Is There Any Such Thing As a Zero Risk Investment? By Warren Elkin, Norhill Wealth Strategies

Transfer-Your-Roth-IRABy Warren Elkin

Wouldn’t it be wonderful if we lived in a world where we could earn a high rate of return on an investment without accepting any risk? While we readily accept that most of us won’t be buying into that type of scenario, as we head closer to retirement age, we would like to have some of our retirement funds in zero risk investments.

What Constitutes a Zero-risk Investment?

A riskless investment is one in which the return on the investment is a known figure and the issuer of the investment is a highly trustworthy agency. Generally speaking, securities offered by the United States government such as Treasury Securities are considered riskless. Although the U.S. government could potentially default on payment, most experts agree that the country would be in dire straits should such a default ever actually occur.

Savings accounts and certificates of deposits, or CDs, at insured financial institutions are also types of zero-risk investments that people have found useful, especially when higher interest rates were available.

Why not choose solely no-risk investments?

A major drawback of zero-risk or low-risk investments is that their yield is extremely low in the present financial environment. People want their capital to earn money, preferably at rates that at least keep up with current inflation rates each year.

According to the U.S. Inflation Calculator, inflation rates in the United States from 2007 to 2013 ranged from a high of over 4% to a low of about .01%. Inflation rates will continue to fluctuate, so those investors who hold onto cash positions actually lose money each year as their purchasing power declines according to the rate of inflation.

While there is no way any financial adviser can guarantee you a high rate of return in exchange for little or no risk, we can advise you in making sound investment decisions where you trade risk for reward as best fits your position and financial requirements. Contact us or visit our website to learn more.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity, Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity, Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities,
Best Fixed Annuity, Fixed Deferred Annuities, Fixed Index Annuities, 401k, Rollovers, IRA Rollovers, Advanced Retirement Income Solutions, Retirement, Income Planners, Retirement Income Solutions, Zero Risk Investments.

Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.warrenelkin.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.

Best Retirement Income Practices by Warren Elkin, Norhill Wealth Strategies

Norhill Wealth Strategies with Warren Elkin

Norhill Wealth Strategies with Warren Elkin

 

Retirement Income Tax Tips. For many of our working years we concentrate on saving for retirement. When the time comes to actually retire, our concerns shift to how best to allocate the funds we worked so hard to save. Your withdrawal plan should be formulated around many factors, including the taxes you’ll need to pay. It’s impossible to get around paying taxes on retirement accounts that were funded with tax-deferred money. However, you can implement an advantageous withdrawal strategy that can provide some tax relief. Consider four retirement income tax tips.

  1. Start with tax-deferred accounts. You’ll pay taxes on 401 (k) and IRA account withdrawals since they were funded with money that is usually removed from your paycheck before income taxes are taken out. However, remember that you can count losses to these accounts, which can help offset the taxes on the withdrawals. Additionally, some of the investment growth will qualify for a lower long-term capital gains rate.
  2. Let tax-free accounts sit as long as possible. We call them tax-free, but in reality you paid taxes on the money before you deposited it. A Roth 401(k) is the most common type of account with this structure. Saving these accounts for last gives the balance more time to grow without the tax burden, giving your overall retirement balance some added cushion.
  3. Remember the government deadlines. Being overly conservative with your withdrawals may bite you in the long run. The federal government requires you to withdraw a minimum amount from 401(k)s and IRAs by the age of 70 1/2. A 50 percent tax awaits those who do not comply.
  4. Be ready to make changes. No two retirement strategies are the same, and the same person’s strategy may change over time. Many factors come into play, including legislation. Tax laws and rules governing retirement accounts change rapidly. Stay up-to-date and make needed adjustments.

Determining how to structure your retirement withdrawals is challenging. The amount of tax to be paid is just one variable to consider. Contact us for help developing a retirement strategy that fits your needs.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity,Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity,Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities, Best Fixed Annuity, Fixed Deferred Annuities, Fixed Index Annuities, 401k, Rollovers, IRA Rollovers, Advanced Retirement Income Solutions, Retirement,Income Planners, Retirement Income Solutions, Zero Risk Investments.

Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.warrenelkin.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.

Social Security, Medicare and Cobra by Warren Elkin, Norhill Wealth Strategies

Lifetime Retirement Income Planning with Warren Elkin

Lifetime Retirement Income Planning with Warren Elkin

Decide when to claim Social Security. Social Security statements became available online for the first time in 2012, and more than 1 million people have already downloaded them. Check your statement to make sure your earnings were accurately posted to your Social Security record, and make note of how much you will receive from Social Security at various dates. Most baby boomers can claim the full amount of Social Security they have earned beginning at age 66. Boomers who sign up before age 66 will get a reduced payout. Retirees can further boost their monthly payments by delaying claiming up until age 70. You don’t have to sign up for Social Security in the year you officially retire.

