​The deadline for filing your 2018 tax return is right around the corner. Have you filed your return yet? If so, were you satisfied with the outcome? Or were you surprised by how much you paid in taxes last year?
 
The recent tax law dramatically changed the tax code. For many Americans, the law means reduced taxes. If you don’t plan accordingly, however, it’s possible that you could owe money to the IRS after your filing. It’s also possible that you could pay more in taxes than necessary.

Now is a great time to review your strategy and identify action steps that could reduce your tax exposure. If you haven’t reviewed your financial plan recently, you may be missing out on a number of tax-efficient tools and products. Below are a few tips to consider as you review your taxes:

Review your deductions. 

One of the biggest changes of the Tax Cuts and Jobs Act is the elimination and reduction of a wide range of deductions. Most itemized deductions were eliminated, including those for alimony payments and interest on many types of home equity loans. Caps were also implemented for state, local and property tax deductions. The law also eliminated personal exemptions.1
 
To make up for these changes, the law more than doubled the standard deduction.1 For many people, that means it will be more advantageous to take the standard deduction than to itemize deductions. If you’ve planned your spending based on the ability to itemize and deduct certain expenses, you may want to reconsider your strategy. Those deductions may no longer be allowed under the new law.

Check your withholding amount. 

The law also reduced tax rates across the board and changed the income brackets for each rate level. As a result, many employers adjusted their withholding amounts. Not all did, however. And some may have adjusted their withholdings incorrectly.
 
In fact, according to a study from the Government Accountability Office, 30 million people, or just over 20 percent of taxpayers, are not withholding enough money from their paychecks to cover taxes.2 Are you part of that group? If you’re not sure, talk to your financial professional about whether you should increase your withholdings.

Maximize your tax-deferred savings. 

Tax deferral is a great way to reduce current taxes and save for the future. In a tax-deferred account, you don’t pay taxes on growth in the current year as long as your money stays in the account. You may face taxes in the future when you take a distribution.
 
Many qualified retirement accounts, such as 401(k) plans and IRAs, offer tax-deferred growth. In 2019 you can contribute up to $19,000 to your 401(k), plus an additional $6,000 if you are age 50 or older. You can put as much as $6,000 into an IRA, or up to $7,000 if you’re 50 or older.3
 
Want more tax deferral beyond your 401(k) and IRA? Consider a deferred annuity. Annuities offer tax-deferred growth. They also offer a variety of ways to increase your assets. Some pay a fixed interest rate and have no downside risk. Others let you participate in the financial markets according to your risk tolerance and goals. A financial professional can help you find the right annuity for your strategy.

Develop sources of tax-efficient retirement income. 

Taxes don’t stop when you quit working. If you’re approaching retirement, now may be the time to plan ahead and minimize your future tax exposure. You can take steps today to create tax-efficient income for your retirement.

For example, distributions from a Roth IRA are tax-free assuming you’re over age 59½. You may want to start contributing to a Roth or even consider converting your traditional IRA into a Roth.
 
You can also use a permanent life insurance policy as a source of tax-efficient income. You can withdraw your premiums from your life insurance cash value tax-free. Also, loans from life insurance policies are tax-free distributions. You may want to discuss with your financial professional how life insurance could reduce your future taxes in retirement.

Ready to take control of your tax strategy in 2019? Let’s talk about it. Contact us today at Beacon Retirement Planning Group. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
1https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968
2https://www.cnbc.com/2018/08/01/30-million-americans-are-not-withholding-enough-pay-for-taxes.html
3https://www.cnbc.com/2018/11/01/heres-how-much-you-can-sock-away-toward-retirement-in-2019.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
18582 - 2019/2/27
 

Worried about the direction the financial markets have taken over the past few months? You’re not alone. After nine consecutive years of growth, the markets ended 2018 on a down note. The S&P 500 finished the year down more than 6 percent, the first time it has ever finished a year negative after being positive through the first three quarters.1
 
In fact, some indexes have already entered bear market territory. The Nasdaq dropped more than 23 percent from its Aug. 29 high. The Wilshire 5000 and Russell 2000 also dropped more than 20 percent from their respective peaks in early September.1
 
If you’re approaching retirement, these losses could be stressful. When you’re younger and just starting your career, you have time to absorb losses and recover. That may not be the case if you’re only a few years from retirement. You’ll soon need to use your assets to generate income. A substantial decline may force you to delay retirement or make cuts to your planned lifestyle.
 
