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Growing your retirement savings involves a careful balance of risk and return.  Sometimes choices involving finances and retirement can be difficult. Those choices may become even more difficult during uncertain economic times when the market experiences volatility. It seems as though everywhere you look, there's a new reason to be concerned about your hard-earned retirement savings. Turn on the television or radio, read a newspaper or simply have lunch with friends - and the conversation can turn to uncertainty in the stock market. Many Americans may be feeling confused and uncertain about the economy, thinking there's nothing they can do. They're also concerned they may end up working longer - and their retirement goals may be delayed. The good news is there are ways to protect retirement savings from market volatility through risk-tolerant insurance options just to name one. If you are over the age of 59 1/2 , and you are concerned about your employer retirement plans options, you may be able to take advantage of these options. Strategies to Help Protect Your Retirement Income The following are a couple ways to help protect your retirement income from market volatility:
This booklet addresses ways to help protect retirement savings during market uncertainty. We've created this guide with information and answers to commonly asked questions. Although maintaining financial confidence may not be easy - it is possible. Download your complimentary guide here. This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice and is not sponsored or endorsed by the Social Security Administration or any government agency.
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 A new year is here, and with it comes a flood of year-end tax documents like W-2s, 1099s and others. Before you know it, the April 15 tax filing deadline will be upon us, and it will be time to submit your return.
It’s always wise to meet with your financial professional at the beginning of the year. It gives you an opportunity to discuss the past year, your goals for the coming year and your tax strategy. However, a consultation could be especially helpful this year. The Tax Cuts and Jobs Act was signed into law in late 2017 by President Trump. While some of its changes went into effect last year, 2018 was the first full calendar year under the new law. The return you file in April will likely be the first that reflects much of the law’s changes. Below are a few of the biggest changes and how they could affect your return: Increased Standard Deduction The new tax law impacted a wide range of credits and deductions, from the deduction of medical expenses to credits for child care. Those who itemize deductions may have felt the brunt of these changes. However, the tax law significantly increased the standard deduction. In 2017 the standard deduction was $6,350 for single filers and $12,700 for married couples. The new law increased those numbers to $12,000 and $24,000, respectively.1 Given the changes to itemized deductions and the increased standard deduction, you may want to consult with a financial or tax professional before you file your return. If you’ve traditionally itemized deductions in the past, that may no longer make sense. New Tax Brackets The new tax law also made significant changes to the tax brackets. There are still seven different brackets, just as there were before the passage of the law. And the lowest rate is still 10 percent. The top income tax rate is down to 37 percent, however, from 39.6 percent.2 There are similar cuts throughout the rest of the brackets as well. The law also made changes to the income levels for each bracket. Generally, the bracket levels were increased throughout the tax code, which means you have to earn more before moving into a higher bracket. Under the old tax code, for example, a married couple earning $250,000 would be in the 33 percent bracket. Under the new law, that same couple would be in the 24 percent bracket. A single individual earning $80,000 would be in the 28 percent bracket under the old law but is now in the 22 percent bracket.2 Itemized Deduction Changes As mentioned, the new tax law increased the standard deduction amounts. However, those increases came at the expense of many itemized deductions. The new law eliminated or reduced many common deductions, including those for state and local taxes, real estate taxes, mortgage and home equity loan interest, and even fees to accountants and other advisers. However, there could be other opportunities to boost your itemized deductions above the standard deduction level. Charitable donations are still deductible, as are medical expenses assuming they exceed the 7.5 percent threshold. If you’re a business owner, you can deduct many of your expenses, including up to 20 percent of your income assuming you meet earnings thresholds.3 Ready to develop your tax strategy? Let’s connect soon and talk about taxes and your entire financial picture. Contact us today at Retirement and Wealth Solutions of Nebraska. We can help you analyze your needs and goals and implement a plan. 1https://www.nerdwallet.com/blog/taxes/standard-deduction/ 2https://www.hrblock.com/tax-center/irs/tax-reform/new-tax-brackets/ 3https://money.usnews.com/investing/investing-101/articles/know-these-6-federal-tax-changes-to-avoid-a-surprise-in-2019 This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice and is not sponsored or endorsed by the Social Security Administration or any government agency. 18326 - 2018/12/26  Do you have a relationship with a financial professional? Are you thinking about making a change? There are so many financial professionals, offering a range of different styles and services, that it can be hard to know which one is right for you.
