Wednesday, November 30, 2011
Tuesday, November 29, 2011
Monday, November 28, 2011
What is a REBA? Golden Handcuffs?
A Restricted Executive Bonus Arrangement can create a "Golden Handcuff." Allow me to show you how to help retain a key employee and/or an executive with a deferred compensation strategy.
Wednesday, November 23, 2011
The College Board Releases 2011/2012 College Cost Figures
The College Board Releases 2011/2012 College Cost Figures
On October 26, 2011, The College Board released college cost
figures for the 2011/2012 academic year in its annual Trends in College
Pricing report. Here are the highlights:
Public colleges (in-state students):
Tuition and fees increased an average of 8.3%
Room and board increased an average of 4.0%
Total average cost for 2011/2012 is $21,447
Public colleges (out-of-state students):
Tuition and fees increased an average of 5.7%
Room and board increased an average of 4.0%
Total average cost for 2011/2012 is $33,973
Private colleges:
Tuition and fees increased an average of 4.5%
Room and board increased an average of 3.9%
Total average cost for 2011/2012 is $42,224
“Total average cost” includes tuition and fees, room and board,
books and supplies, transportation, and a small amount for
miscellaneous costs.
Public colleges (in-state students):
Tuesday, November 22, 2011
A Solution to Market Volatility? Perhaps!
What argument could be made right now supporting the volatility of the market? This is not the same day & time that helped create the success of the markets. Why should use your hard earned money ? To one, take a risk of your retirement income to chance the conditions in the marketplace that are upon us today? These are not normal times, plenty of graphs will show us that before the internet bubble, 2008 and currently, with the news of how Europe is doing. Europe will have an impact on us, anyone who tells you different needs a refresher. Why not lock in your money with a 0% floor (that means, no negative...guaranteed)? Take the guarantee on the balance & accumulated amount, participate in the some of the good of the market & eliminate the downside? You still have access to your money, the money is safe, protected & guaranteed against significant negative performance. There are existing strategies that can help you navigate through these unforeseen times. It is my belief that the United States has never seen the issues we are facing. Safe alternatives do exist. The next question to answer is would you prefer your total amount of money returned to you or guaranteed income for life? Have a Happy Thanksgiving!
Thursday, November 17, 2011
Wednesday, November 16, 2011
11/16 Quick: Gift Tax Strategies
Gift Tax StrategiesIf you can afford to make gifts now, the current
large gift tax applicable exclusion amount, low gift tax rates, depressed
property values, and low interest rates create a favorable environment for
making certain gifts.
Tuesday, November 15, 2011
11/15 Quick: Beware of Pure or Constitutional Trusts
Have you heard of Pure or Constitutional Trusts? If a financial or insurance professional or a lawyer solicits this type of trust as an option to your estate plan, remember this blog. One of these trusts are advertised to the taxpayer on the notion that you can absolve paying income taxes, this is simply not true. The taxpayer actually may end up paying 3 times the tax bill. If such a person approaches you with this "strategy" please feel free to contact me. I will, along with my estate planning team, explain to you details and why they won't work...maybe even resulting in penalties and/or fines.
New Student Debt Repayment Plan Released 11/15
On October 26, 2011, President Obama announced a plan that seeks to
help college graduates pay back their federal student loans. The plan is
an executive order and does not require approval by Congress. It is
scheduled to take effect beginning in 2012.
Background
Despite more aggressive debt shedding by American consumers
since the recession, student loan debt continues to grow. According to
the federal government, 36 million Americans have federal student loan
debt. Last summer, total student loan debt surpassed credit card debt
for the first time, and this year outstanding student loan debt is on
track to reach $1 trillion, according to the Federal Reserve Bank of New
York.
In addition, in September, the U.S. Department of Education released data showing that the percentage of student loan borrowers who defaulted in 2009 (the latest year for which figures are available) rose to 8.8% from 7%. That percentage is likely higher now due to the recession, as millions of cash-strapped college students attempt to pay back student loans in a tough economy. According to the Chronicle of Higher Education, last year the unemployment rate for college graduates under the age of 24 rose to 9.4%, the highest level in at least 15 years.
In the meantime, college tuition continues to rise; the College Board recently announced in its Trends in College Pricing 2011 report that tuition costs for the 2011/2012 academic year increased 4.5% for private colleges and 8.3% for public colleges (to view the report, visit www.collegeboard.com/trends). The average total cost of attendance this year is now $42,224 for private colleges and $21,447 for public colleges. And next July, the interest rate on federal Stafford Loans is scheduled to double--to 6.8%--costing the average borrower thousands of dollars over the life of the loan.
