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Tapping College Savings Plans-529's

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http://online.wsj.com/article/SB10001424052702303990604577369912770579858.html?mod=WSJ_RetirementPlanning_MoreHeadlines

Life Policies-The Whole Truth (wsj)

Are you not  a big fan of "whole life" insurance? In most cases, as an estate planner, I'm not either. There are some cases for it, that is why I offer and suggest "universal life" insurance policies to many of mmy clients. If the client can't afford the coverage they want with the universal life, I blend term insurance with the universal life to bring them to the coverage they and the time the coverage will be in force. "Doing what is best for the client" has been my philosophy since I began in insurance and will always remain a part of what I bring to the table for my clients.
http://online.wsj.com/article/SB10001424052702303296604577450313299530278.html?mod=WSJ_RetirementPlanning_MoreHeadlines

What Is An Annuity?

What is an annuity?

An annuity is a contract between you and an insurance company. You may buy an annuity to get many valuable benefits, including the potential for a guaranteed stream of income in retirement – in some cases for as long as you live. An annuity may help you avoid outliving your retirement savings. Think of it as part of your plan for lifetime income.

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Annuities offer a variety of benefits:

• Tax deferral
• Income in retirement – for a specific period of time or the rest of your life, if you choose
• Protection from loss
• The ability to transfer wealth to your heirs and avoid probate
• Can be customized with extra features, or riders, available for additional costs, that can help provide:
  • - Guaranteed lifetime income
  • - Enhanced death benefit

An annuity could be a good choice if you want:

• A source of regular income in retirement
• The ability to reduce the impact inflation could have on your standard of living
• Tax-deferred growth of your retirement savings
• A way to transfer some wealth to your heirs, while avoiding the costs and delays of the probate process

Different types of annuities do different things:

› Fixed annuities

Provide steady, or fixed, interest for a specified period of time

› Fixed index annuities

Offer potential interest based on positive changes in an external index, but without actually participating in the market

› Variable annuities

Give you the possibility of greater potential returns based on the investment allocations you choose, but they will experience market ups and downs, assuming more risk, and you could lose money

*Guarantees are backed by the financial strength and claims-paying ability of the insurance company you enter into the contract with at that time.
Allianz

Financial Planning for Educators

Now that summer is upon us and teachers have time to look at the personal affairs at home instead of the classroom, its time to get financial plans in order.
Planning Lessons for Educators:
Addressing Your Financial Issues:

Page 1 of 2, see disclaimer on final page

Being an educator demands significant expertise and

requires that you stay current on developments in

your field. However, that level of ongoing attention

can make it difficult to find the time to stay on top of

issues that affect your finances, or to put together a

comprehensive financial plan. Whether you work

directly with students or focus on research, whether

you are just starting your career or have achieved

distinction in your field, you can benefit from working

with a financial professional who understands an

educator's special concerns. Here are some issues

that may not have been at the top of your to-do list,

but that can affect your long-term comfort and

happiness.

Addressing tax issues

Many educators, particularly contingency or adjunct

faculty members, have multiple sources of income.

For example, you may teach at several institutions,

and/or earn consulting fees or royalties on your work.

Welcome as that income doubtless is, it also may

complicate tax planning and preparation. Other tax

issues you may need help with include the

deductibility of student loan payments, tax issues that

arise from pursuing an advanced degree, and the

taxation of employer-provided benefits such as faculty

housing.

Getting tenure is cause for celebration, but it also is

likely to affect your tax situation. Moving into a higher

tax bracket could mean it's time to make or rethink

decisions about how much you need to save for

retirement, the immediate and long-term benefits of

various retirement savings accounts--both taxable

and tax-advantaged--and how your retirement

savings are invested.

Planning for retirement and beyond

The key to any successful retirement plan is starting

early. The sooner you can put a well-thought-out plan

in place, the better your chances of financial security.