Fortunately, there are steps you can take to protect your nest egg and your retirement. Below are three tools that can help you reduce your exposure to downside risk. Talk to your financial professional to see how these may play a role in your financial strategy.

​Fixed Indexed Annuity 
When it comes to investing, risk and return usually go hand in hand. Those assets that offer the most potential return often come with the highest exposure to risk. Assets that have little risk also offer little potential growth. It’s difficult to find growth opportunities that don’t have downside market risk.
 
There are some tools available, though. One is a fixed indexed annuity. In a fixed indexed annuity, allows your money the potential to grow on a tax-deferred basis. The potential growth comes in the form of interest credited to the contract typically annually.
 
Your interest credited each year is based on the return of a specific external index, like the S&P 500. The better the index performs in a given period, the higher the potential for the interest credits, up to a certain limit. If the index performs poorly, you may receive less or zero interest, but your contract won’t decline in value.
 
Fixed indexed annuities have guarantees* on the value of the contract. That means you’ll never lose premium because of market declines. A fixed indexed annuity could be an effective way to plan for retirement income without exposing yourself to market risk.

Deferred Income Annuity 
Are you concerned about your ability to generate retirement income in the future? Or are you worried that your retirement income isn’t guaranteed*? A deferred income annuity, also known as a longevity annuity, could be an effective option.
 
With a deferred income annuity, you contribute a lump-sum amount and pick a date in the future to begin receiving income. At the specified time, the annuity company will begin paying you an income stream that’s guaranteed* for life, no matter how long you live. Work with your financial professional to project your income and see if a deferred income annuity can help you fill any gaps.

Life Insurance 
You’ve probably purchased life insurance at some point in your life with the goal of protecting your spouse, children or other loved ones. Life insurance is a highly effective protection tool, but it can also do more.
 
Some life insurance policies have a cash value account. Each time you make a premium payment, a portion goes into the cash value. Those funds grow on a tax-deferred basis over time. The growth usually comes in the form of dividends or interest, depending on the policy. You can also use the life insurance policy to generate tax-free income in retirement via loans or withdrawals.
 
If you have a life insurance policy, you may want to explore how you can use it to achieve low-risk, tax-deferred growth and possibly create supplemental income in the future. Or you may want to look at new policies and see how they can help you protect your assets.
 
Ready to protect your nest egg? Let’s talk about it. Contact us at Beacon Retirement Planning Group. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.nasdaq.com/article/is-a-recession-coming-heres-how-to-survive-cm1081931
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
18412 - 2019/1/16

​Valentine’s Day is supposed to be a day for romance and reconnection. For many couples, however, this time of year could be marked by disagreements about money. Nearly half of all married couples argue about financial issues.1
 
With the new year just starting and tax season right around the corner, many people use this time to evaluate their spending, earnings and financial performance over the previous year. That analysis could reopen sore spots about money management.
 
The performance of the financial markets over the past few months could also be a source for disagreement among couples, especially those who have differing investment styles. After starting strong for the first three quarters of the year, the S&P 500 finished with an epic meltdown in the fourth quarter. The index ended the year down 7 percent, the first time in history it’s finished the year negative after being positive for the first three quarters.2
 
Do you and your spouse disagree about investing styles? Does one of you take a more aggressive stance while the other prefers to play it safe? Below are a few helpful tips on how you and your spouse can meet in the middle and get past your investment-related disagreements:

Draft an investment policy statement. 

Many couples disagree about their investment approach because they’ve never developed a formal investment strategy. They generally know they want to save for retirement, but they’ve never discussed their specific objectives or tactics. An investment policy statement does just that.
 