Against this backdrop, following are the highlights of President Obama's plan.
Loan consolidation Students who hold both direct federal student loans and federal student loans made by private lenders under the now defunct Federal Family Education Loan Program would be able to consolidate their loans between January and June 2012 into a single government loan at an interest rate of up to 0.5% less. The White House estimates this could help approximately 5.8 million borrowers.
Income-based repayment President Obama's plan will accelerate the start of an income-based repayment program to 2012 from the original start date of 2014. The program, approved by Congress last year, caps monthly federal student loan payments at 15% of income and forgives all remaining debt after 25 years. Under the new plan, federal student loan payments will be capped at 10% of income with all remaining debt forgiven after 20 years. The White House estimates this could help 1.6 million borrowers.
Who qualifies? According to the U.S. Department of Education, to qualify for loan consolidation, borrowers must have both a direct federal student loan and a federal student loan under the Federal Family Education Loan Program. To qualify for the accelerated component of the income-based repayment plan, borrowers must take out a loan in 2012 or later and have taken out a loan sometime between 2008 and 2012. Borrowers who are already in default won't qualify.
For more information on the new programs, you can call the office of Federal Student Aid, a division of the U.S. Department of Education, at 1-800-433-3243 (1-800-4fedaid) or visit www.studentaid.ed.gov.
Background
Despite more aggressive debt shedding by American consumers
since the recession, student loan debt continues to grow. According to
the federal government, 36 million Americans have federal student loan
debt. Last summer, total student loan debt surpassed credit card debt
for the first time, and this year outstanding student loan debt is on
track to reach $1 trillion, according to the Federal Reserve Bank of New
York.In addition, in September, the U.S. Department of Education released data showing that the percentage of student loan borrowers who defaulted in 2009 (the latest year for which figures are available) rose to 8.8% from 7%. That percentage is likely higher now due to the recession, as millions of cash-strapped college students attempt to pay back student loans in a tough economy. According to the Chronicle of Higher Education, last year the unemployment rate for college graduates under the age of 24 rose to 9.4%, the highest level in at least 15 years.
In the meantime, college tuition continues to rise; the College Board recently announced in its Trends in College Pricing 2011 report that tuition costs for the 2011/2012 academic year increased 4.5% for private colleges and 8.3% for public colleges (to view the report, visit www.collegeboard.com/trends). The average total cost of attendance this year is now $42,224 for private colleges and $21,447 for public colleges. And next July, the interest rate on federal Stafford Loans is scheduled to double--to 6.8%--costing the average borrower thousands of dollars over the life of the loan.
Against this backdrop, following are the highlights of President Obama's plan.
Loan consolidation Students who hold both direct federal student loans and federal student loans made by private lenders under the now defunct Federal Family Education Loan Program would be able to consolidate their loans between January and June 2012 into a single government loan at an interest rate of up to 0.5% less. The White House estimates this could help approximately 5.8 million borrowers.
Income-based repayment President Obama's plan will accelerate the start of an income-based repayment program to 2012 from the original start date of 2014. The program, approved by Congress last year, caps monthly federal student loan payments at 15% of income and forgives all remaining debt after 25 years. Under the new plan, federal student loan payments will be capped at 10% of income with all remaining debt forgiven after 20 years. The White House estimates this could help 1.6 million borrowers.
Who qualifies? According to the U.S. Department of Education, to qualify for loan consolidation, borrowers must have both a direct federal student loan and a federal student loan under the Federal Family Education Loan Program. To qualify for the accelerated component of the income-based repayment plan, borrowers must take out a loan in 2012 or later and have taken out a loan sometime between 2008 and 2012. Borrowers who are already in default won't qualify.
For more information on the new programs, you can call the office of Federal Student Aid, a division of the U.S. Department of Education, at 1-800-433-3243 (1-800-4fedaid) or visit www.studentaid.ed.gov.
Monday, November 14, 2011
11/14 Quick: Long Term Care Insurance Planning is Especially Important for Women
The prospect of needing long-term care is an important, yet sometimes
overlooked, part of financial and retirement planning. Yet it may be
especially vital for women to consider as they often face long-term care
as both a caregiver and recipient.
Friday, November 11, 2011
Feedback?
