Benham and Associates Trusted Insurance Professionals:
Stock
High Risk
Art
Stamps
Gold/Precious Metals
Diamonds/Precious Stones
Uncovered Options/Currency
Hedging
General Partnerships, Penny Stock
Limited Partnerships- Real Estate, Oil,
Equipment Leasing
Non Diversified/Non Monitored Portfolios
of Sector & Junk Bond Mutual Funds
Rental Commercial/Residential Real Estate
Non Diversified Portfolios of Individual Issue-
Stocks and Bonds, Closed End Funds & REIT's
Covered Option Writing
Variable Annuities and Variable Life Insurance
Diversified & Monitored Stock & Bond Portfolios
Conservative & Monitored Portfolio of Mutual Funds
Money Market Savings Accounts and CD's
Home, Fixed Annuities, Whole & Universal Life Insurance
U.S. Government securities
Low Risk
Investment Pyramid
The above is a simple chart of Investment categories by risk and reward. It is in the shape of a pyramid. With Investments at the top of the pyramid an individual can expect the greatest returns but because of the risk associated with these investments an individual can also experience the greatest risk of loss. Volatility is the key. If you knew exactly when to invest in high risk areas and exactly when to sell, then you should experience the highest returns. Consequently, with the investments at the bottom of the pyramid you would expect low returns with little risk of loss of investment. The placement of investment vehicles on the pyramid is subjective and opinions as to their placement could vary.
Overview:
More aggressive portfolios (more stock) are usually recommended for those younger and/or single while more conservative (more bond) investments are generally recommended for retirees. This is not cast in stone and depends on many variables. Before you invest at any level you should first address a budget and your current and future needs.
The essence of this exercise is to emphasize the basic risk/reward parameters. You should not invest in the more risky ventures until/unless you have covered the less risky areas first. It should be clear, therefore, that one does not utilize gold, precious metals, uncovered option writing or the use of single issue securities until the more conservative issues have been addressed- such as having enough insurance for your family.
Fixed Annuities, Whole or Universal life insurance
These policies earn income on a tax deferred basis (possibly tax free with insurance policy loans) and are essentially risk free as regards to the guarantee which is based on claims paying ability of Insurer.
Mutual Funds
By definition, mutual funds are diversified (at least 13 stocks).
Diversified Individual stock and bond portfolios
The use of individual stocks and bonds is more risky if one attempts to do it themselves. These portfolios MUST be actively monitored.
Variable Annuities
Variable annuities are annuity contracts that shift investment risk to the contract holder. The contract owner can select from among a number of separate investment accounts. Variable products are subject to mortality and expense charges and administrative fees not typically found with other investments.
Variable Life Insurance
Variable life insurance is a life insurance policy that has fixed premiums and a minimum guaranteed death benefit. Investment risk is shifted to the policy owner. The policy owner is able to direct funds backing the policy into one or more of a group of segregated investment accounts made available by the life insurance company. Variable products are subject to mortality and expense charges and administrative fees not typically found with other investments.
Covered Option Writing
Security options - puts and calls - are negotiable instruments issued in bearer form that allow the holder to buy or sell a specified amount of a specified security at a specified price within a certain time period. The buyers of puts and calls are willing to invest their capital in return for the right to participate in the future performance of the underlying security, and to do so at low unit cost and limited exposure, however, it is possible to lose one's investment in options in a relatively short period of time. Some conservative investors use options with the objective to increase their income on shares they purchased. It is important to note that options are not suitable for all investors. There is limited upside potential when writing a covered call. For example, if the underlying security's price rises above the exercise price, the buyer will typically exercise the option and the writer will be forced to sell the underlying security.
Non diversified portfolios of stock or bonds
These generate a significant amount of unsystematic risk since the movement of a single stock can seriously erode the entire holdings.
Rental real estate
Singular ownership of real estate has provided many past investors substantial returns. However, investors must recognize the personal management involved in running such operations. Real estate is a non liquid asset and should be held for a long term for investors to achieve their investment goals, even then, there is no guarantee of a profit.
Closed End funds
These are similar to open ended managed mutual funds but are issued with a fixed capitalization. They are bought in the same method as stock. They tend to be sold at a discount to Net Asset Value. Unless their track history is considered, many investors could purchase these funds with incomplete knowledge and could suffer a substantial loss.
Sector mutual funds
These must have at least 25% of their portfolios invested in a particular area- health, communications, etc. And when too much is placed in a risk area, it usually is not ultimately beneficial to the investor who does not understand the risk.
Limited Partnerships
Prior to the tax law change of 1986, many partnerships did very well. The purchase of LIMITED amounts of partnerships was generally considered acceptable for middle income wage earners. However, with the recessionary economy many went into default. Some partnerships do continue to work and are even viable today, but the risk limits their use.
General partnerships, precious metals, etc.
These require a sophistication far in excess of the normal middle income wage earner. Far too much risk and far too much to go wrong. Individuals using such investments must have considerable wealth and a thorough understanding of risk, or be advised by a knowledgeable adviser. Investing in these areas could result in substantial loss.
Thursday, 12 May 2011
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Retirement Planning
When planning for retirement you should fully fund the tax-deductible and tax-deferred savings plans that are available to you as an individual and through your employer. First on the list should be plans where the employer makes contributions and/or matches your contributions. Next should be any IRA’s that you qualify for. As you climb the investment pyramid, it becomes increasingly important to seek help from an expert.
Definitions
* Roth Accounts: Designated Roth contributions are elective contributions that, unlike pre-tax elective contributions, are currently includible in gross income. However, the investments grow tax free and earnings may be withdrawn tax free after age 59 1/2 as long as the account has been open 5 years, or if you are disabled or after death. See IRS Roth Account Brochure PDF.
* Simple Plans (simple IRA, simple 401k): Are plans for the small business owners with 100 or fewer employees with no other retirement plans in place. See Simple IRA or Simple 401(k)
The following is a summary of retirement plans:
* 401(k) - A section 401(k) plan is a type of tax-qualified deferred compensation plan for businesses in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pre-tax basis. These deferred wages (commonly referred to as elective deferrals) are not subject to income tax withholding at the time of deferral, and they are not reflected on your Form 1040 since they were not included in the taxable wages on your Form W2. However, they are included as wages subject to social security, Medicare, and federal unemployment taxes.See 401(k)
o The maximum employee contribution for 2010 and 2011 is $16,500. The maximum Employee plus Employer contribution is the lesser of 25% of compensation or $49,000 for 2010 and 2011.
o The maximum compensation that can be considered for 2010 and 2011 is $245,000.
o Catch-up - if the employee is aged 50 and older, an additional 'catch-up' contribution is allowed. The additional contribution amount for 2010 and 2011 is $5,500.
o Withdrawals of contributions and earnings are subject to federal and most state income taxes.
