Retirement Planning

Sequence of Return Risk By The Numbers

ABLE Accounts

Sequence of return risk refers to the phenomenon by which a few bad years early in a retirement portfolio can cause havoc for the life of the portfolio. Sequence of return risk is only relevant if the portfolio amounts are changed by either an annual addition or withdrawal. Consider the following annual returns: We begin…

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Parts ABCD of Medicare Plans

Parts ABCD of Medicare Plans

Medicare was launched in 1965 to provide health insurance coverage for America’s seniors. It has become a very popular program with seniors and insurance companies. Like most government programs, it has grown and become far more expensive than ever envisioned. Roughly 60 million people are insured under Medicare. In this article I will walk you…

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Defined Benefit Plans for Small Businesses and the Self Employed

Retirement savings plans fall into one of two classifications: defined benefit (DB) plans or defined contribution (DC) plans. Hybrid plans, such as cash balance plans that contain characteristics of both, are considered defined benefit plans. Pension plans and Social Security are two examples of DB plans. Pension plans were once common among larger employers and…

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ESOPs as an Exit Strategy

When a business owner begins to consider an exit strategy, the universe of strategies includes several options: Give the business to the children Sell the business to the children Sell the business to company management Go public Sell to a financial buyer (private equity or private investor) Sell to a strategic buyer (competitor, supplier, or…

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Life Insurance in Pension Plans Q & A

Life Insurance in Pension Plans QandA

Life Insurance in a Pension Plan Q. Are unisex rates required when life insurance is bought in a pension plan? Yes, these are required. Unisex rates are the same rates for men and women. Q. Should I ask for an estimate of the economic benefit I will have to realize each year as taxable income?…

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Longevity Annuities

Longevity Annuities

What are Longevity Annuities? Longevity annuities are a type of deferred fixed annuity. They are specifically designed to provide income guarantees to people who might outlive their savings. These annuities target people approaching retirement. They simplify the process of retirement financial planning by eliminating concerns with a possibly very long lifespan. Longevity annuities target people…

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Optimizing Your Social Security Benefits

Long Term Care

Social Security was signed into law in 1935 to become America’s retirement program of last resort. The original program was an annuity program based on the demographics of the time. Since its founding, the program has been enhanced and modified several times. The country’s demographics have changed. What was once a relatively simple and basic…

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Reverse Mortgages

Reverse Mortgages

Depending upon who one talks to, reverse mortgages are either a way to unlock equity in a retiree’s house or an even worse idea than the worst annuity. Financial planners are rarely ambivalent about reverse mortgages. They have their supporters and their detractors. What is a Reverse Mortgage and How Does It Work? As the…

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Retirement Plan Required Minimum Distributions

Retirement Plan Required Minimum Distributions

The US Government has established multiple retirement plans allowing one to save money on a pre-tax basis. Consider a person in the 40% marginal tax bracket (federal and state combined). If someone can move $10,000 from salary to a qualified pre-tax money savings program, this person can save $4,000 in immediate taxes. The money can…

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Role of Annuities in Retirement Planning

Role of Annuities in Retirement Planning

History The recession of 2000 – 2001 convinced many corporations to eliminate their defined benefit programs for their employees. Declining stock prices, compounded by ERISA requirements that companies catch up with unfunded plan liabilities, devastated company earnings, and valuations. The shift from defined benefit programs to defined contribution shifted the risks of retirement income, longevity,…

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It took a lifetime to build your legacy. Give us a call to see how we can help you preserve it.

It took a lifetime to build your legacy. Give us a call to see how we can help you preserve it.

Steve

Get in touch with Steve Goodman today

CPA, MBA – President & Chief Executive Officer

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