Fixed Indexed Annuity: When you desperately need help planning for retirement

The greatest fear of most retirees is the risk of longevity: outliving their money. The meltdown of retirement accounts, rising medical costs, uncertain entitlement programs and higher taxes have added to the risk. Facing 30 years of retirement living on past savings and Social Security benefits is a scary reality. What can be done?

To handle other unaffordable risks you buy insurance. The same companies that protect your home, life, health and auto can also protect you from the risk of longevity. The basic principle of all insurance that makes coverage affordable is “pooling of risks”. Since the greatest fear of retirement is outliving your money and your remaining life span is uncertain, the solution is to insure the unaffordable risk. Let’s see how this is done.

Insurance companies issue fixed annuities, which can be turned into guaranteed lifetime incomes. You can accumulate your retirement money in an annuity over time, or you can fund the annuity lump-sum. Fixed annuities are backed by the assets of the insurance company, guaranteed to give you a positive rate of return which is free of income taxes until the earnings are withdrawn, and offer you numerous other choices. At the date you select, you can turn your annuity into a lifetime of monthly checks you cannot outlive. The insurance company guarantees you a lifetime of income, regardless of how long you live. You can later change your mind, stop the income and take your money lump-sum. If you die prematurely, your heirs are paid the balance of your account.


With an annuity, you can have a guaranteed income stream, immune to market gyrations. This income stream will give you the ability to budget for your finances in retirement, even allowing for things such as vacation funds...

Fixed Indexed Annuities can give you a chance to positively change your future.

Combine your guaranteed lifetime income with Social Security benefits, and you have a comfortable and safe retirement with very little planning.

Call Mintco Financial Advisors today and ask about a fixed annuity with a Guaranteed Lifetime Income Benefit Rider.

Phone: 813-964-7100 or visit the website www.MintcoFinancial.com

Build your pension: Annuity is your lifetime income

 

 

Steps to Your 'Personal Pension'

Most important steps to securing your retirement income:

1.    Spread your investment dollars among as many non-correlated income-producing assets as possible (global bonds, dividend paying stocks, private REITs, MLPs, and secured floating income investments to name just a few).

2.    Guarantee your income. Just like the foundation in your home is there to protect you during a storm, the foundation of your income plan should be guaranteed in case the perfect economic storm hits. For better or worse, the only account that can guarantee you a lifetime income is an annuity. Annuity options are plentiful—many aren’t that great—so carefully compare fees, risks, and potential performance.

3.    Set reasonable goals. Generating a 5-6 percent cash flow (adjusted for inflation) with a responsible level of risk is reasonable. Could you generate more? Sure, with more risk, but is it really prudent to accept a greater risk of running out of money? There are no do-overs in life and in retirement this is one area of planning that you must get right!

 

Speak to an independent financial advisor to review the best annuity for you.

Mintco Financial Team of Independent Advisors can help you to build your own pension.

Mintco Financial Advisors are fiduciaries and will work ONLY for the benefit of their clients.

Call us at 813-964-7100 or visit our website for more information: www.MintcoFinancial.com

 

 

 

 

 

Pension: How to create your own pension

Imagine a retirement-savings well that never runs dry, no matter how long you live. If that's the dream of future retirees, why are annuities, which make that very promise, such a minuscule part of our collective nest egg?

In exchange for a lump sum, annuities guarantee retirees regular payments for the rest of their lives. Sounds attractive, but investors have long shunned annuities, citing high fees, low returns and inability to bequeath the money to heirs. Worst of all, there's the "bus" risk -- that is, the chance of getting hit by one, or meeting some other untimely demise and not getting your money's worth. 

As an investment, an annuity just doesn't stack up.

But if your objective is to ensure enough money to live on no matter how long you live -- think consumption instead of accumulation -- then an annuity is a no-brainer.

 

Basically when you get buy annuities, you are buying your own pension.

 

An annuity can be used to assure that you’ll be able to cover key nondiscretionary expenses, no matter how long you live or how your portfolio fares. Start with a budget projecting monthly costs for shelter, food, utilities, and health care; then subtract Social Security and any other expected guaranteed income payments. The gap figure could be plugged with an annuity.