* Simple 401(k) - A section Simple 401(k) plan is a type of tax-qualified deferred compensation plan for small businesses with less than 100 employees in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pre-tax basis. These deferred wages (commonly referred to as elective deferrals) are not subject to income tax withholding at the time of deferral, and they are not reflected on your Form 1040 since they were not included in the taxable wages on your Form W2. However, they are included as wages subject to social security, Medicare, and federal unemployment taxes. Under a SIMPLE 401(k) Plan, an employee can elect to defer some compensation, but unlike a regular 401 (k) plan, the employer must make either a matching contribution up to 3% of each employee's pay, or a non-elective contribution of 2% of each eligible employee's pay. See Simple 401K
o The maximum employee contribution for 2010 and 2011 is $11,500.
o The maximum Employee plus Employer contribution is the lesser of 25% of compensation or $49,000 for 2010 and 2011.
o The maximum compensation that can be considered is $245,000 for 2010 and 2011.
o Catch-up - if the employee is aged 50 and older, an additional 'catch-up' contribution is allowed. The additional contribution amount for 2010 and 2011 is $2,500 (no Increase).
o Withdrawals of contributions and earnings are subject to federal and most state income taxes.
* Roth 401(k) - Business retirement account made with after tax dollars.
o The maximum employee contribution for 2010 and 2011 is $16,500.
o The maximum Employee plus Employer contribution is the lesser of 25% of compensation or $49,000 for 2010 and 2011. The maximum compensation that can be considered is $245,000 for 2010 and 2011.
o Catch-up - if the employee is aged 50 and older, an additional 'catch-up' contribution is allowed. The additional contribution amount for 2010 and 2011 is $5,500.
o The investments grow tax free and earnings may be withdrawn tax free after 59 ½ as long as the account has been open 5 years, or if you are disabled or after death. See IRS Roth Account Brochure PDF.
* 403(b) - is sponsored by tax-exempt institutions such as Public Schools, Colleges or Universities or Charitable entities tax-exempt under section 501(c)(3) of the Code. Basically, 403(b) plans are similar to 401(k) plans. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary. In this case, their deferred money goes to a 403(b) plan sponsored by the employer. This deferred money generally does not get taxed by the federal government or by most state governments until distributed.
o The maximum employee contribution is $16,500 for 2010 and 2011.
o The maximum Employee plus Employer contribution is the lesser of 100% of compensation or $49,000 for 2010 and 2011.
o The maximum compensation that can be considered is $245,000 for 2010 and 2011.
o There is also a 'lifetime catch-up provision' available only to employees with 15 or more years of service with a qualified organization. This provision may allow you to increase your salary deferral contributions above your basic salary deferral limit by up to $3,000 per year, up to a lifetime limit of $15,000. To qualify, you must be a long-term employee who has contributed on average less than $5,000 a year to your 403(b) plan. The 403(b) Lifetime Catch-up is called the '15-year rule' in IRS Publication 571. See IRS Publication 571.
* SEP-IRA - Under a SEP, the employer makes contributions to traditional IRAs (SEP-IRAs) set up for each eligible employee. A SEP is funded solely by employer contributions. Each employee is always 100% vested in (or, has ownership of) all money in his or her SEP-IRA. See IRS Publication.
o To establish a SEP
+ The business can be any size
+ Adopt Form 5305-SEP, a SEP prototype or an individually designed plan document.
+ Cannot have any other retirement plan (except another SEP) if the model Form 5305-SEP is used to establish the SEP.
o Total contributions to each employee's SEP-IRA cannot exceed the lesser of 25% of pay or $49,000 for 2010 and 2011.
* Simple-IRA - is a tax-deferred retirement plan provided by sole proprietors or small businesses (fewer than 100 employees) who do not maintain or contribute to any other retirement plan. See IRS Publication. If a SIMPLE IRA plan is adopted, employees can elect to defer part of their salary.Each employee is immediately 100% vested in (or 'owns') all contributions to his or her SIMPLE IRA. Contribution limits are:
o Employee - $11,500 for 2010 and 2011. If the employee is age 50 or over, a 'catch-up' contribution is also allowed. This additional catch-up contribution amount is: 2010 and 2011 - $2,500.
o Employer - Generally, a dollar-for-dollar match up to 3% of pay or a 2% non-elective contribution for each eligible employee.
* Keogh - A Keogh plan is a tax-deferred retirement plan designed to help self-employed workers or individuals who earn self-employed income establish a retirement savings program. There are two different types of Keogh plans, the Profit Sharing (see IRS Publication) and the Money Purchase plan (see IRS Publication). Under Keogh regulations, the Money Purchase contribution is mandatory; you must make the same percentage contribution each year, whether you have profits or not. The Profit Sharing contribution can change each year. Individuals can contribute to both types of plans in the same year.
o The contribution limits are the lesser of 25% of compensation or $49,000 for 2010 and 2011.
* Traditional IRA - Individual Retirement Account, is a tax-deferred investment and savings account that acts as a personal retirement fund for people with employment income. The maximum contribution is $5000 annually in 2010 and 2011 with an additional $1000 if over 50 years old. There are two primary types of IRAs: Regular and Spousal. Regular IRAs are designed for individuals with earned income, while Spousal IRAs are designed for married couples in which only one of the spouses has earned income. You have the option of investing in a wide variety of investments. (See IRS Publication 590).
For Regular and Spousal IRAs:
Your contribution is fully tax-deductible if:
o Neither you nor your spouse participated in a company-sponsored retirement plan.
o You contributed to a company-sponsored retirement plan: are single and earned less than $55,000 in 2010 and $56,000 in 2011 or married and filing jointly and had a joint income of less than $89,000 in 2010 and 2011.
Your contribution is partially tax-deductible if:
o You contributed to a company-sponsored retirement plan: are single and earned $55,000-$65,000 in 2010 and $56,000-$66,000 in 2011 or married and filing jointly and had a joint income of $89,000-$109,000 in 2010 and 2011.
Your contribution is not tax-deductible if:
o You contributed to a company-sponsored retirement plan: either single and earned more than $65,000 in 2010 and 2011 or married and filing jointly and had a joint income of more than $109,000 in 2010 and 2011.
* Roth IRA - is an individual retirement account with a maximum contribution of:
o For 2008 and beyond the maximum contribution is $5,000 with additional $1,000 contribution.
o Contributions to a Roth IRA are not tax-deductible. However, the investments grow tax free and earnings may be withdrawn tax free after 59 ½ as long as the account has been open 5 years.
o Eligibility for contributions to a Roth IRA is phased out for married couples filing jointly with an AGI between $166,000 and $176,000 for 2010 and $167,000 and $177,000 for 2011 and single individuals with an AGI between $105,000 and $120,000 for 2010 and 2011.
o See IRS Publication 590
To obtain a more detailed explanation of the various retirement plans, you can visit the IRS website at www.irs.gov.