It’s important that you work with the right professional for your needs and goals. However, you also want to do your due diligence before you make a change. It’s possible that your current professional could be the right one for your goals. Below are a few questions to ask about the relationship with your financial professional. If you don’t know the answers to these questions, you may want to have a conversation with your financial professional to get clarification. If the answers aren’t to your liking, it may be time to make a change. How are they compensated? Clearly, your financial professional is compensated for their services. However, there are a variety of ways in which that compensation may occur. Some earn commissions for selling products and investments. Others charge a flat fee, either based on specific services or as a percentage of assets. Some earn a blend of different methods. There’s no right or wrong way to compensate a professional, but it’s important that you know how the compensation takes place. If you haven’t had that discussion, now may be the time to do so. If your professional can’t clearly explain and demonstrate how you are compensating them, it may be time to explore other options. How often do you hear from them? Is your financial professional proactive or reactive? That is, do they contact you with new ideas or to touch base? Or do they only contact you in response to your concerns or questions? Your relationship with your financial professional should be a collaborative partnership. Their success is tied to yours, so it’s important that they proactively look for ways to improve or strengthen your strategy. If they don’t reach out to you with new ideas or recommendations, or if you have to contact them first to have a conversation, it may be time to consider alternatives. Do they provide comprehensive advice? Many people associate financial professionals with investment advice. The truth, though, is that your financial picture includes much more than just your investments. You have to make big decisions on a wide range of issues. How much should you contribute toward retirement? Can you afford that major purchase? Are you on track to pay for your child’s college? What happens if you die or become disabled? Your financial professional should be able to provide recommendations and advice in all of these areas, even if it doesn’t lead to the sale of a specific product or investment. Again, if you’re not getting advice or input in all areas of your financial life, you may want to reassess your relationship with your financial professional. Want to learn how a financial professional can help you reach your biggest goals? Let’s talk about it. Contact us today at Retirement and Wealth Solutions of Nebraska. We can help you analyze your needs and goals and develop a strategy. Let’s connect soon and start the conversation. Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 18280 - 2018/11/28  Holiday season is here again. The new year is almost upon us, and 2018 will soon be in the rearview mirror. You’re probably busy right now looking for the perfect gifts for your friends and loved ones. However, you also may want to take some time at the end of the year to give a gift to yourself.
What’s the perfect gift for yourself this holiday season? Perhaps the latest gadget or new clothes? Maybe even a vacation? While those ideas are all valid, consider something that will have a lasting impact on your future: increased retirement savings. If you’re concerned about your retirement savings, you’re not alone. According to a Gallup survey, 54 percent of Americans are worried about not being able to afford retirement.1 The holidays may not traditionally be the season of financial planning, but the year-end represents an ideal time to make changes and take action. Give yourself the gift of a solid retirement strategy this holiday season. A financial professional can help you conduct a full review and recommend possible changes. Below are a few steps to consider: Max your IRA contributions. An IRA is a popular and effective retirement savings tool because it offers a wide range of tax benefits. You may be able to deduct your contributions to a traditional IRA. Your earnings in the account also grow tax-deferred until you take a distribution. In a Roth IRA, you don’t get deductions for your contributions, but you do get tax-deferred growth and tax-free withdrawals after age 59½. In 2018 you can contribute up to $5,500 to either a traditional or a Roth IRA. That number increases to $6,500 if you’re age 50 or older. In 2019 those limits increase to $6,000 and $7,000, respectively. If you haven’t hit your limit for 2018, you have until April 15, 2019, to do so. Look at your budget and consider giving yourself an IRA contribution this holiday season.2 Increase contributions to your 401(k). Do you participate in an employer 401(k) plan? In 2019 the maximum contribution increases, so you can put away even more money. The new 401(k) maximum contribution will be $19,000 next year. If you’re age 50 or older, you can contribute an additional $6,000 in catch-up contributions.3 Of course, not everyone can afford to put $19,000 per year into a retirement plan. However, even a small increase in your contribution can have a big impact. Look for ways to gradually raise your contribution rate over time. You can get a head start by increasing your contribution this holiday season. Get a retirement income estimate. How much income will your savings produce in retirement? How much income can you expect from Social Security or a pension? If you don’t know the answers to these questions, you may want to meet with a financial professional to develop a retirement income estimate. A financial professional can project your potential income from Social Security, a pension, savings or other sources. That can help you determine whether you’re on the right path or if you need to make adjustments. You could also examine tools to protect your income. Ready to take control of your retirement strategy this holiday season? Let’s talk about it. Contact us today at Retirement and Wealth Solutions of Nebraska We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation. 1https://news.gallup.com/poll/210890/americans-financial-anxieties-ease-2017.aspx 2https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits 3https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000 This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice and is not sponsored or endorsed by the Social Security Administration or any government agency. 