Annuities are a good way to invest in your future income. They help to provide you with a steady income for life with out risking your investment capital – unlike the stock market. When you are ready for an income flow they provide you an monthly income until you perish; as long as they are set up correctly.
Like an Indexed Universal Life product (IUL) the capital income you input into an Annuity can not be “lost” during a stock market crash or down swing. If the market crashes your money remains untouched, in your account, and the interest rates for that year will drop to 0%. This is because your money is “following the market” but not invested in the market This is a great feature for those whom are nearing retirement and do Not want to experience their hard earned income has vanished in a market crash.
Now days, people are out living their income by living longer healthier lives. Retiring early seems like a good idea, but with out the income to sustain you throughout your life you will end up in a financial bind.
Add to the above that those whom do need to use their health insurance are paying higher amounts to pay for items not covered with Medicare Insurance. And then Cost of Living keeps increasing, however COLA doesn’t always follow suit. Most people will need at least 4% or more increase in funds each year to continue to live at the life style they are currently living.
It’s always best to start early and review options such as Indexed Universal Life Insurance options and Annuities. And for those whom would like a Life Insurance plan for the Death Benefit and can not get one due to Health Issues, and Annuity might just be the key as health is not a factor.
Another consideration as to where to place your funds is where you think the market is now and where you see it moving to in the near future. Are you at a point in time where you can take a financial hit and still recover? It can take 4-6 years, or more to regain lost income. With IUL’s and most Annuities they are not subject to the market downside…so there is no loss due to a Market Crash. Let’s put it this way…AFTER a Market Crash, when rates start “raising” individuals inside the market must start recovering from where there money ended up in the crash. Those whom have their money inside an IUL or a Indexed Annuity will not loss any money during a crash and so they start earning right were they left off…not at the lower rate of what was left over from what they lost in the market downside. So, a 12% drop in the stock market would need at least a 13.6% increase in the market to just break even. With an IUL and Indexed Annuity, that follow the market, but are not invested in the market, you broke even as soon as the market crashed because you did’t loose a cent…and when it rises again you start at the break even point where stock market investors are starting at their balance after the market crashed; market finally starts to raise again.
Consider the interest rates for CD’s and other deposit rates at banks currently. If they are low and you looking for a potential higher rate of return with no downside then considering and IUL or Indexed Annuity might be in your best option for now and the future.
Downside…of course there is a downside to everything in life and with regards to this article they would be that you are locked in and have potential for less growth in a market with high rates of return. IUL’s and Indexed Annuities follow the market, so they will increase; but only to their cap. Some Annuities do not have a cap and instead have a spread. That means you will receive the specific interest rate (as high as it goes as it follows the stock market, with no risk of loosing money) less your “spread rate” which might be let’s say 4-5%. So, the market is up 25% you will receive 20% with a 5% spread. The insurance company reserves the 5% for when the market has a “bad year” or “crash” and then allows you to receive 0% and no loss of funds for that 5% spread they received during the up years.
Think of Indexed Annuities as Lifetime Pensions. when set up correctly, they provide for you until you perish and some provide death benefits as well. This is great for those whom have health issues and do not qualify for Life Insurance to provide their loved ones with a death benefit.
Annuities and Indexed Universal Life (IUL’s) products are a great fit for the right situation. Consider your needs, your risk tolerance, where you think the market is heading and then do some research into it an Annuity or IUL is best for your current and future situations.
Market Drops…again. Are you prepared for the vast uncertainty of our economy?
We are entering a stage of vast uncertainty in the economy.
Those nearing retirement may need to consider moving a portion of their savings to fixed/guaranteed options offered by Life Insurance companies, such as an Indexed Universal Life plan. It’s also a great option for those looking to start saving today.
Fixed IUL’s and Annuities tend to offer guaranteed returns with no potential risk from Market Loss. An Indexed plan offers the leverage of higher interest rates during Market Rises, yet protection from Market lows like we’ve been seeing this week…or a major crash such as in 2001/2 and 2008.