Saving for retirement is like building up an

endowment; it gives you the freedom to expand your

horizons. Because academic salaries tend to remain

relatively predictable (at least compared with

corporate salaries) once you've gotten tenure, you

have an advantage when it comes to retirement

planning. Why? Because you may be able to make

more accurate forecasts of your lifetime earning

capacity than people in other professions, which can

in turn help you make more informed decisions about

how you should manage your money now. Statistical

analysis tools can estimate the likelihood that a given

financial strategy will be adequate to meet your

long-term needs.

Take full advantage of the tax benefits of any

employer-sponsored retirement savings plan, such as

a 403(b) plan (either traditional or Roth) or a 457(b)

plan. For 2011, you may contribute up to $16,500 or

100% of your gross compensation each year,

whichever is less. For those 50 or older, the limit is

$22,000 pretax.

Beyond employer-sponsored plans, you may also be

able to use other tax-advantaged retirement savings

vehicles, such as a traditional or Roth IRA. In 2011,

the annual contribution limit for traditional and Roth

IRAs is $5,000 (plus an additional $1,000 if you're 50

or older).

Investing responsibly

An understanding of investing fundamentals is

essential to making informed decisions with your

money. A financial professional can help you

understand not only the mechanics of investing, but

demonstrate why a given strategy might be

appropriate for you. Most common investing

strategies are derived from a wealth of research on

the historical performance of various types of

investments. Though past performance is no

guarantee of future results, it can pay to understand

the various asset classes, the way each class tends

to behave, and the function each fulfills in a balanced

portfolio. You might find assistance especially useful if

you are the recipient of a lump sum, such as a cash

award, prize or grant for your work.

Do you have ethical concerns about investing?

Socially conscious investing has entered the

mainstream, and there are many investment options

that allow you to address your financial needs and still

support your convictions.

Even if you're an experienced investor, you'll need to

adjust your strategy periodically as your

circumstances change over time--for example, after

you receive tenure or as you near retirement. The

sooner you establish a relationship with a

professional, the sooner you'll benefit from the

expertise of someone who deals with financial issues

daily.

Creating an estate plan

A will is the cornerstone of every estate plan; without

it, you have no control over how your assets will be

distributed. You also should have a durable power of

attorney and a health care directive.

If you've amassed substantial outside business

interests or intellectual property assets (e.g.,

copyrights, patents, and royalties), an estate plan is

particularly important. Managing those assets wisely

while you're alive can make an enormous difference

in your ability to maximize their benefits for your heirs.

Estate planning also can further your legacy in other

ways. Charitable giving to your heirs, your

educational institution, or another nonprofit

organization can both further your philanthropic goals

and be an effective tool for minimizing taxes. For

example, by establishing a trust, you may be able to

benefit from an immediate tax deduction as well as

provide an ongoing income stream for you or the

charitable institution of your choice.

Protecting your assets

You also might want to think about whether you and

your family are adequately shielded from

emergencies. Types of insurance you should consider

include:

• Life insurance

• Disability insurance

• Liability insurance (particularly if you're involved in

applied research projects or consulting

engagements)

Managing debt

Being in debt can make managing all other financial

issues more challenging. If you're in the early part of

your career, you may still be facing years of student

loan payments; if you're more senior, you may be

trying to pay off a mortgage and eliminate all debts

before retirement. Balancing debt with the day-to-day

demands of raising a family, seeking support for your

work, finding good housing, and saving for your

children's education and your own retirement can be

a formidable task.

Handling debt wisely can have dramatic

consequences over time. Having someone review

your finances might uncover some new ideas for

improving your situation. It also can help you

understand the true long-term cost of any debt you

incur.

Whether you have a specific concern or just want to

be better prepared for the future, a financial

professional can help.

Forefield

Why Europe Matters To You...

Why Europe Matters to Your Portfolio

Ever since the possibility of default on Greek sovereign debt has become headline news, a lot of people

have found themselves wondering, "How is it possible for the financial problems of a country so small and

so far away to create such turmoil in the world's markets?" What's happening in Europe is probably

affecting your portfolio right now, regardless of the quality of your holdings or how well diversified you are.

