As we inch closer to our retirement age, it becomes more important for us to have more control of our money and the future. This is true for a variety of reasons. But for many of us, more control means a greater sense of financial security.
However, financial peace is hardly a happy accident. Rather, it comes from careful planning and following a well-laid-out strategy built for retirement, a plan that emphasizes income, safety, and protection. In simple terms, we can call this sort of plan a “Safe Money Strategy.”
Building a solid safe money strategy, however, is not as simple as it may sound. For one, the financial needs for each of us are different, especially at the near-retirement and post-retirement phases of life. And as the life expectancies of people in the U.S. have increased, retirement planning has certainly become important like never before.
There was a time not so long ago when our grandparents lived comfortably throughout their retirement years, relying mostly on their employer pension, Social Security, and perhaps other income sources. However, the golden days of pensions and other employer-sponsored income vehicles are long gone. Now our approach to retirement planning must be different, as it’s more of an individual responsibility than ever. Read More
In a few ways, a Roth IRA and life insurance share some similarities. They both receive tax-advantaged treatment in the IRS code. They enable efficient wealth transfers from one generation to another, and they can provide a tax-free legacy. But despite these similarities, Roth IRAs and life insurance are very different.
For one, a Roth IRA is a retirement plan while life insurance is, well, just that – an insurance product. Yet some people have been asking which of these options might be the “better” retirement planning vehicle.
However, it isn’t an “either-or” question, but rather a matter of what makes sense for each person based on their individual needs, goals, and overall financial picture. That may include planning situations in which a life insurance policy is used as a tax-advantaged growth and income vehicle alongside a Roth IRA. And maybe even some other retirement accounts!
Nevertheless, it’s important to understand the differences between a Roth IRA and life insurance – including ways the rules may apply differently to them. With that said, here’s a quick look at these two options. Read More
That is a question that many Americans are asking. And it’s not surprising why. From retirement presentations and dinner seminars to weekend financial talk shows and radio commercials, safe money is a common theme in many public forums.
Generally speaking, a broad definition of safe money is “the money you can’t afford to lose.” Since everyone has different needs, goals, and situations, this concept means different things to every person. For some, safe money could be lifelong savings they have built up and need to preserve. Or it might be accumulated wealth that needs to be protected from risk, as it will be a source of retirement income.
For others, it could be a stockpile of money they will need at a certain time, like funding their children’s college education, paying off the mortgage, or buying a luxury item for which they saved a long time. Yet for some other Americans, safe money might be a future account balance – a sum of money that they want to grow safely and efficiently.
So, the answer to “what is safe money?” is it depends. Your own needs, goals, and situation provide the financial context of its meaning. But boiling down to the essentials, safe money is about security and protection… money that is safe and as free from unnecessary risk as is possible. Read More
Brent Meyer, President and Founder of SafeMoney.com and a wealth brokerage owner, recently joined Protect Wealth Academy (PWA) for an insightful discussion. PWA educates investors on asset protection, tax minimization, and wealth creation. With over 23 years in the financial services industry, Meyer shared his expertise on annuities, life insurance, and retirement planning strategies. He emphasized the importance of planning for a long retirement and offered effective strategies for growth, income, and protection using guaranteed insurance contracts.
Why SafeMoney.com Was Started:
Meyer noticed a gap in accessible, practical retirement planning information.
SafeMoney.com aims to provide unbiased financial education and clarity for consumers.
Common Retirement Myths:
Many believe they are retirement
-ready due to disciplined savings, but longevity risk and inflation can impact their plans.
Fee-based planning can also pose conflicts of interest, as advisors might prioritize fee-generating accounts.
Annuities and Their Role:
Annuities are often misunderstood; they are not investments but transfer-of-risk strategies.
They provide contractual guarantees and should be part of the retirement portfolio foundation.
Effective Wealth Creation Strategies:
Fixed index annuities offer tax-deferred growth without contribution limits.
Cash value life insurance policies provide tax-free income and are useful for minimizing taxes in retirement.
Understanding Life Insurance:
Indexed universal life insurance offers growth potential linked to market indices with protective features like caps and floors.
Common Estate Planning Mistakes:
Procrastination and not considering the impact of taxes can undermine estate plans.
Life insurance can provide liquidity and cover estate taxes, ensuring beneficiaries receive the full estate value.