Your investment policy statement is a written document that states your goals, acceptable risks and the steps you will take to reach your objectives. It outlines which types of investments are appropriate for your strategy and which are not. You can use your investment policy statement as a guide for making future decisions.
 
The process of developing the investment policy statement could be beneficial for many couples. You’re forced to share your differing opinions and compromise to reach a strategy. Those conversations could help you work out differences and find areas where you agree, which could diffuse future arguments.

Develop a retirement income plan. 

Often, arguments are fueled by uncertainty about the future. You’re unsure of when you’ll be able to retire or how much more you need to save, so that heightens your anxiety and sharpens disagreements. You may be able to avoid arguments by eliminating the uncertainty.
 
Work with your financial professional to develop a retirement income plan. You can project your future retirement income from sources such as Social Security, an employer pension and even your own savings. You can also build a retirement budget to estimate your spending. These two projections should give you an idea of how close you are to reaching your goals, how much more you need to save and how much risk you should take to achieve growth.

Don’t avoid the conversation. 

Have you and your spouse agreed to disagree about your differing investment styles? Do you avoid the conversation? Or do you go it alone with your individual accounts so you don’t have to discuss issues that may lead to disagreement?
 
While you may not want to disagree or argue, it’s also not helpful to avoid the conversation. If you each have differing styles and don’t have a cohesive plan, you could be missing out on opportunity.
 
For example, assume your spouse is aggressive with his or her investment style and takes on a substantial amount of risk. Perhaps you’re conservative and choose assets that offer little return potential but also have little chance of loss. You may feel that the “go it alone” approach works because you each invest according to your comfort level and you avoid arguments.

By avoiding the conversation, however, you may be missing out on opportunities to meet in the middle and achieve better performance. For example, you could find an allocation that has growth potential and reduced risk. You could use tools such as annuities that offer growth without downside exposure. The only way to find these opportunities is to discuss your differing approaches and look for middle ground.

​Work with a professional. 
​
Finally, you may find it helpful to bring in a third party, like a financial professional. They can give objective, impartial feedback and also provide information and analysis that may change your approach. They can also help you develop a retirement strategy and an investment policy statement to guide your decision-making.
 
Ready to overcome your investment disagreements with your spouse? Let’s talk about it. Contact us today at Beacon Retirement Planning Group. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
1https://nypost.com/2017/08/03/the-reasons-most-couples-argue-about-money/
2https://www.cnbc.com/2018/12/31/the-sp-500-will-make-history-when-it-ends-the-year-with-a-loss.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
18408 - 2019/1/14

​What’s your greatest financial asset? Your home? Your retirement savings? A business? It may be your ability to work and generate income. If you’re like many Americans, however, you may underestimate the risk associated with your ability to work.
 
According to the Council for Disability Awareness, 1 in 4 working adults over the age of 20 will suffer a disability that prevents them from working at some point in life.1 Think that figure is high? Consider the wide range of medical issues that often cause disability, such as cancer, heart disease and even joint pain.
 
Long-term disability can be financially catastrophic because it takes away your ability to earn income. That creates other financial challenges, like medical costs, debt issues and possibly even the depletion of your savings.

If you become disabled after you reach retirement age, you may be able to file for Social Security and simply choose to retire. But what happens if you become disabled in your 50s or even earlier? How do you replace your income?
 
Below are a few options for creating income after suffering a disability. As you will see, there’s no simple solution. The best strategy is to plan ahead and take steps to minimize any potential risk. A financial professional can help you develop a plan.

Social Security
 
Social Security is primarily a retirement income benefit, but it also provides benefits to those who are disabled. However, it can be difficult to qualify for benefits. Many people have to apply or appeal several times before their disability filing is approved.
 
Social Security bases the approval decision on several factors. One is your ability to work. If you earn income from a job, even a part-time one, your application may not be approved. Another factor is the severity of the disability. Social Security often reviews medical information and doctor input when making this decision. While Social Security could provide some income, it’s not a certainty that you would be approved.

