Life insurance is there to help those left behind. So, make sure when considering life insurance policies to think about your family’s needs, such as standard of living and covering your final expenses. Generally, people look for a policy that falls between five to seven times their gross annual income. Normally, policies fall into two categories: term and permanent.
Term insurance covers you for a specific amount of time and pays out a predetermined amount to your beneficiaries if you pass away during that time frame. Level premium policies allow you to pay in the same amount from the first day until the policy ends. On the other hand, permanent policies stay in effect your entire life as long as the premium is paid.
Setting up a legacy plan is a great way to potentially reduce taxes and increase the payout to your beneficiaries upon your death.
You can use assets for tax-deferred growth and create an income stream for your beneficiaries. As a result, your beneficiaries may receive more money over their lifetime. We’re here to help you find a legacy planning strategy that works for your situation and provides a long-lasting inheritance.
The burden of finding income for retirement falls largely on the retiree. A fixed income strategy, such as an annuity, can help you and your fellow retirees create a stable flow of income for retirement.
If you purchase an annuity from an insurance company, you will receive a certain fixed amount depending on how much you pay in, and/or you can choose variable interest options that compound until withdrawn. Many annuities allow you to withdraw a percentage of the contract value each year (up to a certain limit). However, if you choose to make withdrawals, the contract value decreases along with the protected benefits. Also, if you exceed the withdrawal limit, you will incur surrender charges that will decrease the value of the annuity. These are long-term vehicles, and withdrawals taken before 59½ are subject to penalty fees and income taxes.
No one turns to the market for security, so your financial strategy should include some form of protection. For example, annuities can provide a source of supplemental income throughout your retirement.
By diversifying your retirement assets across the board, you have a better chance of achieving your retirement goals.
With taxes on the rise, you need to consider how tax planning can help you reduce and potentially eliminate unnecessary taxes.
While few financial vehicles can avoid taxes altogether, you can use tax-deferred options that free your money from income taxes and compound interest and potentially allow your money to earn interest at a faster rate. Also, some insurance products allow you to defer paying taxes until after retirement, which is helpful if you are in a lower tax bracket.
Many people deposit their funds into money markets and certificates of deposit (CD) for safety, liquidity, and a legacy for their heirs. Our goal is to help our clients understand their options so they can find the best products for their situation and possibly earn interest at a higher rate. These options can help protect your portfolio and earn interest with minimal risk.