owner. Possibly utilizing IRA, SIMPLE, SEP or 401K assets. Imagine a $1.2 M plus gain in a ROTH! It could be a younger sucessful individual or an older client looking to fund a Mult-generational Family or charitable trust!
What are your thoughts on this type of very long term transaction and rate of return??
Public comments can be made here or
serious inquiries would be best handled by email or phone
Whats the catch?
You must qualify to purchase the deal.
You must have adequate liquidity to afford the transaction.
You get a schedule of monthly income checks thats is modest for the first 14 years then increases every year until the maturity in 2047
You cant change the monthly payment amounts. The payment schedule is available for review
You must have a very long term focus.
Im guessing the ideal client would be a professional with high net worth possibly a lawyer, doctor or business owner. Possibly utilizing IRA, SIMPLE, SEP or 401K assets. Imagine a $1.2 M plus gain in a ROTH! It could be a younger sucessful individual or an older client looking to fund a Mult-generational Family or charitable trust!
What are your thoughts on this type of very long term transaction and rate of return??
Public comments can be made here or
serious inquiries would be best handled by email or phone
Wednesday, March 20, 2013
How much money can you spend in your retirement
Most Professional Financial Advisors use a Rule of Thumb called "The 4% Rule". Rules help clients understand what they should or should not do. This rule states that if you want a high probability that your retirement assets will last as long as you live you should remove or spend no more than 4% of your assets per year. This rule applies to self managed money accounts and does not apply to Defined Benefits assets. Recently we have lived through 5 or more years with Low interest rate earnings, High market volatility and we are actually living longer than ever in history. A number of economists and planners have asked and studied this question. "Does the 4% Rule still apply in todays world?" What a great question! Many financial Advisors now believe that it no longer provides adequate protect of your income for life. They believe that you should limit withdrawals to only 3 % or so if you want your self managed assets to last for your lifetime.
A recent study that appeared in the Journal of Financial Planning has found that up to 18% of people utilizing the 4% Rule will in fact run out of money before they die. That is a terrifying study result! That means that many people will have to work long and or spend less in their retirement years.
What should a retired boomer, retiree or pre-retiree do. They can decide to work longer and spend less. Those are a couple of good steps. Clearly they should also convert at least some portion of their assets into a Lifetime guaranteed income stream. These products are only available from Licensed Life insurance agents with the products and knowledge needed to meet these needs. This is what I have focused my business on for over 8 years. Some of these products can Guarantee a withdrawal rate for life of 5% or more for your entire lifetime. Now compare that to the 4% Rule or maybe 3-3.5% withdrawal rate with self managed assets. These products can guarantee you an income 25-66% more than you can get from any self managed assets with the same Asset value. Thes products do this with Zero Market Risk. They delivered during 2008-2009 and they can do the same thing during the next recession whenever the out of control goverment excess spending creates the next Recession. These products have a role to play in almost everyones retirement strategy.
A recent study that appeared in the Journal of Financial Planning has found that up to 18% of people utilizing the 4% Rule will in fact run out of money before they die. That is a terrifying study result! That means that many people will have to work long and or spend less in their retirement years.
What should a retired boomer, retiree or pre-retiree do. They can decide to work longer and spend less. Those are a couple of good steps. Clearly they should also convert at least some portion of their assets into a Lifetime guaranteed income stream. These products are only available from Licensed Life insurance agents with the products and knowledge needed to meet these needs. This is what I have focused my business on for over 8 years. Some of these products can Guarantee a withdrawal rate for life of 5% or more for your entire lifetime. Now compare that to the 4% Rule or maybe 3-3.5% withdrawal rate with self managed assets. These products can guarantee you an income 25-66% more than you can get from any self managed assets with the same Asset value. Thes products do this with Zero Market Risk. They delivered during 2008-2009 and they can do the same thing during the next recession whenever the out of control goverment excess spending creates the next Recession. These products have a role to play in almost everyones retirement strategy.
Monday, March 4, 2013
PBS Television Ed Slott 2013 Retirement Rescue Show
Sat March 2 2013, and Sat march 9th WOSU PBS television station in Ohio is broadcasting a great financial show. Unlike Suze Orman and Dave Ramsey who have no professional training in Finance or Taxation or Retirement Planning. Ed Slott is a professional Certified Public Accountant (CPA) and a retirement expert. His Special is running on Public Television which does not accept commercial advertising. He does not sell Financial products, Stocks, Bonds or Mutual Funds, Insurance or Annuity products. Because the show airs on Public TV there are no advertisers like TD Ameritrade or other Securities Brokerage firms as show sponsors, or advertisers and potential content influencers. Just look at the advertisers or show sponsors for the Suze Ormon or Dave Ramsey shows.
