Five Points to Consider

1) Medicare. When you are eligible and enroll in Medicare you have choices. You can enroll in Medicare and purchase a Supplement plan to fill the gaps that Medicare doesn’t cover. Or you can purchase a Medicare Advantage that is underwritten by an insurance company and replaces Medicare and the Supplement. The question is: do you want to make decisions about how and where services are rendered, or do you want the insurance company to make the decisions on your behalf?

Give us a call and we will explain your options. Remember, the decision you make today may have to last a lifetime. It is important to get it right the first time.

2) The pandemic has confirmed that life is a series of unexpected events. We cannot control these events, but we can minimize the economic consequences these events have in our lives through sound financial planning. It is important to have predictable income regardless of age that handles cash flow for our essential lifestyle.

3) So, you think you have a million dollars in your 410k plan or IRA. Not so fast! Your statement may say that is your account balance but don’t forget your partner – Uncle Sam. He will be taking his slice of the pie because you deferred paying taxes on your contributions. This is not a bad thing, and it may be a good time to start planning to take government out of your plan. Strategies are in place for many Americans to make this happen.

4) Be careful about taking advice from someone who claims they have all the answers. A well-known consultant who mentors other consultants on how to run their practices recently wrote, “An insurance professional will always tout the benefits of investing in large insurance policies, although it’s almost always the worst investment you can make, short of swamp land.” Nothing could be further from the truth. The best permanent life policies are the ones with the highest premiums because they provide the most benefits, including a reasonable rate of return, and access to cash. A well-designed plan gives you permission to spend all your other assets in retirement, including both principal and interest, without the fear of running out of cash. The death benefit replenishes the fund, or the cash value can be used for living expenses.

5) How much do the rich pay in income taxes – the real story!

Ira Statistics 2018

  • Top 1% of taxpayers (more than $540K in income) paid 40.1% of all individual income taxes.
  • Top 5% of taxpayers (about $218K in income) paid 60.3 % of all income taxes.
  • The lower 50% paid less than 3% of all individual income taxes.

Recommendation: Secure an advisor, understand these concepts, and let him or her guide you to a worry free and successful retirement!