This article is a contribution by my Medicare expert colleague, Paul Davis. He is a wealth of information and would welcome your questions. He can be contacted through his email address,paul@pdinsure.com, ,  or by phone at 818-888-0880 ____________________ Confused by Medicare health plan options?  You’re not alone. Every person I meet with or speak with has some level of confusion or misunderstanding about Medicare Health plan options. Medicare is designed for people 65 … [Read more...]

If you have an older permanent life insurance contract, it's important that you review it at least every three years in order to monitor its financial health and to keep it from lapsing. Older life insurance contracts were many times designed initially based upon higher interest rate assumptions. Illustrated rates of 7% – 10% were not uncommon in the 80’s and 90’s.  Unfortunately subsequent decades have produced lower interest rates and, as a result, permanent life policies may not be … [Read more...]

I recently began including another step in my financial plans. Previously, I always discussed with clients the wisdom of having 3 to 6 month’s worth of expenses in cash reserves. That is still an integral part of any financial plan. More recently, what I realized is that after ceasing work, each blueprint needs a way to replenish reserves as they get spent down due to unforeseen expenses or emergencies. In other words, we can't say that the need to save money stops at … [Read more...]

What's the best way to buy a car? Everyone has their own style. Some always buy new. Some swear by buying used and keeping it until it turns into dust, then sweeping up the dust and flying on it for a few more months. Some choose to lease rather than to buy, but which is the "right" way? Over the years I think I have formed the conviction that it depends on what you value most. And I think the two commodities that are at the heart of the issue are "money" and "time and energy". Those … [Read more...]

If you have qualified retirement accounts, unfortunately you're not going to be able to avoid Required Minimum Distributions (RMD's). We have a separate article [Click Here] that describes how these RMD amounts are calculated, but exactly how they can be taken is the subject for today. The IRS looks at qualified retirement accounts into two kinds of classifications. All company retirement plans belong in one classification and all IRA accounts belong in another classification. The IRS … [Read more...]

Does your need for life insurance end when you stop working?  That's a question I get often, and so it made sense to address it in our blog post today. It's common to think of life insurance as a need that replaces working income. It's certainly true that the primary spouse and even in non-working spouse have life insurance needs to replace income and/or additional expenses, but retirees have income sources that end as well. The primary being Social Security and pension. It's unavoidable … [Read more...]

I think it might be nearly impossible for consumers to keep track of the nuances of all of the different types of annuities. One of the easiest ways to distinguish them is to divide them into two categories: Annuities for accumulation only and annuities for guaranteed income benefits. Annuities can be used to accumulate money. The annuity wrapper protects all gains from being taxed. There are various investment options depending on the type of annuity. Variable annuities use mutual fund … [Read more...]

If you're still working, you may or may not be familiar with a "in-service rollover". Most companies allow you to rollover your company retirement funds into a self-directed IRA even though you're still working after you have reached the age of 59 1/2. There are tremendous advantages to the self-directed IRA over the options of the company retirement plan. Company retirement plans are generally built for the accumulator, and not the pre-retiree with only years left before retirement. That … [Read more...]