Don't get me wrong, I like Suze and Dave. They do give a lot of good advice. However I know that some of their messages are biased, probably unintentionally, by their Lack of Accounting, Financial Training or their commercial sponsorship relationships. They believe that the only life insurance anyone ever needs is term life insurance. They are flat out wrong! Although some clients may never need any other form of insurance many clients need a combination of both and some clients may be better served by purchasing a cash value product
Ed Slott has no comericial sponsorship bias and does not sell Securities, Bonds, Mutual Funds, Insurance or Annuities. Ed recognizes and speaks favorably about the unique advantages found only with Fixed Annuity products and Universal Life Insurance. He Loves Tax Free retirement strategies. He says "Move your money from Forever Taxed to accounts that are Never Taxed." ROTH IRA's are one way to accomplish this goal. 401 K Plan rollovers are a useful tool where you can pay some tax now to avoid much higher taxes later.
I agree with his strategies and can help implement them for clients looking to protect some or even most of their assets from taxation now and into the future. Another quote I loved was " The only thing better than guaranteed income for life is guaranteed Tax Free income for life." Contact me if you want help with the strategies needed to accomplish either or both of these strategies.
Don't get me wrong, I like Suze and Dave. They do give a lot of good advice. However I know that some of their messages are biased, probably unintentionally, by their Lack of Accounting, Financial Training or their commercial sponsorship relationships. They believe that the only life insurance anyone ever needs is term life insurance. They are flat out wrong! Although some clients may never need any other form of insurance many clients need a combination of both and some clients may be better served by purchasing a cash value product
Ed Slott has no comericial sponsorship bias and does not sell Securities, Bonds, Mutual Funds, Insurance or Annuities. Ed recognizes and speaks favorably about the unique advantages found only with Fixed Annuity products and Universal Life Insurance. He Loves Tax Free retirement strategies. He says "Move your money from Forever Taxed to accounts that are Never Taxed." ROTH IRA's are one way to accomplish this goal. 401 K Plan rollovers are a useful tool where you can pay some tax now to avoid much higher taxes later.
I agree with his strategies and can help implement them for clients looking to protect some or even most of their assets from taxation now and into the future. Another quote I loved was " The only thing better than guaranteed income for life is guaranteed Tax Free income for life." Contact me if you want help with the strategies needed to accomplish either or both of these strategies.
Wednesday, October 31, 2012
When Can I Retire??
While reviewing some financial industry publications today I came across something somewhat frightening. It was an article quoting a study done by a group called My New Financial Advisor (MNFA). The purpose of the study was to look at Baby Boomers facing retirement and tried to determine what age they would reach before they are able to Retire. First let me say that the study was relatively modest in size but the findings are still Disturbing and Frightening. I might say this is rather fitting on Halloween night!!
The survey was conducted by collecting data on 1600 Baby Boomers. They concluded that many Boomers due to the following six factors; a Loss of Income, Insufficent Savings, Low Rates of Return on Their Retirement and Other Financial Assets, Higher Than Expected Expenses, High Taxes, and A Low Rate of Growth In Personal Income will have to postpone their retirement till their mid 70's. Is that frightening enough for you? I don't know about you but I don't want to HAVE TO Work until I am in my mid 70's. Now, I'm not saying working until age 70-76 is a bad thing! In fact, for many people thats a good thing. I am saying that I would hope that if you are still working until you are almost 80 years of age that it is because YOU WANT TO, NOT BECAUSE YOU HAVE TO!!
START TODAY!
Squeeze your expense budget, use the money saved to increase retirement savings. Look for SAFE Money Financial alternatives that produce a reasonable rate of return. Guarantees of up to 6% in the growth of Income Account Value, when used for Lifetime Income, are available today. This can be done without market risk today! The "Without Market Risk" is a big deal since retirees or near retirees cannot afford the market lossses most have seen in the past 10-12 years. Getting Back to Even is not good enough. Where do you currently have your Safe Money?
I believe it was Warren Buffet who said there are two rules in financial management.
Rule 1 Don't Lose Money!
Rule 2 NEVER FORGET RULE 1!
If you don't believe we have significant risk today. What about Europe? What about our out of control Federal deficit? Where are we going to get the money to pay for it? Expect increased Taxes! Ever hear of the terms The Fiscal Cliff, or Double Dip Recession. What about the increasing cost of everything you need to buy in the Consumer Price Index (Inflation Risk)?
Polaris Financial Services
614-264-3864
The survey was conducted by collecting data on 1600 Baby Boomers. They concluded that many Boomers due to the following six factors; a Loss of Income, Insufficent Savings, Low Rates of Return on Their Retirement and Other Financial Assets, Higher Than Expected Expenses, High Taxes, and A Low Rate of Growth In Personal Income will have to postpone their retirement till their mid 70's. Is that frightening enough for you? I don't know about you but I don't want to HAVE TO Work until I am in my mid 70's. Now, I'm not saying working until age 70-76 is a bad thing! In fact, for many people thats a good thing. I am saying that I would hope that if you are still working until you are almost 80 years of age that it is because YOU WANT TO, NOT BECAUSE YOU HAVE TO!!
START TODAY!
Squeeze your expense budget, use the money saved to increase retirement savings. Look for SAFE Money Financial alternatives that produce a reasonable rate of return. Guarantees of up to 6% in the growth of Income Account Value, when used for Lifetime Income, are available today. This can be done without market risk today! The "Without Market Risk" is a big deal since retirees or near retirees cannot afford the market lossses most have seen in the past 10-12 years. Getting Back to Even is not good enough. Where do you currently have your Safe Money?
