Singer Wealth Management currently uses TD Ameritrade, Charles Schwab and Fidelity Investments as the custodians of choice for our managed accounts. Most of our clients are looking for an efficient disciplined approach to their investments. Since a great majority of actively managed mutual funds not only fail to consistently beat the S&P 500* but also come with substantial fees as well, our firm tends to focus on a unique selection process of individual stocks and exchange traded funds for our clients’ managed accounts.
** Through Singer Wealth Advisors
Retirement income strategies are not just for the wealthy. As retirement nears, the traditional strategy has been to move growth-seeking products to more conservative, fixed-income products. According to a recent study, for a married couple age 65 there is now a 50 percent chance that at least one spouse will live to age 94.1 This means that you may need to plan for your retirement savings to potentially last 25 to 30 years.
One drawback to a longer life is the greater possibility of outliving your savings — creating all the more reason to develop a retirement income strategy designed to last a longer lifetime. Sixty-one percent of Americans surveyed said they were more afraid of outliving their assets than they were of dying.2
A significant loss in the years just prior to and/or just after you retire could negatively impact the level of income you receive over the course of your life. In fact, if a loss occurs earlier in life, there is also the chance that you may have more time to recover (versus a loss occurring later in retirement). Why? Simply because a smaller pool of assets is left to sustain you throughout your retirement years, and your assets may not have as much time to recover.
We can help you design a guaranteed* retirement income strategy that incorporates insurance and annuity vehicles to create opportunities for long-term growth as well as guaranteed* income throughout your retirement.
11http://www.rdmarketinggroup.com/Files/AG%20Secure%20Lifetime%20GUL%20and%20LIS20Client%20Guide.pdf Prepared by Ernst & Young Insurance and Actuarial Advisory Services practice. The analysis uses the Annuity 2000 mortality table with Scale G2 mortality improvements.
2State of the Insured Retirement Industry: 2012 Recap and a 2013 Outlook, Insured Retirement Institute
* Guarantees are backed by the financial strength and claims-paying ability of the issuing company and may be subject to restrictions, limitations or early withdrawal fees. Annuities are not FDIC insured.
You may be able to use time to your advantage when investing for wealth accumulation.
The longer you invest, the more potential your money has to compound interest. If your portfolio has not fully recovered from losses in recent years, you may wish to consider a more aggressive allocation to make up for lost ground and get back on track to accumulating wealth.
However, with fluctuations in the stock market, it is important to remember that more conservative retirement strategies typically have only a portion of the assets invested in the stock market. Allocations can be set aside for more conservative investments. Annuities are long-term vehicles designed to generate supplemental income during retirement. They have minimum guarantees backed by the strength and claims-paying ability of the issuing insurance company. After all, the last thing you want to do is lose more ground during the next market correction.
* Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing carrier.
Asset protection is a broad term with many meanings. However almost everyone can agree that asset protection is very important. For some people it means simply not losing money due to risky investments. To other people it means preserving your wealth for heirs and preventing inheritances from being wasted, misdirected or squandered. For others, asset protection is simply the creation of a minimum level of wealth that no one can ever take away because of some unforeseen circumstance. In any case many of our clients benefit from our advice concerning the safeguarding of their assets.
“Any one may so arrange his affairs that his taxes shall be as low as possible.” Judge Learned Hand. There is nothing unpatriotic about paying as little taxes as are legally permitted. There are many approaches to investing and financial planning. We try to educate our clients about the tax impact of their investment strategies and about approaches that can reduce income taxes not only for themselves but for their heirs as well.
As the oldest baby boomers begin to wind through their 60s, one of the biggest concerns may not be outliving income, but outliving good health.
For retirees, home health care can cost $50,000 or more per year1, and nursing home care can run as high as $80,0002 per year. Does your retirement income strategy account for this kind of possibility? Would you be prepared for twice that amount as a married couple?
Considering that you could have to reduce your financial means before Medicaid will pay for long-term care and neither your employer group health insurance nor major medical insurance will cover long-term care, you may want to consider planning ahead for these potential expenses.
We can help evaluate your situation and determine if purchasing a long-term care insurance policy may be the right move to help you feel confident in your financial future.
1 Genworth 2012 Cost of Care Survey: Home Care Providers, Adult Day Health Care Facilities, Assisted Living Facilities and Nursing Homes http://reversepartner.genworth.com/content/etc/medialib/genworth_v2/pdf/ltc_cost_of_care.Par.38432.File.dat/Methodology_gnw.pdf
2 MetLife: The 2011 Market Survey of Long-Term Care Costs
IRA accounts have become one of the largest types of assets inherited by beneficiaries. If you don’t anticipate needing your IRA money in retirement, you may wish to consider a legacy planning strategy that potentially reduces taxes and potentially increases the payout your beneficiaries will receive upon your death.
You may want to use some of the value in your IRA to provide your beneficiaries a regular stream of income while leaving the balance of IRA assets invested for tax-deferred growth. The result may yield substantially more money paid out over the course of your beneficiaries’ lifetimes. We can help you evaluate your financial situation to determine if IRA legacy planning could help you meet your goal of structuring a long-lasting inheritance for your beneficiaries.
Modified endowment contracts are very similar to deferred annuities. They grow tax deferred like annuities which is a valuable benefit but unlike annuities, they have a tax free death benefit. Historically modified endowment contracts were used as a conservative wealth transfer tool. However, a couple recent developments have made them attractive as a potential conservative growth vehicle. Several companies have developed modified endowment contracts that earn interest based on the performance of a major stock market index without downside risk of investing directly in that index. More importantly a few companies have created contracts that allow full access to one’s principal at any time. These recent developments have made modified endowment contracts much more attractive than they had previously been in the past.
If you are fortunate enough to be financially independent, then one of the issues that you need to determine is how to maximize the value and minimize the tax impact of the assets that your are leaving to your heirs. There are many different strategies available that can substantially and efficiently increase the value of the assets that you bequeath to your loved ones.
When you change jobs or retire, there are four things you can generally do with the assets in any employer-sponsored retirement plan:
Rolling over from one qualified plan to another qualified plan allows your money to continue growing tax-deferred until you receive distributions in retirement. We can help you determine if a rollover is the right move for you.
If you decide to cash out of an IRA, we can help you find suitable vehicles to help you reach your retirement income goals.
To schedule a time to discuss your financial future, contact us at firstname.lastname@example.org, or call us at 561-998-9985 today!