Monthly Archive: August 2013

Retirement Planning Should Include Social Security Claiming Decision Strategy

Social Security - Yes or noWhen to take Social Security Benefits can affect a client’s financial bottom line.  When you elect Social Security is one of the most important decisions you will make in your retirement life.  When you claim benefits will impact the amount of income you receive, the amount of taxes you will pay, and how you utilize your other retirement assets.

A financial advisor can help you develop a strategy to maximize your benefits.  The importance of having a strategy and making an informed decision is critical as once you claim, your benefits become permanent after twelve months; there are no “do-over’s”.

Permanent link to this article:

Health Law Offers Some Consumers Help Paying Deductibles and Co-Pays

Health Care Law Offers HelpThe Affordable Health Care Act will provide financial assistance for some people who buy plans on the market places known as “exchanges” for plans effective January 1, 2014.

Cost sharing subsidies can substantially reduce the deductibles, co-payments, co-insurance, and total out of pocket spending limits for people with incomes up to two hundred fifty percent of the poverty level ($58,875 for a family of four in two thousand thirteen).  These reductions can be an important consideration for lower income consumers when choosing their coverage.

Cost sharing reductions will be applied automatically for consumers based on their income if they buy a Silver Level plan.  Silver plans are one of four plans that will be sold on the exchanges.  A Silver Plan will generally pay seventy percent of covered medical expenses.  In California, a standard Silver Plan will have a $2,000 deductible, and have a $6,400 maximum out of pocket limit.  In addition, people with incomes up to two hundred fifty percent of the poverty level will qualify for premium subsidies as well, based on that income level.

Consumers should remember, the cost sharing subsidies apply to in-network expenses only.

Permanent link to this article:

Safety Net Concerns?

Safety Net ConcernsMany consumers have expressed concerns about the safety of entitlement programs.  Some have expressed concerns about the future of social security.  There are concerns about future funding for social security and the call by some politicians for means testing as a way to reduce social security payments.

Clients can address these concerns by creating a backup plan.  One strategy that clients can employ is to utilize life insurance to address a shortfall in benefits if a future full means test excludes them from having the benefits they thought they would have.  Life insurance can contribute to a family’s financial security regardless of what happens to entitlement programs in the future.

Permanent link to this article:

A Fixed Index Annuity Can Help Reduce Your Risk

Reduce RiskThough investors have been getting great returns with bonds, and more recently with equities, one should always consider looming investment risks.

What happens if inflation goes up?
What happens if stocks decline or interest rates rise? 

As a protection from market volatility and inflation or interest rate risk, rebalancing into a fixed indexed annuity might be the answer to reduce these risks.  Fixed indexed annuities reduce interest rate risk, lower volatility, and provide better inflation protection than cash.  Most clients nearing retirement need to reduce market volatility.  Annuity cash value offers growth potential linked to a market index with no downside risk.

Permanent link to this article:

  • RSS
  • Facebook
  • Google+
  • LinkedIn
  • Twitter
  • Tumblr
  • Flickr
  • YouTube
  • Vimeo
  • Pinterest