Just what is all the shouting about? It's no secret that the so-called PIIGS nations (Portugal, Italy, Ireland,

Greece, and Spain) are having difficulty coping with the debt that years of deficit spending have created. A

robust global economy helped to mask the problem, but in recent years the burden of sovereign

debt--bonds issued by sovereign governments--has become increasingly unsustainable. With debt at

roughly 140% of its gross domestic product,* Greece is particularly troubled. Imposing austerity measures

required by its European colleagues has added to the country's recessionary woes. That in turn has made it

even more difficult to achieve mandated deficit reduction targets in order to qualify for additional installments of financial aid from the

European Financial Stability Facility (EFSF) set up last year by 17 eurozone countries.

Bank exposure

One of the chief concerns about the possibility of default on sovereign debt has to do with the financial stability of banks that hold it.

Some of the largest French banks have already suffered downgrades of their credit ratings because of their extensive holdings of debt

from troubled European countries, particularly Greece. If a Greek default made banks reluctant to lend to one another, that could affect

credit markets worldwide.

American banks hold very little Greek debt compared to European banks; however, they could face a different challenge.

Understanding why requires some basic awareness of a type of derivative known as a credit default swap. Investors with large bond

holdings from a particular borrower often try to protect themselves against the possibility that the borrower will default by buying a

credit default swap on that debt as a type of insurance. The company that issues the credit default swap agrees to cover the

bondholder's losses in case of default. The more risky the issuer--for example, Greece--the more likely bondholders are to try to

protect themselves with swaps. However, in some cases, a company may have issued so many default swaps on a particular issuer

that it could be overwhelmed by the claims resulting from the issuer's default.

Such derivatives can create a ripple effect in financial markets. If the company that issued the swaps can't make good on them, the

institutions that relied on that protection also can find themselves in trouble, which multiplies the impact of a major default. U.S.

financial institutions are major issuers of credit default swaps, and the potential impact of a Greek default on them is unclear. However,

since the 2008 financial crisis, U.S. banks have been forced to hold greater capital reserves to deal with contingencies, and Treasury

Secretary Timothy Geithner recently said that banks here have reduced their exposure to the debt of troubled countries.

Potential for tighter credit leading to recession

Lending worldwide hasn't fully recovered from the last financial crisis, and has helped keep global economic recovery sluggish. Fiscal

austerity measures taken to try to reduce deficits have also taken their toll, hampering economic growth and making it even more

difficult for countries such as Greece to balance their budgets. If banks' lending ability were impaired further by a financial crisis

brought on by a default on sovereign debt, tighter credit could increase the odds of renewed recession.

Also, Europe represents a major market for many American companies, and a recession there wouldn't help an already slowing global

economy.

Greece could be the tip of the iceberg

Even though Greece is the immediate concern, larger economies in Europe actually could represent a bigger threat. Italy and

Spain both face sovereign debt burdens and deficit problems. Italy's economy is more than five times that of Greece; Spain's is

more than four times bigger.* If either country were to decide it needed to restructure its debts as Greece is attempting to do

(which ratings agencies could see as a form of default), that would have a much bigger impact than Greece. If a Greek default

would have a ripple effect, a default by either Spain or Italy could cause waves.

To compound the problem, as investors have become increasingly concerned about the possibility of debt contagion in Europe,

borrowing costs for both Italy and Spain have risen. At recent auctions, nervous investors have been demanding higher interest

rates to compensate them for the higher perceived risk of buying that sovereign debt. As any credit card holder knows, having to

pay a higher interest rate makes paying off debt and balancing the budget more difficult. A Greek default could make investors

even more nervous about buying other troubled countries' debt, and being frozen out of credit markets would likely aggravate

fiscal problems abroad.