Preparing for Long-Term Care:
With high costs for nursing homes and in-home care, early preparation is essential.
Life insurance with living benefits can help cover care costs without depleting retirement savings.
Future of Retirement Planning:
Economic conditions and longer life expectancies may drive a shift toward annuities for guaranteed lifetime income.
For more insights and strategies on retirement planning, visit SafeMoney.com and explore their resources.
Are you considering different annuity options for your retirement portfolio? An annuity is a type of insurance product, purchased from a life insurance company and/or an annuity company. Annuities are popular retirement options due to the safety they offer for your money, the potential for tax-deferred growth, and their reliability for giving permanent, lifelong income.
That being said, sometimes it can be confusing when you try to make sense of different annuity types, contract features, benefits, and downsides. Since you would commit a sum of your money to an annuity contract for a period of time, it’s prudent to do research and develop an understanding of your annuity options before committing to any financial decision. Here is a short guide to help you get started on understanding the different annuity options. Read More
A number of recent studies indicate that today’s Americans have a higher life expectancy compared to previous generations. The Social Security Administration suggests that after reaching the standard age of retirement, 65, U.S. men and women may anticipate living at least a couple of decades more.
There is no denying the fact that a longer life is a reason to celebrate. However, this increased longevity certainly adds new challenges in the process of retirement planning. While living a longer life is a worthy milestone for most, whether it will be enjoyable is largely based on the question of whether its quality is high. So, it’s prudent to pay careful attention to longevity risk in retirement planning – that way you are well-prepared for the uncertainty of potentially spending decades in your post-work life stage. Read More
Are your retirement nest eggs secure? Have you considered what happens to your hard-earned savings after you’re gone? One question often looms large for retirees and those planning for retirement: are annuity death benefits taxable?
The short answer is: it depends. Annuity death benefits are taxed as ordinary income, but the specific tax treatment depends on whether the annuity was qualified (funded with pre-tax dollars) or non-qualified (funded with after-tax dollars). For qualified annuities, the entire amount is taxable. For non-qualified annuities, only the earnings portion is taxable.
As you plan for retirement, selecting the right annuity type — whether a qualified vs non-qualified annuity — can shape your financial security in significant ways. When you understand the implications of each type, you can optimize tax advantages and income benefits.
In this article, we’ll talk about a qualified vs non-qualified annuity. This can help you make informed decisions that align with your retirement goals and financial objectives.
Have you ever heard of a market value adjusted annuity? If you are planning for your retirement income, then you may be considering an annuity as one of your options. Of course, there is a number of possibilities when it comes to purchasing annuities. So, it is important to understand clearly what annuities are so you can make sound financial decisions.
In cases when you are looking for tax deferral and an instrument which can offer safe growth and reliable future income, a fixed annuity can be the perfect option. These typically entail an average contract of seven to twelve years and guarantee a minimum annual interest rate. While the duration of the contract and interest rates are important to consider, you should also take into account whether the annuity is subject to a Market Value Adjustment (MVA). It’s common for an MVA to be attached to fixed annuities, and as you probably noticed, it’s these contracts with an MVA that are called “market value adjusted annuities.”
Before making a decision, it’s important to know what a market value adjusted annuity is. So, let’s get into it. Read More
Retirement income planning already is difficult. But for small business owners, it poses even more challenges. Despite being used to the hustle-and-bustle of day-to-day tasks and operations, even businesspersons have to slow down at some point.
Eventually entrepreneurs get to an age when they can’t run their companies like they did before. As a company owner, you likely will face this someday. You may have to reduce your involvement, or it may even be time for an exit. If that’s in the cards, you might have to sell your business or let someone else in the family take it over.
In any case, there’s retirement at the end, and moving into retirement means you have to make plans to safeguard your financial future. In practice, this means being able to pay the bills today while saving enough to live off tomorrow (when your business can be no longer a source of personal income for you – or less income).
Retirement income planning, however, is not a linear thing. It entails holistically evaluating your lifestyle alongside your income and making projections for your life after retirement; then putting in place protections to ensure you can enjoy a lifestyle that’s right for you as long as you live.
If you are confused about what you should do to retire happy and comfortably, you are not the only one. Many small business owners – not to mention several Americans in general – are in the same boat as you. Read on for some helpful tips to assist you with enjoying more lifelong retirement income certainty. Read More
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