Tax Free Exchanges: Can I Move My Annuity Without Tax Liability?

If you use an IRS approved 1035 exchange you may exchange your contract for a new annuity contract within your current company or you can exchange your annuity contract for a new contract in a new company. If done properly, this exchange will not incur a tax liability, your deferred earned interest will remain deferred in the new contract.

By |2015-05-22T18:58:18+00:00August 28th, 2013|Annuities|

Private Equity Firms Flowing To The Annuity Business; Should There Be Concern?

The public’s perception of a Private Equity firm is buying a larger company, splitting it up, selling the most valuable portions and leaving the rest in shambles….oh and letting the government worry about the pension obligations while making massive profits for itself. While that may not be representative of all PE firm deals, it does have strong merit. PE firms are short term thinkers, make the money and move on. Recently a much respected company, The Hartford, was purchased by a PE firm who promptly got The Hartford out of its core business, annuities.

By |2015-05-22T19:01:15+00:00August 27th, 2013|General Business|

Up Up and Away – Fixed Indexed Annuity Sales Skyrocketing

A recent industry watchdog report indicated an increase of over 25% in premium in 2012 and a forecast of another 30% increase in 2013. Growth is being driven by products offering access to a larger stream of income that would not be found with other investment options. Income for life that is both safe and secure seems to be the driving force.

By |2015-05-22T19:42:16+00:00August 27th, 2013|Annuities, Retirement Planning|

Treasuries at 2 Year High; Good News or Bad News?

“Economic growth is continuing at a moderate pace,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, which oversees $11 billion in fixed-income assets. “We’ve pretty much priced in the effects of the Fed slowing down bond buying later this year.” What does this mean for us as depositors? Good news in the sense that the options for a higher yield is strengthening. For us as tax payers it can mean the interest we all owe on our national debt is going to be higher and our annual budget debt much bigger.

By |2015-05-22T19:07:11+00:00August 22nd, 2013|General Business|

John Finds New Life In An Old Product

You might be surprised at what your beliefs are regarding life insurance financial vehicles. My client, John, at age 60 found a new way to build a tax free income for his future. These are some of the features and benefits of which he previously had no knowledge about cash value life insurance.

By |2015-05-22T19:09:33+00:00August 22nd, 2013|Retirement Planning|

The Bulls are Coming and it is Not Pamplona: It is Us.

A recent article from Lincoln Financial Group CEO Dennis R Glass reaffirms that a large and probably long bull run is coming to the annuity and life insurance business. “You now have a good, growing stock market and slowly rising interest rates – that has to be the best economic climate for the life insurance industry,” Glass said last week, speaking during a conference call with analysts.

By |2015-05-22T19:11:34+00:00August 20th, 2013|Annuities, Retirement Planning|

Helping Baby Boomers Plan for a Successful Retirement

Whether it is the result of poor planning, bad advice or plunging markets, retirement losses can be a deadly poison. Many retirees and pre-retirees have saved enough to win the “retirement game,” but they continue to risk “losing their retirement” by owning risky investments. It is wise for those preparing for retirement or recently retired to set aside enough money in safe places to pay for a guaranteed lifetime income plan. My planning will take you through all the current and future considerations necessary to determine the risk-free amount needed to safeguard your guaranteed retirement income.

By |2017-11-20T17:45:04+00:00August 19th, 2013|Retirement Planning|

The Best Kept Secret in the Financial World

With two 50% haircuts in the last 12 years, and now with the broad market measure up over 100% plus from the lows set in 2009, it is important to keep in mind the time and true math of your portfolio. Say you have invested $100,000 and lose 50%, you now have $50,000. Now consider the time it will take and the fact that the market will need to come back by 100% gain to your $50,000 account to bring you back to your original $100,000. Anything over that amount could be calculated back over the time involved to be considered true return on your investment. I say, why take the time to do that again?

By |2015-05-22T19:15:18+00:00August 19th, 2013|Retirement Planning|

Inflation and Fixed Indexed Annuities. Can You Protect Yourself?

Inflation is the rise over time in the price of goods and services. Is a loaf of bread higher than it as the year you were born? Inflation is measured as a annual percentage, the same way interest rates are measured as a annual percentage. Is inflation a bad thing? Not necessarily. It means prices are rising because demand is rising, so it is the result of a growing economy. In a healthy economy, wages rise at the same rate as prices. So in a healthy economy, inflation always rises, meaning the same dollar amount is worth less five years from now. Sounds pretty healthy, doesn’t it? Inflation hurts interest rates because lenders know the longer it takes you to repay the loan, the less the money is worth.

By |2015-05-22T20:50:51+00:00August 19th, 2013|Annuities|

Can Changes be Made to Your Annuity After Death?

Rather than being bound by the terms of the original contract and current tax code, beneficiaries may be able to exchange inherited contracts for newer, higher interest paying contracts, according to the IRS under Private Letter Ruling (PLR) 201330016. This indication of change by the IRS can benefit the beneficiary because newer contracts can have lower costs, higher interest or better features such as policy riders. (income riders)

By |2015-05-22T19:19:46+00:00August 19th, 2013|Annuities|