Archive for February, 2012
Wednesday, February 29th, 2012
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. And, as you can imagine, each estate plan varies from individual to individual. Your age, health, wealth, lifestyle, life stage, goals, and many other factors determine your particular estate planning needs.
Below you will find estate-planning outlines for broad groups or individuals
Over 18 Years of Age
All adults should have the following:
- A durable power of attorney: This allows you to select someone to manage your estate in the event that you become unable to do so.
- An advanced medical directive: These come in three different types. (1) a living will, (2) a durable power of attorney for health care, and (3) a Do Not Resuscitate order.
Young and Single
- A will: Without a will, your property would go to your parents
Unmarried Couples
- A will: This is essential for any unmarried couple. Without a will, state law directs that only your closest relatives will inherit your property, and your partner may get nothing.
Married Couples
A new law passed in 2010 allows the executor of a deceased spouse’s estate to transfer any unused estate tax exclusion amount to the surviving spouse without the creation of a credit shelter trust. Still, credit shelter trusts have many advantages, including:
- Portability may be lost if the surviving spouse remarries and is later widowed again
- The trust can protect any appreciation of assets from estate tax at the second spouse’s death
- The trust can provide protection of assets from the reach of the surviving spouse’s creditors
- Portability does not apply to the generation-skipping transfer (GST) tax, so the trust may be needed to fully leverage the GST exemptions of both spouses
- Portability will expire in 2013 unless Congress enacts further legislation
If you have any questions about what you have just read, or if you would like to know more about Estate Planning 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.
Tags: advanced medical directive, Credit shelter trusts, estate plan, Estate Planning, financial advisors, managing and preserving your assets, Portability, power of attorney, retirement planning
Posted in Estate Plan, Financial Advice, Financial Planning | Comments Off
Thursday, February 23rd, 2012
Balancing your portfolio is no easy task. It involves combining several different types of investments and finding a way to manage those investments properly. Remember, each type of investment is unique, with its own set of strengths and weaknesses. And each investment plays a specific role in your overall financial strategy. Sometimes, the combination of investments you choose can be just as important as your specific investments.
What to Consider When Selecting Investments
• Some investments provide excellent growth potential
• Some investments provide regular income
• Some investments provide safety
• Some investments serve as a temporary place to park your money
• Some investments even try to fill more than one role
Because you probably have multiple needs and desires, you need some combination of investment types. And then, once you have determined which investments fit your needs, you must balance how much of each you should include. That balance between growth, income, and safety is called your asset allocation, and it can help you manage the level and type of risks you face.
Things to think about
1. Don’t forget about the impact of inflation on your savings.
2. Your asset allocation should balance your financial goals with your emotional needs.
3. Your tax status might affect your asset allocation.
If you have any questions about what you have just read, or if you would like to know more about Asset Allocation 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.
Tags: Asset Allocation, balance your financial goals, Balancing Your Investment Choices, Balancing your portfolio, combination of investments, financial advisors, financial strategy, growth, growth potential, income, investment types, retirement planning, Safe Retirement Solutions, safety, What to Consider When Selecting Investments
Posted in Asset Allocation, Financial Advice, Financial Planning, Planning for Retirement, Retirement Advice, Retirement Income Planning | Comments Off
Wednesday, February 15th, 2012
A thrift savings plan (TSP) – which was first created by the Federal Employee’s Retirement System Act of 1986 - is a defined, tax-deferred retirement savings plan for Federal employees, members of the armed forces, and all employees covered under the older Civil Service Retirement System (CSRS). A TSP is one of the three components that comprise the Federal Retirement System (FERS).
- Thrift Savings Plan
- FERS Annuity
- Social Security
A TSP – which is administered by the Federal Retirement Thrift Investment Board – is designed to closely resemble the dynamics of the 401 (k) retirement plans offered by most private sector companies. Contributions to the plan are automatically deducted from each paycheck. By participating in the TSP, Federal employees to…
- Save part of their income for retirement
- Receive matching agency contributions
- Reduce their current taxes
In the event of your death, if you have not already withdrawn funds, payments would be made to your survivors as follows:
- Widow or widower.
