Frequently Asked Questions

Retirement is closing one chapter and opening another. A new season of life will soon await you, so it is crucial that you are prepared. Now that you are ready to begin planning for retirement, where do you start?

• 401K: A 401(k) plan is an employer-established plan that allows eligible employees to make contributions to a retirement account. This can be done pre-tax or post-tax. Some employers will also match your contributions.
• Traditional IRA: A traditional IRA is very similar to a 401(k). The biggest difference is how much money you are allowed to contribute. IRAs are more accessible and almost anyone of working age can open one. An IRA is not employer-sponsored, so there will be no sort of employer contributions.
• Roth IRA: A Roth IRA is a retirement account that you fund post-tax, meaning you will not be able to deduct your contributions on your tax returns. If you expect your tax rate will be higher during retirement, you may want to consider a Roth IRA.

The older you get, the more likely you are to eventually need long term care services. When you think of long term care insurance you may think of nursing homes or assisted living. While those perspectives are true, long term care insurance includes non-medical and medical services that cater to what you may need when the time comes. These services only last as long as you need them. Depending on your personal situation, you may only need long term care services for a period of time while you recover from an injury of surgery. If you do end up needing long term care services until the end of life, you want to make sure you have the planning and services covered. Deciding on if long term care insurance for you is pretty individual-specific, but to have the best outcome that fits you—you need to start planning.

Annuities aren’t one size fits all. That’s why it’s important to learn how they work and find the one that fits best for yourself. These products have many strengths but a few of the most common uses for them is; Growth, Safety, Principal Protection, Guaranteed Lifetime Income for an Individual or Couple and for Inheritance/Legacy Planning just to name a few.   The most common types of annuities are: 

• Multi-Year Guaranteed Annuities (MYGAs): These have a set fixed interest rate for a certain period of time. When that time is up, you can take your money and do as you please or leave it in for another period of time if you like the current interest rate that is being offered.
• Fixed Indexed Annuity: These have a fixed interest rate and grow from external market indexes such as the S&P 500 Index. They protect from possible market loss. This type of product gives you the gains when the market is doing good and protects you from losing when the market goes down. You cannot lose due to a market correction. This type of product can be used for someone who is looking strictly for growth with income immediately or in the future for a lifetime. There’s a lot of options with this type of product (growth, income, legacy planning, just to name a few).
• Single Premium Immediate Annuity: These products have their place in certain retirement portfolios for clients with a specific need. They can provide a lifetime income or an income for a certain period of time.

When thinking about options for insurance, cancer insurance is one thing you want to have secured in the case of a cancer diagnosis. During the season of your illness, taking time off from work to focus on your health can be an option that can make a significant difference for your overall recovery. With cancer insurance, you can make that happen and focus on getting better. Not all health insurance plans cover the costs for a cancer diagnosis, that’s why it’s vital to have this insurance as a supplement to your overall health insurance

When choosing between term life and whole life insurance depends on your preference. Term Life Insurance has active coverage for a set period of time. Whole Life Insurance has permanent, active coverage for the rest of your life and never expires. Here are some advantages of both:

• Term Life Insurance: This policy is a considerable option for those who do not foresee the need of a financial net in the future. Term Life Insurance is a great way to decide which seasons of your life you will need term life insurance. Typically, you can choose from 10-, 20- or 30-year term life insurance. When choosing term life insurance, there are some factors to consider: choosing a term during a period of time you would be paying bills in case you need to use your insurance and choosing an amount that will fully cover your family. This type of life insurance ensures that your family is protected and taken care of in the result of your loss.
• Whole Life Insurance: Whole Life Insurance provides life-long coverage to protect and take care of your family in the case of your loss. This insurance includes the policy’s cash value that is used as an investment. The cash value grows gradually and you won’t pay taxes on its earnings while they’re increasing. Whole Life can sometimes be more complex than term life insurance but some lasting benefits of the policy are: 
  • The premium remains the same for your entire life.
  • The death benefit is guaranteed.
  • The cash value account grows at a guaranteed rate.

After deciding which life insurance plan will fit best for you and your family, your next decision is to select a beneficiary for your policy. This beneficiary will inherit the value of your policy in the case of having to use it. The reason for purchasing life insurance should drive your ultimate choice of your beneficiary. There are more options than your spouse or children. If you have a business you want to keep going after you are gone, then maybe your business partner could be your selected beneficiary. If you want to continue to support a nonprofit organization after you are gone, a charity or nonprofit could be your selected beneficiary. Your options for selecting a beneficiary are numerous. Make sure to be specific about who you are selecting for your beneficiary and keep your policy and beneficiaries up to date.