What is an annuity?
Back to TopWhat is a Living Trust?
An annuity is a contract between you and an insurance
company. You may buy an annuity to get many valuable benefits, including the
potential for a guaranteed stream of income in retirement – in some cases for
as long as you live. An annuity may help you avoid outliving your retirement
savings. Think of it as part of your plan for lifetime income.
A living trust is a legal document that becomes valid when you execute the documents and your property is transferred into it. You, as the grantor and trustee, manage the assets while you are alive and then they are passed directly to a trustee of your choice upon your death without involving probate.Back to TopWhat are the Differences between a Will and a Living Trust? The main difference between the two documents is that a will takes
effect only after your death while a living trust becomes valid as soon as it
is duly executed and assets are added—that is, during your lifetime.
Another significant difference between the two is that a living trust can make
provisions for your estate in case you are incapacitated. A will can’t do this,
although a power of attorney can. Living trusts, though, may be more specific
and make managing the estate easier on the trustee than a power of attorney.
Moreover, regarding probate, a living trust can help to avoid time and costs
associated with it, particularly since with a living trust, there is no
freezing of assets so long as the trust has been funded. Another advantage to a
living trust is that it remains private in many states, while a will becomes
part of the public record during the probate process.Back to TopWhy should I have a Revocable Living Trust?
Back to TopWhat is a 'Qualified Account'?
The primary reason for having A Revocable Living Trust is to avoid PROBATE and the time
delay associated with probate ( usually 9 months or more) and the lawyer fees ( usually 10% or more )
of your total gross assets. A Will and a Revocable Living Trust are NOT interchangeable, and you must go through Probate in order to execute a will's directives.
A “qualified” retirement account is one that is funded with pre-tax dollars. The most common examples of qualified retirement accounts are traditional IRAs and 401(k)s. Money you contribute to these accounts can be deducted from your income taxes because you did not actually take it as income during the year in which it was earned, but rather earmarked it for use during your retirement. Any earnings on your contributions inside these accounts will not result in current-year tax liabilities. No income taxes will be due on the money inside qualified retirement accounts until you actually withdraw it and take it as income. Taxes will be due on only the amount of money you actually withdraw during the year, and any remaining balance will stay tax-deferred until withdrawn.Back to TopWhat is a "Non-Qualified Account"?
Back to TopI have a retirement account at an old job. Can I move that money somewhere else?
“non-qualified” retirement account is one funded with after-tax dollars.
Annuities are the most common type of nonqualified retirement account. For
example, accumulated funds in a money market or savings account have already
been taxed, and using this money to purchase an annuity will not result in an
income tax deduction. However, the earnings inside the nonqualified annuity
will remain untaxed until you actually withdraw the money. The most complicated
aspect of nonqualified retirement accounts is understanding how much of your
withdrawal is considered the untaxed earnings and how much is your original
after-tax contribution. Each type of nonqualified account may treat withdrawals
differently; some use the Last-In-First-Out (LIFO) method, wherein the most
recent addition of the untaxed earnings is considered withdrawn first, while
others use the First-In-First-Out (FIFO) method, wherein the earliest
contributions of your after-tax deposits are considered withdrawn first.
Back to TopAt what age may I take a withdrawal from my reiriement account?
properly, moving existing retirement accounts to another provider will not
result in a taxable event. For example, transferring your IRA from one mutual
fund company to another, or from one bank to another, will not create a penalty because at no time did
you take possession of the funds. Even if the transfer process resulted in a
check being mailed to your home, no taxes or penalties will be owed if you
deposit the entire amount into the new account within 60 days. Similarly, if
you leave an employer and rollover your 401(k) into an IRA, no income taxes or
penalties are due.
Back to TopWhy should I use an insurance broker to purchase my plan? Isn't it less expensive to buy it directly from the insurance complany?
government restricts withdrawals from both qualified and nonqualified
retirement accounts until you have reached the age of 59 1/2. At that time, you
can freely utilize the accumulated money within your retirement accounts and
will owe additional income tax on only the amount you actually withdraw during
the year. If you make a withdrawal from a retirement account prior to the year
in which you become 59 1/2, you will be penalized an additional 10 percent of
the gross amount of your untaxed withdrawal. From a qualified account, the 10
percent penalty will apply to the entire amount you take, but from a
nonqualified account, the penalty will apply to only the portion that has not
been taxed yet.
Back to TopI am young and very healthy. Why do I need health insurance?
Not at all! Insurance prices are set by the State Board of Insurance, and each plan must be offered at the same price regardless of whether it is purchased directly or through a broker. By taking advantage of our services you will be able to select from multiple companies and compare multiple plans that fit YOUR needs (not the plan that makes the insurance company the most money), AND you have access to the on-going support that you need to get the most out of your coverage. Remember, we service what we sell!
Back to TopI have diabetes, and I was told by another agent that I was "uninsurable"! Can you help me?
Age and health condition does not mean you don't need health insurance. The main thing that makes health insurance something you can't go without is the fact that it's there for you when you need it. If you have an accident or an unexpected illness, the bills can pile up quickly.
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Having a pre-existing condition such as Diabetes can make it very difficult to find affordable health insurance. Most major medical plans will likely decline your application, or mark up the premium such that it becomes unafforable. We can help you find a "guaranteed issue" plan that will provide you with coverage at a reasonable price. Call us today - we CAN help you.