IUL’s offer Life Insurance Tax Advantages which are not found in a 401k.
Maybe it’s time to review your asset allocation, to ensure a No Market Risk option and use of the Tax Advantages Life Insurance has to offer.
The next “big thing” has been going on for years, you just didn’t know it existed, so you haven’t been able to utilize the benefits it offers. Now that you know, take time to explore the Indexed Universal Life Insurance option, to see if it’s right for your current situation.Life is unpredictable, be prepared with a No Market Risk, Tax Advantaged, Indexed Universal Life option to grow your future wealth; today. email@example.com
Questioning what you should do for retirement, regarding when to take your Social Security…or wondering what options are best for your specific retirement needs?
Based on calculations from Social Security Administration, a 62 year old single person earning $50,000 per year would receive an estimated $14,000/yr if he or she retired today. By waiting until after age 65, those earnings increase by 35 percent to $19,000. At age 70 social Security Benefits would be $25,000/yr, a 79% increase.
It makes one think they should plan to set themselves up to have additional income to support them till they are 70 and then take the most they can get from Social Security Benefits. However…
Let’s take into consideration the following:
*The average person is stated to live till around 81. If you retire at age 70 you only have around 11 more years to use that “extra money” you will receive by waiting to take your Social Security Benefits.
* Many people believe they will retire at age 67 to 70 to take advantage of the above increases, however; a recent risk survey showed that pre-retirees whom thought they would retire around age 65 or later ended up leaving their occupations early at age 58. The reality is that many were “pushed” into retirement early by job loss, unpleasant work environment, family needs or their own declining health. Best intentions don’t always pan out
* People are living longer, so their savings need to last longer. They need to start saving additional funds when younger, in addition to their estimated Social Security Funds, to be able to live at the same standard of living during retirement
* Social Security is underfunded and remains a target for further trimming. You might not be able to count on what SS estimates your monthly payout to be. And add to that the rising cost of health insurance that is take out before you receive your monthly Social Security funds
So, what options are there for those whom waited to save and then never saved…or didn’t save enough? Whom didn’t purchase Long Term Care – but wish they would have since they’ve out lived their family members?
Did you know that there is a Life Insurance plan you can purchase for the Death Benefit, but instead use the Death Benefit for Long Term Care if necessary…if not, you can leave a legacy to your loved ones…or use the funds for yourself in your later years.
How about a Lump Sump plan that almost triples your death benefit but can be used for Long Term Care.
What you don’t know, can hurt you or leave you in a financial or medical bind. Know your options.
If you could see now, what you will experience financially when you retire…would you do it differently? Would you change the way you save, to provide for a better now, and a better future?
I’ve talked to many older folks working at fast food restaurants and chain stores whom wish they had made a change in their younger years to set them up for the cost of life and health insurance in future years. I ask why they are working at age 70 plus and receive the same answers every time. I didn’t save enough for the unexpected in retirement, I didn’t plan accordingly for health insurance costs, I’m still paying on my mortgage, I lost my money in the 2008 stock market crash right before retiring, and my spouse perished with out life insurance in place.
At 25, 35 or 45 your future is still in your hands. At 65 your future is upon you and your options are limited if you didn’t save during your earlier years. This is a growing issue in the US today and will continue to be if people don’t start saving now.
If you think about it, Uncle Sam is the biggest partner in most retirement plans. He has his hands in almost all retirement options. What if you could provide security from taxes, safety for your family, the ability to grow funds like traditional retirement vehicles, yet avoid all the risk of loss.
Would that seem like a great retirement vehicle to place your funds into? Let’s add to that the ability to access funds before retirement, and yet continue to grow your funds as if you had never touched the money. What about adding Long Term Care (LTC) into the mix? LTC included in this special cash accumulation option which Uncle Sam can not take a portion of? Does that make it even more enticing? It also allows for market like returns with no market risk.
