1) Trust vs Will – What is the difference?

Will – A Will tells the courts how you would like your assets to be distributed and your affairs handled after death. The process is handled by judicial proceedings called probate, which is a public, and therefore open institution. A Will is a matter of public record, and because it is public, the identification and distribution of assets becomes public knowledge in the process.

Trust – A trust transfers ownership of your assets to someone you choose and dictates how your assets are to be administered. A trust, like a will, directs the administration of your assets after your death. However, the trust is handled outside of probate. A trust and all the information contained within, stays private, which is useful if you do not want your affairs to become public knowledge.

2) Do you need a will or trust? First Benefits Group Inc.’s business affiliate provides a comprehensive services suite for creating documents such as: will, trust, medical directive, healthcare and financial POA, and much more. Download this 5-minute test to find out how much you might benefit from these documents. Give us a call if you have any questions or comments.


3) Roth IRA Tax Information – It is important to know the rules.

  • You can leave money in your Roth IRA as long as you like. This is an important distinction from traditional IRAs because Roth IRAs are not subject to Required Minimum Distributions (RMD) rules, as long as the account owner is alive.
  • Upon death of the original Roth IRA owner, Required Minimum Distribution (RMD) rules do apply to designated beneficiaries of a Roth IRA upon inheritance or distribution.
  • Distributions from a Roth IRA are tax-free if you meet all of the requirements.
  • Certain ordering rules apply to determine if any part of a non-qualified (Roth IRA) distribution is included in taxable income.


4) 2022 Earnings Test on Social Security.

  • Maximum earnings between age 62 and Full Retirement Age, where Social Security benefits are reduced $1 for every $2 earned. $19,650
  • Maximum earnings during your Full Retirement Age Year, where Social Security benefits are reduced $1 for every $3 you earn. $51,960
  • Maximum earnings subject to payroll tax. $147,000 It is highly recommended that you take your retirement date into consideration when you are determining when to begin Social Security benefits. Collecting Social Security benefits while working may cause you to have to pay all, or a portion of your benefit back, if you make more than the thresholds shown in the Earnings Test above. After your Full Retirement Age, you are not bound by the Earnings Test and do not have to pay any of your benefit back, no matter what your income might be.


5) Don’t be misled about the bad press and negative comments about Annuities. According to the Life Insurance Marketing and Research Association (LIMRA), annuity sales have reached their highest peaks since 2008. Last year 255 billion dollars of annuities were sold, and this year the pace is even higher. When purchasing an annuity in preparation for retirement it is very important to make sure that the appropriate type of annuity is in place to fit your personal retirement strategy.

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