What is a Revocable Living Trust?

April 18th, 2014

Revocable Living TrustA revocable living trust is, at its core, a way to ensure that the right person or people receive your estate and belongings when you die. A revocable living trust has some advantages over a will. With a will, your estate is subject to probate fee—a percentage of your assets taken by a representative or attorney—during the transfer of your estate to your beneficiaries. In a living revocable trust, the process has been established; there is no need for probate administration.

To better understand the nature of a revocable living trust, let’s take a look at the term’s three words, starting with the last one, “trust.”

Trust: A trust is a device in which one person, a settlor, transfers property or assets to someone else, a trustee. In a living revocable trust, as in all trusts, the trustee is the custodian of the trust and is responsible for transferring the contents of the trust to the beneficiaries. Through the trustee, the beneficiaries receive the settlor’s assets or property in the manner and time frame specified by the settlor.

A father might set up a living revocable trust to benefit his three children when he passes away. He wants the three children to receive his assets equally, and so he specifies this in his living revocable trust agreement. He also may set up his living revocable trust so that his children receive a quarterly allowance rather than a single payout. With a living revocable trust, there are many options.

Living: The word “living” in living revocable trust simply refers to the fact that the settlor is alive when he creates the trust. He has found a trustee, chosen his beneficiaries, and established what assets will be deposited into the trust. With a living revocable trust, the settlor may retain control over the trust and its assets as long as he is alive.

Revocable: The settlor may dissolve, amend or modify a living revocable trust at any point in his life, hence the word “revocable.” Why is this important? There are a myriad of reasons why you might want to change your living revocable trust. Divorce, estrangement and unexpected death of a beneficiary are just a few.

It’s time to drop the notion that the will is the standard way to see that your wishes are met when you’re gone. With a living revocable trust, you have control over your assets as well as greater confidentiality. That does not mean that a living revocable trust eliminates the need for a will entirely. In the event of your death, you can use a will to transfer your remaining assets to a living revocable trust!

At Safe Retirement Solutions, we have financial advisers who can review the living revocable trust and other options with you. Imagine the peace of mind of knowing that your final wishes will be respected!

We have offices in Towson, Columbia, Annapolis and St. Augustine, Florida. Call us today at 877-268-4086, and follow us on Facebook and Twitter.

Sources:

http://livingtrustnetwork.com/estate-planning-center/revocable-living-trust/how-to-fund-a-living-trust.html

http://wills.about.com/od/howtofundatrust/

https://www.mobar.org/uploadedFiles/Home/Publications/Legal_Resources/Brochures_and_Booklets/Probate_Law_Resource_Guide/revocable-living-trust.pdf

Conducting A Review of Your Estate Plan

April 7th, 2014

Your estate plan is successfully implemented. Now you are done, right? Wrong. There is still one critical step that remains: carrying out a periodic review and update. This is important because, let’s face it, life is not predictable. Things change. People retire, people get divorced, people move, people die, laws change, the stock market fluctuates, and much more! And each one of these individual circumstances can have a major impact on your estate.retirement benefits

A periodic review can give you peace of mind. And how often should you conduct a review of your estate plan?

Large Estates: Those of you with large estates should review your estate plan annually.

Small Estates: Those of you with smaller estates should review your estate plan every five years, minimum.

Major Life Events: Aside from the above recommended reviews, you should also look at your estate plan after any major life event, including:

•      Changes in estate valuation

•      Economic changes

•      Changes in occupation or employment

•      Changes in family situations

•      Changes in your closely held business interest

•      Changes in the estate plan

•      Major transactions

•      Changes in insurance coverage

•      Death of trustee/executor/guardian

•      Other important changes

If you have any questions about what you have just read, or if you would like to know more about trusts and retirement planning, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

How Can I Save Money In Retirement?

March 31st, 2014

Here at Safe Retirement Solutions in Towson, we spend a lot of time talking about the years of anticipation leading up to retirement – the rising action that culminates in the climactic moment when the golden years arrive.