What is this special cash accumulation vehicle which has been around for over 10 years, but has recently become one of the fastest growing products in the market for cash accumulation; due to all the above included benefits? Life Insurance! Are you surprised you haven’t heard more about this option? It’s a special type of Life Insurance called Indexed Universal Life or IUL. Indexed means that it follows the stock market interest rates allowing you great return on your money compared to a lot of retirement options; with out the loss. You see, the money is not invested in the market, it just follows the market, so if the market crashes you do not loose a penny of your hard earned money.
Life Insurance is approved by congress and IRS – no gimmicks here. It’s important to know your options for knowledge is power. This is a strong plan for you to consider for your future retirement needs…and closer “down the road needs”. Being able to access money prior to retirement, with no taxes taken out, and during retirement when you need it most. It truly is an amazing single solution option for ALL life’s needs AND wants. One product, many solutions. Life Insurance!
In ones 20’s, 30’s, 40’s and 50’s there is a lot of responsibility…house mortgage, raising a family financially, saving for college funds, and retirement to name a few. A wise person is also looking towards Social Security and trying to figure out how to use it to your advantage. What if something unthinkable occurred such as an untimely death, disability or Long Term Care situation. Are you set up to handle what life throws your way? How about retirement and social security? Take our Retirement & Social Security Quiz here.
In my 54 years of life I have seen a lot of financial struggles due to unprepared life savings and life insurance in place. I witnessed a friends 40 year old husband drop dead on the basketball court with no plan in place to provide for his wife and 4 little girls. In the end she lost their house and had to go back to work disrupting the girls lives and her own. I heard her mention wishing they had purchased Life Insurance when asked, and had stored up emergency funds for those financial needs that arose the first week or so of his death. It was an awakening for me to purchase life insurance to protect my family.
And unfortunately, this was just one of many situations where my family and friends could have used protections with the single solution option the Indexed Universal Life Insurance (IUL) provides. I myself fell victim to the 2001/2 stock market crash and watched my 401k crash and loose 40%. We were not fortunate to recover the 40% because we did not have time on our side to watch it “regrow” over the years, due to our divorce and splitting of the remaining 401k funds.
At that point in time Indexed Life was not an option. Had it been I would have set aside funds into an IUL so that my remaining family was protected now, and into our future due for unexpected circumstances of life and retirement needs…which is now just around the corner for me.
Procrastination is not an option when it comes to your family’s financial security and retirement needs. It’s time to take action now, to provide for the future and unexpected life situations and needs. It’s no fun back peddling in bad situations and wishing you had taken the appropriate steps. An IUL is a single option solution for many of life’s needs including Premature Death, Retirement, Long Term Care, and Emergency Funds just to name a few. Living Benefits such as these are the way of the future when it comes to investing in your future. Place your money where it will grow with out risk of loss and where Uncle Sam can’t get his money on it and you will be setting yourself up for a financially secure future.
Click here to receive a free book. Please mention book in the subject line and include your Name, Address and phone number
The book is about identical triplets whom did everything alike, except save for retirement. It compares traditional retirement options and strategies to the Indexed Universal Life – IUL choice, with living benefits included. Life insurance is a very viable option for your financial success and future needs and wants.
Life Insurance for use now, while living, and when you perish it provides a death benefit, plus cash value to your beneficiary.
Are you looking for Life Insurance? How about Long Term Care, Critical Illness, or Terminal illness protection. Do you wish there was somewhere to grow your money that was safe from market crashes yet offered market like returns? Are your funds diversified for retirement? Take my Retirement and Social Securit…y Quiz: www.theiuladvantage.com
Then an Indexed Universal Life Insurance (IUL) plan is just what you are looking for. It allows you to grow funds for financial security now, for future use, and provide a death benefit when you perish. It also allows you to use your death benefit in advance of dying; for Long Term Care, Critical Illness and Terminal illness.
Please call for more detailed information on how you can protect your family financially now and in the event of a loved one’s death.