I believe it was Warren Buffet who said there are two rules in financial management.
Rule 1 Don't Lose Money!
Rule 2 NEVER FORGET RULE 1!
If you don't believe we have significant risk today. What about Europe? What about our out of control Federal deficit? Where are we going to get the money to pay for it? Expect increased Taxes! Ever hear of the terms The Fiscal Cliff, or Double Dip Recession. What about the increasing cost of everything you need to buy in the Consumer Price Index (Inflation Risk)?
Polaris Financial Services
614-264-3864
Business Long Term Care,
Remember when Obama promised to offer national health insurance for all Americans. First he granted several hundred of the largest employers in the country exemption from the requirement. How does that possibly increase the quality of health insurance coverage for everyone when significant numbers of the largest employers do not even have to comply?
Then recently the Obama government administration fired the man assigned to run the Long Term Care (LTC) portion of ObamaCare. He basically fired the man responsible for the program with out any intention of naming a replacement. Obama hoped this dismantling of the LTC program would slip by unnoticed just like the employer exemptions granted on the general employer health plan side of ObamaCare.
In fact the LTC portion of the legislation was fatally flawed from its initial design. It was too expensive for each employee for the amount of coverage provided. It offered a nearly useless level of benefit of only $50 per day. It required that an employee pay premium for at least 5 years before you are even eligible to file a claim. An employee who started paying premiums for one year then went into a nursing home would have to pay premiums for four more years before filing a claim. These are just a couple of the most significant design flaws in the legislation.
Where does this program stand today?
Obama Killed it. He fired to man he hired to run it. He burried it without any form of media play or announcement.
What is an employer or an employee to do now?
We can help you design a properly sized cost effective LTC Plan with a reasonable amount of benefit for your needs. If an employee has to go into a Long Term Care facility months after the policy is set up and premiums are paid they are eligible to file a claim and after the exclusion period the LTC benefits will be paid. If you want to learn more about the plans options for your busines please contact us
Polaris Financial Services
(614)-264-3864
Then recently the Obama government administration fired the man assigned to run the Long Term Care (LTC) portion of ObamaCare. He basically fired the man responsible for the program with out any intention of naming a replacement. Obama hoped this dismantling of the LTC program would slip by unnoticed just like the employer exemptions granted on the general employer health plan side of ObamaCare.
In fact the LTC portion of the legislation was fatally flawed from its initial design. It was too expensive for each employee for the amount of coverage provided. It offered a nearly useless level of benefit of only $50 per day. It required that an employee pay premium for at least 5 years before you are even eligible to file a claim. An employee who started paying premiums for one year then went into a nursing home would have to pay premiums for four more years before filing a claim. These are just a couple of the most significant design flaws in the legislation.
Where does this program stand today?
Obama Killed it. He fired to man he hired to run it. He burried it without any form of media play or announcement.
What is an employer or an employee to do now?
We can help you design a properly sized cost effective LTC Plan with a reasonable amount of benefit for your needs. If an employee has to go into a Long Term Care facility months after the policy is set up and premiums are paid they are eligible to file a claim and after the exclusion period the LTC benefits will be paid. If you want to learn more about the plans options for your busines please contact us
Polaris Financial Services
(614)-264-3864
Savings Needed For Retirement Rule Of Thumb
An article recently appeared in the Columbus Dispatch and the Ft. Lauderdale Sun Sentinel. The original article was written by Donna Gehrkee-White. The primary point of the article was to give savers a rule of thumb to help determine how much money they need to have saved prior to retirement. Whats nice about the approach is it doesnt assume that everyone has the same number. Of course everyones stlye of living and retiring is differen, therefore their personal savinggs need is also going to be different. The suggested rule of thumb is this. You should have 8 Years worth of income saved in order to plan on a comfortable retirement. In other words if your last years income was 40,000 then 8 x 40,000 = $320,000 and if your inccome was $150,000 then you should have $1,200,000 in savings. This serves as a starting point. If a retiree has a large pension lifetime income stream they may be able to reduce the saving $ needed to secure a safe retirement. If they dont they may want to increase the amount they save before they retire.
You can also work a few extra years to increase saving and decrease the amount of savings needed. Remember this also increases their Social Security income for life. We have available a Social Security Calculator that lets a client determine the optimum age to begin their Social Security Income benefit and if they are married helps to strategize how and when to begin taking SS income. This is just one of the services we offer to our retirement clients. We also help to increase their retirement income WITHOUT MARKET RISK.
Polaris Financial Services
614-264-3864
You can also work a few extra years to increase saving and decrease the amount of savings needed. Remember this also increases their Social Security income for life. We have available a Social Security Calculator that lets a client determine the optimum age to begin their Social Security Income benefit and if they are married helps to strategize how and when to begin taking SS income. This is just one of the services we offer to our retirement clients. We also help to increase their retirement income WITHOUT MARKET RISK.
Polaris Financial Services
614-264-3864
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