A top-quality standalone LTC policy can provide guaranteed inflation-adjusted tax-free LTC benefits, should one need it, and if not, the Principal is returned. The benefit amount varies by age. Long Term Care (LTC) costs can be quite expensive. Unfortunately, Medicare does not cover LTC, and Medical requires spending down of one’s assets before coverage can …
Insurance policies with LTC coverage provide better benefits than those with Chronic Illness coverage though the qualification criteria are the same. The qualification criteria for both Long-Term Care (LTC) and Chronic Illness benefits are the same: unable to perform 2 out of 6 ADLs (bathing, dressing, using the toilet, eating, transferring and continence), or severe …
7 out of 10 seniors will require some form of LTC for an average 4 year period, if they are not able to perform 2 out of 6 ADLs. LTC costs $50-$100K a year without LTC insurance. The life expectancy in the US has been constantly improving. It used to be 62 back in 1935, …
A high-level overview of the two Medicare options available for Seniors and a comparison of its cost and benefits. Seniors who are 65 or older can choose between the two Medicare options: Original Medicare and Medicare Advantage. Original Medicare is administered by the Federal Government. It includes several parts. Part A, B and D cover …
An Annuity lowers portfolio volatility thereby improving the risk/return profile of the Efficient Frontier. The Efficient Frontier (EF) is the envelop of optimal portfolios that provide the best risk-reward tradeoffs. A more detailed view is presented in our blog “Efficient Frontier and Diversification.” Adding an Annuity to a portfolio moves the EF to the left …
An annuity is a tax-deferred instrument in which distribution taken during Accumulation and Income phases is taxed differently. Funding source and age also affects taxes. Annuities allow for two ways to take money out of the policy: withdrawals and income. A withdrawal is ad-hoc removal of funds as a lumpsum from the Cash Value (CV) …
The key factors in selecting a deferred FIA as part of a tax optimized retirement plan. We will here review the key considerations in putting together a deferred FIA (Fixed Index Annuity) targeted at providing tax-free inflation-adjusted lifetime retirement income. A variety of high-performing index strategies exist: S&P 500 is probably oversubscribed and hence carries …
A more in-depth look at how FIA’s Cash/Income Value accounts function during the Accumulation and Income phases. In this article, we take a closer look at how Fixed Index Annuity (FIA) accounts operate. Most products have two account types: Cash Value (CV) and Income Value (IV). The CV is the account balance available to the …
An Annuity works best when bought within a Roth account where it can provide a lifetime of inflation-adjusted tax-free income. Fixed Index Annuity (FIA) benefits can be divided into four categories: Asset Growth, Asset Safety and Access, Tax Benefits, and Insurance Protection. Asset Growth: With an Annuity, you can beat the longevity risk (explained further …
A deferred Fixed Index Annuity (FIA) tracks a market index during the Accumulation Phase, and pays out an annual income during the Income Phase. FIAs can provide a risk-free inflation-adjusted income stream like Social Security benefits. Let us go through the investment phases which a FIA involves. The initial investment marks the Premium phase. Next …
