Annuities

Be “that guy” at the party

Presented by David Corwin I should say “that financial professional” to cover the women who work in this wonderful profession too. What do I mean by being that guy or professional is to know your stuff, or at least enough to impress; not gloat or brag, but just know a few things to catch their attention. What will happen is that you’ll be able to secure an appointment with them and that will of course lead to a sale. Let’s start with a few key items that I would know: IRA’s – Know that contribution limit of $5,500 and over 50 years old they can put in $6,500. Also, know that they are generally speaking deductible against your taxes; albeit they aren’t really that popular though, but they don’t necessarily need to know that at this present moment. They just need to know that you know your stuff. Roth IRA’s – Same as above, but the main difference is “tax free” at retirement. I would repeat that a few times to drive the point home. SEP IRA’s – Getting a little more advanced here. That would be a card that I’d throw out when you’re among business owners and professionals. Know that the contribution limit is 25% of one’s income or $53,000, whichever is less. Still deductible and pretty popular amongst your smaller employers out there. A lot of dentists, real estate agents, chiropractors and the like have these. 401k – Even though you may lack the ability of writing these (I will tell you that you most certainly can); you want to know about them. Know that they have a contribution limit of $18,000 and that they are deductible to the employee. In summary, I will tell you that this wasn’t intended to be a really detailed blog, but rather just give you some talking points to be engaging enough to make someone want to see what you can do for them.
Annuities

When You Change Jobs…

Presented by Jim Guynan When you change jobs, you may have an important decision to make…what to do with your money in an employer-sponsored retirement plan, such as a 401(k) plan. Since these funds were originally intended to help provide financial security during retirement, you need to carefully evaluate which of the following options will best ensure that these assets remain available to contribute to a financially-secure retirement. You can withdraw the funds in a lump sum and do what you please with them. This is, however, rarely a good idea unless you need the funds for an emergency. Consider: * A mandatory 20% federal income tax withholding will be subtracted from the lump sum you receive. * You may have to pay additional federal (and possibly state) income tax on the lump sum distribution, depending on your tax bracket (and the distribution may put you in a higher bracket). * Unless one of the exceptions is met, you may also have to pay a 10% premature distribution tax in addition to regular income tax. * The funds will no longer benefit from the tax-deferred growth of a qualified retirement plan. You can leave the funds in your previous employer’s retirement plan, where they will continue to grow on a tax-deferred basis. If you’re satisfied with the investment performance/options available, this may be a good alternative. Leaving the funds temporarily while you explore the various options open to you may also be a good alternative. (Note: If your vested balance in the retirement plan is $5,000 or less, you may be required to take a lump-sum distribution.) You can take the funds from the plan and roll them over, either to your new employer’s retirement plan (assuming the plan accepts rollovers), to a traditional IRA or, possibly, a Roth IRA, where you have more control over investment decisions. This approach offers the advantages of preserving the funds for use in retirement, while enabling them to continue to grow on a tax-deferred basis.