How Fixed Annuities May Be the Solution to Your Retirement Needs

Author

Senior Tax Advisory Group

Posted on

Jan 13, 2011

Book/Edition

Colorado - Colorado Springs

To learn more about Senior Tax Advisory Group, CLICK HERE.
In the quest to create wealth, many savers have struggled with how to buy low and sell high and have even found themselves doing just the opposite. If the expression -- if it aint broke don't fix it makes sense then what should you do if your financial plan is broke? Or how about the oft quoted definition for insanity being doing the same thing and expecting different results. Well, if you've had about all the risk and fluctuation you can handle there may be a great alternative for you.
In the early to late 1990s, people flooded out of the safe haven of various fixed products to get in on market-oriented products with the hope of capturing high returns. As the market began to move down and eventually crash, many people were told to hold on and be patient. When they did, it took most of them the next five to six years to recover their losses. Then, just as many investments were starting to break even, the current economic recession began, leaving people to wonder how long it will take, yet again to break even let alone grow.
When you no longer have time to hold on or the chance of recovering your balance is even less realistic, then the time is now for a different strategy!
Fixed annuities can be that wonderful solution for safety and security. They provide unique features such as income planning for now and later. They can also be a great tool for recovery of some of your losses, while allowing you to enjoy some upside potential with no downside risk. Simply put, once you make it you keep it, and you never risk losing it again.
There is a lot of media misinformation about this secure financial solution, so it is very important that you get educated by an advisor that you can trust to understand to see if a fixed annuity might be suitable for you. Solid information and innovative solutions help you make informed decisions and the sooner you start gathering the facts for your individual circumstances the better.
Editors Note: This article was submitted by Senior Tax advisory Group, Inc. For help, or further information, they can be reached at 719-596-4844

Other Articles You May Like

Start Planning For Your Family's Financial Future

The last two years have been a rough ride. As a reminder for 2022, if you havent taken the time to sit down and organize your familys finances, there is no better time than now to develop new habits and get your year off to a running start. These are the necessary steps to take.Find a Financial Planner. A financial planner will help walk through the whole process. It is important to work with a financial planner who works with people similar to you. Going on the internet and searching names is probably not the most effective way because you never know what you are going to get. Asking for referrals from friends or family is a great way to go. You know the financial planner has done a good job for them, which automatically creates trust and credibility. Remember, there are many options. Speak to a few people and see who would be a good fit for you and your family.Meet With a Financial Planner. The first step is establishing your financial goals. The financial planner will ask: What are the financial goals that you want to achieve? What are your dreams? Without setting goals, it makes it impossible to achieve them. A goal a client may have is, I want to send my children to school. So, right away I need to know what that means. Does it mean youre paying for all their tuition, or just part of it? A client may also say they want to save to purchase a home and need 20% down. Well, what type of home are you looking for, and in what price range? A financial planner will probe and dig deeper to get those answers.How Do We Get There? Your goals must be written down. When you begin to work towards these goals, budgeting becomes a vital part of this process. As a family, its about sitting down and looking at your monthly cash flows. This is a basic practice that every family and household must to be doing. You need to know what your budget is, to ensure you are not living outside of your means. Which means, you have enough money coming in to pay for the expenses going out. It doesnt matter if you are a billionaire or if youre making $20,000 a year on a side job, if you are spending more money than youre bringing in, you are going to find yourself in debt.Budgeting is Easier Than You Think. People tend to overcomplicate budgeting. Remember, budgeting is not one-and-done, it needs to be done on a regular ongoing basis. How much you spend on food or utilities varies from month to month, so you want to figure out on average how much you are spending. Once you start the process and go year-over-year, you really understand your spending. The same average holds true for how much money you are bringing in, because that might change from month to month depending on your job or career.Realize Your Debt. When working through budgeting, you will realize your debt. Now, you can work toward paying off your debt, as well as saving money for the future. People say, I cant save money, I need to pay off my debt first. This should not be an all-or-nothing thing; it should be more of a balancing act. You want to be paying off your debt while you are saving for the future, because you dont want to miss the early earning years in your career. Time is your friend when it comes to saving and investing.Have an Emergency Fund. If your hot water tank blows up, you need to replace it right away. You want to ensure you have cash immediately on hand, avoiding the I have to use my credit card. Or, if you lost your job, you want to have cash set aside to cover your expenses. If you are in a two-income household, the rule of thumb is to have three months of expenses saved as cash. In a one-income household, you want to have six months worth. Many people lost their jobs during the pandemic, and having cash would have helped them to get through. As were saving for the future, we want to make sure were saving for the emergencies that can happen today. That needs to be a top priority.Long-Term Saving. Were saving for our immediate expenses and now we need to be thinking long-term saving for our retirements. This includes saving for our children. If you will be sending them to school, starting a 529 Plan for their college expenses makes sense. Or, if you plan to send them to private school for K-12 education, a 529 Plan can also be used for that. Working with a financial planner on what your goal is for your childs education and future is as important as working on your investment planning. The sooner you start the better. Ill get more into detail about 529 Plans in an upcoming article.Term Insurance. Term insurance is used in case something happens to the primary breadwinner. You want to make sure your spouse is protected. What happens if the breadwinner passes away unexpectedly? Term insurance is great coverage to protect your family financially in those unforeseen situations. Working with your financial planner, and walking through these steps, youll know how much coverage needs to be there and for how long to protect your family to be financially secure now and in the future. As a CERTIFIED FINANCIAL PLANNER practitioner and a Certified Personal Finance Counselor professional with the Weber Group at Hefren-Tillotson, I have outlined these simple steps to protect you, your family, and your future. I stress the need for education because, as a former educator, I believe making informed and educated decisions about ones financial life is just as important in ones medical life. If you have concerns about getting your familys financial future in order, please contact me as I would be glad to help.