- Child or children
- Descendants of deceased children by representation.
- Retiree’s parents or to the surviving parent.
- The executor or administrator of the retiree’s estate.
- To any other of the retiree’s next of kin who is entitled under the laws of the state in which the retiree resided at death.
Or, if you prefer a different payment succession, you can fill our a designation form.
If you have any questions about what you have just read, or if you would like to know more about Thrift Savings Plans 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.
Sources:
Thrift Savings Plan
Thrift Savings Plan – TSP
Thrift Savings Plan (TSP)
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Posted in Financial Advice, Financial Planning, Planning for Retirement, Retirement Advice, Retirement Income Planning, Thrift Savings Plan | Comments Off
Wednesday, February 8th, 2012
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.
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.
Tags: Changes in family situations, Changes in insurance coverage, Changes in occupation or employment, Changes in the estate plan, Changes in your closely held business interest, Conducting a Periodic Review of Your Estate Plan, Death of trustee/executor/guardian, Economic changes, estate plan, estate valuation, executor, financial advisors, how often should you conduct a review of your estate plan, Large Estates, look at your estate plan, Major Life Events, Major transactions, periodic review, retire, retirement planning, review of your estate plan, review your estate plan annually, review your estate plan every five years, Safe Retirement Solutions, Small Estates, smaller estates, trustee
Posted in Estate Plan, Financial Advice, Financial Planning, Planning for Retirement, Retirement Advice, Retirement Income Planning | Comments Off
Thursday, February 2nd, 2012
A trust is a legal entity that is created for the purpose of transferring property to a trustee for the benefit of a third person (beneficiary). The trustee manages the property for the beneficiary according to the terms of the trust document.
Beneficiary: A beneficiary is an equitable (or beneficial) owner of the trust property. Either immediately or eventually, the beneficiaries will receive income from the trust property, or they will receive the property itself. Until this time, the trust is primarily the responsibility of a trustee.
Trustee: Trustees are usually appointed by the trust, but can be court appointed in the case that no trustee was previously designated. There are two main types of trustees, professional and non-professional. A trustee has several rights and responsibilities depending on the type of trust.
Types of Trusts
- Revocable trusts
- Irrevocable trusts
- Irrevocable life insurance trusts
- Qualified terminable interest property trusts
- Spendthrift trust
- Grantor trusts
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- Credit shelter trusts or Bypass trust
- Generation-skipping trusts
- Qualified personal residence trusts
- “Self-Settled” Special Needs trusts
- “Third-Party” Special Needs trust
- And more!
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Consult a financial adviser to find out which type of trust best fits your wants and needs.
Benefits of Trusts
- Provide management assistance for your heirs.
- Can help minimize estate taxes for married individuals with substantial assets.
- Contingent trusts for minors allow you to avoid the costs of having a court-appointed guardian to manage you children’s assets should you die.
- When properly funded, trusts help avoid many of the administrative costs of probate, including attorney fees and document filing fees.
- Revocable living trusts help keep the distribution of your estate and other private assets.
- Trusts can be used to dispense income to intermediate beneficiaries (e.g., children, elderly parents) before final property distribution.
- Trusts can ensure that assets go to your intended beneficiaries. For example, if you have children from a prior marriage you can make sure that they, as well as a current spouse, are provided for.
- Trusts can minimize income taxes by allowing the shifting of income among beneficiaries.
- Properly structured irrevocable life insurance trusts can provide liquidity for estate settlement needs while removing the policy proceeds from estate taxation at the death of the insured.
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.
Sources:
Advantages of Trusts
Trust Law
What kinds of trusts are there?
Different Types of Trusts for Different Purposes
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Posted in Financial Advice, Financial Planning, Planning for Retirement, Retirement Advice, Retirement Income Planning, Revocable Living Trust, Trusts | Comments Off
