We found the following article from financial author Bob Veres to be important content and wanted to share it with you. Although the words and thoughts are his, we feel the message helps illustrate what clients should expect from their advisor, and should know they have options if they aren’t receiving the level of service they expect.
What is the value that people get when they work with an objective, client-focused financial planner?
Home loans frequently make up significant amounts of household debt, and reducing as much debt as possible before entering retirement can seem like a good idea. A 2013 survey found that 40% of Americans age 55 and older believe that paying off their mortgage was the smartest financial move they ever made. There’s also a certain peace of mind that can come from having one less bill to pay in your later years.
Do you have an old 401(k) sitting around from a previous job? If so, you have a few options to consider. You could cash out your account, but if you don’t put the cash back into an Individual Retirement Account (IRA) or other qualified account within 60 days, you’ll owe income taxes (and possibly penalties) on your withdrawal. If your current employer permits rollovers into its retirement plan, you may also be able to move your savings over to a new 401(k) and consolidate your investments.
By Marc Shaffer
An immediate division of assets is not the only financial consideration that should occur when divorcing. You should also consider the impact of a divorce on your Social Security benefits and the rights of each spouse to those future benefits. Consider some of these questions we typically hear from divorced spouses:
By Michael J. Searcy
Let’s consider two forms of debt: consumption debt and investment debt.
Consumption debt comes from buying things you want or need when you don’t have enough cash to pay up front. This could include a car, a vacation, furniture or any number of items. These items are usually paid for on credit cards and can depreciate in value over time or immediately after purchase. For my long-time readers and clients, you know I am not a fan of consumption debt. I believe you should save up in advance for a purchase and pay cash, but I understand that, without a plan, this is easier said than done.
By Marc Shaffer
If you aren’t familiar with longevity annuities and Qualified Longevity Annuity Contracts yet, chances are you will start to hear more about them this year…especially if you are over the age of 55. While countless mailings may have you convinced that this is a new product, it has actually been around for a while. However, these annuities are being heavily marketed now that a new law is allowing them to be purchased with retirement funds from an IRA account or a qualified plan such as a 401(k) plan or profit-sharing plan.
By Michael J. Searcy
You have probably heard the TV and radio pitches that go a little like this: “If you are worried about the ultimate crash of the market and you don’t want any risk, we can guarantee no loss in a down market. You could get up to double digit gains without any risk and an income stream that continues to rise, even in down markets! Find out what your financial advisor hasn’t told you and what he probably doesn’t even know about.” We hear them all the time, and believe it or not, even a seasoned investor can be lured in by these claims.
As they get older, Americans face complicated decisions about long-term care, estate strategies, and their finances, while potentially struggling with diminished capacity to manage their affairs. At some point, your parents and other loved ones may need your help handling their finances. One study found that between five and ten percent of Americans over 65 need help with financial matters and another reported that 68 percent of elders suffer cognitive impairment or experience difficulty with daily tasks.
A Little Tax History
The first income tax suggested in the United States was during the War of 1812. The tax was based on the British Tax Act of 1798 and applied progressive rates to income. The tax was developed in 1814 but was never imposed because the treaty of Ghent was signed in 1815, ending hostilities and the need for additional revenue.
Several tax acts were proposed and passed in the 1860s. The Tax Act of 1861 proposed broad income taxation on any kind of income or wages earned by every person in the U.S. In 1864, a new tax act was passed to raise additional funds for the Civil War and reintroduced a sliding tax scale.
By Michael J. Searcy
If you are a long-time reader, or client, you probably remember that I started my career some 30+ years ago working with young doctors finishing up their basic medical/dental education or while in specialty training. I remember visiting the medical and dental schools and witnessing the same repetitive activities by what I call the wolves. These are people in the financial services business who hold themselves out to be “financial advisors” or “financial planners” but every solution they present happens to be high priced insurance products. While I agree that disability insurance and life insurance are pretty important for a young (and older for that matter) doctor, there are appropriate and efficient ways to get this accomplished.
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