All politics is local

There have been signs in recent months that voters in stronger economies such as Germany are beginning to question why they

should continue to support countries that have not been as disciplined about balancing their budgets. Also, investors worry that

the financial support available from the EFSF may not be sufficient or available quickly enough to avert problems. Though there

has been no shortage of suggestions for how to deal with the situation--issuance of euro bonds backed by all eurozone

members, leveraging the EFSF's existing assets, greater fiscal integration among countries, Greece returning to its own

currency--questions about the ability and willingness of other countries to support the eurozone's weaker members have caused

investor anxiety worldwide.

Financial markets hate uncertainty, and the situation has contributed to the recent volatility across a variety of asset classes that

don't usually move in tandem. However, Europe has the benefit of having watched the United States deal with its own difficulties

during the 2008 crisis. Also, European leaders have generally reaffirmed their determination to defend the euro at all costs.

Uncertainty about Europe could persist for months, but it's important to keep it in perspective. While you should monitor the

situation, don't let every twist and turn derail a carefully constructed investment game plan.

*Source:

CIA World Factbook 2011 & Forefield

Do you own an old annuity, 401k or life insurance policy?

Would you like to lock in your principal and the gains? Would you like to benefit from the market, but not experience the loss? Would you like anywhere from a 5%-10% bonus on the balance of the rollover?
Changing Jobs? Take Your

401(k) and ... Roll It!

October 11, 2011

Page 1 of 2, see disclaimer on final page

If you've lost your job, or are changing jobs, you may

be wondering what to do with your 401(k) plan

account. It's important to understand your options.

What will I be entitled to?

If you leave your job (voluntarily or involuntarily), you'll

be entitled to a distribution of your vested balance.

Your vested balance always includes your own

contributions (pretax, after-tax, and Roth) and

typically any investment earnings on those amounts.

It also includes employer contributions (and earnings)

that have satisfied your plan's vesting schedule.

In general, you must be 100% vested in your

employer's contributions after 3 years of service ("cliff

vesting"), or you must vest gradually, 20% per year

until you're fully vested after 6 years ("graded

vesting"). Plans can have faster vesting schedules,

and some even have 100% immediate vesting. You'll

also be 100% vested once you've reached your plan's

normal retirement age.

It's important for you to understand how your

particular plan's vesting schedule works, because

you'll forfeit any employer contributions that haven't

vested by the time you leave your job. Your summary

plan description (SPD) will spell out how the vesting

schedule for your particular plan works. If you don't

have one, ask your plan administrator for it. If you're

on the cusp of vesting, it may make sense to wait a

bit before leaving, if you have that luxury.

Don't spend it, roll it!

While this pool of dollars may look attractive, don't

spend it unless you absolutely need to. If you take a

distribution you'll be taxed, at ordinary income tax

rates, on the entire value of your account except for

any after-tax or Roth 401(k) contributions you've

made. And, if you're not yet age 55, an additional

10% penalty may apply to the taxable portion of your

payout. (Special rules may apply if you receive a

lump-sum distribution and you were born before

1936, or if the lump-sum includes employer stock.)

If your vested balance is more than $5,000, you can

leave your money in your employer's plan until you

reach normal retirement age. But your employer must

also allow you to make a direct rollover to an IRA or

to another employer's 401(k) plan. As the name

suggests, in a direct rollover the money passes

directly from your 401(k) plan account to the IRA or

other plan. This is preferable to a "60-day rollover,"

where you get the check and then roll the money over

yourself, because your employer has to withhold 20%

of the taxable portion of a 60-day rollover. You can

still roll over the entire amount of your distribution, but

you'll need to come up with the 20% that's been

withheld until you recapture that amount when you file

your income tax return.

Should I roll over to my new

employer's 401(k) plan or to an IRA?

Assuming both options are available to you, there's

no right or wrong answer to this question. There are

strong arguments to be made on both sides. You

need to weigh all of the factors, and make a decision

based on your own needs and priorities. It's best to

have a professional assist you with this, since the

decision you make may have significant

consequences--both now and in the future.

Reasons to roll over to an IRA:

• You generally have more investment choices with

an IRA than with an employer's 401(k) plan. You

typically may freely move your money around to

the various investments offered by your IRA

trustee, and you may divide up your balance

among as many of those investments as you want.