Providing For Your Aging Parents: How To Help Them Manage Finances

Managing finances can be a stressful task in any stage of life, but may seem especially daunting as you get older. If youve noticed your parents making unusual purchases, leaving unopened mail to pile up, or complaining about money more frequently, it may be time to jump in and offer them a hand with their finances.No matter how involved you are in assisting your parents with their finances, consider the following tips to ensure a successful financial management system.Consider a Power of AttorneyTo start, youll want to talk to your parents about who will have control over their financial moves. This can be a tough but important discussion between you, your parents, and your siblings, if you have them. However, ensuring your parents have proper documentation and a power of attorney is a great way to settle who will be handling the financial matters. Once an agreement has been made, its a good idea to have written consent that touches on all potential matters that may pop up moving forward.Set Intentional Financial GoalsSetting financial goals is a great way to help your parents stay on track. Whether your parents are still working a part time job to keep themselves busy, or if they are fully retired, it's always smart to discuss their financial goals. If you are becoming more involved in their finances, this is very important for you to know. This will allow you to have an idea of what next steps you need to take in order to help support their financial goals. Work together and set money goals. These goals should be measurable, attainable, and realistic. They can be anything from how much money they plan to save each month, how much they spend each week on groceries and necessities, whether they want to pay bills on time each month, or even how many months or weeks it may take to pay off any debts they may have. Make sure they are having intention when setting these goals and have an actionable plan on how they are going to achieve them. Through organization, budgeting, and providing your parents with financial assistance, you can improve their chances of attaining their goals.Promote OrganizationWhen you think of money and finance, many moving parts come to mind. Staying organized financially and having everything in order is a great way to achieve financial goals and can increase your potential for positive outcomes. To start, assess current financial standing. Get a folder together and organize paperwork, bills, credit card statements, and other financial statements. To see a spending path, develop a Microsoft Excel spreadsheet or Google Sheet to get an idea of where money is being spent and used. You can even develop a section for a budget and list out monthly payments that need to be made. Next, consider automating bill payments through online banking and set up reminders on your parents' smartphones or on their laptops and tablets. That way, you can make sure they are making payments on time and can take the hassle out of going into the system and scheduling a payment or even writing a check and mailing it to the provider. If they arent technologically savvy, put together a physical copy with payment due dates, where the payment needs to be made, and how it could be made to take out any second-guessing that could happen on your parents end.Always remember that having clear and open communication is of utmost importance. When it comes to money, theres no room for questioning. If you have ideas or see issues within your parents' finances, talk to them about it. If they are not happy with things, they will need to bring it up with you as well. Have transparency with one another to ensure success.Lastly, if your parents have mobile banking, turn on transaction notifications that they can receive from the bank. This will allow both you and them to be aware of any suspicious payments, get balance notifications, and see if their account is trending to the low end of the spectrum.Share Budgeting TipsBudgeting is one of the best ways to gain control over finances. Having an idea of what type of budgeting method works well for your parents situation can promote financial success. Reflect on the spending path you created and understand the flow of money along with how much is currently in savings and what is owed in debts.  There are a variety of budgeting methods you can test out to help your parents. Heres a quick overview of some popular methods.50-30-20 Budget: This is good for individuals who have a stable income. As you divide up your salary, 50 percent of it will go towards needs, 30 percent towards wants, and 20 percent toward savings.Zero-Based Budget: This method is ideal for those who have a predictable monthly income. This may be a good idea for your parents due to their steady income from retirement money, social security, and their savings. Use spending habits from the previous two or three months as a guide. From there, map out the budget and subtract expenses from income until it reaches zero. Remember to put priority expenses at the top of the list.  70-20-10 Budget: This budget is ideal for people who dont tend to overspend their money, who have a good grasp on their finances and who like to donate. Divide income after taxes by 70 percent for spending, 20 percent for savings, and 10 percent for debt repayments or making donations.A user-friendly method of budgeting is downloading an app that does all the heavy lifting and number crunching for you. Research various apps to see what would work best for your parents and which one would be easiest for them to use and navigate.Provide Financial Assistance Where NeededThere may be a time when your parents need extra financial assistance. Although its usually ideal to keep your finances and theirs separate, supporting them in any way possible is a great way to help them navigate any difficult financial situations and achieve their financial goals.If youve decided its best for your parents to move closer to the rest of the family, you may want to research a personal line of credit or a credit card to help pay for the relocation. A move can be stressful as well as expensive, so supporting them throughout this process could ease the burden and lift the weight off their shoulders.It could be that youve taken ownership of your parents home and now need to make updates because youre looking put it on the market. Considering a personal loan, a HELOC, or dipping into your savings are great ways to finance those bigger home improvements.If youre looking to provide regular financial assistance, speak with any relevant parties and thoroughly consider whether or not you want to provide your parents with an allowance that helps them pay bills and purchase necessities when needed.Whatever the financial journey may be with your parents, do your research and talk to your financial advisor to discuss smart money moves you can make to help support their current and future financial goals.While many parents have plans for their finances as they age, there are others that might be a little less organized. Either way, providing your assistance and support through the next phase of their lives will help them stay on track with the regular payments, savings, and budgeting habits that were once part of their regular payday routines. No matter their financial situation, these tips can help support your parents and keep them financially sound for the long-term.

