Month: May 2016

Millennials May Opt out of ERISA Plans & Opt into Tax-Free Strategies for Retirement

New Tax-Free Retirement Strategies May Supplement Traditional 401(k)s & IRAs Most working Americans are not in a high-effective tax bracket and many don’t receive an employer contribution match. So why glorify a minimal tax deduction on contributions today, only to pay significantly more taxes later in tomorrow’s retirement? Why should you subject your money to the regulatory rules of ERISA plans when you can have much more flexibility outside ERISA’s jurisdiction? Four tax-free strategies may generate more net-spendable income than any retirement plan before. Now keep in mind, if you are in a high-effective tax bracket, then you may...

Read More

The Number-One Annual Expense for Seniors May Be Taxes

Managing Taxes in Retirement Can Dramatically Increase Cash Flow When it comes to retirement income, every dollar counts. There’s no middle-class senior blowing through money like there’s no tomorrow. Many retirees are on a budget with little room to spare. One unforeseen bill can dig a financial hole that may take months to crawl out of, and for many it’s so unnecessary. Managing your taxable retirement income is the key to creating cash flow and discretionary dollars at the end of every month. The number-one annual expense rarely listed as a budget item is taxes. Implementing a few simple...

Read More

The Happy Factor in Retirement

The Psychonomics of Seniors Plays a Major Role in Retirement You can’t buy happiness, but having adequate income sure helps. The last thing retirees want to do is to stress over finances during the golden years … well they’re supposed to be golden. Most seniors envision having the time and money to visit family, go on special trips or simply eat out at their favorite restaurants. If retirees can’t make ends meet today, then living longer only exacerbates their financial problems and adds to their stress levels. The happy factor for most retirees is based on guaranteed lifetime income...

Read More

Mortality Credits: the Secret Sauce in Lifetime Income Annuities

Mortality Credits are the New Alpha of Retirement Income The low interest rate environment affects all financial products that use government debt. Banking institutions, mutual funds and insurance companies are all subject to the whims of the Fed to raise or lower interest rates. But key components of guaranteed lifetime income annuities are mortality credits, which not only are the insurance industry’s secret sauce, but they are also recognized as the new retirement alpha. The insurance industry at-large purchases investment-grade government bonds. So all carriers are fishing out of the same government debenture pool. To the causal observer, it...

Read More

Income Trumps Asset Accumulation in Retirement

New Retirement Model Shifts to an Income-Centered Retirement Accumulating assets is no longer the end game. The end game is now all about income. What kind of income do your assets generate for retirement? Is your retirement income based on the earnings of your portfolio without invading the principal? Are you aware that many financial advisors have curtailed their safe withdrawal rate from their portfolio income to 3 percent? If you’re attempting to live off the income generated from interest and dividends from your retirement portfolio, the rule of thumb may be 3 percent. Consider the painful reality that...

Read More