Retirement Planning
When planning for retirement you should fully fund the tax-deductible and tax-deferred savings plans that are available to you as an individual and through your employer. First on the list should be plans where the employer makes contributions and/or matches your contributions. Next should be any IRA’s that you qualify for. As you climb the investment pyramid, it becomes increasingly important to seek help from an expert.
Definitions
* Roth Accounts: Designated Roth contributions are elective contributions that, unlike pre-tax elective contributions, are currently includible in gross income. However, the investments grow tax free and earnings may be withdrawn tax free after age 59 1/2 as long as the account has been open 5 years, or if you are disabled or after death. See IRS Roth Account Brochure PDF.
* Simple Plans (simple IRA, simple 401k): Are plans for the small business owners with 100 or fewer employees with no other retirement plans in place. See Simple IRA or Simple 401(k)
The following is a summary of retirement plans:
* 401(k) - A section 401(k) plan is a type of tax-qualified deferred compensation plan for businesses in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pre-tax basis. These deferred wages (commonly referred to as elective deferrals) are not subject to income tax withholding at the time of deferral, and they are not reflected on your Form 1040 since they were not included in the taxable wages on your Form W2. However, they are included as wages subject to social security, Medicare, and federal unemployment taxes.See 401(k)
o The maximum employee contribution for 2010 and 2011 is $16,500. The maximum Employee plus Employer contribution is the lesser of 25% of compensation or $49,000 for 2010 and 2011.
o The maximum compensation that can be considered for 2010 and 2011 is $245,000.
o Catch-up - if the employee is aged 50 and older, an additional 'catch-up' contribution is allowed. The additional contribution amount for 2010 and 2011 is $5,500.
o Withdrawals of contributions and earnings are subject to federal and most state income taxes.
* Simple 401(k) - A section Simple 401(k) plan is a type of tax-qualified deferred compensation plan for small businesses with less than 100 employees in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pre-tax basis. These deferred wages (commonly referred to as elective deferrals) are not subject to income tax withholding at the time of deferral, and they are not reflected on your Form 1040 since they were not included in the taxable wages on your Form W2. However, they are included as wages subject to social security, Medicare, and federal unemployment taxes. Under a SIMPLE 401(k) Plan, an employee can elect to defer some compensation, but unlike a regular 401 (k) plan, the employer must make either a matching contribution up to 3% of each employee's pay, or a non-elective contribution of 2% of each eligible employee's pay. See Simple 401K
o The maximum employee contribution for 2010 and 2011 is $11,500.
o The maximum Employee plus Employer contribution is the lesser of 25% of compensation or $49,000 for 2010 and 2011.
o The maximum compensation that can be considered is $245,000 for 2010 and 2011.
o Catch-up - if the employee is aged 50 and older, an additional 'catch-up' contribution is allowed. The additional contribution amount for 2010 and 2011 is $2,500 (no Increase).
o Withdrawals of contributions and earnings are subject to federal and most state income taxes.
* Roth 401(k) - Business retirement account made with after tax dollars.
o The maximum employee contribution for 2010 and 2011 is $16,500.
o The maximum Employee plus Employer contribution is the lesser of 25% of compensation or $49,000 for 2010 and 2011. The maximum compensation that can be considered is $245,000 for 2010 and 2011.
o Catch-up - if the employee is aged 50 and older, an additional 'catch-up' contribution is allowed. The additional contribution amount for 2010 and 2011 is $5,500.
o The investments grow tax free and earnings may be withdrawn tax free after 59 ½ as long as the account has been open 5 years, or if you are disabled or after death. See IRS Roth Account Brochure PDF.
* 403(b) - is sponsored by tax-exempt institutions such as Public Schools, Colleges or Universities or Charitable entities tax-exempt under section 501(c)(3) of the Code. Basically, 403(b) plans are similar to 401(k) plans. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary. In this case, their deferred money goes to a 403(b) plan sponsored by the employer. This deferred money generally does not get taxed by the federal government or by most state governments until distributed.
o The maximum employee contribution is $16,500 for 2010 and 2011.
o The maximum Employee plus Employer contribution is the lesser of 100% of compensation or $49,000 for 2010 and 2011.
o The maximum compensation that can be considered is $245,000 for 2010 and 2011.
o There is also a 'lifetime catch-up provision' available only to employees with 15 or more years of service with a qualified organization. This provision may allow you to increase your salary deferral contributions above your basic salary deferral limit by up to $3,000 per year, up to a lifetime limit of $15,000. To qualify, you must be a long-term employee who has contributed on average less than $5,000 a year to your 403(b) plan. The 403(b) Lifetime Catch-up is called the '15-year rule' in IRS Publication 571. See IRS Publication 571.
* SEP-IRA - Under a SEP, the employer makes contributions to traditional IRAs (SEP-IRAs) set up for each eligible employee. A SEP is funded solely by employer contributions. Each employee is always 100% vested in (or, has ownership of) all money in his or her SEP-IRA. See IRS Publication.
o To establish a SEP
+ The business can be any size
+ Adopt Form 5305-SEP, a SEP prototype or an individually designed plan document.
+ Cannot have any other retirement plan (except another SEP) if the model Form 5305-SEP is used to establish the SEP.
o Total contributions to each employee's SEP-IRA cannot exceed the lesser of 25% of pay or $49,000 for 2010 and 2011.
* Simple-IRA - is a tax-deferred retirement plan provided by sole proprietors or small businesses (fewer than 100 employees) who do not maintain or contribute to any other retirement plan. See IRS Publication. If a SIMPLE IRA plan is adopted, employees can elect to defer part of their salary.Each employee is immediately 100% vested in (or 'owns') all contributions to his or her SIMPLE IRA. Contribution limits are:
o Employee - $11,500 for 2010 and 2011. If the employee is age 50 or over, a 'catch-up' contribution is also allowed. This additional catch-up contribution amount is: 2010 and 2011 - $2,500.
o Employer - Generally, a dollar-for-dollar match up to 3% of pay or a 2% non-elective contribution for each eligible employee.
* Keogh - A Keogh plan is a tax-deferred retirement plan designed to help self-employed workers or individuals who earn self-employed income establish a retirement savings program. There are two different types of Keogh plans, the Profit Sharing (see IRS Publication) and the Money Purchase plan (see IRS Publication). Under Keogh regulations, the Money Purchase contribution is mandatory; you must make the same percentage contribution each year, whether you have profits or not. The Profit Sharing contribution can change each year. Individuals can contribute to both types of plans in the same year.
o The contribution limits are the lesser of 25% of compensation or $49,000 for 2010 and 2011.