Workers’ Compensation
 
If you suffered your disability on the job, you may be able to qualify for workers’ compensation. As is the case with Social Security, it can be difficult to win workers’ compensation benefits. Your employer may challenge your application, and you may even need help from a legal professional.

Generally, workers’ compensation benefits are based on the severity of your injury and your ability to generate income. You may need medical evidence or testimony from a doctor stating that you are unable to work. Again, this could be a source of income, but it’s not a sure thing.

Retirement Assets
 
Are you one of the millions of Americans using a 401(k) or IRA to save for retirement? If so, you may be tempted to tap into those accounts to fund your expenses due to disability. However, doing so may be costly and could put you in a difficult financial position in the future.
 
Your distributions from your 401(k) or IRA are likely to be taxed as income. Also, if you’re under age 59½, you could face early distribution penalties. You may be able to get an exception because of your disability, but that’s not a sure thing.
 
Most important, though, if you tap into your qualified plans early, you may deplete those accounts before retirement. You could outlive your assets and have little money to pay for bills and medical costs later in life. While it may be tempting to tap into your qualified accounts, try to look for alternatives so you don’t deplete your savings.

Disability Insurance
 
One of the most effective protection tools at your disposal is long-term disability insurance. You pay premiums today but receive a monthly benefit as an income replacement if you become disabled in the future. Some policies will replace nearly all of your income, and many don’t require you to be fully disabled. You simply have to be too disabled to continue in your current occupation. A financial professional can help you determine whether disability insurance is right for you.

Ready to protect yourself against disability risk? Let’s talk about it. Contact us today at Beacon Retirement Planning. We can help you analyze your risk and implement a plan. Let’s connect soon and start the conversation.
 
1http://disabilitycanhappen.org/overview/
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18185 - 2018/10/22

​​If you’re a financial provider for a spouse, children or other loved ones, life insurance is probably an important part of your financial strategy. Life insurance protects your loved ones and dependents after you pass away. They can use the tax-free benefit to pay bills, support their lifestyle and overcome other challenges.
 
Life insurance is certainly important when you’re working and have children in the home, but what about after you retire? Do you still need coverage if your children are grown? Many retirees would say no. With no dependent children in the house and a substantial amount of retirement assets, surely you don’t need to keep paying those life insurance premiums.

However, life insurance can still serve an important purpose in retirement. In fact, you could use it to achieve some big goals and minimize dangerous risks. Below are a few ways in which you can use life insurance in retirement. A financial professional can help you analyze your policies and options, and then decide which strategies will best help you reach your goals.

Spousal Support
 
Today’s retirees are living longer than ever. According to the Society of Actuaries, a married 65-year-old couple would have a 50 percent chance of at least one spouse living to age 94 and a 25 percent chance of one spouse living to 98.1 That means you or your spouse could potentially live in retirement for more than 30 years.
 
A long life is always a good thing, but it can put a strain on your savings. Your savings have to last longer. You also may face high bills for health care and long-term care, especially in the later years of retirement. Those costs could deplete your assets and leave your surviving spouse in a challenging situation.
 
A permanent life insurance policy can provide a tax-free benefit to your spouse after your death. Your spouse can use those funds to pay outstanding bills and live comfortably during the remaining years of his or her retirement.

Legacy
 
Do you want to leave a legacy for your loved ones or maybe for a favorite charity? There are a number of estate planning tools you can use to accomplish that goal. For example, you can use a trust to provide specific instructions and to guide the distribution of assets.
 
However, life insurance is also an effective estate planning tool. You can use it to increase the amount you leave to your loved ones. Life insurance also avoids probate, which means your beneficiaries can receive the funds quickly. Your heirs can also use the life insurance death benefit to pay for legal fees and other costs associated with the settlement of your estate.
 
You may have purchased life insurance to protect your children when they were dependents. Just because they’re grown doesn’t mean they can’t still benefit from your life insurance policy. You can use it to leave a legacy for them or other loved ones after you pass away.

