Posted by Philip Pent in on Jun 10, 2015
Turn Your taxable IRA into a Tax-Free Benefit for Anyone
The IRS is looking forward to taking their portion of your IRA. Even if you plan on using your IRA as little as possible. At age 70.5 all owners of IRA’s have to withdraw what is known as their “Required Minimum Distribution”. If you die and gift your IRA to a spouse, the IRS will continue to tax your money, and if you don’t have a spouse to bequeath it to, the IRS likes that even more. They’ll tax the whole amount all at once as regular income. In a situation like the latter, your IRA will be worth only abut 65% of it’s original value upon your death.
Say you were to pass away and leave your kids, loved one, or charity an IRA worth $500,000. The IRS will gladly take approx. $175,000. (That’s assuming taxes do not continue to go up.)
There is a way to gift your whole IRA without slapping someone with a giant tax bill. We call it a “Pension Funded Irrevocable Life Trust”. Here’s how it works:
- We shop for the highest pay-out pension/annuity on the market backed by a pre-qualified pension/annuity company.
- The IRA transfers (non-taxable event) to the pension/annuity company.
- The annuity company pays payments for the owners life to the IRS and…
- …funds an irrevocable life trust that is activated upon death of the owner.
- The beneficiary of the trust will receive the original balance of the IRA, TAX FREE.
This is not a difficult process if enacted properly. Here was a recent case based on a 75 year old male, in mediocre health, and a $500,000 IRA.
- We found him the company that would pay the highest lifetime pension.
- The IRA was directly transferred to the annuity company.
- The annuity now directs a portion of the payment to the IRS and…
- …an irrevocable life trust.
- The beneficiary (his son) will receive $500,000 TAX FREE.
If you have any questions and would like to stop paying unnecessary taxes, or would like to see how this could work for you, call us at 1-904-460-1100
or you can call me directly at 904-540-4913
If you are in or near retirement you've probably received an invitation to a "Free Meal" seminar. This is where you can get a free piece of chicken or steak and then you watch a slide show about all the latest financial products...yawn...
We've taken all the hastle out. You can skip the "Free Meal Seminar" and save yourself the agony. Go to paulpentpresents.com
There you will find all the resources you need in order to complete an anxiety free retirement.
Watch and set up your free consultation this month and we'll send you a copy of our new book: "The Financial Second Opinion to a Better Retirement."
click here: paulpentpresents.com
Posted by Philip Pent in on Nov 30, 2013
How to order your free online financial second opinion..see an example of our safe and proven way to fund retirement.
From the Wall Street Journal 03/01/2013
by: Kelly Greene
Conventional wisdom says you can take 4% from your savings the first year of retirement, and then that amount plus more to account for inflation each year, without running out of money for at least three decades.
This so-called 4% rule was devised in the 1990s by California financial planner William Bengen and later refined by other retirement-planning academics. Mr. Bengen analyzed historical returns of stocks and bonds and found that portfolios with 60% of their holdings in large-company stocks and 40% in intermediate-term U.S. bonds could sustain withdrawal rates starting at 4.15%, and adjusted each year for inflation, for every 30-year span going back to 1926-55.
Well, it was beautiful while it lasted. In recent years, the 4% rule has been thrown into doubt, thanks to an unexpected hazard: the risk of a prolonged market rout the first two, or even three, years of your retirement. In other words, timing is everything. If your nest egg loses 25% of its value just as you start using it, the 4% may no longer hold, and the danger of running out of money increases.
If you had retired Jan. 1, 2000, with an initial 4% withdrawal rate and a portfolio of 55% stocks and 45% bonds rebalanced each month, with the first year's withdrawal amount increased by 3% a year for inflation, your portfolio would have fallen by a third through 2010, according to investment firm T. Rowe Price Group. And you would be left with only a 29% chance of making it through three decades, the firm estimates.
That sort of scenario has left many baby boomers who are in the midst of retiring riddled with angst. "The mind-blowing aspect of retiring is all these years you're accumulating and accumulating, and then you need to start drawing down, and you have no idea how to do that," says Al Starzyk, a 66-year-old retired printing executive in Williamsburg, Va.
So, if you can't safely withdraw at least 4% a year from a balanced portfolio of equity and bond funds, what do you do? ...
Our Answer: It may be counterintuitive to some but it has been proven time and time again that withdrawal rates can be much higher if there is no risk in your retirement accounts.
It's free, secure, and there is no obligation.
I was exploring some highly touted and "inexpensive" indexed funds on a top companies website. Over the last ten years it seems that they have some good returns. Unfortunately they ignore one simple math problem. They quote the average return over a time period NOT the actual return.
Most of their customers probably don’t know that any time a negative return or loss is posted, the average can be very mis-leading. Does anybody remember the losses of 2001 or 2008? Look at this simple example and see for yourself...
Assume you have $100,000 and you place it in an account that has a 50% loss in year one...how much do you have?
A: $100,000 X .50 = $50,000
Now assume that your account goes up 50% in year 2...how much do you have?
A: $50,000 X 1.5 = $75,000
Here’s where it gets misleading when the average is what companies use to induce their customers into buying or staying with them. The average return over the two year period is 0%. But when there is a negative or loss involved, the average will never be the actual return. In this case your actual return is -25% and an account value of $75,000. This is why companies don’t advertise actual returns.
Give us a call to get an illustration on “ACTUAL” returns and see how you can save for retirement without market losses.
Posted by Philip Pent in on Jul 12, 2013
This article came out last year but I just stumbled upon it today. Fortunately the grim look on life taken by investors, who roll the dice on the market, doesn't have to be a way of life for our clients. When I read articles like this I wonder when people will wake up and finally see the difference between income and retirment planning vs letting someone else invest your money to try and get a high return.
Join us for this free one hour workshop and discover how to use annuities with no sales charges to sidestep the next market crash for any savings, retirement plan, or IRA.
With every brokerage firm offering annuities for retirement, have you ever wondered which ones are the best? Now you can see them compared side by side by an independent and licensed agent. Complimentary lunch provided by Chic-Fil-A
1. How to get out of low interest or risky retirement accounts.
2. How to turn your IRA into a tax-free gift to your heirs.
3. Why a volatile market should work in your favor and not leave you full of anxiety.
4. How to trade your existing annuity for something better.
5. The realities of market risk and why it's never in your favor.
May 15th at 12 pm
Pinnacle Financial Building
7792 Belfort Parkway
Jacksonville, Fl. 32256
Call or e-mail to reserve your seat: 904-460-1100
Thursday, April 18th at 11am, Paul Pent & Associates will be hosting a 60 minute workshop packed full of great insight and information for those that want to survive the coming tidal wave of Obama Care.
Many people who bought long term care insurance were shocked when they found out their premiums were going up. To make it worse, industry insiders acted like it was okay. See this article from Kiplinger.com.
Fortunately there is a much better alternative...
Posted by Philip Pent in on Feb 13, 2013
I don't likelong term care insurance. It's expensive and it may never be needed or used. On top of that, did you know that the premiums of any long term care policy can go up if the state deems it necessary? Yikes.
There is a much better way. Call us today at 1-877-797-7285. We will send you a free illustration showing how you can designate a small portion of your assets to cover all of your assets from the exesive costs of health care in later years.
A couple of high points: This type of coverage is 100% liquid and if you never use the coverage it doesn't cost a dime.
Call us today at 1-877-797-7285