* Traditional IRA - Individual Retirement Account, is a tax-deferred investment and savings account that acts as a personal retirement fund for people with employment income. The maximum contribution is $5000 annually in 2010 and 2011 with an additional $1000 if over 50 years old. There are two primary types of IRAs: Regular and Spousal. Regular IRAs are designed for individuals with earned income, while Spousal IRAs are designed for married couples in which only one of the spouses has earned income. You have the option of investing in a wide variety of investments. (See IRS Publication 590).
For Regular and Spousal IRAs:
Your contribution is fully tax-deductible if:
o Neither you nor your spouse participated in a company-sponsored retirement plan.
o You contributed to a company-sponsored retirement plan: are single and earned less than $55,000 in 2010 and $56,000 in 2011 or married and filing jointly and had a joint income of less than $89,000 in 2010 and 2011.
Your contribution is partially tax-deductible if:
o You contributed to a company-sponsored retirement plan: are single and earned $55,000-$65,000 in 2010 and $56,000-$66,000 in 2011 or married and filing jointly and had a joint income of $89,000-$109,000 in 2010 and 2011.
Your contribution is not tax-deductible if:
o You contributed to a company-sponsored retirement plan: either single and earned more than $65,000 in 2010 and 2011 or married and filing jointly and had a joint income of more than $109,000 in 2010 and 2011.
* Roth IRA - is an individual retirement account with a maximum contribution of:
o For 2008 and beyond the maximum contribution is $5,000 with additional $1,000 contribution.
o Contributions to a Roth IRA are not tax-deductible. However, the investments grow tax free and earnings may be withdrawn tax free after 59 ½ as long as the account has been open 5 years.
o Eligibility for contributions to a Roth IRA is phased out for married couples filing jointly with an AGI between $166,000 and $176,000 for 2010 and $167,000 and $177,000 for 2011 and single individuals with an AGI between $105,000 and $120,000 for 2010 and 2011.
o See IRS Publication 590
To obtain a more detailed explanation of the various retirement plans, you can visit the IRS website at www.irs.gov.
Proper Planning
The foundation for investing starts with proper financial planning; setting goals, establishing a budget, gathering financial records and knowing your net worth. The financial planning process starts with gathering information. For the financial planner to do his or her job, that person must know your present financial structure, your goals and risk tolerance. The more knowledge that can be obtained the better the financial planner can do his or her job. It is suggested you print and complete the client questionnaire then fax or mail it to our office. Your information will be kept confidential and never be given or sold to any other company or individual. The next step involves helping the client answer the following:
- What is the approximate time frame I am willing to keep my funds invested to achieve my investment objectives?
- What current income do I need to obtain from my investments?
- What future cash needs am I likely to have?
- Are there any tax or legal issues that I need to consider for the portfolio's holdings?
- Am I a conservative investor or an aggressive one?
- How much volatility am I willing to accept in my portfolio to try to earn a higher return?
Only after the client has addressed these questions, and has a clear understanding of investment needs and goals can the financial planner begin to determine the appropriate asset mix and identify the right mutual funds, stocks, bonds and money market funds.
Usually a good starting point is to take advantage of any retirement plans that are available to you.
http://www.leebenhamassociates.com/
Sunday, 17 April 2011
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Disability Statistics
Disability can happen to anyone, it's more common than you think.
*
There are over 51 million Americans that are classified as disabled, representing 18 percent of the population.
U.S. Census Bureau, Public Information Office, November 2008
*
A disabling injury occurs every 1 second in the U.S., and a fatal injury occuring every 4 minutes.
National Safety Council, Injury Facts 2008 Ed.
*
Three in 10 workers entering the work force today will become disabled before retiring.
Social Security Administration, Fact Sheet January 31, 2007
*
Over 6.8 million workers are receiving Social Security Disability benefits, almost half are under age 50.
Social Security Administration, Fact Sheet January 31, 2007
*
While many people think that disabilities are typically caused by freak accidents, the majority of long-term absences are due to back injuries and illnesses, such as cancer and heart disease.
Council for Disability Awareness, Long-Term Disability Claims Review, 2007
*
498 Americans became disabled in the last 10 minutes .
National Safety Council, Injury Facts 2008 Ed.
Disability often keeps people out of work:
*
An illness or accident will keep 1 in 5 workers out of work for at least a year before the age of 65.
Life and Health Insurance Foundation for Education, November 2005
*
One in 7 workers can expect to be disabled for five years or more before retirement.
'Commissioners Disability Table, 1998,' Health Insurance Association of America, the New York Times, February 2000
*
The average long-term disability absence lasts 2.5 years.
Commissioner’s Individual Disability Table A
Disability can cause financial hardship:
*
71% of American employees live from paycheck to paycheck.
American Payroll Association, 'Getting Paid in America' Survey, 2008
*
Unexpected illnesses and injuries cause 350,000 personal bankruptcies each year.
'Illness and Injury as Contributors to Bankruptcy,' Health Affairs, February 2, 2005
*
Disability causes nearly 50% of all mortgage foreclosures, 2% are caused by death.
Health Affairs, The Policy Journal of the Health Sphere, 2 February 2005
*
Most American workers can't afford to become disabled:Over 70% of working Americans do not have enough savings to meet short-term emergencies.
National Investment Watch Survey, A.G. Edwards Inc. 2004
*
According to the Federal Reserve, 44% of U.S. families spend more than they earn.
Federal Reserve Board, Survey of Consumer Finances 2004
*
For the average American household, the savings rate is negative, the lowest since 1933, and credit card debt is at an all-time high - $9,300.
Parade Magazine, Is the American Dream Still Possible?, April 23, 2006
*
Over 50% of the workforce has no private pension coverage and a third have no retirement savings.
Social Security Administration, Fact Sheet 2007
Social Security and Workers' Compensation may not be adequate:
*
Close to 90% of disabling accidents and illnesses are not work related.
National Safety Council, Injury Facts 2008 Ed.
*
The average monthly Social Security Disability Insurance (SSDI) benefit is $1,062.
Social Security Administration, Fact Sheet 2009
*
Less than half - 39% - of the 2.1 million workers who applied for SSDI benefits in 2005 were approved.
Social Security Administration, Office of Disability and Income Security Programs
Most American workers are not covered by disability insurance:
*
Over 100 million workers do not have private disability income insurance.
Council for Disability Awareness, Long Term Disability Claims Review, 2005
*
70% of the private sector workforce has no long-term disability insurance.
Social Security Administration, Fact Sheet January 31, 2007
Disability is a real and growing risk and is widespread in the United States. Learn what you can do to reduce your chances of disability.
Disability Statistics
Disability can happen to anyone, it's more common than you think.
*
There are over 51 million Americans that are classified as disabled, representing 18 percent of the population.
U.S. Census Bureau, Public Information Office, November 2008
*
A disabling injury occurs every 1 second in the U.S., and a fatal injury occuring every 4 minutes.
National Safety Council, Injury Facts 2008 Ed.