Tax-Efficient Income
 
Life insurance is primarily about the death benefit, but it can also be a source of supplemental income. Permanent life insurance policies have a cash value account. When you pay your premium, a portion goes toward the cost of insurance, and the remainder goes into your cash value. The cash value then accumulates on a tax-deferred basis.
 
You have the ability to take tax-free loans from your cash value. That could be helpful in retirement if you ever need supplemental income for emergencies or other unexpected costs. You pay back the loan with your premium over time. Any unpaid balance is deducted from the death benefit after you pass away.

Ready to explore your life insurance options? Let’s talk about it. Contact us today at Beacon Retirement Planning. We can help you review your goals and develop a strategy. Let’s connect soon and start the conversation.
 
1https://www.fidelity.com/viewpoints/retirement/longevity
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.

18214 - 2018/11/1

​



If you’re approaching retirement, you likely have a number of big projects on your plate. You may be weighing your options for things like Social Security benefits, investment choices and even decisions about lifestyle.
 
One of your biggest decisions may be when and how to file for Medicare. Health care is likely to be a major expense in your retirement. According to a Fidelity survey, the average 65-year-old couple can expect to spend nearly $245,000 on health care expenses in retirement.1  Keep in mind, those are out-of-pocket costs. That means Medicare is likely to pick up an even larger tab.
 
You may be unsure of which options you should choose, when you should file for coverage and what services come with your Medicare enrollment. Below are a few important facts to guide you through the process.

You have several options to choose from.
 
Medicare is the general name for the system that provides health care coverage to retirees. However, there are actually several different components to Medicare coverage. You can choose the options that best fit your needs and your budget.
 
Traditional Medicare includes Part A and Part B. Part A generally covers hospitalization and some skilled nursing care to treat a specific condition. Part B covers other components such as lab work, ambulance costs, mental health care, costs for equipment like wheelchairs and more.
 
You can also choose something called Medicare Advantage, which is often referred to as “Part C.” This is a combination of Parts A and B, but it’s offered through a private insurer rather than through Medicare directly. Medicare Advantage may offer you greater access to specific doctors.
 
Finally, there are also Medicare Part D and supplemental policies. Medicare Part D provides coverage for prescription drugs. Supplemental coverage helps you pay out-of-pocket costs like copays, deductibles and more. You have several options available, so it’s important you consider all of them before making your selection.

Your selections aren’t permanent.
 
Many new retirees hesitate to choose a Medicare option because they’re afraid they’ll make the wrong selection. It’s certainly hard to know in advance which types of coverage you will need in retirement. That’s why Medicare offers an annual open enrollment period in which you can change your coverage. Your initial selections aren’t permanent. You’ll have an opportunity to change them later if you find they don’t fit your budget or they don’t give you access to certain providers. It may be wise to review your coverage annually to make sure it still fits your needs.

You don’t have to start Medicare and Social Security at the same time.
 
Many retirees start Medicare and Social Security at the same time, but you don’t have to. It’s possible you may start Social Security benefits while your spouse continues employment, thus providing employer-based medical coverage, or you may have some form of extended coverage from your employer after you retire.
 
Similarly, you may be ready for Medicare coverage but want to delay Social Security benefits. By deferring payments, you may be able to increase your potential benefits. When you enroll through Social Security, you can state whether you’re filing for Medicare, Social Security or both.

You get free health care services with your Medicare coverage.
 
Many retirees don’t realize they’re entitled to free services once they start coverage. For instance, you get a free physical as a form of preventive care. You may also get a vision test, a measurement of your body mass index and a screening for depression. And you may also schedule free annual wellness visits with your doctor to catch issues before they become serious.
 
Why does Medicare offer these free services? As you can imagine, treating a medical issue is often more costly than preventing one. Medicare wants you to be healthy and to take preventive action.
 
Have questions about health care and other major retirement expenses?  We welcome an opportunity to help you identify your needs and develop a plan of action.

