Michael Woloshin | Woloshin Investment Management services
Michael Woloshin: To develop a financial strategy for your future, it’s important for your financial professional to see a complete, 360 degree view of your financial picture, including how your retirement assets are integrated and work with one another. Our financial strategies and asset management services use insurance products, such as annuities, to help you meet financial goals.
We can work in concert with tax professionals or attorneys in your or our network to advise you on specific aspects of your financial strategy.
Retirement Planning
Retirement income plans are not just for the wealthy. As retirement nears, the traditional strategy has been to move growth-seeking products to more conservative, fixed-income products. According to a recent study, for a married couple age 65 there is now a 50% chance that at least one spouse will live to age 94. 1 This means that you may need to plan for your retirement savings to potentially last 25 to 30 years.
One drawback to a longer life is the greater possibility of outliving your savings — creating all the more reason to develop a retirement income strategy designed to last a longer lifetime. Sixty one percent of Americans surveyed said they were more afraid of outliving their assets that they were of dying. 2
A significant loss in the years just prior to and/or just after you retire could negatively impact the level of income you receive over the course of your life. In fact, if a loss occurs earlier in life, there is also the chance that you may have more time to recover (versus a loss occurring later in retirement). Why? Simply because a smaller pool of assets is left to sustain you throughout your retirement years and your assets may not have as much time to recover.
We can help you design a guaranteed* retirement income strategy which incorporates insurance and annuity vehicles to create opportunities as well as guarantee* income throughout your retirement.
1http://www.rdmarketinggroup.com. Prepared by Ernst & Young Insurance and Actuarial Advisory Services practice. The analysis uses the Annuity 2000 mortality table with Scale G2 mortality improvements.
2 State of the Insured Retirement Industry: 2012 Recap and a 2013 Outlook, Insured Retirement Institute
*Guarantees rely on the financial strength and claims-paying ability of the issuing company, and may be subject to restrictions, limitations or early withdrawal fees. Annuities are not FDIC insured.
Wealth Accumulation
You may be able to use time to your advantage when investing for wealth accumulation.
The longer you invest, the more potential your money has to compound interest. If your portfolio has not fully recovered from losses in recent years, you may wish to consider a more aggressive allocation to make up for lost ground and get back on track to accumulating wealth.
However, with fluctuations in the stock market, it is important to remember that more conservative retirement strategies typically have only a portion of the assets invested in the stock market. Allocations can be set aside for more conservative investments and/or secured* income contracts such as annuities. Annuities are long term vehicles designed to generate supplemental income during retirement. They have minimum guarantees backed by the strength and claims paying ability of the issuing insurance company. After all, the last thing you want to do is lose more ground during the next market correction.
*Annuity guarantees rely on the financial strength and claims paying ability of the issuing carrier.
Asset Protection
Because the market does not provide security, you may want your financial strategies to include some guaranteed* income products. For example, annuities, which are insurance products with guarantees*, can provide a source of supplemental income throughout your retirement.
Twenty-first century asset protection may require more than just strategic asset allocation. Including products like annuities in your retirement income strategy can help protect* your money from declines due to market losses.
Diversifying your retirement assets among a variety of vehicles — both through insurance products and investments depending on what is appropriate for your situation — may help you meet your retirement income goals throughout your lifespan.
Life Insurance
Life insurance isn’t for those who have died — it’s for those who are left behind. When shopping for life insurance, consider needs such as replacing income so your family can maintain its standard of living, as well as paying for your funeral and estate costs. A general rule is that you may want to seek coverage between five and seven times your gross annual income. As far as the various types of policies go, they can generally be placed into one of two categories: Term and Permanent.
Term insurance generally provides coverage for a specified period of time and pays out a specified amount of coverage to your beneficiary only if you die within that time period. In a level premium term policy, you pay the same amount of premium from the first day of the policy until the term ends. A permanent insurance policy, on the other hand, will stay permanently in effect for the rest of your life so long as premiums continue to be paid.
Tax Reduction Strategies
Rising taxes may be a concern for many individuals approaching retirement. It may be important to incorporate tax planning into your financial decisions.
Investing in or purchasing a tax-deferred vehicle means your money can compound interest for years, deferring income taxes and providing the potential to earn interest at a faster rate. Few financial vehicles avoid taxes altogether. Insurance products only allow you to defer paying taxes until retirement — when you may be in a lower tax bracket.
Please note that withdrawals will reduce the contract value and the value of any protection benefits. Additional withdrawals taken within the contract withdrawal charge schedule will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to 59½, may be subject to a 10 percent federal additional tax.
Long Term Care Strategies
As the oldest Baby Boomers begin to wind through their 60s, one of the biggest concerns may not be outliving income, but outliving good health.
For seniors, home health care can cost $50,000 or more per year1, and nursing home care can run as high as $80,0002 per year. Does your retirement income strategy account for this kind of possibility? Would you be prepared for twice that number as a married couple?
Considering that you could have to reduce your financial means before Medicaid will pay for long-term care and neither your employer group health insurance nor major medical insurance will cover long-term care, you may want to consider planning ahead in order to plan for these potential expenses.
We can help evaluate your situation and determine if purchasing a long-term care insurance policy may be the right move to help you feel confident in your financial future.
Charitable Giving
Creating a charitable gift giving plan may provide you with multiple tax breaks: an income tax deduction, the avoidance of capital gains on highly appreciated assets and reduce or eliminate estate taxes on the charitable contribution upon your death.
With changes in the tax environment, there may be compelling reasons to integrate philanthropy into your financial and estate planning.
We can help you find a qualified professional to assist you with this.
We invite you to come into our office!
It is important to feel you have control over your future. At Woloshin Investment Management, we offer our experience and knowledge to help you design your own strategy for financial independence.
Contact us today to schedule a free introductory consultation! Call us at (609) 654–9700 or connect with us online at Mike@WoloshinLLC.com.To develop a financial strategy for your future, it’s important for your financial professional to see a complete, 360 degree view of your financial picture, including how your retirement assets are integrated and work with one another. Our financial strategies and asset management services use insurance products, such as annuities, to help you meet financial goals.
We can work in concert with tax professionals or attorneys in your or our network to advise you on specific aspects of your financial strategy.
We invite you to come into our office!
It is important to feel you have control over your future. At Woloshin Investment Management, we offer our experience and knowledge to help you design your own strategy for financial independence.
Contact us today to schedule a free introductory consultation! Call us at (609) 654–9700 or connect with us online at Mike@WoloshinLLC.com.