*
Three in 10 workers entering the work force today will become disabled before retiring.
Social Security Administration, Fact Sheet January 31, 2007
*
Over 6.8 million workers are receiving Social Security Disability benefits, almost half are under age 50.
Social Security Administration, Fact Sheet January 31, 2007
*
While many people think that disabilities are typically caused by freak accidents, the majority of long-term absences are due to back injuries and illnesses, such as cancer and heart disease.
Council for Disability Awareness, Long-Term Disability Claims Review, 2007
*
498 Americans became disabled in the last 10 minutes .
National Safety Council, Injury Facts 2008 Ed.
Disability often keeps people out of work:
*
An illness or accident will keep 1 in 5 workers out of work for at least a year before the age of 65.
Life and Health Insurance Foundation for Education, November 2005
*
One in 7 workers can expect to be disabled for five years or more before retirement.
'Commissioners Disability Table, 1998,' Health Insurance Association of America, the New York Times, February 2000
*
The average long-term disability absence lasts 2.5 years.
Commissioner’s Individual Disability Table A
Disability can cause financial hardship:
*
71% of American employees live from paycheck to paycheck.
American Payroll Association, 'Getting Paid in America' Survey, 2008
*
Unexpected illnesses and injuries cause 350,000 personal bankruptcies each year.
'Illness and Injury as Contributors to Bankruptcy,' Health Affairs, February 2, 2005
*
Disability causes nearly 50% of all mortgage foreclosures, 2% are caused by death.
Health Affairs, The Policy Journal of the Health Sphere, 2 February 2005
*
Most American workers can't afford to become disabled:Over 70% of working Americans do not have enough savings to meet short-term emergencies.
National Investment Watch Survey, A.G. Edwards Inc. 2004
*
According to the Federal Reserve, 44% of U.S. families spend more than they earn.
Federal Reserve Board, Survey of Consumer Finances 2004
*
For the average American household, the savings rate is negative, the lowest since 1933, and credit card debt is at an all-time high - $9,300.
Parade Magazine, Is the American Dream Still Possible?, April 23, 2006
*
Over 50% of the workforce has no private pension coverage and a third have no retirement savings.
Social Security Administration, Fact Sheet 2007
Social Security and Workers' Compensation may not be adequate:
*
Close to 90% of disabling accidents and illnesses are not work related.
National Safety Council, Injury Facts 2008 Ed.
*
The average monthly Social Security Disability Insurance (SSDI) benefit is $1,062.
Social Security Administration, Fact Sheet 2009
*
Less than half - 39% - of the 2.1 million workers who applied for SSDI benefits in 2005 were approved.
Social Security Administration, Office of Disability and Income Security Programs
Most American workers are not covered by disability insurance:
*
Over 100 million workers do not have private disability income insurance.
Council for Disability Awareness, Long Term Disability Claims Review, 2005
*
70% of the private sector workforce has no long-term disability insurance.
Social Security Administration, Fact Sheet January 31, 2007
Disability is a real and growing risk and is widespread in the United States. Learn what you can do to reduce your chances of disability.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Disability Guides
Disability Insurance Guide
Disability Income Insurance Guide
This guide explains the likelihood of disability, the financial risk it poses, potential sources of disability income,disability income insurance, and what disability income insurance covers. It includes a checklist of policy features you can use to compare disability income insurance policies. This information will help you make an informed decision about whether you need individual disability income insurance and, if so, what features are most important to you.
Although frequently revised, this guide includes information that is subject to changing federal and state law. AHIP provides this booklet for guidance only. It is not a substitute for the advice of licensed insurance professionals or legal counsel.
A Missing Piece in the Financial Security Puzzle
'Disability Insurance: A Missing Piece in the Financial Security Puzzle'
This 38 page chart book research guide is intended to provide general information about your likelihood of disability and what could happen with your personal finances if you become disabled. It was prepared by America?s Health Insurance Plans (AHIP) and The Society of Actuaries.
Disability Guides
Disability Insurance Guide
Disability Income Insurance Guide
This guide explains the likelihood of disability, the financial risk it poses, potential sources of disability income,disability income insurance, and what disability income insurance covers. It includes a checklist of policy features you can use to compare disability income insurance policies. This information will help you make an informed decision about whether you need individual disability income insurance and, if so, what features are most important to you.
Although frequently revised, this guide includes information that is subject to changing federal and state law. AHIP provides this booklet for guidance only. It is not a substitute for the advice of licensed insurance professionals or legal counsel.
A Missing Piece in the Financial Security Puzzle
'Disability Insurance: A Missing Piece in the Financial Security Puzzle'
This 38 page chart book research guide is intended to provide general information about your likelihood of disability and what could happen with your personal finances if you become disabled. It was prepared by America?s Health Insurance Plans (AHIP) and The Society of Actuaries.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Investing In Stocks
Generally, stocks are divided among various categories. At the top are the stocks issued by large, well-established companies, often called blue chip or large-capitalization (large cap) stocks. Below are stocks issued by smaller companies, often divided by their size or market capitalization into mid-cap and small-cap stocks. Growth stocks are those with the potential to grow quickly in both revenues and profitability, but perhaps without the proven track record more established companies have. Some may be large and even market-leading companies in their industries, but with plans to dramatically expand their businesses. Value stocks are those that analysts feel are selling for less than the company is really worth.
Stocks can also be divided into domestic stocks (those issued by U.S. companies) and international stocks. You can also divide your money among various sectors of the market, such as technology, communication, healthcare, energy, financial services, consumer goods and basic materials, each of which may respond differently to economic changes.
Risk vs. Return for Stocks
Over the short term, investing in the stock market can pose quite a risk. After all, the market's history includes such events as the Crash of 1929 and the Depression that followed, the bear market of 1972 through 1974, and the tumble of October 1987. More recently, we saw steep but mainly temporary declines from July through October 1998, plus the housing crisis and stock market decline in 2008. Individual stocks face risks as well. A company, because of poor business conditions or poor management, could become unable to make dividend payments. Or it could fail, leaving your stock worthless. The stock market can also be volatile, fluctuating because of events happening overseas, rumors of economic changes, or a key investment advisor's pronouncement that the market, some segment of it or a particular stock is overvalued.
Over the long term, however, stocks generally earn higher and more positive returns than other financial investment. These higher returns often help offset the risks of investing in stocks.
Stocks can yield two types of return: capital return and income return. Capital return is when the market price of your investment -- a share of stock -- increases or decreases from your original purchase price. Income return is the payments -- dividends -- a company makes to its shareholders each year. Together, these make up your stock's total return.
Diversification Can Minimize Investment Risk
Among the risks you face in the stock market is the risk that you will have to sell an investment for less than you paid for it. If you buy stock in many different companies, in many different sectors of the market, you can minimize your risk. After all, it is highly unlikely that every company in which you have invested will suffer at the same time.