1 https://www.fidelity.com/about-fidelity/employer-services/health-care-costs-for-couples-retirement-rise
 
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
15717 – 2016/5/31

 
Are you considering early retirement? If so, you’re not alone. For many Americans, early retirement is the ultimate financial dream. Making the dream a reality requires focus and disciplined saving.
 
Unfortunately, many workers may not be able to retire at all, let alone retire early. A recent analysis of the Federal Reserve’s 2013 Survey of Consumer Finances found that the average American couple has only $5,000 saved for retirement.1
 
However, if you’ve saved a significant amount of assets, it’s possible that early retirement could be in the stars for you. There are a few challenges you’ll need to address before you leave the working world though. Below are three such items. If you haven’t planned for these issues, you may want to do so before you consider retiring early.

How will you pay for health care?
 
Think Medicare will pay all your health care expenses? Think again. You’ll likely have significant out-of-pocket costs above and beyond Medicare coverage. According to Fidelity, the average 65-year-old retired couple can expect to spend $280,000 in retirement on things like deductibles, premiums, copays and more.2 That figure doesn’t include any potential long-term care costs.
 
Do you have a plan to pay for medical expenses? If you retire early, you may have to pay out of pocket or buy a private policy before you’re eligible for Medicare. Consider maxing your contributions to your health savings account (HSA) and possibly looking into a long-term care insurance policy.

How will you manage your spending in retirement?
 
A budget can be your most powerful financial tool in retirement. It helps you see where you spend your money, how much you can afford to spend and what changes you may need to make to stay within your income.
 
Developing a budget is only the first step, though. You also may want to take your retirement budget for a test drive. That’s especially true if you hope to live on a tighter spending level after you retire. Try living on that spending level for three or even six months to see if it’s feasible. If so, retirement may be a possibility.

How will you spend your free time?
 
Believe it or not, boredom is a serious challenge for many retirees. They struggle to transition to a free and clear schedule. Without work, they may not know how to fill their time or they may feel that they lack purpose.

Some retirees fill the void with costly activities like travel, shopping, and new hobbies. The result is that they spend too much money in the early years of retirement and leave themselves in a challenging position in the later years.
 
If you don’t know how you will spend your retirement, you may not be ready to stop working. Develop a plan not only for your money in retirement, but also for your time. Think about what your ideal day would look like or what activities may be meaningful for you. Consider ways to enjoy yourself without busting your budget.
 
Wondering if you’re ready to retire early? Contact us at Beacon Retirement Planning Group. We can help you analyze your needs and objectives and determine whether early retirement is right for you. Let’s connect soon and start the conversation.
 
1http://www.marketwatch.com/story/the-typical-american-couple-has-only-5000-saved-for-retirement-2016-04-28
2https://www.fidelity.com/about-fidelity/employer-services/a-couple-retiring-in-2018-would-need-estimated-280000
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18087 – 2018/10/1

​Life can change quickly. When it does change, it’s helpful to review your financial strategy and make sure it still aligns with your needs and goals. Of course, life can also be hectic, so it’s easy to forget to review investment accounts, retirement plans and important financial documents.
 
If you own life insurance, it’s possible that you haven’t reviewed your coverage in years. Maybe you’ve never reviewed it. After all, life insurance operates in the background. It provides protection when you pass away, so you may not feel a need to review it. It’s a financial tool that you hope never gets put to use.
 
However, there are some changes in life that can have a sizable impact on your life insurance needs and protection. Below are a few such changes. If any of these sound familiar, it may be time to meet with your financial professional and review your coverage.

You’ve added dependents to your household.
 
Having a child is a major life change in many ways, but it’s an especially sizable change to your financial strategy. Your child is completely dependent on you for food, shelter and a wide range of other needs. If you pass away unexpectedly, your child could be in a financially challenging situation. Life insurance helps mitigate that financial risk.
 
Similarly, your financial strategy could change when your child moves out of the home and becomes financially independent. If they’re no longer dependent on you for financial support, you may not need as much life insurance. Whether you’ve added a child or recently become an empty nester, take time to review your coverage and make sure it’s appropriate.

