Baby Boomers Tapping Into Their 401k's Costs!

I have never been a huge fan of 401k's, and I'm still not a fan. According to Allianz Life just five years ago, the 10-year Treasury was around 5.0%. Today, it hovers around 1.5%. In January this year, the Fed announced that economic conditions “are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”
This is one reason I am a huge fan, if the situation calls for it, of Fixed Index Annuities. If I say to you I can guarantee with a fiscally responsible company, your 1035 exchange from your account to an FIA, that you will not lose a penny of the principle and applied interest in your account. If I also said that with respect to the S&P Index, you can benefit from the upswing, but evade the downturn; wouldn't these facts alone be worth hearing more about?
If I went on to tell you the existing account, annuity and/or life insurance policy could receive anywhere from a 5%-10% bonus on the 1035 exchange balance...still sound interesting?
If in the guarantee of not losing a penny included a 0% floor, that no matter what the condition of the market, the lowest interest rate in the future you could receive was 0%, I'm sure that would be interesting. 
I'm not saying that FIA's are better than 401k's, but I am saying that in an economy that is less than predictable it would be better to guarantee our growth and guard against risk while receiving a bonus of the balance of aforementioned accounts. To me, that sounds interesting in these economic times.
Baby Boomers feel the crunch of these times and look to those 401k's that they are already are subject to costly fees all along the time you are involved with one. The fees include penalties at the time of tapping into it if you are not of the correct age. The fees are administrative and also include up & down swings that can feast on your funds. The thing I don't like the most, that in this case of tapping into your 401k, the boomer may actually be taking a loan out of their money. 
Yes, as you pay that loan back, remember you are paying yourself back. To me, that is fool's gold. Baby boomers are taking the path to least resistance, absorbing the hit of the loan, and unfortunately the worst feature is decreasing their account value.
In closing, that shrinkage of account value could be either erased or offset by the 5%-10% bonus that a fiscally responsible company offers. 

Solutions for a low-interest rate environment-Allianz Life

Solutions for a low-interest rate environment-Allianz Life

Income riders

Just five years ago, the 10-year Treasury was around 5.0%. Today, it hovers around 1.5%. In January this year, the Fed announced that economic conditions “are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

Today’s low interest rate environment creates additional challenges for retirees. The prospect that rates may stay low through 2014 has been challenging for clients looking for sustainable income in retirement. Clients who are faced with the possibility of having less income than they expected generally have just three options:

1. Reduce their lifestyle and attempt to live on the income they can currently produce
2. Increase their risk tolerance and attempt to generate more assets by taking on more risk
3. Spend more of the principal of their savings and hope to not run out of money

For clients who can’t afford to reduce their lifestyle, and are not comfortable increasing their risk, the guaranteed income benefits (may come as additional cost riders) that we offer on our fixed index annuities can help protect clients from running out of income, by providing lifetime income and the potential for income increases following each year their allocations earn interest.

Hartford Insurance Leaving the Annuity & Individual Life Business

http://www.shawamerican.com/breaking-news-hartford-to-leave-the-annuity-and-individual-life-business/

The Error-Proof Portfolio: Stay a Step Ahead of the New Medicare Surtax-Morningstar

http://news.morningstar.com/articlenet/article.aspx?id=559915

How Safe is Your Life Insurance Policy?

http://news.morningstar.com/articlenet/article.aspx?id=560125 (Morningstar)

Fact: The average American family lost 40% of its wealth as a result of the Recession from 2007-2010; Adding Values to the Boomer Estate Plan

http://www.lifehealthpro.com/2012/07/16/adding-values-to-the-boomer-estate-plan?t=estate-planning

Veterans needing help with determining eligibility for the "Aid and Attendance" program...

Determining eligibility through Veterans Affairs for "Aid and Attendance" below:

http://www.vba.va.gov/bln/21/pension/wartime.htm

Veterans Benefits called "Aid and Attendance" and the Louisville Prospects Foundation

The Louisville Prospects Foundation offers "Aid and Assist" to offer free guidance in determining eligibility and enrolling in the VA program referred to as "Aid and Attendance."

www.louisvilleprospectsfoundation.org & www.prospectsfinancial.com

We Provide Aid and Assistance with VA’s Aid and Attendance…

Louisville Prospects Foundation, Inc. and Prospects Financial, Inc. offer a service to War-Time United States Veterans. This is a benefit to you as a War-Time U.S. Veteran. The benefit program is called the “Aid and Attendance” program.  Check with your local VA office to determine eligibility.