 

Annuities have other advantages, in addition to their lifetime guarantees. They're very user-friendly, because your monthly paycheck gets automatically deposited in your checking account. You don't need to make decisions about how much to withdraw or how to invest, which can protect against mistakes and fraud that can happen in your later years if you become less able to manage your money.

 

Deciding how to generate retirement income from your savings is one of the most important financial decisions you'll ever make. It's well worth your time to consider all your options.

 

Mintco Financial Team of Advisors can help you to build your own pension. Do not delay what you can do today, call us at 813-964-7100 and start you plan to build your own pension.

 

Visit our website for more info:http://www.mintcofinancial.com/quotes/annuity-quote/

Suze Orman and annuities as an income in your retirement plan

 If you are those people that only listen Suze Orman for advice, it is time to figure out your retirement choices. And YES, Suze Orman agrees to have annuities if you are thinking of your retirement income.

Here what Suze Orman says about Annuities and Retirement:

"We have seen how TSAs make sense, and sometimes index annuities, but there is also one other circumstance. If your goal is to have income during retirement years, you do not want to take any risk with this money, you want to avoid paying taxes now, but you are still not currently in a high enough tax bracket to make municipal bonds make sense, and lastly feel that you will be in an even lower tax bracket when you retire, then I do have to say that a single premium deferred annuity is great."

EXAMPLE:
You deposit $25,000 into a SPDA, and over the next 15 years it pays you an average of 5% on your money. Tax deferred, your money will grow to $51,973. Now you need income. Simply start taking the interest from the $51,973. If the interest rate you are offered is 6%, there would be a total of $3118 a year on which you would owe taxes. If instead you had kept that money in a bank's certificate of deposit, and let's say you were in the 15% tax bracket, over the same 15 years, you would only have accumulated $46,675. The income on that 6% interest would only be $2800 on which you would owe taxes. If you put your money in an SPDA, and it performed as it did in our example, this would mean $318 a year difference in income to you. Remember, every penny counts, especially during your retirement years. When you take into account how much money you really did invest and the real rate of return your money earned over the long haul, the difference could be a significant amount.

Mintco Financial Team does specialize in retirement annuities, if you would like to speak to an expert, please let us know a good time and date that is most convenient to schedule a time to call you, and a good number to call. Also, which state do you reside in, as each state's products can vary.

Call us at 813-964-7100 or visit our website www.MintcoFinancial.com

Annuity Quote: http://www.mintcofinancial.com/quotes/annuity-quote/

Michael Minter is a managing partner of Mintco Financial and author of the bestseller financial book I-PLAN.

Need an Annuity Quote in Florida?

 
Annuities, which are insurance contracts, come in many shapes and sizes. They include fixed-rate, in which the principal compounds at a pre-set rate; variable, in which the principal appreciates based on the performance of an underlying mix of stocks and bonds; deferred, which require an upfront investment with payouts down the road, and immediate, which turn a lump sum, upon purchase, into guaranteed monthly payments for life. 

One attractive feature of annuities is that, as with most individual retirement accounts, or IRAs, balances grow tax-deferred until withdrawals begin. Even more important these days, annuities help remove investors' worst fears: losing principal and running out of money in retirement.

Variable annuities also resemble an IRA because withdrawals can begin after you turn 59½. But there the similarity ends. Given a dizzying number of features and restrictions, contracts for some annuities -- variable and otherwise -- can run 300 pages or more. And because each comes with its own small twists, these products can be very difficult to compare.

People who buy annuities are those who want to save money for the future, or those who are currently making large salaries, but aren't sure how consistent the salaries will come in. For example, professional football players may make $1 million a year, but only be able to play professionally for five to 10 years. A lot of professional athletes invest in annuities to ensure that they get monthly payments back over their lifetime, so they don't spend all their money at once and have a monthly stream of income during retirement. 


Annuity Quote Click here


www.MintcoFinancial.com

Variable Annuities

Maximize your potential return with stock market participation while putting Uncle Sam on hold!

Variable annuities provide the opportunity for market appreciation—through a variety of investment options—with tax-deferred accumulation and future income.