We advise our clients often on how to make retirement possible and secure in the first place – meaning that we develop financial plans for people during their working years so they can relax during retirement. The fact of the matter is, though, that saving shouldn’t come to a halt once retirement has been reached.

It’s important to find alternative means of putting away extra money even after you’re no longer a career man or woman. Though we help our clients to establish a set of financial strategies to follow that will usher them in to retirement securely, the reality is that retirement is unpredictable and evolves frequently. Continuing to put away money will help you to be prepared in the face of emergencies, and free up additional savings should you want to take advantage of any opportunities that come your way.

One of the easiest ways to save without actively trying to generate income is to take advantage of senior discounts: seek out all the ways you possibly can to get markdowns. This may come in the form of grocery shopping, cable bills, phone services, car insurance, gym memberships, haircuts, movie going, and more. The money you save will help you in the long run.

For more information about Saving in Retirement and our services or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Source:

5 Retirement Questions You’re Afraid to Ask

How Does A 401k Work?

March 24th, 2014

Ok, so you have heard of a 401(k) plan before. You kind of know what it is supposed to do, but you are not quite sure at how it works. Luckily for you, the financial specialists at Safe Retirement Solutions in Towson are here to help!

What is a 401(k) Plan?

401(k) plans is actually the slang term for qualified cash or deferred arrangements (CODAs) permitted under Section 401(k) of the Internal Revenue Code.

How do 401(k) Plans Work?

401(k) plans have become one of the most popular types of employer-sponsored retirement plans, but how do they work?

With a 401(k) plan, you elect to defer a portion of your wages, contributing that amount to your plan. The amount you defer, known as an “elective deferral” or “pretax contribution,” isn’t included in your income.  This tax-deferred portion – along with any other investment earnings – isn’t taxed to you until you receive payments from the plan.

How much Money can I contribute to my 401(k) Plan?

There’s an overall cap on your combined pretax and Roth 401(k) contributions. These include:

  • You can contribute up to $16,500 of your pay ($22,000 if you’re age 50 or older) to a 401(k) plan in 2011.
  • If your plan allows Roth 401(k) contributions, you can split your contribution between pretax and Roth contributions any way you wish.
  • If you also contribute to another employer’s 401(k), 403(b), SIMPLE, or SAR-SEP plan, your total contributions to all of these plans—both pretax and Roth—can’t exceed $16,500 ($22,000 if you’re age 50 or older).
Safe Retirement Solutions in Towson is dedicated to providing you with the very best in retirement income planning!

It’s up to you to make sure you don’t exceed these limits if you contribute to plans of more than one employer. If you need help with your 401K Plan or any other financial investments, then consider Safe Retirement Solutions. We are here for you!

For more information about 401(k) Plans, Professional Financial Planning or Financial Advice in Towson, consult the financial advisers at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

What Are The Benefits of a Roth IRA?

March 18th, 2014

Most people know of the advantages of 401(k) plans as part of their overall retirement plan. But few people know the benefits of Roth IRAs.

Benefits of Roth IRAs

Unlike a traditional IRA, Roth IRAs are funded with after-tax dollars and accumulate tax-free. Other benefits of Roth IRAs include:

  • Roth IRAs can be withdrawn tax-free and penalty-free at any time (with some restrictions).
  • Roth IRAs have no required minimum distribution (RMD) during the owner’s lifetime.
  • You can leave amounts in your Roth IRA as long as you live.
  • A spousal beneficiary can roll over an inherited Roth IRA and continue to defer withdrawals.
  • As long as the taxpayer is earning some type of compensation or receiving alimony, contributions can continue to a Roth IRA past the age of 70 ½.

Safe Retirement Solutions in Towson is dedicated to providing you with the very best in retirement income planning!

The primary goal of a professional financial planner is to help you maintain a comfortable lifestyle while still putting away enough money for the future. What is even more impressive is that financial planners are able to consolidate all aspects of your financial life into one coordinated plan. So, unlike stockbrokers, bankers, insurance agents, or accountants, your financial planner helps make your life less complicated…not more complicated.

