Last night I watched the movie “The Perfect Storm” the remake of the fishing vessel Andrea Gail that got caught in the Perfect Storm of 1991. According to actual news reports from Gloucester, MA, a northeaster’s giant tides and gale-force winds blindsided Cape Ann on Oct. 30, 1991, leaving a path of destruction that demolished homes, devoured waterfront property and sank the Andrea Gail vessel with all six hands lost at sea. (The radar image at left is the actual NOAA satellite picture from 1991.)
As I reflect on this movie and what the local residents may or may not have known about the impending storms result on their local economy, I can’t help but think what we may or may not know about the immediate future of our economy and how it may impact our retirement savings.
Read the Complete Article: Is it Time for Annuity’s Perfect Storm?
Just as you go to doctors for expert medical advice, shouldn’t you go to retirement and insurance advisors for their expert advice? With increased use of the internet however, many people are using the internet to get their retirement advice instead of finding retirement experts to educate them. Read full aticle: Use Google to find Retirement Advisors to educate you.
According to the IRS, one of the most popular uses for cash value in life insurance is to save for retirement. Continue Reading Life Insurance as Part of a Retirement Plan
The Medicare Annual Enrollment Period, also known as AEP or the Open Enrollment Period, is one of the only times during the year in which Medicare beneficiaries can make changes to their Medicare Advantage coverage. This year, AEP lasts from October 15th to December 7th. Continue reading: There is Still Time to Enroll in a Medicare Advantage Health Plan
I received a great question from a client today about voluntarily suspending their Social Security Benefits since they reached normal retirement age of 66 so they could earn delayed retirement credits. This individual had applied for their social security benefits at 62 years of age. However, they were concerned how this would affect their Medicare benefits.
I spoke with Medicare today, and they told me that suspending Social Security only applies to Social Security benefits separate from any Medicare benefit. Therefore it does not affect Medicare at all.
Here is a concern though. If you have applied for your social security benefits within 12 months of suspending them, you would be required to repay any Medicare Part A hospitalization benefits that have been paid in your name.
Remember, any individual reaching age 65 cannot decline Medicare Part A unless you completely withdraw your monthly social security benefit. Sounds kind of confusing doesn’t it?
Therefore, make sure you always talk with an advisor at Medicare at 800-633-4227 before you make any decisions that could affect your Medicare benefits.
Now that you are reaching that magic age of 65 you may be wondering how to sign up for Medicare. For most of us Medicare enrollment happens automatically. There are two common parts to Medicare; Part A is hospital insurance and Part B is medical insurance. Continue reading: How and When to Sign up for Medicare
If Alice from Wonderland were to create a retirement plan, would she know where to look? Would our friend the Cheshire Cat give her directions that would actually get her where she wanted to go? Take a look here and see. Full article click here
If you’re currently saving for retirement in your companies 401(k) program you will soon, if not already, be informed of the fees you are paying to your plan sponsor to have the “privilege” of their services. Until now, these fees may not have been disclosed to you. Now Federal Department of Labor law requires your 401(k) plan sponsor to spell it out for you on your statements. Full Article: 401(k) In-Service Distributions to Protect Your Retirement Savings from Loss of Value
Many people often think that retiring in a warm weather locale is the ideal location. This may not be the case unless being taxed to the limit is an ok scenario. Considering state taxes is a smart move when choosing a retirement location.
Some states do not even have income taxes, meaning that retirement income is not taxed either. So while many people think retiring in Florida is for the warm weather, it is actually a smart place to retire because of the state tax structure.
So here are the 5 things to consider:
- State taxes on retirement benefits: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming all have zero taxes on retirement income.
- State income taxes: 41 states have an income tax, so if retiring in one of these states the tax rate will affect retirement income streams.
- Sales tax: 5 states don’t have a sales tax, Alaska, Delaware, Montana, New Hampshire, and Oregon. The sales tax rate could have an effect on needed income to sustain quality of life in the 45 states that do have a sales tax.
- Property taxes: Researching not only current property tax rates is necessary as well as evaluating the change in property taxes over time to determine the ideal retirement location.
- State estate tax: For wealthier retirees this could be very important, therefore if the state has an estate tax, be sure to find out both the rates and size of estates it applies to.
According to Fred Vettese, chief actuary of Morneau Shepell, “Annuities are not sexy. You hand over your money to an insurance company who then puts you into a seemingly stingy allowance for the rest of your life.” The simple fact is that an annuity may be a great idea, but not as many people that can benefit from it buy one; even though statistics indicate that the majority of indexed annuity owners are happy with their purchase.
Full article: Annuities: The best retirement product no one really wants
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