Sign up for Medicare on time. You can first sign up for Medicare beginning three months before the month you turn 65. This initial enrollment period lasts until three months after age 65. If you don’t sign up during this seven-month window around your 65th birthday, your monthly premiums will increase by 10 percent for each 12-month period you were eligible for, but did not enroll in, Medicare Part B. If you are covered by a group health plan based on your or your spouse’s current employment after age 65, you need to sign up within eight months of leaving the job or health plan to avoid the penalty. For people who retire before age 65, you need a plan to maintain health coverage until you become eligible for Medicare, such as through COBRA continuation coverage or a spouse’s health plan.

Make sure you are vested in your retirement benefits. While you always get to keep the money you contribute to your workplace retirement account, you don’t necessarily get to keep your employer’s contributions until you are vested in the retirement plan. Some retirement accounts don’t allow you to keep any employer contributions until you have been with the company for a specific number of years, while others allow you to keep a proportion of your benefit based on your years of service. Find out the date upon which you can keep all of your benefits, especially if you have only been with your current employer for a few years. In some cases, it can be worth it to stick around for a few extra weeks or months to get a bigger retirement payout.

Protect your savings. Shift your primary investment strategy from growth to protecting what you have.

Spend down your assets. Retirees need a plan for how they will convert their retirement savings into a stream of income that will pay their monthly bills. Factor in the income tax that will be due on traditional 401Ks and IRA withdrawals.

Don’t forget to take the required minimum distributions from your traditional 401K and IRA accounts. There is a stiff 50% penalty for failure to take distributions by 70 1/2.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity,Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity,Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities,
Best Fixed Annuity, Fixed Deferred Annuities, Fixed Index Annuities, 401k, Rollovers, IRA Rollovers, Advanced Retirement Income Solutions, Retirement,Income Planners, Retirement Income Solutions, Zero Risk Investments.

Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.warrenelkin.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.

Worried about Retirement? No Pension? Generate Guaranteed Income through an Annuity

The changes in corporate America, even before the economic downturn 2008, pointed to a time when fewer retirees would have a company pension to rely on.

Today, workers must rely on funding their own retirement accounts, hoping that cash-strapped employers will match such contributions in the 401(k) right up to the door leading to retirement.

For many investors, the fear of not having a stable, income-producing retirement portfolio can be palpable, but not without hope: Capturing a guaranteed income stream, even in down markets, is possible through an annuity and a very viable source for retirement income.

“How to create your own pension plan,” an article on Inc.com, offers the investors a guidepost on as to why the annuity is a much-needed anchor in today’s retirement portfolio: Young, old or already reaching retirement, readers can benefit from his overview.

Why an annuity is not like your 401(k)

Many workers contribute monthly to their company’s defined contribution retirement plan, which can be a Roth IRA or the 401(k).  Money invested in within these accounts are not a source of guaranteed income. But purchasing an annuity becomes a contract with the insurance company to pay you a given amount—regardless of how long you live!

Annuities mirror pensions in many ways

The main takeaway in making this comparison is knowing you can rely on this insurance product to payout a minimum guarantee, an income stream that keeps on paying in the worst of times…much like a pension would do.

For sure, an annuity is a welcomed option in today’s post financial crisis

Consider annuities with an income guarantee to provide steady retirement income.

vacation_965867One of the biggest concerns to investor is making sure their portfolio will provide them with the retirement income they’ll need in those Golden Years.

Annuities bring ‘certainty’ to income streams. 

With today’s uncertain economic times annuities with minimum, income guarantees are getting a closer look by baby boomers, and retirees, to provide that all-important anchor to their portfolios.

What’s more, annuities are even becoming a popular option within the 401(k), according to “Annuities on the rise in 401k plans,” an article on the Kiplinger website.

Income…even if the market fails.

“Fear of a market downturn right before retirement is leading to record sales of annuities with income guarantees…you invest in mutual funds but are promised a minimum income stream every year in retirement for life, even if the market fails,” notes the article’s author, Kimberly Lankford.

Before 401(k)’s became portable, employees had no way of taking an annuity with them to their new place of employment; today, the guaranteed income from an annuity can ‘follow’ workers throughout their working career.

“…employers (are) more will to offer these products. Insurers…now also offer rollover IRAs specifically for the guarantees,” says Lankford.

