Articles and Videos

Are Cash Value Life Policies Really as Good (or as Bad) as You’ve Heard?- Season 4: Episode 3
Managing Your Financial Future

Are Cash Value Life Policies Really as Good (or as Bad) as You’ve Heard?- Season 4: Episode 3

November 17, 2020

Life insurance appears to be a fairly easy topic to understand.  You pay your premiums to the insurance company, and if you die within the specified period of time, your beneficiaries receive the death benefit proceeds of the policy.  If you outlive the policy, no death benefit is paid. But that’s just one element of life insurance.  Another type is the often-misunderstood (and sometimes mis-sold) cash value policy — and here’s where things can get complicated.  And here’s where “Professor” Rick Plum, CFP® may be able to help you understand. Cash value life insurance isn’t for everyone, but for some individuals, it may indeed be exactly what they need to reach their goals.  Who should consider cash-value life insurance, and who should stay away?  And how do these policies work? 
Sorting Out the Self-Employed Retirement Plan Options
Articles

Sorting Out the Self-Employed Retirement Plan Options

November 12, 2020

Retirement Plan Options blurb: If you run your own business, chances are pretty good that you know a lot about the products or services you offer. That’s why you’re in business for yourself, right?But while you’ve surely got that part of it down, you may find that you aren’t nearly as familiar with your business finances — taxes, payroll, accounting, and employee benefits, just to name a few. For those with employees, the financial complications can become overwhelming, especially if you’re not familiar with all of the rules and options available to you as a business owner. One particularly confusing aspect has to do with employee retirement plans. Even if you have no employees and you yourself are the only one involved, you still may want to set up a retirement plan for yourself. There are several tax-advantaged options available to a business owner, and finding one that’s suitable for you can be a daunting task.
What Are Your Options with a Roth IRA?- Season 4: Episode 2
Managing Your Financial Future

What Are Your Options with a Roth IRA?- Season 4: Episode 2

November 10, 2020

Back in 1998, Congress created one of its most popular tax-incentives in recent history – the Roth IRA. Since then, we’ve seen various changes to Roths, including who may contribute, how much they may contribute, and who is allowed to convert pre-tax IRA money into the Roth world. Because of its popularity, though, the Roth is sometimes improperly used by both investors and by those who give financial advice. While the tax-free withdrawals of a Roth are often attractive, those same tax benefits may also cause someone to put their money into a Roth when there are potentially better options for them. So how does a Roth IRA work? Who should consider contributing, or maybe converting?
Is There a Solution to the Pension Dilemma?- Season 4: Episode 1
Managing Your Financial Future

Is There a Solution to the Pension Dilemma?- Season 4: Episode 1

November 3, 2020

If you happen to be one of those people with a traditional pension plan, there’s one important piece of information you should know about: unless your spouse elects to sign a waiver that allows otherwise, your pension benefits will be paid out to the both of you in the form of what’s called a “qualified joint and survivor annuity.” In other words, you’ll receive a reduced amount during your lifetime, so that your spouse will continue to get at least 50% of that amount if you happen to die first. But if you both elect instead to receive the higher single-life annuity payment, the payments (while significantly higher) would stop at your death and not continue for the surviving spouse.  This can be something of a dilemma for people who would want the higher payments, but are reluctant to lose that income if the pension owner doesn’t outlive the spouse. There is a potential solution to this problem, though.  Could you perhaps have both the larger payments AND provide an income for your surviving spouse?
Pension Decisions, Part 2: Lump Sum, or Annuity Payments?
Articles

Pension Decisions, Part 2: Lump Sum, or Annuity Payments?

October 29, 2020

A little while back we told you about a way to take your maximum pension benefit option while potentially mitigating the income risk to your spouse with a life insurance policy.  That technique is called “pension maximization.” If you have a pension, it’s just one of the decisions you’ll be faced with when it’s time to take your benefits. Another decision you may have is whether to take your benefits in the form of an annuity or a lump sum.  Which option you select can have a large impact on how much money you ultimately wind up with in retirement.  Factors such as current interest rates, future inflation, and your own investing abilities may all come into play.
A Strategy to Maximize Your Pension Payments
Articles

A Strategy to Maximize Your Pension Payments

October 22, 2020

If you’re the owner of a traditional pension plan, you need to be aware of an important rule when the payments start: unless your spouse elects to sign a waiver that allows otherwise, your pension benefits will be paid out to the both of you in the form of what’s called a “qualified joint and survivor annuity.” In other words, the amount you’ll get will be reduced during your lifetime, so that your spouse will continue to receive at least 50% of that amount if you happen to die first. You could both elect instead to receive the higher single-life annuity payment, but the payments, while significantly higher, would stop at your death and not continue for the surviving spouse.  This can be a real dilemma for people who want the higher payments, but are reluctant to lose that income if the pension owner doesn’t outlive the spouse. There is a potential solution to this problem, though.  Is it possible to have both the larger payments AND provide an income for your surviving spouse? 
Can You Make Your Retirement Dreams a Reality?
Lucia Capital Group Weekly

Can You Make Your Retirement Dreams a Reality?

August 20, 2020

A little while back we related some statistics that show personal spending tends to go down over the long-term course of retirement.  But for some people, usually right after they begin their retirement, their spending will actually increase – sometimes a lot.  And that makes sense, as they begin to finally do the things they always wanted to do, now that they have the time to make it happen.   Of course, when spending goes up, it may mean that you’re relying on your portfolio to supply more of the money you need to meet your expenses. This is where having a withdrawal strategy – a spending strategy – becomes crucial. If your assets are not set up with the anticipation of a market downturn, you may find yourself in a world of hurt when you withdraw those funds. Can you make your retirement dreams a reality? And what does it take to potentially see yourself through the next 30 years or more? It may be less complicated than you think.