You can also minimize your risk by investing some money in international stocks. Historically, when the U.S. stock market has dropped, markets in Europe and Asia have dropped less, or even risen in value. Although we live in an increasingly global economy where economic events have an impact everywhere, global diversification should still be a part of your plan.
Diversification does not protect against a loss or ensure a profit.
What Role Should Stocks Play In Your Portfolio?
In general, money you won’t need for at least 10 years would be suitable to be invested primarily in stocks. Certainly younger people investing for their retirement should consider putting a substantial portion of their funds in stocks.
Investing in stocks may also be appropriate for retirees who don’t need all of their money and are trying to maximize what they will pass onto their heirs. You should seek the advice of a qualified financial advisor to determine the optimal amount you should allocate to stocks.
Ticket charges and brokerage account fees may also apply and should be carefully reviewed before any transactions occur.
This article explains some general information about various types of investment products. It is designed to initiate your interest and should not be taken as a recommendation to invest in any specific direction. Complete information about all the details of each type of investment needs to be considered before suitability can be determined.
Investors must carefully consider the investment objectives, risks, liquidity, charges and expenses, and possible surrender fees of any investment before committing to an investment. This and other information can be found in the prospectus for the specific issue involved and should be carefully read before investing. The prospectus can be obtained from the individual company issuing the security, by calling their respective office, or accessing their respective website. Your financial professional can guide you where to find the contact information for each company. A qualified registered securities representative can explain the specific characteristics of each product and guide you in selecting the investments that are most suitable for your specific needs.
Investing In Stocks
Generally, stocks are divided among various categories. At the top are the stocks issued by large, well-established companies, often called blue chip or large-capitalization (large cap) stocks. Below are stocks issued by smaller companies, often divided by their size or market capitalization into mid-cap and small-cap stocks. Growth stocks are those with the potential to grow quickly in both revenues and profitability, but perhaps without the proven track record more established companies have. Some may be large and even market-leading companies in their industries, but with plans to dramatically expand their businesses. Value stocks are those that analysts feel are selling for less than the company is really worth.
Stocks can also be divided into domestic stocks (those issued by U.S. companies) and international stocks. You can also divide your money among various sectors of the market, such as technology, communication, healthcare, energy, financial services, consumer goods and basic materials, each of which may respond differently to economic changes.
Risk vs. Return for Stocks
Over the short term, investing in the stock market can pose quite a risk. After all, the market's history includes such events as the Crash of 1929 and the Depression that followed, the bear market of 1972 through 1974, and the tumble of October 1987. More recently, we saw steep but mainly temporary declines from July through October 1998, plus the housing crisis and stock market decline in 2008. Individual stocks face risks as well. A company, because of poor business conditions or poor management, could become unable to make dividend payments. Or it could fail, leaving your stock worthless. The stock market can also be volatile, fluctuating because of events happening overseas, rumors of economic changes, or a key investment advisor's pronouncement that the market, some segment of it or a particular stock is overvalued.
Over the long term, however, stocks generally earn higher and more positive returns than other financial investment. These higher returns often help offset the risks of investing in stocks.
Stocks can yield two types of return: capital return and income return. Capital return is when the market price of your investment -- a share of stock -- increases or decreases from your original purchase price. Income return is the payments -- dividends -- a company makes to its shareholders each year. Together, these make up your stock's total return.
Diversification Can Minimize Investment Risk
Among the risks you face in the stock market is the risk that you will have to sell an investment for less than you paid for it. If you buy stock in many different companies, in many different sectors of the market, you can minimize your risk. After all, it is highly unlikely that every company in which you have invested will suffer at the same time.
You can also minimize your risk by investing some money in international stocks. Historically, when the U.S. stock market has dropped, markets in Europe and Asia have dropped less, or even risen in value. Although we live in an increasingly global economy where economic events have an impact everywhere, global diversification should still be a part of your plan.
Diversification does not protect against a loss or ensure a profit.
What Role Should Stocks Play In Your Portfolio?
In general, money you won’t need for at least 10 years would be suitable to be invested primarily in stocks. Certainly younger people investing for their retirement should consider putting a substantial portion of their funds in stocks.
Investing in stocks may also be appropriate for retirees who don’t need all of their money and are trying to maximize what they will pass onto their heirs. You should seek the advice of a qualified financial advisor to determine the optimal amount you should allocate to stocks.
Ticket charges and brokerage account fees may also apply and should be carefully reviewed before any transactions occur.
This article explains some general information about various types of investment products. It is designed to initiate your interest and should not be taken as a recommendation to invest in any specific direction. Complete information about all the details of each type of investment needs to be considered before suitability can be determined.
Investors must carefully consider the investment objectives, risks, liquidity, charges and expenses, and possible surrender fees of any investment before committing to an investment. This and other information can be found in the prospectus for the specific issue involved and should be carefully read before investing. The prospectus can be obtained from the individual company issuing the security, by calling their respective office, or accessing their respective website. Your financial professional can guide you where to find the contact information for each company. A qualified registered securities representative can explain the specific characteristics of each product and guide you in selecting the investments that are most suitable for your specific needs.
Finding A Comfortable Level Of Risk
All investments involve a trade-off between risk and return. A certain amount of risk is inevitable if you want the potential for your money to grow. The key is determining how much risk you feel comfortable with.
Know Your Risk Tolerance
Are you uncomfortable with change? Can you stick with your long-term strategy even if you face short-term losses? Will you be overly anxious the first time your investments drop in value? These are all questions to answer before developing your strategy.
Understanding your personal risk tolerance will help you create a plan you can stick with through good times and bad.
Many investors forget the risks involved with buying stocks when the market is soaring. It’s easy to be tempted by the lure of sky-high returns and to forget the possibility of a market downturn, or worse, of a bear market. Likewise, during a bear market or a sharp drop in the market, many investors suddenly become extremely risk averse. But if you create a plan built around your personal risk tolerance and stick with that plan, you will avoid having to make sudden changes in your investment strategy as the market changes.
Factors That May Affect Your Risk Tolerance
Although your personality will affect your underlying risk tolerance, your stage of life also will affect it. Are you just getting started, supporting a growing family or approaching retirement? The amount of risk you feel comfortable taking may be very different at each of these stages in your life.
Most people aren’t prepared for the risk posed by being 100% invested in stocks. But younger investors saving for retirement may be able to afford the risk of placing the bulk of their money in stocks. Why? Because in modern U.S. stock market history, investors have never lost real money investing over a 15-year period. Over a 10-year period, the odds of making money are more than 90%. So stocks have proven to be the best investment over the long term and will likely continue to be unless the U.S. economy crashes to a halt.
On the other hand, as you move closer to retirement, or if you will need a portion of your money in the short term, you may be better off foregoing the highest returns and putting your money in investments that are more secure, such as bonds or money market accounts.