Variable annuities are designed for people willing to take more risk with their money in exchange for greater growth potential. While there is more risk associated with a variable annuity, many variable annuities offer guarantees of principal and downside protection at an additional cost (depending on contract rider availability). However, these guarantees do not apply to the investment performance or safety of amounts held in the variable investment options.

A Variable Annuity is commonly selected in an effort to increase potential return.

• Provides a monthly payout based on a variable interest rate, dependent on market performance of the underlying portfolio you choose.
• Offers multiple options for payout, including an income stream for life.
• Provides a return of your original investment (principal) through withdrawals or a death benefit.
• Can specify payouts for a fixed period of time or for life (annuitization).
• Tax deferred.
• Best for investors with medium to high risk tolerance who seek maximum growth potential.

What Does Variable Annuity Mean?

An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio.

Variable Annuities offer:

• Tax-deferred Growth Potential: Taxes are deferred on earnings until money is withdrawn.
• The Opportunity for Market Appreciation: A variety of investment options are available.
• Access to Account Value: Most variable annuities allow withdrawal of a portion of your account value without penalty. Higher withdrawals, typically 10% of principal, may be subject to a contingent deferred sales charge within the first several years of any contribution, and if taken prior to age 59½, will be subject to a 10 percent IRS penalty.
• Benefits to Beneficiaries: Death benefits paid directly to a named beneficiary, potentially avoiding probate.
• Benefits to Spouses: Spousal beneficiaries may continue the contract and its tax deferral, if this option is chosen.

Variable annuities have become a part of the retirement and investment plans of many Americans.

 Before buying any variable annuity, however, you should find out about the particular annuity you are considering and talk to your financial advisor.

If you have questions please email me at anecamara@mintcofinancial.com

Or give us a call at 813-964-7100 or 716-565-1300

www.MintcoFinancial.com

What to do if you win the Mega Millions lottery jackpot

Daydreaming about winning the lottery is amazing. In fantasizing, we think about spending our winnings. Considering whether you would buy a castle or travel around the world first become real debates. But if your lottery fantasies do become a reality, you'll need to take care of a few things before you start the spending spree.

With good money management you–and your heirs–could live handsomely for many, many years. But from the moment that you claim that prize, you will be descended upon by vultures who want a hefty helping of those winnings. And if you didn’t have smart money habits up until now, you could easily turn out to be your own worst enemy by quickly squandering the fortune.

Here are some steps to help you steer clear of additional risks. Most of them work well for other windfalls too–for example with sudden wealth that comes from an inheritance or the sale of a business.

Remain anonymous if your state rules permit it. Once people know you’re suddenly wealthy, you’ll be badgered by requests for handouts from everyone from charities to long-lost friends and relatives–not to mention all the financial “experts” who will be vying for your business. So check state rules to see whether you can dodge them all by remaining anonymous.
You have plenty of time to ponder this strategy—prize winners in all states have one year from the date of the drawing to claim their prize. So find out what the state rules are and plot a course.

Obtain an Unlisted Telephone Number. Until your unlisted number is activated, ask friends, family and your financial advisor to call you on a cell phone. The unlisted number is crucial for several reasons. Most lotteries release the names and locations of winners. This means that you will be bombarded with calls from charities asking for contributions, not to mention long-lost family members looking to "borrow" money.


 See a tax pro before you cash the ticket. You have the choice between taking the prize money all at once or having it paid out over 30 years in the form of an annuity. With a lump sum payment, you must immediately pay tax on the entire amount. With an annuity, you are taxed only as you receive the payments. People who have trouble controlling their spending might prefer the discipline of receiving the money as an annuity. But this payout form has other drawbacks. You will want to compare the effective yield of the annuity with what you could earn by taking the money as a lump sum, paying the taxes and investing the proceeds.
Another issue to consider is whether taking an annuity will leave your family without the cash they need to pay estate tax if you die before the 30-year period is up. In such situations people typically buy life insurance policies to cover the estate tax bill.
You have 60 days from the time you claim your lottery prize to weigh the pros and cons. During this time, ask advisors to crunch the numbers and help you decide which type of payment suits you best.