Anyone who reads the blogspot, or goes to the facebook page or our foundation,
www.louisvilleprospectsfoundation.org
Let me ask a favor of you. Could you please send me feedback? If you choose to send some in, thank you in advance & please send true criticism to prospectsfinancial@gmail.com or jayjonesinsurance@att.net
Tell me what you have read you liked and may want more information on or tell me what you didn't like & why. If you would like to have information on a subject I haven't introduced, I will do my best. Sale you something, maybe. Educate you on something, definitely. Share with you, always.
www.louisvilleprospectsfoundation.org
Let me ask a favor of you. Could you please send me feedback? If you choose to send some in, thank you in advance & please send true criticism to prospectsfinancial@gmail.com or jayjonesinsurance@att.net
Tell me what you have read you liked and may want more information on or tell me what you didn't like & why. If you would like to have information on a subject I haven't introduced, I will do my best. Sale you something, maybe. Educate you on something, definitely. Share with you, always.
So Called Human Resource Departments
First of all, thanks to all the veterans & military personnel. I'm sure there are some really good human resource departments and great people working in those departments. However, it is my experience from doing a great deal of group benefit consultation & plan design, that Human Resource departments are inadequate, at best! What is your experience with your Human Resource department at your place of employment? If it is like what I have encountered, you do not stand a chance of having a "qualified" person take care of the matters that are only second to your paycheck at work.
It is almost a "cookie cutter" example of individuals that have been employed to handle such important matters.
One example, an employee of a company had a child & wanted to her group health insurance policy to cover her child. Although those in the insurance profession may know that the health insurance company covers the baby for the first 30 days, she still needed to add the child. Additionally, she had questions regarding her short term disability, paychecks & tried several times to call them. Upon leaving numerous voicemails with her "Human Resource Department" she appeared in person & demanded action.
It is my experience that these so called "Human Resource Departments" are worthless. I feel sorry for someone who isn't aware of their benefits & need assistance. Again, I know there are many who work in this field & do a great job. This is targeted for those that know who they are! Do your job!!
It is almost a "cookie cutter" example of individuals that have been employed to handle such important matters.
One example, an employee of a company had a child & wanted to her group health insurance policy to cover her child. Although those in the insurance profession may know that the health insurance company covers the baby for the first 30 days, she still needed to add the child. Additionally, she had questions regarding her short term disability, paychecks & tried several times to call them. Upon leaving numerous voicemails with her "Human Resource Department" she appeared in person & demanded action.
It is my experience that these so called "Human Resource Departments" are worthless. I feel sorry for someone who isn't aware of their benefits & need assistance. Again, I know there are many who work in this field & do a great job. This is targeted for those that know who they are! Do your job!!
Thursday, November 10, 2011
Education Tax Credits & Deductions
As the end of the year approaches, I thought it would be wise to review this piece.
https://www.foremostadvice.com/pdfservice/ConceptPiece.132129fe-24f2-44db-996a-1d1914e321f3.pdf
https://www.foremostadvice.com/pdfservice/ConceptPiece.132129fe-24f2-44db-996a-1d1914e321f3.pdf
Social Security and Medicare Figures for 2012 Announced - November 10, 2011
Social Security and Medicare Figures for 2012 Announced - November 10, 2011
|
The Social Security Administration has
announced that for the first time since 2009, a cost-of-living
adjustment (COLA) will be paid to Social Security
beneficiaries and Supplemental Security Income (SSI) recipients.
Monthly benefits will increase 3.6% starting in January 2012 for Social
Security beneficiaries
and starting on December 30, 2011, for SSI recipients. According
to the Social Security Administration, the average increase in monthly
benefits will be approximately $43. Despite many media reports predicting that the Social Security COLA increase would be offset by higher Medicare Part B premiums, the Centers for Medicare & Medicaid Services (CMS) announced that the standard monthly Medicare Part B premium will be $99.90 in 2012, $15.50 less than in 2011. However, because the premium for most Medicare beneficiaries has been frozen at $96.40 (the premium rate in 2008) for the past three years, premiums for most people will increase by $3.50 in 2012. Beneficiaries who have higher incomes (a modified adjusted gross income of more than $85,000 for an individual or $170,000 for a couple) will pay more than $99.90 because they are required to pay an income-related surcharge. While costs vary, the average premium for a Medicare Part D prescription drug plan in 2012 is estimated at around $30, approximately the same as in 2011. And Medicare Advantage premiums will be 4% lower, on average, in 2012 than in 2011, according to CMS. Here are some other important Social Security figures for 2012:
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Here are some other important Medicare figures for 2012:
We'll continue to pass along timely, relevant information--providing fresh and interesting ways for you to engage and motivate your clients. |
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Novermber 10th Quick: Employer Owned Life Insurance Policies EOLI
11/10 Quick: If you are a business owner who has taken out a life insurance policy, in which the company owns, on a key man (someone who is responsible for large production or their role with the company) or even a business partner that you may be involved in an entity purchase buy sell agreement...those policies are in need of review immediately. Under the Pension Act of 2006, EOLI policies are subject to taxation. Life insurance policies may pass tax free to the beneficiary. If certain notice & consent requirements are met in a timely manner, & certain safe harbor fules apply, death benefits still pass income tax free.