For more information about Roth IRAs, Professional Financial Planning or Financial Advice, consult the financial advisers at Safe Retirement Solutions in Towson by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

What Is Life Insurance? Tips From Your Towson Life Insurance Provider

March 13th, 2014

Life insurance is a contract between an insured individual and an insurer. The insurer basically promises to pay a predetermined amount of money if the insured person dies. Life insurance benefits also can include the cost of funeral expenses.

The benefits of life insurance is so you don’t have to worry about the stability of your family’s financial situation after you pass away. A life insurance policy is a legal contract and some stipulations may hinder your ability to collect life insurance money. That may include suicide, fraud or death while fighting in war.

For more information about life insurance in Towson, talk with your life insurance provider Safe Retirement Solutions today. We will help make sure your family can live a happy, comfortable lifestyle when you are no longer with them.

For more information about life insurance in Towson:

About Safe Retirement Solutions in Towson

If you have any questions about what you have just read, or if you would like to know more about life insurance and retirement planning, consult a financial advisor like Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

What Happens To An Estate Without An Estate Plan?

March 5th, 2014

How important is it to have an estate plan? Well, consider what would happen to your estate if you didn’t have such a plan in place. Without an estate plan, important decisions regarding your property, medical and final arrangements, and more will be made without any input on your behalf.

  1. Doctors and family members will make medical decisions
  2. Family members will decide on your burial arrangements
  3. State laws will dictate the distribution of your assets

Shouldn’t you make the above decisions? Of course you should! So make sure you have the final say in matters involving your state. Make sure you have an estate plan in place!

Estate planning, by definition, is the process of managing and preserving your assets while you are living to conserve and control their distribution after your death. Estate planning allows you to dictate which beneficiaries receive which aspects of your property. This also allows you to save as much as possible on taxes, court costs, and attorney’s fees so your loved ones can mourn your loss without additional financial burdens and unnecessary red tape looming overhead.

Estate Plans and Safe Retirement Solutions

According to Good Morning America financial contributor, Mellody Hobson, more than 70 percent of adult Americans do not have any form of an estate plan legally filed. Don’t become another statistic; contact the financial advisers at Safe Retirement Solutions today to help protect your financial assets and estate in the future!

For more information about Estate Planning, Professional Financial Planning, or Financial Advice, consult the financial advisers at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Planning For Healthcare During Retirement

February 24th, 2014

Many Americans bank on the illusion that in their retired years, Medicare – the government-backed health insurance program – will take care of their medical expenses once they have left the workforce.

But according to a report from Fidelity, a couple of about 65 years who desires to retire this year needs an extra $240,000 to finance their out-of-pocket healthcare costs not insured under Medicare. That’s a 4% increase from last year’s estimate by the same report, which came in at $230,000 – but a decrease from the 2010 calculation of $250,000.

Medical inflation is the cause behind the rising costs of healthcare, and because of this, it’s becoming a prerequisite for retirement to incorporate health-related costs into retirement funds.

But setting aside a quarter of a million designated solely for medical needs is a little daunting, which is why Safe Retirement Solutions would like to offer a bit of guidance with regards to how to proceed.

Work Longer

It may not be the advice that you want to embrace, but it’s reality. The fact of the matter is, the earlier an individual retires, the more difficult it is to predict how or what his future health and medical costs will entail.  It also allows future retirees to remain on employer healthcare plans while saving for their lives post-workforce.

Work to be Healthy

Obviously none of us make grandiose plans to develop chronic illnesses or undergo invasive medical procedures. But it’s important to try as much as possible to lead a healthy lifestyle and enter into retirement thriving. Lose the belly fat now. Ditch the cigarettes while there’s still time. Get active and make it a challenge to yourself to stay fit. Diseases and conditions like obesity, diabetes, and heart disease will leave you needing to make more trips to the doctor, adding costs to your bills with frequent co-pays. Avoid developing these oftentimes preventable illnesses by pledging to live healthily.