I usually talk about Indexed Universal Life and the benefits of using this type of Life Insurance for Living Benefits such at Long Term Care, Critical Illness and Terminal Illness. It also “doubles” as a “savings” plan to use down the road. However, today, let’s just take a brief moment to discuss the ACA…Affordable Care Act regarding the rising rates of Health Insurance for 2016 in Oregon, to be specific. Isn’t it called the Affordable Care Act? Where is the affordable in requested rate increases up to 42-52% for some companies?
If it’s named Affordable Care Act, then why are insurance rates doubling year after year? I’m not sure whom came up with this term, but they were dead wrong. Yes, some folks are receiving reduced premiums and others are receiving that plus lower deductibles, co-insurance, co-payments and Max OOP due to their income level…but for those whom do not receive a tax credit, the ACA has done nothing but jack up the cost of health insurance for the middle class.
Before ACA went into effect my clients whom had a family were paying around $550 to $750 per month. In 2015 those same families are being asked to pay 1100 – 1400/month if they do not qualify for a tax credit. That was NOT definitely not in their budget. Now for 2016 the requested rates increases are as high as 42-52%. That’s outrageous! How can any family afford to pay that much more? Health Insurance Rate Increases are outrageous due to ACA. They have not been this high in the past 10 years I’ve provided HI to my clients.
I understand the ACA did bring some good changes, such as allowing un-insurable individuals to be insured and free preventative for some items; as long as nothing is found wrong. And for some, lower monthly premiums and such due to lower incomes. But who’s going to be able to stay on their insurance plan, at the rate which premiums seem to be increasing each year when they don’t receive a subsidy or tax credit?
In order to get the insurance companies rates down, I believe we need to have :
Transparency in costs for Hospital stays, Surgeries, Doctor’s rates, etc.
Higher Penalties for not choosing to purchase a health insurance plan
Transparency: As consumers, when we feel the cost of an item is too high, we choose to shop around. Hospital’s and doctors know their rates but do not make that public knowledge and it’s hard to get the to disclose what it is Before you need the work done. Transparency will drive down prices due to competition. Example: I had to have the dreaded colonoscopy performed last year. I called around and rates varied from 1,300 to 3,500. All in all – all 3 offices were good options so I choose the plan for 1,300. Now, we all know that with ACA (or you should) that Preventative is covered in full, if nothing is found wrong. But, if something was found wrong during my colonoscopy then I would have been responsible to pay my deductibe (2,500) then co-insurance. You can bet that 1,300 looked better to me than the 3,500 did. Also, many hospitals over charge and double bill for services rendered; however we would never know that because we don’t know what the “true” cost if from the billed cost. We just hope that they sent us a correct bill. You wouldn’t get away with that when shopping at any other store. “Yeah, that dress you bought the other day is 2,500…now that you’ve bought it, you’re stuck with it”…transparency would allow people to make sure they are not over paying for services
Higher Penalties: If the penalty which one had to pay for not purchasing health insurance was higher than more people would purchase health insurance to avoid the fee of the penalty. More young people whom decided not to sign up because they are young and invincible – or feel they don’t have the money, would sign up. The more paid into the system the lower the premiums would be, because money would be coming into the insurance companies to help pay for all the new claims created by the un-insured which are now, for sure, using the system to it’s fullest.
With the penalty at 2% or 2.5% of a persons income, that is not enough to make someone think about purchasing insurance to avoid the fee. Example: A 32 year old person making 30,000/yr with a 2% penalty would pay $600 for the WHOLE year as their penalty. However, if they purchase insurance it could cost them around $254/month for a 1,100 deductible plan with 6,600 Max paid if they broke a leg. In some peoples eyes $600 is a lot of money, but 254 x 12 months is even more at $3048/year. And, with young people avoiding signing up due to feeling invincible, it makes the rest, whom do purchase insurance, responsible to pay their part too!
I’m sure everyone has a theory…”Insurance companies are ripping us off”…but if you look into it thoroughly Insurance companies in Oregon, for the most part, were well with in the required % of administration verses paying claims; over the past few years before ACA came into effect…and the rate increases were no where near 42-52%.
Add to all this the fact that the Federal subsidies may be “taken away”, depending on the outcome shortly of the King vs Burwell case.