18279 - 2018/11/28  Looking to cut costs in retirement? That could be a wise idea. If you’re like many retirees, you’ll need to make do on a fixed income stream. You may need to make spending cuts so your savings and income last for life. One of the expenses you may be looking to cut is your life insurance premiums. Many people buy life insurance to replace their income, especially if they’re the primary breadwinner for a spouse and children. If your children are grown and you’re retired, you may feel like it doesn’t make sense to continue paying for life insurance. Life insurance isn’t just for income replacement, though. It can be a versatile retirement income that can serve a wide range of needs and goals. Below are a few reasons why a permanent life insurance policy could still make sense for you, even if you’re retired and don’t have dependent children in the home: Support for Your Surviving Spouse If you’re married, there’s a chance at least one of you could live in retirement for several decades. The Society of Actuaries estimates that a married 65-year-old couple has a 50 percent chance of at least one spouse living to age 94 and a 25 percent chance of one spouse living to 98.1 If you retire in your mid-60s, there’s a real possibility that at least one of you will have a 30-year retirement. You may think you have enough assets to last that long, especially when you consider other resources such as Social Security and pension benefits. However, keep in mind that you may face costly health care challenges in the final years of your life. You could spend hundreds of thousands of dollars on long-term care and nursing care. That could deplete the assets available for your surviving spouse. A permanent life insurance policy can provide a tax-free benefit to your spouse after your death. Your spouse can use those funds to pay any outstanding bills and as income during the remaining years of his or her retirement. Liquidity for Your Estate Many estates face probate, which is the legal process of settling or finalizing an estate before assets are distributed to heirs. Probate can include asset appraisals, tax filings, notification of heirs and possibly even legal challenges. Depending on the size and complexity of your estate, your heirs may need to hire lawyers, accountants, realtors and others. As you might imagine, probate can be a lengthy and costly process. Expenses are usually deducted from the estate, reducing the amount left to your loved ones. Also, your loved ones may have to wait months before they receive their inheritance. Life insurance can be used as an effective tool to help these challenges. It avoids probate because it’s driven by a beneficiary designation. That means the life insurance company pays the tax-free death benefit to your beneficiaries immediately after they file a claim. Those funds could be helpful as your heirs navigate legal issues or while they wait for the estate to exit probate. Supplemental Income Life insurance isn’t just about the death benefit. Many permanent policies also have a cash value account that accumulates on a tax-deferred basis. The method of accumulation depends on the type of policy you own. However, you can tap into this cash value as needed in retirement. You can take a tax-free loan or take a withdrawal that may be taxable depending on how much growth you’ve had. That income could be useful in the event of an emergency or if you simply need a little extra retirement cash flow. Ready to explore your life insurance options? Let’s talk about it. Contact us today at Retirement and Wealth Solutions of Nebraska. We can help you review your goals and develop a strategy. Let’s connect soon and start the conversation. 1https://www.fidelity.com/viewpoints/retirement/longevity This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice and is not sponsored or endorsed by the Social Security Administration or any government agency. 18214 - 2018/11/1  Worried about how you’ll pay for long-term care in retirement? You’re not alone. Long-term care is a very real possibility for today’s retirees. According to research from the U.S. Department of Health and Human Services, 70 percent of today’s 65-year-olds will need long-term care at some point in their lives.1 Long-term care is often provided in an assisted living or nursing facility. However, it can also be provided in the home. Either way, it’s usually a costly service. A recent Genworth study found that a full-time home health aide cost an average of $4,000 per month in 2018. A room in an assisted living facility cost roughly the same amount.2 There’s no doubt that an extended need for long-term care can drain your retirement assets. Fortunately, you can minimize the risk by planning ahead. A well-developed strategy can help you identify payment options and obtain the care you need. Below are a few common mistakes that many people make with their long-term care planning. Avoid these mistakes and you’ll be ahead of the curve. A financial professional can also help you develop a strategy and choose tools to help cover the cost. Not discussing the risk with your family. Your family could be your most valuable long-term care asset, especially in the early stages of needing care. Many seniors see their need for care progress over time. It often starts with help with basic chores like errands and cleaning. Over time it can progress to more intensive help with things such as bathing, mobility or even medical treatment. Every situation is different, but many seniors are able to rely on their family for assistance in the early stages. It’s helpful to have the conversation with your spouse, children or other loved ones before you actually need care. Get an idea of how they may be able to provide help. Could they balance assistance between their own work and home responsibilities? You may discover that they won’t be as reliable as you’d expected. If that’s the case, you may want to consider alternatives. Expecting Medicare or Medicaid to pay for your costs. Many seniors rely on Medicare for health care coverage. It’s a valuable resource that covers everything from doctor’s visits to hospitalizations to many prescription drugs. Some services aren’t covered by Medicare, though, including long-term care. Medicare will cover some forms of extended care if it’s related to a hospitalization for a specific illness or injury. The care must consist of skilled nursing with the goal of treating you for the condition. Custodial care with things like eating, bathing and other basic living activities may not be covered. Medicaid is also a helpful resource, but you have to have little income and almost no assets to qualify for Medicaid coverage. Also, Medicaid often won’t cover care provided in the home. While Medicare and Medicaid may provide coverage in some instances, it’s not wise to count on them for complete funding. You may want to develop other funding strategies. Failing to plan. The most common planning mistake many retirees make is the failure to plan altogether. They believe that they’re too young to worry about long-term care or that they can rely on friends and family for support. Or they simply don’t want to think about the possibility of being in a facility or needing professional assistance in the home. It’s certainly not pleasant to think about long-term care, but it’s too important to ignore. Also, the earlier you plan, the more options you may have available. You could fund a health savings account to help pay for care. Or you could purchase a long-term care insurance policy to help cover the cost. Premiums for such policies are often more affordable if you are relatively young and healthy at the time of purchase. Ready to plan your long-term care strategy? Let’s talk about it. Contact us at Retirement and Wealth Solutions of Nebraska. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation. 1https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html 2https://www.genworth.com/aging-and-you/finances/cost-of-care.html This information has been provided by a Licensed Financial and Insurance Professional and does not necessarily represent the views of the presenting professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice and is not sponsored or endorsed by the Social Security Administration or any government agency. 18148 - 2018/10/17 |
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