Let Safe Retirement Solutions do the Work for you

The sooner you’re able to factor medical expenses into your retirement savings plans, the better. The financial professionals at Safe Retirement Solutions are here to help you best determine how to invest your money to make the most of it and enter into retirement with a healthy-sized fund in your bank account.

For more information about Professional Financial Planning and Saving for Retirement, or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

Budgeting for Healthcare in Retirement

How Can I Achieve Financial Security?

February 18th, 2014

When it’s time for you to retire, will you be able to afford it? Almost all of the research conducted on the subject, over the last few years, shows that most individuals are unable to demonstrate financial readiness for their retirement years. This only serves to underline the fact that saving for retirement is a challenging process that requires careful planning and follow-through. Here we review some helpful tips that should help you on your way to a comfortable retirement.

Start as Soon as You Can
It is obvious that it is better to start saving at an early age, but it is never too late to start – even if you are already close to your retirement years – because every penny saved helps to cover your expenses.

Treat Your Savings as an Expense
Saving on a regular basis can be a challenge, especially when you consider the many regular expenses we all face, not to mention the enticing consumer goods that tempt us to spend our disposable cash. You can guard amounts you want to add to your nest egg from this temptation by treating your retirement savings as a recurring expense, similar to paying rent, mortgage or a car loan.

Diversify Your Portfolio
The old adage that tells us that we shouldn’t put all of our eggs in one basket holds true for retirement assets. Putting all your savings into one form of investment increases the risk of losing all your investments, and it may limit your return on investment (ROI). As such, asset allocation is a key part of managing your retirement assets

Consider All of Your Potential Expenses in Your Financial Plan
When planning for retirement, some of us make the mistake of not considering expenses for medical and dental costs, long-term care and income taxes. When deciding how much you need to save for retirement, make a list of all the expenses you may incur during your retirement years. This will help you to make realistic projections and plan accordingly.

Budget
Saving a lot of money is great, but the benefits are eroded or even nullified if it means you have to use high-interest loans to pay your living expenses. Therefore, preparing and working within a budget is essential. Your retirement savings should be counted among your budgeted recurring expenses in order to ensure that your disposable income is calculated accurately.

Work with an Experienced Financial Planner
Unless you are experienced in the field of financial planning and portfolio management, engaging the services of an experienced and qualified financial planner will be necessary.

About Safe Retirement Solutions

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

If you have any questions or want to know more about what we can do for you, please contact Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

You can also follow Safe Retirement Solutions on Facebook and Twitter.

How Do I Choose The Right IRA?

February 10th, 2014

Choosing the right IRA can be a difficult task. Luckily for you, the financial advisors at Safe Retirement Solutions are here to help! Simply following the three below steps can help you on your way to choosing the right type of IRA for you and your financial well being.

The Basics

There are two main types of IRAs – the Roth and the traditional IRA.

Traditional IRA: The biggest advantage to this type of IRA is tax-deferred compounding. You won’t have to pay taxes on your IRA’s investment earnings until you start taking distributions for it after you retire.

Roth IRA: Unlike traditional IRAs, this type of IRA has no restrictions governing when you are allowed to start taking distributions. Furthermore, qualified distributions from a Roth IRA are tax-free, not just tax-deferred.

Eligibility Requirements

There are eligibility requirements associated with both Traditional IRAs and Roth IRAs. For starters, you can’t make a deductible contribution to a traditional IRA if your income is above a certain level. Furthermore, if you make over a certain amount of money, you may not even be eligible for a Roth IRA. And that is just the beginning.

It gets pretty complicated from there. To help simplify the task, I suggest you check out the TurboTax IRA Calculator.

Your Options

This is where a Safe Retirement Solutions can help! Our full service, independent financial advisory firm is dedicated to providing you with the very best in retirement income planning.

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

If you have any questions or want to know more about what we can do for you, please contact Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Solutions:

Finding the Right IRA in Three Easy Steps