Medicaid Planning from Morey Law

The best way to understand Medicaid Planning is to compare it to something you already understand. Think of Medicaid as the IRS and Morey Law as your CPA. The IRS and Medicaid are both huge government agencies with complex and intricate rules.Morey Law is like the CPA because we look at your specific situation and help you navigate Medicaid regulations for the best possible outcome. We know the rules and handle the paperwork so that you dont have to.One place where Morey Law is actually better than a CPA firm is that if you dont save you money you dont have to hire us. Most people who retain Morey Law to assist them in their Medicaid Plans save money. We have saved clients in excess of $200,000. Even though some clients situations are such that there is no money left to protect, we can still ease the burden on the family by taking care of the Medicaid application.Medicaid rules and regulations are too complicated to go over on the phone (unless there is no other way). The best way to start is to call and set up a free consultation. Bring with you basic information such as income and assets. During the initial free consultation, we will generally be able to let you know if we can save you money or not and whether you situation is one that we would undertake. We are busy enough that we do not take every client that meets with us. We choose to work with clients whom we enjoy spending time with because we will be doing a lot of that in the course of a Medicaid application.

Local Services By This Author

Senior Tax Advisory Group

Annuity Specialists 6775 Rangewood Dr, Colorado Springs, Colorado, 80918

Senior Tax Advisory Group, Inc. is a national firm devoted to assisting retirees aged 50 and over in protecting their assets, reducing their tax bills, and ensuring that their money lasts while still committing to paying the least amount possible to the IRS.The benefits of working with the Senior Tax Advisory Group can be seen from a financial standpoint as well as in service and retention, and in overall customer satisfaction. Over the years our clients have enjoyed steady returns and safety in their portfolio. Not only do our clients see us 3-4 times per year, per account, but we also provide them with peace of mind and a one- of- a- kind service that can't be found elsewhere! Our simple to understand concepts and strategies makes us proud to serve any friends or family they refer to us as well.

Senior Tax Advisory Group

Trust Management 6775 Rangewood Dr, Colorado Springs, Colorado, 80918

Senior Tax Advisory Group, Inc. is a national firm devoted to assisting retirees aged 50 and over in protecting their assets, reducing their tax bills, and ensuring that their money lasts while still committing to paying the least amount possible to the IRS.The benefits of working with the Senior Tax Advisory Group can be seen from a financial standpoint as well as in service and retention, and in overall customer satisfaction. Over the years our clients have enjoyed steady returns and safety in their portfolio. Not only do our clients see us 3-4 times per year, per account, but we also provide them with peace of mind and a one- of- a- kind service that can't be found elsewhere! Our simple to understand concepts and strategies makes us proud to serve any friends or family they refer to us as well.

Senior Tax Advisory Group

Tax Information 6775 Rangewood Dr, Colorado Springs, Colorado, 80918

Senior Tax Advisory Group, Inc. is a national firm devoted to assisting retirees aged 50 and over in protecting their assets, reducing their tax bills, and ensuring that their money lasts while still committing to paying the least amount possible to the IRS.The benefits of working with the Senior Tax Advisory Group can be seen from a financial standpoint as well as in service and retention, and in overall customer satisfaction. Over the years our clients have enjoyed steady returns and safety in their portfolio. Not only do our clients see us 3-4 times per year, per account, but we also provide them with peace of mind and a one- of- a- kind service that can't be found elsewhere! Our simple to understand concepts and strategies makes us proud to serve any friends or family they refer to us as well.