Read about it here: what would probably happen if the Federal Exchange shuts down due to the Government loosing the ruling in the King vs Burwell; which should be announced any day now…
Using the Stock Market as one form of “investing” for your future is not a bad thing as it’s good to be diversified. However, keep in mind that one never knows when they might need access to their cash accumulation. How liquid are your funds? What if you needed your funds just after a Market Crash? I’ve know people whom thought they had their “ducks in a row”, only to find that one person ended up needing Long Term Care; and it was the same year the market crashed. Turns out all their funds were tied to the market, in fairly aggressive funds since believed they had many more years to save. The problem is, one never knows when the market will crash or when they will need access to their funds.
Imagine if you still had every penny of gains you’d received on your investments, and that they had not been affected by Market Crashes or “bad years”. How much more could your money have grown from where it is now? Anyone old enough to have experienced the 2001 and 2008 Market Crashes knows exactly what I’m talking about, and probably has a pit in their stomach from loosing money due to the crash.
I know because I STILL think about how much I lost in the 2001 crash…and NEVER regained it as I had to with draw funds due to a divorce. Obviously my money was NOT in the market during the 2008 crash…I learned my lesson.
Did you know that for the past 40 years, basic long-term treasury bonds have outpaced stock market investing allowing bond buyers to sleep well at night. Risking funds in the stock market leads to sleepless nights and broken dreams. Typical mutual fund investors barely beat inflation earning 3.49% annually for the past 20 years.
Your IUL will beat any traditional savings plans, hands down, and any other investing methods over time because it prevents market loss but realizes market like gains.
The IUL is a Powerful Financial Management Tool as it offers no market risk and yet provides you with market like gains. Now is the time to get your Free Analysis…
· Custom Tailored to your unique situation now, and incorporating your goals and dreams for your future
· Each plan is different depending on what you want to accomplish…Rapid Cash Accumulation, Long Term Care Funds, or both Cash Accumulation and LTC rolled into one, or other benefits
IUL’s Yearly Cash Accumulation is based on funds invested, death benefit amount, Interest Rates, Insurance Caps and Floors, Fees…you will need a professional to help you decide how much to invest in your IUL in order to produce the funds you want to have access to in 10, 20, 30 or 40 years.
To find out how much cash value you’ll receive each year…Request your Free personally Analysis today!
What is Social Security? It is a United States federal program of social insurance and benefits developed in 1935
About 158 million Americans pay Social Security taxes
57 million collect monthly benefits in 2013
About one household in four receives income from Social Security
You need 40 credits (10 years of work) 1 credit a quarter
Quarters do not need to be consecutive
In 2014, you receive one credit for each $1,200 of earnings, up to the maximum of four credits per year
Benefits are calculated based on average of the 35 highest years of earnings
$0 used in all years less than 35, which will result in a lower benefit
Social Security is paid for by your paycheck contributions and is inflation-adjusted income. It is a replacement for SOME of your income during retirement…but usually will not cover all your expenses. Make sure to plan ahead for those other expenses such as…
Estimated Costs During Retirement: (20 year estimate)
Necessary Living Expenses:
Medical: $220,000 (for Part B, Med Sup, Drugs, Deductible, Co-pays, etc.) Plus $104/month up to $640/month deducted from your Social Security Benefits (before you get them) for Part A.
Food: $219,000 ($10 meal x 3 times a day, x 365 days x 20 years)
Housing: $20,000 to $40,000 (Many still have 10 or 20 years of House Payments remaining)
Total for Necessary Expenses $459,000 – 479,000…or more
That’s about $1912/month – 1995/month…or more
And What About:
Desired Fun Living Expenses:
Vacations/Travel, Airfare/Hotels: ??
Kids College Funds: ??
New Car: ??
Golf Membership: ??
Retirement Home/LTC: ??
Now Consider: What if the Market Drops and you loose 50% of your hard earned money; as in 2008/09. Do you have Emergency Funds set aside that will not be affected by a market crash? If not, you need to start saving now for down the road potential expenses.
