For those of you like me, 55 years of age or older, we can't believe that we are so close to begin to draw from social security, or draw from a pension, or rely on a fixed income to survive financially.
But, lets do a reality check - assume this is close to your financial picture:
*Needed Income Annually-$55,000.00
*Bob's Pension $40,000.00
*Bob's Social Security- $15,000.00
*Sally's Social Security- $15,000.00
*$70,000 annual Income
Looks like we made it!
Example 1: Assume Bob dies at 70
*Bob's Pension to Sally- $20,000 (cut in half)
*Bob's SS check- $0 - He's gone
*$35,000 total- a Short fall now of $20,000.00 annually ( assuming your portfoio doesn't drop like it did in 2008)
If you have the ability to take a portion of your current savings, or 401K, or403B and lock in the gains - set it aside today to guarantee a future income stream for your family. $200,000 set aside today for a 57 year old could ensure a $50,000 annual income stream at age 70 for you and your spouse's life.
If you are over age 59 1/2 and plan on working another 5-7 years, you can do an "In Service" rollover of a portion of your 401K. This will lock in the gains to ensure your own pension and still continue to contribute to your 401k while working.
Many people don't realize this is even available to them. What better time than now to ensure your own pension?
Example 2: There is a 40% chance you or your spouse will need this but 60% you won't!
Dave's concern is Long Term Care or Home Care (should he or Tammy need assistance years from now). Dave has no pension or big savings, but has good cash flow and can afford to allocate an extra $5000 a year in income to fund a program.
Typically for a $300,000 Long Term Care benefit, one would pay annual premiums starting now and hope those premiums don't increase too much in the future. If either one of the couple needs help, they would get $6000 a month of coverage from the $300,000 bucket. But what if they never need it? All that money paid in is gone!
What about looking at a program that has level, locked-in premiums and accomplishes the same benefit for Long Term Care... but any money you don't use is left for your children?
At age 57 Dave buys a $300,000 Life and Long Term Care program.
He doesn't worry about premium increases, they stay level for life, and he still recieves $6000 tax free a month if he needs home or longterm care. Let's assume he uses $100,000 worth of benefits then dies at 80. His children recieve the $200,000 that remains as a death benefit.
At Georgia Advisory Group we specialize in Income & Wealth Management. For over 34 years we have worked with clients of every background to address the issues of real life stories. Today is your opportunity to get fresh eyes on what your future looks like and what possibilities are available to you. Waiting only exasperates the issues.
Come see us and let us show you how to jump these financial hurdles. We can help you!
Call today at 678-624-7700 or email me at firstname.lastname@example.org
Our Team of Financial and Tax experts will put together the various choices to meet your finacial goals.