Puchase with taxable income, or in a rollover IRA.

If an employer offers limited choices of an annuity in their 401(k) program, the investor can still use a portion of any rollover money from the account to buy an annuity product with a better guarantee in the rollover IRA, Lankford noted.

Of course, annuities can be purchased outside an employer’s 401(k) using an investor’s taxable funds, or through an IRA (Individual Retirement Account.)

Worried about Retirement? No Pension? Generate Guaranteed Income through an Annuity by Warren Elkin, Lifetime Retirement Income Planning

Annuities with Lifetime Retirement Income Planning

Annuities with Lifetime Retirement Income Planning

The changes in corporate America, even before the economic downturn 2008, pointed to a time when fewer retirees would have a company pension to rely on.

Today, workers must rely on funding their own retirement accounts, hoping that cash-strapped employers will match such contributions in the 401(k) right up to the door leading to retirement.

For many investors, the fear of not having a stable, income-producing retirement portfolio can be palpable, but not without hope: Capturing a guaranteed income stream, even in down markets, is possible through an annuity and a very viable source for retirement income.

“How to create your own pension plan,” an article on Inc.com, offers the investors a guidepost on as to why the annuity is a much-needed anchor in today’s retirement portfolio: Young, old or already reaching retirement, readers can benefit from his overview.

Why an annuity is not like your 401(k)

Many workers contribute monthly to their company’s defined contribution retirement plan, which can be a Roth IRA or the 401(k).  Money invested in within these accounts are not a source of guaranteed income. But purchasing an annuity becomes a contract with the insurance company to pay you a given amount—regardless of how long you live!

Annuities mirror pensions in many ways

The main takeaway in making this comparison is knowing you can rely on this insurance product to payout a minimum guarantee, an income stream that keeps on paying in the worst of times…much like a pension would do.

For sure, an annuity is a welcomed option in today’s post financial crisis.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity,Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity,Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities,
Best Fixed Annuity, Fixed Deferred Annuities, Fixed Index Annuities, 401k, Rollovers, IRA Rollovers, Advanced Retirement Income Solutions, Retirement,Income Planners, Retirement Income Solutions, Zero Risk Investments.

Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.LifeTimeRetirmentIncome.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.

Plan For Tax Season and Avoid The Mess

Tax season is upon us and I can already see the stress that is overcoming many of my clients.  With only a month left to get your taxes taken care of, I continue to hear all sorts of questions.  Will I receive the amount on my tax returns that I am anticipating?  What should I do with my refund?  What are stealth taxes?  These are important questions that come about every year during this season.  Just like retirement planning, it’s important to have a plan for your taxes and to make sure you’re asking the right questions.

Adam Spiegel, a Miami-based certified public accountant and partner with Morrison, Brown, Argiz & Farra summed tax planning up with a very simple acronym, PLAN.

P stands for ‘prepare your records ahead of time.’

L stands for ‘list your issues and questions.’

A stands for ‘analyze your financial statements for accuracy.’

N stands for ‘note the changes in laws during the year and discuss them with your tax advisor.’
As a Retirement Income Specialist, planning and preparation are at the root of all of my clients’ strategies.  In this field of work, the better prepared you are, the more educated your decisions can be about future finances and investments.  Before you begin completing your taxes, complete a consultation with me, Warren Elkin, and get your finances in line so you’re ready for your CPA.  Don’t be a victim to the mistakes that many people make during tax season; learn what questions to ask your CPA to cut your taxes now and avoid tax problems in your future.

Call today! Speak with me now at 877-476-5051 or email me directly at warren@warrenelkin.com.  For more information go to www.warrenelkin.com and learn more about our unique process to make sure your financial decisions are made in your best interest.

Have a great day,
Warren Elkin

Sources:
http://www.inc.com/guides/2010/06/tax-season-planning.html

Image courtesy of: http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/clark-talks-cains-9-9-9-tax-plan-and-his-own-tax-p/nFFxR/

Good Age Magazine — October 2012

Check out Warren’s recent article in the Minnesota Good Age Magazine.

 

Follow the link below and find his article on PAGE 26, “Three Retirement Myths: Can I afford to retire?”

 

Click Here to Read the October Publication

 

 

Warren Elkin KORN Radio Interview Part 1

Warren Elkin’s radio interview about retirement planning and annuities on KORN News radio– September 26th, 2012.

Warren Elkin KORN Radio Interview Part 2

Part 2 of Warren Elkin’s radio interview about retirement planning and annuities on KORN News radio– September 26th, 2012