Let’s get Personal: I remember reviewing my SS Benefits in the past and it was estimated at 2,268/mo. I would receive that less the cost of Part A Medical. At $104/month for Medical Part A, on the low end (it can be as much as $640 depending on your past income) that would leave me $2,164/mo. Taking out Food at $900/month leaves me $1264. I still owe 20 years on my house at $1300/mo. Plus other expenses such as clothes doesn’t leave me room for any fun and desired living expenses. I would have to go back to work to be able to pay for Part B and Med Sup expenses…If I didn’t have an alternative source of income to use, I would be living on the streets as I could not make my house payment from my Social Security Benefits..
NOW is the time to review your Estimate SS Benefits so you can start planning for a more secure retirement bySaving Now.
Find Your Full Retirement Age…for many it’s 67 years old\
Year of Birth Full Retirement Age
1937 or earlier 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67
If you were born on January 1st of any year you should refer to the previous year. (If you were born on the 1st of the month, SSA will figure your benefit (and your full retirement age) as if your birthday was in the previous month.)
We are living longer as a result of medical advances and living healthier. Can you afford to live to 100? One out of every four 65 year olds will live past age 90 and one out of every 10 will live past age 95. In fact U.S. Census Bureau in Feb 2012 stated that they project 600,000 people to live to be 100 years old by 2015.
There are two factors you need to consider when deciding if you should take your Social Security Benefits before your Full Retirement Age (FRA) or not. If you take your benefits before FRA they will be reduced benefits for the remainder of your life. Example: If your FRA benefit would be $1000/month and you start taking your benefits at 62 you would only receive $750/mo. for life. If you decide not to take your benefits early (62 yrs) and instead decide to continue working, if you earn over $15,120/year (2015) you will be giving up $1 in benefits for every $2 you earn working. Then let’s say you reach FRA and are still working…if you earn over $40,080/yr you will give up $1 in benefits for every $3 you earn.
Remember to keep that in mind when deciding when to take your Social Security Benefits. The longer you wait, the more you will receive. Of course there is the argument that SS Benefits will run out…but from what I’ve read that should not happen. Below is a chart showing your reduction in SS Benefits if you decide to take your benefits before FRA.
Age Full Retirement 66 Age Full Retirement 67
62 25% Reduction 62 30% Reduction
63 20% Reduction 63 25% Reduction
64 13.3% Reduction 64 20% Reduction
65 6.7% Reduction 65 13.3% Reduction
66 Full Benefits 66 6.7% Reduction
67 Full Benefits
For those whom wait to take there Social Security Benefits until their Full Retirement Age (FRA) they will receive up to 8% increase in the monthly income paid to them. Example if your FRA is age 67 and you take your benefits at year 68 instead of 67 you will receive 108% of your FRA Benefits. If you wait till age 70 you will receive 124% of your FRA Benefits. So the longer you wait to take your benefits the more you will be paid for the remainder of your life.
If you started taking your SS Benefits at age 62 you might receive $750, if you wait until age 66 you might receive $1000 and if you wait till Age 70 you might receive $1,320. So when it comes to SS Benefits, waiting pays off.
Monthly Benefit Amounts Differ Based on the Age You Decide to Start Receiving Benefits.
This example assumes a benefit of $1,000 at a Full Retirement Age (FRA) of 66.
Estimate benefit amounts and decide when to start receiving retirement benefits
This leads one to think about setting up an alternative Cash Accumulation plan to live off, if they want to retire early, and then wait until later to access their Social Security Benefits when they can receive a larger payout. Using an Indexed Universal Life – IUL as a Cash Accumulation tool might be a great option to add to your portfolio of 401k, Roth IRA, or Annuity.
Spouse is entitled to greater of the benefit based upon his or her own benefits or 50% of the spouse’s benefit.
Example #1: Karin and Dave both have reached FRA. Dave’s benefit is $1200 and Karin’s benefit is $1200. Both would receive their own benefit amount.
