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Each year most of us file and pay our “Fair Share” of Federal Income Taxes to the tune of thousands or tens of thousands of dollars. The biggest tax that will be due however does not have your signature on the return, it’s that of your loved ones when they inherit your “Tax Qualified Plans”. These include IRA’s, 401K plans, 403b, Thrift Savings Plan (TSP), TIAA CREFF, VALIC to name a few. The money grows Tax Deferred but is fully taxable at death when it passes to a non-spousal beneficiary unless the proper planning occurs. If the money is taken in a “Lump Sum” the custodian informs the IRS that a fully taxable distribution has occurred. The taxes are due when the heirs file their returns for the year in which the money was received. This triggers a “Tax Bomb” that explodes resulting in huge tax hit to the assets. […]

Sometimes following the “Crowd” can not only lead you in the wrong direction but as you will see can endanger you financial wellbeing. After suffering three severe bicycle wrecks over a 20-year period I no longer ride, that getting in shape thing almost got me killed. However, in 1997 while taking a bike ride in the country near “The Villages” and following my typical route, my destination was very clear. I had taken the same route dozens of times and was very certain that I was going in the right direction. About half way through the ride I noticed a loan rider approaching in the opposite direction and as he passed he screamed at me “You’re going the wrong way”. Not sure what to make of it I kept on pedaling but then several more riders approached me with the same message “The Finish line is ahead, you’re going the […]

When meeting with potential clients I warn them that if they decide to move their money from an existing advisor there will be some push back. Remember the brokers make their money two ways (1) fees on the money under management or (2) commissions on transactions in the account. A few weeks ago, I was meeting with a couple who had attended a recent seminar. When I asked what their concerns were, they shared that they couldn’t afford and didn’t want to risk losing any more of their money in the market, especially the money in their IRA’s. They felt that the stock market was unsafe and wanted the money taken out of harm’s way. They had been concerned about the risk for many years but really didn’t know where to place the money or who to trust for advice. The recent rollercoaster swings in the markets was very concerning […]

Every day I meet with potential clients and I when I ask them what they did for a living they never say, “I was a professional gambler!” Having worked as a broker for the first 20 years of my career, it’s my opinion that placing your money at risk of loss in the market is not investing but gambling. I am no longer licensed to advise anyone to buy, sell or hold their positions in risk assets. My job as an insurance agent is to minimize the risk of loss in my client’s estates. In 1997 I advised all my clients to move their money out of the markets into guaranteed insurance-based assets. Since that time, they have suffered no market losses! If you have ever taken a trip to Las Vegas, the first thing you hear when arriving at the terminal is the sound of the slot machines and […]