News

24
Aug

Investment Risk During and After COVID-19

Investment risk is always present, but during COVID-19, the stock market has experienced so much volatility that investors are beginning to wonder where to invest. Investors must consider how investment risk can decline their portfolio’s value due to economic events that impact the entire stock market.

Read more

17
Aug

Inflation and Taxes Could Rise. Are You Ready for Retirement?

Americans are starting to see the impact of increasing prices at the supermarket and the start of inflation. Also, clothing at retail stores is depleting as manufacturing has halted, creating demand for products ordinarily accessible. 

Read more

10
Aug

The Enjoyment of Remote Work

Remote work is the ‘new normal’ since businesses have transitioned to remote operations or have completely closed for the duration of COVID-19. During 2020, the remote work culture has projected forward due to necessity, and companies that made the transition swiftly have also reaped the rewards of continual revenue during this period.

Read more

3
Aug

Using Life Insurance for Charitable Giving

Many people have causes they are passionate about, whether it is a non-profit institution, animal or human rights efforts, ending homelessness, or another mission that benefits society. Some of these causes represent personal experiences that donors would like to help resolve for future generations, such as giving to a cancer research fund after a loved one passes. Still, others are passionate about conservation and may donate money to save rainforests.

Read more

27
Jul

Need to Roll Over Your 401(k)? Consider a Fixed-Indexed Annuity

When you leave your employer, you also discontinue contributing to your 401(k) or receiving your employer’s match. You may be going on to another employer or possibly retiring. Either way, you may want to consider a fixed-indexed annuity when rolling over your 401(k) to avoid the following:

Read more

20
Jul

Why Does Gross Domestic Product (GDP) Matter?

When looking to protect your financial future in today’s COVID-19 environment, it’s essential to understand how the economy functions on a historical basis as it relates to the country’s GDP (Gross Domestic Product) and the stock market.

Read more

13
Jul

U.S. Unemployment: Problems for the Economy?

The U.S. unemployment rate is the percentage of unemployed workers in the total labor force and indicates the health of the U.S. economy. COVID-19 has significantly impacted unemployment to record numbers not previously seen since the government began tracking the data in 1939. COVID-19 has surpassed The Great Depression in the amount of unemployed and the economic fallout to businesses and workers.

Read more

6
Jul

Restarting the U.S. Economy: What is The Fed Doing?

When the U.S. economy is stagnant, the U.S. Government uses fiscal and monetary tools to stimulate the U.S. economy. However, with our economy facing multiple problems, that may not be an ‘easy fix’ in comparison to past recessions. COVID-19, social unrest, permanent business closings, and an upside-down GDP may prove to be difficult problems to overcome in the near term.

Read more

29
Jun

Travel Plans Cancelled? Buy Local and Travel Local.

COVID-19 has changed the way that Americans shop and travel, impacting our spending habits indefinitely. With stores, hotels, and restaurants closed or at limited capacity, many choose to stay at home and purchase online or locally, helping to support their local small businesses. The positive impact of working from home, virtual meetings, and happy hours, on-line fitness classes, and being at home is that our consumption habits have changed. Read hear to learn why you should buy local and travel local.

Read more

22
Jun

Inflation and Taxes Risk: Protecting Your Financial Future

As areas of the U.S. start to lift COVID-19 restrictions, Americans are starting to see the impact of increasing prices at the supermarket and the start of inflation. While the CARES Act provided a one-time payment to individuals and for business stimulus, it will not solve our future economic problems since government action always comes with a price. 

Government-funded recovery will likely lead to higher taxes as it has in the past and passing the price of COVID-19 recovery off to future generations will not work. Likely, the debt will be collected from U.S. taxpayers earlier than later and for extended periods. Increasing taxes is counter-intuitive to stimulating a damaged economy; will consumers spend when everything costs more including taxes?

Coming out of the Great Depression and into WWII, the U.S. experienced historical debt and tax levels, paid for by the American people when the Government held tax rates above 40% for over 40 years (1940-1981). Our older generations can recall these historical events, or at least what they or their family experienced. Many recall high-interest rates, high prices, and people displacing from the poor economy.

What has changed since these periods is the debt the U.S. carries, now close to $24.2 Trillion with a 106% Debt/GDP Ratio (Gross Domestic Product). Our debt to GDP ratio indicates that the U.S. owes more than it produces and consumes domestically, or exports. How do economies recover? By producing and selling more than its expenditures or by raising the prices of their products. How do government coffers recover? Both create problems for everyone, but especially for those nearing or in retirement.

In any market, investors must always consider the five risks that can sideline their financial future:

  • Inflation Risk- Investments not optimally positioned to address the rising costs of goods and services will deplete a portfolio.
  • Taxes Risk- Increased taxes erode the investment capital; the investment type and timing are critical.
  • Longevity Risk- Investment capital is not enough for supporting longer lives and long-term care needs.
  • Survivorship Risk- Unexpected loss of a life-partner leading to lower investment capital.
  • Market Risk- Loss of principal value can decrease investment capital.

One solution to addressing inflation risk and taxes risk is by increasing the allocation of principal-protected products. The benefits of “safe money” fixed-indexed annuity products address all five significant dangers to one’s financial future:

  • Inflation Risk- Allocation to “safe money” products allow asset allocation strategies to address inflation.
  • Taxes Risk- Leveraging tax-free investment strategies increases investment capital.
  • Longevity Risk- Utilizing “income for life” features address longevity risk and long-term care risk.
  • Survivorship Risk- “Death Benefits” provide tax-advantaged mitigant against untimely death.
  • Market Risk- Principal protection provides a buffer against stock market fluctuations.

The impact of inflation and taxes due to COVID-19 will continue over the next months and years. For this reason, it is critical that you consider your retirement portfolio’s allocation and prepare for your financial future during today’s volatile market environment. If you are nearing or in retirement, act now versus later to making sure you have adequate assets in retirement by meeting with your financial professional.

Disclosure: This is intended for informational purposes only and should not be used as the primary basis for an investment decision. Consult a financial professional for your personal situation.

An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information. Fixed Index Annuities are designed to meet long-term needs for retirement income, and they provide guarantees against the loss of principal and credited interest, and offer the reassurance of a death benefit for your beneficiaries. The interest credited is limited by either placing a cap on the amount of interest that can be earned (“cap” rate) and/or requiring a specified rate that must be surpassed within the index before interest will be credited (“spread rate”).

The interest credited on your contract may be affected by the performance of an external index. However, your contract does not directly participate in the index or any equity or fixed interest investments. You are not buying shares in an index. The index value does not include the dividends paid on equity investments underlying the equity index or the interest paid on any fixed income investments underlying any bond index. These dividends and interest are not reflected in the interest credited to your contract. Interest, if any, will vary depending upon the allocation option you choose. Choosing several allocation options (“diversifying”) does not ensure that interest will be credited. No allocation option provides the most interest in all market scenarios

1192312a-0520