Example #2: Keven and Luz both have reached FRA. Keven’s benefit is $800 and Luz’s is $1800. Since half of Luz’s benefits equals $900 that is greater than Keven’s benefit of $800. In this example Keven would be entitled to $900 instead of his own benefit of $800.
One approach to Spousal Benefits: In example #2: Luz’s FRA Benefit is $1800 and she can take her benefit of $1800 or she could increase her benefit amount by waiting (Deferring) till age 70 to collect her SS benefits. By deferring till age 70 her benefit amount would increase to $2448. Keven’s benefit was $800 and he can take his benefit or he can take 1/2 of Luz’s benefit which is $900.
Widows and widowers must be 60 yrs or over to take benefits based on their own earnings history. These will be reduced benefits if taken at 60 yrs. They can be taken at 50 years, if disabled. However they can switch to survivors benefits or back to their own. They have not remarried prior to age 60; the deceased must have been fully insured (40 quarters of coverage) and the spouse must have been married to them for at least 9 months before the deceased passed away. Maximum benefit is 100% of deceased workers benefit. If the surviving spouse has not reached full retirement age and takes the benefits but continues working the benefits will be reduced by $1 for every $2 they earn over that years limit. If the deceased started benefits prior to full time retirement age then perished, the maximum benefit is limited to what the deceased was receiving when they were alive.
Even if the surviving spouse files before full retirement age, Survivor benefits can be taken.
This allows the survivor to take a benefit at age 60 based on the deceased’s earning history and allow their own benefit to grow until age 70.
Survivor benefits are equal to full retirement benefit the deceased would have received.
Typical Situation for Widow/Widower
A Widow or Widower, at full retirement age or older, generally receives 100 percent of deceased worker’s basic benefit amount. If age 60 or older, but under full retirement age, they will receive about 71-99% of the deceased worker’s basic benefit amount.
The Widow or Widower must be unmarried when they file for benefits (or the new marriage must be one that SS can disregard). They can continue to receive benefits if they re-marry after age 60 (or age 50 if disabled).
If you are divorced: See If You Are Divorced for more information http://www.socialsecurity.gov/retire2/divspouse.htm
If you are divorced and your marriage lasted at least 10 years, you may be able to get benefits on your former spouse’s record.
File and Suspend Option:
At full retirement age the primary wage earner can file for his or her own benefits and then immediately suspend the benefit. This filing allows the other spouse (with a lower benefit or no benefit on their own work record) to collect a spousal benefit. It also allows the primary wage earner to continue to work and collect delayed retirement credits at an additional 8% per year until benefit is unsuspended; at age 70 or earlier.
Example: Leann and Alan just turned 67 (FRA) and Alan wants to retire but Leann wants to continue working till age 70 to receive maximum SS Benefits. Let’s say Leann’s monthly benefit would be 2,200 and Alan’s would be $900. If Alan can claim spousal benefits his monthly benefit would be 1,100 (1/2 of his spouses benefit) which is more than his $900. By suspending her benefits she can continue to grow them until age 70 and her husband can claim spousal benefits of $1,100 allowing HIS benefits to continue growing till age 70. At age 70 HIS benefits will have increased to $1188 per year allowing him a higher benefit to retire on. For many couples where one spouse earns much less than the other this might be a great option…if the spouse decides to file and suspend their benefits till a later age.
Social Security offers many Calculators you can use such as: Earnings Test, Retirement Age, Estimated Retirement Age and Life Expectancy. Don’t take it from me. Visit their site and “play around” on their calculators to find out information specific to you and to find a wealth of information to help you make an informed decision on how to use your Social Security Benefits to your best advantage.
Remember to take into consideration if you can afford to delay benefits, when you plan to retire, how much will you need monthly in retirement and what other sources of income you have available during retirement. Make sure to include an emergency fund that is liquid.
Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
=Your “combined income”
The above is another good reason for IUL’s – Indexed Universal Life Plans:
IUL’s are not seen as Combined Earned Income and therefore will not be seen as income for Social Security purposes discussed in the above link.
