According to a February 2021 Barron’s article, there will be 60% more elderly population by 2030. That’s less than a decade away, which means now could be the time to talk about care planning.
If you’re an annuity owner, chances are you’re either part of the 79% that see it as a resource to avoid being a financial burden to your children or part of the 73% that see it as an emergency fund in case of catastrophic illness or nursing home care.
Whichever way you see it, it’s safe to say that your annuity assets are just sitting around, waiting to be used. Much like a “rainy-day” fund.
Why not help give new life to these old contracts? With the Pension Protection Act of 2006, individuals can use proceeds from some annuities potentially tax-free to pay long-term care insurance premiums. This option means you may be holding a product that can bring about triple tax advantages. Simply repositioning certain non-qualified annuities can provide three efficiencies: tax-free transfer, tax deferrals, and tax-free distributions for qualified long-term care (LTC) expenses.
These tax efficiencies, which many people love, can do more with your money or even provide lifetime benefits for LTC (depending on the carrier). And in many cases, if you don’t use it, the remaining annuity value goes to your beneficiary. Think about what this could mean for your financial situation!
It’s time to have a care planning conversation. As your dedicated financial professional, we can help you mitigate the extended care risks and make better use of the money in your portfolio. Reach out to us at (540) 720-5656, and let’s have a conversation.
Recent Posts
Is the American Dream Stalling? Fewer Moves, Fewer Job Changes
Scam of the Month: A Pointless Smishing Scam
Create an Investment Portfolio that Aligns with your Goals and Investing Style
Planning for the Unexpected at Every Stage of Life
Turning Tax Season into a Year-Round Planning Tool
Selling Gold? Watch the Tax Trap- Don’t Overlook the Kiddie Tax: A Hidden Trap for Parents
- Scam of the Month: It’s a Tax Trap!
Dave’s Pick: “This Is the Retirement Phase Nobody Talks About”
Understanding Investment Fees: What You’re Paying and Why It Matters
Managing Retirement Income During Market Downturns: Staying Steady When Markets Shift
Mid-Tax-Season Check-In: Avoiding Common Filing Mistakes
Your Spring Financial Refresh: A Seasonal Opportunity to Refocus and Reorganize- Scam of the Month: This Fraud Alert Is a Fake
Understanding the Human Side of Money: Behavioral Finance Basics
Related Posts
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor and obtained his