But even investors with similar personalities and in the same stage of life may have different risk tolerances because of such factors as:
- Job security and future employment prospects. If you work in an industry with high turnover, you may be willing to risk less than if you are in a stable position with room for growth.
- The amount of disposable income available for investing. If you are investing millions you may be more comfortable taking risks than if you have only a few thousand dollars to work with.
- The risk of an unexpected financial burden. If you are the sole income provider for your family, your tolerance may be lower than if your spouse also earns a good living.
Thursday, 14 April 2011
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Qualified Plans
As a business owner, there are several reasons you might want to implement a qualified retirement plan for you and your employees. Not the least of which is that qualified plans provide numerous tax advantages.
* Contributions for all participants are 100% tax-deductible to the business up to certain limits.
* Annual contributions by the business are not considered taxable income to the plan participants.
* Capital gains and interest earned are deferred from taxation during the accumulation years. Income taxes are payable upon withdrawal.
* At retirement, favorable tax treatments may apply such as spreading payments over the participant's lifetime and special averaging formulas.
Non-Tax Advantages
In addition to the obvious tax advantages, there are many other, equally important, reasons to implement a qualified plan.
A qualified plan can aid in the recruiting and retention of key employees. A formal plan provides an extra incentive for a prospective employee to sign on with the company. Further, through the proper use of vesting schedules, a qualified plan can be an important employee retention tool.
Plan assets are also creditor-proof. The assets of the plan are not subject to malpractice lawsuits or bankruptcy rulings.
These and other advantages combine to help improve morale as the participants realize that their company provides the mechanism to help secure their retirement.
Types of Plans
The two most common types of qualified retirement plans are pension and profit-sharing plans. A business can also sponsor an IRA or SEP (simplified employee pension plan).
Pension Plans
There are three major types of pension plans -- defined benefit, money purchase, and target benefit.
1. A defined benefit plan is one where the retirement benefit is determined by a plan formula - usually based on years of service.
2. A money purchase pension plan is one where the plan formula specifies the percentage of each participant's compensation that will be contributed each year.
3. A target benefit plan is a hybrid. It starts out as a defined benefit which determines the benefit. Once the benefit is calculated, the plan converts to a defined contribution or money purchase plan.
Profit-Sharing Plans
The most popular type of profit-sharing plans are 401(k) plans. Elective deferrals to these plans are limited to $16,500 for 2010 and 2011. Contributions to a profit-sharing plan are not generally required, they can be discretionary each year.
Qualified Plans
As a business owner, there are several reasons you might want to implement a qualified retirement plan for you and your employees. Not the least of which is that qualified plans provide numerous tax advantages.
* Contributions for all participants are 100% tax-deductible to the business up to certain limits.
* Annual contributions by the business are not considered taxable income to the plan participants.
* Capital gains and interest earned are deferred from taxation during the accumulation years. Income taxes are payable upon withdrawal.
* At retirement, favorable tax treatments may apply such as spreading payments over the participant's lifetime and special averaging formulas.
Non-Tax Advantages
In addition to the obvious tax advantages, there are many other, equally important, reasons to implement a qualified plan.
A qualified plan can aid in the recruiting and retention of key employees. A formal plan provides an extra incentive for a prospective employee to sign on with the company. Further, through the proper use of vesting schedules, a qualified plan can be an important employee retention tool.
Plan assets are also creditor-proof. The assets of the plan are not subject to malpractice lawsuits or bankruptcy rulings.
These and other advantages combine to help improve morale as the participants realize that their company provides the mechanism to help secure their retirement.
Types of Plans
The two most common types of qualified retirement plans are pension and profit-sharing plans. A business can also sponsor an IRA or SEP (simplified employee pension plan).
Pension Plans
There are three major types of pension plans -- defined benefit, money purchase, and target benefit.
1. A defined benefit plan is one where the retirement benefit is determined by a plan formula - usually based on years of service.
2. A money purchase pension plan is one where the plan formula specifies the percentage of each participant's compensation that will be contributed each year.
3. A target benefit plan is a hybrid. It starts out as a defined benefit which determines the benefit. Once the benefit is calculated, the plan converts to a defined contribution or money purchase plan.
Profit-Sharing Plans
The most popular type of profit-sharing plans are 401(k) plans. Elective deferrals to these plans are limited to $16,500 for 2010 and 2011. Contributions to a profit-sharing plan are not generally required, they can be discretionary each year.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Retiring At An Early Age
Historically, most Americans have considered 65 to be their target retirement age. This is likely the result of past Social Security laws which allowed for a full benefit beginning at age 65.
Workers today, however, are retiring at earlier ages than in years past. In just the last few years, for example, the average age for retiring has dropped to age 63. And many younger workers are planning on retiring even earlier.
What You Give Up
This trend towards retiring earlier is not without its costs. Here are a few of the financial results of early retirement which must be considered carefully:
* Not only are Social Security benefits reduced for early retirement, but the 'full benefit' age is being gradually increased to age 67.
* Retiring early often eliminates ones greatest earning years and the resulting savings that would have taken place in these years.
* The annual benefit provided by employer sponsored defined benefit pension plans is usually based on a combination of years of service and your ending salary. Both are reduced by early retirement.
* Health care costs tend to increase for retired individuals. Benefits that were once paid for by employer sponsored coverage often become the responsibility of the retiree.
Consider Your Options Carefully
Choosing when to retire is one of the most important financial decisions you will make. Consider your options carefully. Careful planning can help ensure you a happy and financially independent retirement.
Retiring At An Early Age
Historically, most Americans have considered 65 to be their target retirement age. This is likely the result of past Social Security laws which allowed for a full benefit beginning at age 65.
Workers today, however, are retiring at earlier ages than in years past. In just the last few years, for example, the average age for retiring has dropped to age 63. And many younger workers are planning on retiring even earlier.
What You Give Up
This trend towards retiring earlier is not without its costs. Here are a few of the financial results of early retirement which must be considered carefully:
* Not only are Social Security benefits reduced for early retirement, but the 'full benefit' age is being gradually increased to age 67.
* Retiring early often eliminates ones greatest earning years and the resulting savings that would have taken place in these years.
* The annual benefit provided by employer sponsored defined benefit pension plans is usually based on a combination of years of service and your ending salary. Both are reduced by early retirement.
* Health care costs tend to increase for retired individuals. Benefits that were once paid for by employer sponsored coverage often become the responsibility of the retiree.
Consider Your Options Carefully
Choosing when to retire is one of the most important financial decisions you will make. Consider your options carefully. Careful planning can help ensure you a happy and financially independent retirement.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Roth IRA Conversion Review
If you have existing retirement assets in a traditional IRA, you may want to consider converting those assets to a Roth IRA. Possible benefits of converting include tax-free distributions at retirement, no required minimum distributions at age 70 ½, and leaving income tax-free assets to your heirs in the event of your death.