Wednesday, November 9, 2011
IRS announces Pension Plan Limitations for 2012
IRS
Announces Pension Plan Limitations for 2012
The
IRS has issued news release IR-2011-103, which announces cost-of-living
adjustments to pension plan limitations and other items for 2012.
On October 20, 2011, the IRS issued news release IR-2011-103 announcing
cost-of-living adjustments to dollar limitations for pension plans. Items
addressed for 2012 include:Elective deferrals
- The annual elective deferral limit for 401(k) plans, 403(b) plans, 457(b) plans, SAR-SEPs, and the federal government's Thrift Savings Plan increases from $16,500 in 2011 to $17,000 in 2012
- The annual elective deferral limit for SIMPLE plans remains unchanged at $11,500
- The annual limit on additional catch-up contributions to 401(k), 403(b), and Section 457(b) plans remains unchanged at $5,500
- The annual limit on additional catch-up contributions to a SIMPLE plan remains unchanged at $2,500
- The dollar limit on annual additions to a defined contribution plan increases from $49,000 in 2011 to $50,000 in 2012
- The dollar limit on the annual benefit under a defined benefit plan increases from $195,000 in 2011 to $200,000 in 2012
- The annual compensation limit for qualified retirement plan purposes increases from $245,000 in 2011 to $250,000 in 2012
- The annual compensation amount used in the definition of a highly compensated employee increases from $110,000 in 2011 to $115,000 in 2012
- The annual compensation amount used in the definition of a key employee in a top-heavy plan increases from $160,000 in 2011 to $165,000 in 2012
- For purposes of determining a qualifying employee under a simplified employee pension (SEP) plan, the minimum amount of annual compensation remains unchanged at $550
Monday, November 7, 2011
Why is it important to review your trust or other documents?
Changes were made in the 2010 to estate taxes. The attached article shows you such changes. But what about next year & even the year after? What changes lie in front of us? There is still time in 2011 to look at those documents and discuss the landscape and how it applies to you & your family.
https://www.foremostadvice.com/pdfservice/ConceptPiece.115f4236-2579-4d47-9cec-518be73dd73a.pdf
https://www.foremostadvice.com/pdfservice/ConceptPiece.115f4236-2579-4d47-9cec-518be73dd73a.pdf
Thursday, November 3, 2011
College Board Releases New College Cost Figures - November 3, 2011
On October
25, 2011, the College Board released college cost figures for the 2011/2012
academic year in its annual Trends in College Pricing report.
To view the
Trends in College Pricing 2011 report, click here.
Here are the
highlights:
Public
colleges (in-state students):
Room and
board increased an average of 4.0% to $8,887
Total
average cost* for 2011/2012: $21,447
Public
colleges (out-of-state students):
Room and
board increased an average of 4.0% to $8,887
Total average
cost* for 2011/2012: $33,973
Private
colleges:
Room and
board increased an average of 3.9% to $10,089
Total
average cost* for 2011/2012: $42,224
11/3 Quick: Worried about paying for college? We have strategies for these solutions!
Let us show you how to prepare for college funding of your children. Whether it is a traditional 529 College Savings Plan or more of a sophisicated situation that involves life insurance policies and even trusts established to help through the years of college.
http://www.lcctorch.com/2011/11/03/students-face-tough-realities-in-paying-for-college/
http://www.lcctorch.com/2011/11/03/students-face-tough-realities-in-paying-for-college/
Wednesday, November 2, 2011
11/2 Quick: Do you have an annuity? Do you have more than one?
And possibly, are they with two different companies?