LET’s TALK IUL – Indexed Universal Life as a Vehicle for Cash Accumulation to help you achieve your dreams! It helps to supplement your Social Security Income which will probably not be enough for you to live on. Call now to see how an IUL can work wonders to help you achieve your dreams now and down the road… Kyla 971-327-5792
People need life insurance…but a lot don’t take time to buy it, or buy enough of it. This is due to a number of obstacles — procrastination, too busy, affordability, prioritizing other expenses, mandatory health insurance.
Many don’t know that an IUL, Indexed Universal Life Insurance plan includes the ability for cash accumulation which means your beneficiary will receive more than just the death benefit in the end…and…you can even use the money in your account YOURSELF…while living.
Keep in Mind: 40% of retirees under estimate their life expectancy according to an Ernst & Young study. One our of every 4 individuals will live past age 90 and 1 out of every 10 will live past 95…most only plan to live to 85. Therefore, many retires are running out of money. If you don’t want to run out of money, create your financial plan to cover this extended retirement period. Then, your odds for a comfortable retirement are improved.
From 2000 to 2013, the stock market, with all it’s ups and downs, wound up at roughly the same place, around 1527 Many investors, for all their efforts, lost money at a 2 to 3 percent investment cost per year.
Visit the possibility of using Life Insurance as a place for Cash Accumulation beings as it is not regulated by the government. That means that once you have money in there you can get it out at ANY age, with no tax consequences and Social Security can’t see it as “income” like they can a 401k or IRA. It also has Living Benefits: You can receive part of your death benefit in advance, when diagnosed with a terminal illness. Being able to pass on a death benefit, plus cash accumulation with out probate is another great feature of an IUL.
Now is the time to consider alternatives such as using an IUL Life Insurance plan as a vehicle for Cash Accumulation. With out the downside risk of having your money in the market…there is no risk.
Purchasing Life Insurance is simple, quick and intuitive as you can now do it on the internet or if you want to speak to a Live Person…over the phone, fitting it seamlessly into your day. Feel free to engage with me “on the go” over the phone, or internet in your spare time.
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Many Indexed Universal Life products (IUL’s) are now offering Income Protection Agreements. So, what good is an Income Protection Agreement and how does it make my IUL better than other IUL’s?
An Income Protection Agreement allows you to elect how your beneficiaries will receive the death benefit if you perish. Normally it’s paid as a lump sum. By choosing a lower lump-sum payout up front and choosing longer duration benefit payments it can help improve cash value accumulation in the IUL…allowing for increased distributions down the road.
Variations in payout amounts, and durations, allow your plan to be customized to your specific needs. One IUL plan refers to this as the Cash Value Amplifier because it can keep growing the cash accumulation, even after you perish; which would result in additional cash to your beneficiary.
In laymen’s terms…upon death of the insured a lump sum would be paid up front to the beneficiary and then monthly or yearly payments would follow until all death benefit funds, plus cash accumulation and interest were paid in full. This allows more time for interest to accumulate on the remaining death benefit. It also allows a younger child or spouse whom might not be as knowledgeable to benefit financially by dispersing funds at specific times instead of receiving a lump sum and spending it right away.
Risks & Rewards: There are always things to consider when looking at both sides of the picture. I’ve just discussed the Rewards (benefits) of this plan above, so below are the “risks”.
If for some reason just after you perish the economy slumps drastically and interest rates plummet the account might be paying more for the “fee’s” than what is earned in interest. That is why it is good to know the fees associated with your IUL and what the bottom line interest that will be paid out; when the economy is bad. When looking at fees for an IUL verses 401k’s, IUL’s come in lower over the long run than most 401k’s.
Keep in mind that an IUL might offer a 0%-14.5% cap but it will also allow you to move your funds to a cash account which offers 1% or 2% interest; this is great for when interest rates are low. Usually these funds can be moved once a month on your inception date. Make sure to check this out BEFORE purchasing a specific IUL.
Index Universal Life Insurance is a unique solution for many which offers a combination of features that no other vehicles can offer.
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