You got married or divorced.
 
Your spouse also may be dependent on you for financial support. If so, your death could be a financial disaster for them. Again, life insurance is a helpful tool to provide financial support to your spouse in the event of your death.
 
If you recently divorced, you may want to check and see if your life insurance is still necessary. Also, be sure to check your beneficiaries. If you don’t make a change, your ex-spouse could get a large life insurance benefit that should have gone to a child or other loved one.

You took out a sizable loan.
 
Did you recently buy a home, vacation property, boat or other big-ticket item? Did you take out a loan for that purchase? If so, that loan could become a big burden for your family if you pass away. They may not be able to sell the item for full value, and that could leave them saddled with the loan balance. Consider life insurance as an affordable protection tool to cover the loan balance in the event that you pass away.

You made a career change.
 
Very few people stay with one employer their entire career anymore. Anytime you change jobs, it’s wise to review your life insurance protection. You may have been dependent on robust group life coverage at your old job. If your new job doesn’t offer such protection, you may want to fill in the gaps with an individual policy. Also, if your income increased substantially with the job change, you may need more coverage to replace your income if you pass away.
 
Ready to review your life insurance strategy? Contact us today at Beacon Retirement Planning Group. We can help you analyze your needs and adjust your plan. Let’s connect soon and start the conversation.
 


Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
17962 – 2018/9/4

Nearly 56 percent of Americans don’t own life insurance. Among those who do, 40 percent say they don’t have enough. Are you a part of those groups? Life insurance ownership has been on the decline for decades. In fact, LIMRA, an insurance industry organization, estimates that Americans as a group are underinsured by more than $15 trillion.1
There are many reasons why people don’t buy life insurance. You may buy into some of those reasons. However, if your death would cause financial hardship for someone else, you probably need some level of protection.
A wide range of different types of policies are available, so you can likely find one that fits your needs and budget. If you’ve been avoiding the purchase of life insurance, you may want to reconsider. It’s possible that you’ve bought into false ideas. Below are a few common myths about life insurance and why you shouldn’t believe them:

Life insurance is too expensive to fit in my budget.
 
The most popular reason why people don’t buy life insurance is that they think it’s too expensive for their budget. According to LIMRA, 83 percent of those who don’t have life insurance say they believe it’s too expensive. Another study found that most Americans believe life insurance costs more than double what it actually does.1
A term life policy could help you get the coverage you need and stay within your budget. These policies provide temporary protection for a set period of time, such as 10 or 20 years. Because the coverage is temporary, term policies are usually more affordable than permanent insurance. A financial professional can help you find the right policy for your budget.

I don’t need individual life insurance if I have it at my work.
 
Does your employer offer life insurance? It’s a common element in group benefit packages. Some group life coverage may be free, while additional coverage could be available at a relatively low cost. If you participate in your employer’s group life insurance plan, you may not feel that you need additional insurance.
 
Group insurance is helpful, but you still may need an individual policy. If you leave your employer, you’ll likely lose your insurance. If your health has declined, you may not be eligible to purchase insurance after leaving your job. Of course, you can avoid that risk by purchasing an individual life insurance policy today.

Death isn’t a risk for me because I’m young and healthy.
 
No one likes to think about dying. If you’re young and healthy, death may not be on your radar. After all, there are probably more pressing risks and needs to consider.
However, when you’re young and healthy is usually the best time to buy life insurance. Your premiums are based on the probability of you dying relatively soon. If you purchase when you’re young, there’s a low probability of that happening, so you get a lower premium. If you wait until you’re older, your premiums could be substantially higher. You can save yourself significant money over the course of your life by purchasing life insurance at a young age.
Ready to find the right protection for your needs and budget? Let’s talk about it. Contact us today at Beacon Retirement Planning Group. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.thinkadvisor.com/2013/08/30/the-shocking-statistics-behind-the-life-insurance/?slreturn=20180727144059
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
17965 – 2018/9/4