By contrast, employer-sponsored plans typically

give you a limited menu of investments (usually

mutual funds) from which to choose.

• You can freely allocate your IRA dollars among

different IRA trustees/custodians. There's no limit

on how many direct, trustee-to-trustee IRA

transfers you can do in a year. This gives you

flexibility to change trustees often if you are

dissatisfied with investment performance or

customer service. It can also allow you to have

IRA accounts with more than one institution for

added diversification. With an employer's plan,

you can't move the funds to a different trustee

unless you leave your job and roll over the

funds.

• An IRA may give you more flexibility with

distributions. Your distribution options in a

401(k) plan depend on the terms of that

particular plan, and your options may be limited.

However, with an IRA, the timing and amount of

distributions is generally at your discretion (until

you reach age 70½ and must start taking

required minimum distributions in the case of a

traditional IRA).

• You can roll over (essentially "convert") your

401(k) plan distribution to a Roth IRA. You'll

have to pay taxes on the amount you roll over

(minus any after-tax contributions you've

made), but any qualified distributions from the

Roth IRA in the future will be tax free.

Reasons to roll over to your new employer's

401(k) plan:

• Many employer-sponsored plans have loan

provisions. If you roll over your retirement funds

to a new employer's plan that permits loans,

you may be able to borrow up to 50% of the

amount you roll over if you need the money.

You can't borrow from an IRA--you can only

access the money in an IRA by taking a

distribution, which may be subject to income tax

and penalties. (You can, however, give yourself

a short-term loan from an IRA by taking a

distribution, and then rolling the dollars back to

an IRA within 60 days.)

• A rollover to your new employer's 401(k) plan

may provide greater creditor protection than a

rollover to an IRA. Most 401(k) plans receive

unlimited protection from your creditors under

federal law. Your creditors (with certain

exceptions) cannot attach your plan funds to

satisfy any of your debts and obligations,

regardless of whether you've declared

bankruptcy. In contrast, any amounts you roll

over to a traditional or Roth IRA are generally

protected under federal law only if you declare

bankruptcy. Any creditor protection your IRA

may receive in cases outside of bankruptcy will

generally depend on the laws of your particular

state. If you are concerned about asset protection,

be sure to seek the assistance of a qualified

professional.

• You may be able to postpone required minimum

distributions. For IRAs, these distributions must

begin by April 1 following the year you reach age

70½. However, if you work past that age and are

still participating in your employer's 401(k) plan,

you can delay your first distribution from that plan

until April 1 following the year of your retirement.

(You also must own no more than 5% of the

company.)

• If your distribution includes Roth 401(k)

contributions and earnings, you can roll those

amounts over to either a Roth IRA or your new

employer's Roth 401(k) plan (if it accepts

rollovers). If you roll the funds over to a Roth IRA,

the Roth IRA holding period will determine when

you can begin receiving tax-free qualified

distributions from the IRA. So if you're establishing

a Roth IRA for the first time, your Roth 401(k)

dollars will be subject to a brand new 5-year

holding period. On the other hand, if you roll the

dollars over to your new employer's Roth 401 (k)

plan, your existing 5-year holding period will carry

over to the new plan. This may enable you to

receive tax-free qualified distributions sooner.

When evaluating whether to initiate a rollover always

be sure to (1) ask about possible surrender charges

that may be imposed by your employer plan, or new

surrender charges that your IRA may impose, (2)

compare investment fees and expenses charged by

your IRA (and investment funds) with those charged

by your employer plan (if any), and (3) understand

any accumulated rights or guarantees that you may

be giving up by transferring funds out of your

employer plan.

What about outstanding plan loans?

In general, if you have an outstanding plan loan, you'll

need to pay it back, or the outstanding balance will be

taxed as if it had been distributed to you in cash. If

you can't pay the loan back before you leave, you'll

still have 60 days to roll over the amount that's been

treated as a distribution to your IRA. Of course, you'll

need to come up with the dollars from other sources