In considering how the new tax law affects your finances, the author of today’s article advises not to neglect its potential impact on your life insurance, noting that the “Tax Cuts and Jobs Act made significant changes that impact the use of life insurance as an estate protection vehicle and modified the tax ramifications of selling a life insurance policy on the secondary market as part of a life settlement.” For how the TCJA may have reduced the need for some individuals to have life insurance – and how it may make selling a life insurance policy on the secondary market more appealing – CLICK HERE.
With a few exceptions (e.g. collectibles, life insurance), you can own pretty much anything in an individual retirement account, from real estate and precious metals to farming interests and church bonds. And with concerns that the stock market is overvalued (and rising interest rates affecting bond prices), nontraditional assets – with their juicy return potential and diversification benefits – may be particularly attractive. But before adding unconventional assets to their portfolios, the author of today’s article cautions that retirement investors should consider their unique complexities. To read more, CLICK HERE.
When it comes to two insurance products that might appear attractive to retirees in this low interest rate environment, today’s article cautions that prospective buyers should look carefully before leaping into these complicated investments. The two products at issue? Indexed annuities and indexed universal life insurance. Here’s what one advisor cited in the article has to say: “With indexed annuities and indexed universal life insurance, the marketing pitch is always that you get all of the upside of equities and have guarantees…It’s really misleading.” To read more about these two products – including who they can be good fits for, their potential limitations and where things get complicated – CLICK HERE.
When it comes to traditional long-term care insurance, the author of today’s article acknowledges that “for the typical retired couple in the United States, $3,200 a year is a meaningful expense. Especially when they are paying for something that they might never use.” As such, he provides an overview of how the insurance industry has changed over the last several years, offering alternative products in order to respond to the fact that many people are not buying the insurance that they will need due to its “use it or lose it” nature. To read more about these options – “linked-benefit” life insurance products, long-term care annuity products and accelerated death-benefits, CLICK HERE.