It offers a pre-determined monthly benefit while the U.S. Veteran requires Long Term Care while at home or residing in a retirement facility. It even has a benefit to the Veteran’s spouse. Please refer to your local VA office for more information.

The funds from the veteran’s benefits, is paid-out to the beneficiary, not the facility or any other agency. These facts and more will be discussed at a time that is convenient for you and the professional.

Prospects Financial is pleased to partner with our non-profit organization to bring our U.S. Veterans a good deed in hopes of showing our support for their sacrifice & courage. The Louisville Prospects Foundation is delighted to work with our veterans and provide some peace of mind.

Thank You,

Jay R. Jones

President of Prospects Financial

Notes:

*Members from Prospects Financial will conduct business on a volunteer basis. The volunteer professional will provide you with expert guidance through the “Aid and Attendance” program.

*The Louisville Prospects Foundation is not a Government agency. We have not entered into any financial agreement or contract with the United States government to make a profit. The “Aid and Attendance” program is a War-Time United States Veteran benefit. VA will review necessary documents to see if the veteran is eligible does qualify and is to be approved.

*Some information provided via www.vba.va.gov

What are Aid and Attendance and Housebound benefits?

• Aid and Attendance (A&A) is an enhanced or special monthly pension benefit paid in addition to basic pension. You may not receive enhanced or special monthly pension without first establishing eligibility for basic VA pension. However, because enhanced pension is based upon a higher income limit, a claimant ineligible for basic pension due to excessive income may be eligible for enhanced pension benefits. A Veteran may be eligible for A&A when:
1. The Veteran requires the aid of another person in order to perform his or her activities of daily living, such as bathing, feeding, dressing, attending to the wants of nature, adjusting prosthetic devices, or protecting himself/herself from the hazards of his/her daily environment,OR,
2. The Veteran is bedridden, in that his/her disability or disabilities requires that he/she remain in bed apart from any prescribed course of convalescence or treatment, OR,
3. The Veteran is a patient in a nursing home due to mental or physical incapacity, OR,
4. The Veteran has corrected visual acuity of 5/200 or less, in both eyes, or concentric contraction of the visual field to 5 degrees or less.
• Housebound is an enhanced or special monthly pension benefit paid in addition to basic pension. You may not receive enhanced or special monthly pension without first establishing eligibility for basic VA pension. However, because enhanced pension is based upon a higher income limit, a claimant ineligible for basic pension due to excessive income may be eligible for enhanced pension benefits. A Veteran may be eligible for Housebound benefits when:
1. The Veteran has a single permanent disability evaluated as 100-percent disabling AND, due to such disability, he/she is permanently and substantially confined to his/her immediate premises, OR,
2. The Veteran has a single permanent disability evaluated as 100-percent disabling AND, another disability, or disabilities, evaluated as 60 percent or more disabling.

A Veteran cannot receive both Aid and Attendance and Housebound benefits at the same time.

Defending Your IRA (wsj.com);

http://online.wsj.com/article/SB10001424052702303933404577505163149407448.html?mod=WSJ_RetirementPlanning_RetirementPlanning_2

A Must Read: Get Ready for the New Investment Tax (wsj.com)

http://online.wsj.com/article/SB10001424052702304830704577496580986417316.html?mod=WSJ_RetirementPlanning_MoreHeadlines

How Much Life Insurance Do You Need? Use the Life Foundation's Life Calculator

http://www.lifehappens.org/life-insurance-needs-calculator/

Insurance Helps Preserve a Family's Way of Life-Life Foundation

http://www.lifehappens.org/portfolio/connie-hobson-insurance-preserves-a-familys-way-of-life/

Educating Students on How to Handle Debt...Morningstar

http://news.morningstar.com/articlenet/article.aspx?id=553550

What Is Your 401(k) Really Costing You? Morningstar

http://news.morningstar.com/articlenet/article.aspx?id=540379

Check out our new website....www.prospectsfinancial.com

http://www.prospectsfinancial.com/#!home/mainPage