 Avoid sudden lifestyle changes. For the first six months after you win the lottery, don’t do anything drastic, like quitting your job, buying a McMansion, or trading up for a luxury car. Meanwhile, set aside a fixed amount for splurges—it’s only natural to want to celebrate your windfall. Save the big purchases for later. 

 Pay off all your debts.  There is no better investment than paying off debts. Whether it is credit card debt or a mortgage, your rate of return equals the interest rate on the loan.  When you’ve paid down a dollar of debt, that’s a dollar you no longer owe. When you invest a dollar, you can’t be sure whether it will grow or shrink.

 Assemble a team of legal and financial advisers. In situations like this it’s very hard to know “who’s trying to help you and who’s trying to use you.
Rather than signing on to a group of advisors that someone else has put together, handpick your own lawyer, accountant and investment advisor, and requiring them to work together.
Your new financial advisor can recommend what steps you should take, such as establishing a trust, before claiming your winnings. Consult with him or her to decide whether to collect the money in a lump sum or installments. Later on, work with your advisor to develop a realistic spending strategy so you don't end up going from glamour to gutter.

 Invest prudently.

 Live within a budget.  

 Take steps to protect assets.

 Plan charitable gifts.
Have your financial plan in place before you start giving away money. You'll also want your advisor to screen charities to make sure they're legitimate. Having the unlisted telephone number will give you some breathing room to make financial decision thoughtfully, rather than under pressure from aggressive callers. Be sure to use the same approach with your loved ones. Don't make grand promises in the heat of the moment. Instead, wait until you've had time to talk with your advisor and get a sense of your true financial situation.


Review your estate plan.   

In my book that will be released soon I talk about "The Star Team" of advisers you should have, winning or not winning the lottery. 

The Team Of Advisors will help you to keep your money for many generations and still have a beautiful life.

Contact us if you have any questions. We have been helped thousands of individuals, families and business owners achieving their financial goals and needs.


We work for you! 


www.MintcoFinancial.com


anecamara@mintcofinancial.com


Florida: 813-964-7100
New York: 716-565-1300





   

Life Income Annuity

by Junior Boomer 

Annuities are another way to save for retirement and senior living. Essentially you make payments or pay the premium for the annuity in full and at a later date you are guaranteed payments from the money you initially invested. That is of course, the simplified explanation.

There are a variety of annuities, a variety of payment or investment options, and even more options for the disbursement or pay out period. Deciding what type of annuity to invest in is really a matter of personal choice and requires examining what you need the funds for, how healthy you are, the age of death of family members, and so on. The life income annuity is one of the most popular annuities as it guarantees income for life.

How it Works

With a life income annuity you don’t ever have to worry about running out of money in your lifetime. Disbursement payments will continue at the set amount, even after the money you initially invested runs out, until your death. This works because annuities are much like insurance policies. Many people invest and the money goes into the pot so to speak, some people pass away before they’ve used up their initial investment, so the left over stays in the pot. Some people outlive their money and still get payments because they are drawing from the pot.
Investing in a life income annuity is popular because there is security in knowing that disbursements will continue each month at the same predictable rate. This allows retirees to budget and plan the finances accordingly.

Refunds

Some people don’t like the idea of giving up their hard earned money if they pass away before they’ve gotten all of their money back through disbursements. In this case, an individual can purchase a rider or a policy that is a lifetime annuity with refund. The policy holder would appoint a beneficiary. If the policy holder dies before they receive all of their money, the beneficiary would continue to get disbursements until the money runs out. For example, if a person initially invested $50,000 and had gotten disbursement payments totaling $40,000 before they passed away, the remaining $10,000 would be paid out to the beneficiary. If no rider is purchased or no beneficiary is named, the left over $10,000 would go back into the “pot” mentioned earlier.

Inflation

Annuity payments don’t take into consideration cost of living increases so the monthly amount you get now might not be enough in 15 years. Therefore, there is an option to choose an inflation adjusted annuity. This option increases the disbursement payment every year to account for higher living expenses. It’s not standard with annuity policies so it’s something you have to consider adding if it will be worth it to you.

Contact us for a full review of your financial planning and know more about Life Income Annuities:http://www.mintcofinancial.com/contactus.asp