We can obtain a guarantee on the balance of transfer. If applicable, we can earn a 6% Bonus on the balance. We can protect against negative market fluctuations and while protected, your money grows with a tax deferred benefit. Yes this scenario exists and yes if the market plunges, you recieve a 0 instead of a (-you put the amount here).
Thanks for your time.
We can obtain a guarantee on the balance of transfer. If applicable, we can earn a 6% Bonus on the balance. We can protect against negative market fluctuations and while protected, your money grows with a tax deferred benefit. Yes this scenario exists and yes if the market plunges, you recieve a 0 instead of a (-you put the amount here).
Thanks for your time.
11/2 Quick: Caregivers should be protected with Long Term Care
Many caregivers end up needing care themselves. And while 50% of the bankruptcy filings in the U.S. are a result from medical expenses. Long Term Care insurance & proper estate planning can help avoid if the "Lady" in your life is also your "caregiver" in the elderly years. She should have protection, in case she needs care too.
http://www.lifehappens.org/safeguarding-the-caregiver-with-ltci/
http://www.lifehappens.org/safeguarding-the-caregiver-with-ltci/
November is Long Term Care Awareness Month
Regardless of what side of the isle you are on when it comes to politics, the Healthcare law has been something as advisors, citizens, and business owners
we have had to deal with for the last two years. Recently, we have seen where the Long Term Care portion of the bill has been ruled unsustainable...increasing the urgency in the November Awareness Month, I feel. Not sure what you think of the New York Times, but they do have a good article on just this topic. I cannot begin to tell you how passionate I am as an advisor about Long Term Care & Disability insurance. In my years of experience, I have seen the hands on need for the above mentioned. Check out other pieces on Long Term Care on my blog. Have a great weekend.
http://www.nytimes.com/2011/10/25/health/25seniors.html?_r=1
we have had to deal with for the last two years. Recently, we have seen where the Long Term Care portion of the bill has been ruled unsustainable...increasing the urgency in the November Awareness Month, I feel. Not sure what you think of the New York Times, but they do have a good article on just this topic. I cannot begin to tell you how passionate I am as an advisor about Long Term Care & Disability insurance. In my years of experience, I have seen the hands on need for the above mentioned. Check out other pieces on Long Term Care on my blog. Have a great weekend.
http://www.nytimes.com/2011/10/25/health/25seniors.html?_r=1
Changed Jobs? Old 401k? Let's roll it over...
If, for whatever reason, have lost your job chances are you had an old 401k. See if these options appeal to you. Would you like an 6 or 7% bonus on the balance of that old 401k? Would you like the priniciple, the bonus and any additional money that may be put in be protected and gauranteed? And of course you would like this money to grow tax deferred, so that they day you retire and withdraw the money at an older age, your tax bracket will be lower. Of course you would. Remember, the only thing better than tax deferred growth is tax free, and there is a strategy for that but that's another subject. Let me show you how!
https://www.foremostadvice.com/pdfservice/ConceptPiece.40db5763-35cb-4d53-a7c1-cd95b5216e65.pdf
https://www.foremostadvice.com/pdfservice/ConceptPiece.40db5763-35cb-4d53-a7c1-cd95b5216e65.pdf
Tuesday, November 1, 2011
November is Long Term Care Insurance Awareness Month
Don't let Dave Ramsey & Suzy Orman guide you into a mistake. Their approach is fine, if you are insurable when they advise you to take out a policy (both life & LTC). What if something happens to you before you take the policy out? With life insurance you may get rated or denied. But with LTC, you just get denied. It is either pass or fail with Long Term Care Insurance.
http://www.lifehappens.org/what-to-do-now-to-be-ready-for-tomorrows-reality/
http://www.lifehappens.org/what-to-do-now-to-be-ready-for-tomorrows-reality/
Please don't tell me the only life insurance you have is the $50,000 or $75,000 offered at work?
I am an estate planner with experience in insurance of all kinds & annuities. Witnessing folks after saying to me, "Jay, of course I have life insurance in case something happens." Only to find out after they pull that policy out of the basement that the life insurance they thought they had is a group policy from their employer. A person who is the primary wage earner in the family needs 8-10 times theamount of their salary to pay off debt, for final expenses, help their family maintain their lifestyle (to include the kids college funds), and more. Let me ask you this, do you think $50,000 or $75,000 will do the trick?
http://www.foxbusiness.com/personal-finance/2011/10/24/do-need-supplemental-life-insurance/
http://www.foxbusiness.com/personal-finance/2011/10/24/do-need-supplemental-life-insurance/
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