While Roth conversions are not subject to early distribution penalties, they are subject to income tax.
Any earnings distributed prior to age 59 1/2 would be subject to penalty and tax.
Your tax-free potential is maximized if you pay the taxes from your current income or personal savings, not your IRA. Make sure you have the cash to pay the taxes required to convert to a Roth IRA.
Assets converted to a Roth IRA must be invested for at least five years before taking distributions or a significant income tax penalty may apply.
For tax years starting in 2010, the $100,000 modified AGI limit for conversions to Roth IRAs is eliminated and married tax payers filing a seperate return can now convert amounts to a Roth IRA
Roth IRA Conversion Review
If you have existing retirement assets in a traditional IRA, you may want to consider converting those assets to a Roth IRA. Possible benefits of converting include tax-free distributions at retirement, no required minimum distributions at age 70 ½, and leaving income tax-free assets to your heirs in the event of your death.
While Roth conversions are not subject to early distribution penalties, they are subject to income tax.
Any earnings distributed prior to age 59 1/2 would be subject to penalty and tax.
Your tax-free potential is maximized if you pay the taxes from your current income or personal savings, not your IRA. Make sure you have the cash to pay the taxes required to convert to a Roth IRA.
Assets converted to a Roth IRA must be invested for at least five years before taking distributions or a significant income tax penalty may apply.
For tax years starting in 2010, the $100,000 modified AGI limit for conversions to Roth IRAs is eliminated and married tax payers filing a seperate return can now convert amounts to a Roth IRA
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Roth IRA Conversion Review
If you have existing retirement assets in a traditional IRA, you may want to consider converting those assets to a Roth IRA. Possible benefits of converting include tax-free distributions at retirement, no required minimum distributions at age 70 ½, and leaving income tax-free assets to your heirs in the event of your death.
While Roth conversions are not subject to early distribution penalties, they are subject to income tax.
Any earnings distributed prior to age 59 1/2 would be subject to penalty and tax.
Your tax-free potential is maximized if you pay the taxes from your current income or personal savings, not your IRA. Make sure you have the cash to pay the taxes required to convert to a Roth IRA.
Assets converted to a Roth IRA must be invested for at least five years before taking distributions or a significant income tax penalty may apply.
For tax years starting in 2010, the $100,000 modified AGI limit for conversions to Roth IRAs is eliminated and married tax payers filing a seperate return can now convert amounts to a Roth IRA
Roth IRA Conversion Review
If you have existing retirement assets in a traditional IRA, you may want to consider converting those assets to a Roth IRA. Possible benefits of converting include tax-free distributions at retirement, no required minimum distributions at age 70 ½, and leaving income tax-free assets to your heirs in the event of your death.
While Roth conversions are not subject to early distribution penalties, they are subject to income tax.
Any earnings distributed prior to age 59 1/2 would be subject to penalty and tax.
Your tax-free potential is maximized if you pay the taxes from your current income or personal savings, not your IRA. Make sure you have the cash to pay the taxes required to convert to a Roth IRA.
Assets converted to a Roth IRA must be invested for at least five years before taking distributions or a significant income tax penalty may apply.
For tax years starting in 2010, the $100,000 modified AGI limit for conversions to Roth IRAs is eliminated and married tax payers filing a seperate return can now convert amounts to a Roth IRA
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Traditional and Roth IRAs - Which Is Right For You?
There is a wide variety of tax-advantaged ways for individuals to save for retirement. Because of their income tax benefits and because IRAs are so easily established, they have become one of the most often used retirement savings vehicles available today. Recent tax laws, however, have created three very unique types of IRAs ñ the Traditional IRA, the Non-Deductible IRA and the newer Roth IRA.
Traditional IRA
Traditional IRA - Individual Retirement Account, is a tax-deferred investment and savings account that acts as a personal retirement fund for people with employment income. The maximum contribution is $5000 annually in 2010 and 2011 with an additional $1000 if over 50 years old. There are two primary types of IRAs: Regular and Spousal. Regular IRAs are designed for individuals with earned income, while Spousal IRAs are designed for married couples in which only one of the spouses has earned income. You have the option of investing in a wide variety of investments. (See IRS Publication 590).
For Regular and Spousal IRAs:
Your contribution is fully tax-deductible if:
* Neither you nor your spouse participated in a company-sponsored retirement plan.
* You contributed to a company-sponsored retirement plan: are single and earned less than $56,000 in 2010 and 2011 or married and filing jointly and had a joint income of less than $89,000 in 2010 and 2011.
Your contribution is partially tax-deductible if:
* You contributed to a company-sponsored retirement plan: are single and earned $56,000 but less than $66,000 in 2010 and 2011 or married and filing jointly and had a joint income of $89,000-$109,000 in 2010 and 2011.
Your contribution is not tax-deductible if:
* You contributed to a company-sponsored retirement plan: either single and earned more than $66,000 in 2010 and 2011 or married and filing jointly and had a joint income of more than $109,000 in 2010 and 2011.
Non-Deductible IRA
Similar to the Traditional IRA, the Non-Deductible IRA allows a working individual under the age of 70 ½ to contribute up to $5,000 of compensation each year. Unlike the Traditional IRA, the Non-Deductible IRA contribution is made with ìafter-taxî dollars ñ the income tax deduction allowed the Traditional IRA is not available to the Non-Deductible IRA. For the most part, the Non-Deductible IRA is utilized by those who do not qualify for the Traditional IRA, but can benefit from the “tax deferral” of earnings allowed with the Non-Deductible IRA.
Roth IRA
Roth IRA - is an individual retirement account with a maximum contribution of:
* For 2009 and beyond the maximum contribution is $5,000 with additional $1,000 contribution.
* Contributions to a Roth IRA are not tax-deductible. However, the investments grow tax free and earnings may be withdrawn tax free after 59 ½ as long as the account has been open 5 years.
* Eligibility for contributions to a Roth IRA is phased out for married couples filing jointly with an AGI between $167,000 and $177,000 for 2010 and 2011 and single individuals with an AGI between $105,000 and 120,000 for 2010 and 2011.
* See IRS Publication 590
To Help Decide Which IRA Is Best For You...
Many factors must be considered, such as current and future income tax rates, investment returns, what the money will be used for and when, income, marital status, and the availability of a retirement plan at work. We can assist you in examining your personal situation to help you tailor your retirement plan to your individual needs.
Traditional and Roth IRAs - Which Is Right For You?
There is a wide variety of tax-advantaged ways for individuals to save for retirement. Because of their income tax benefits and because IRAs are so easily established, they have become one of the most often used retirement savings vehicles available today. Recent tax laws, however, have created three very unique types of IRAs ñ the Traditional IRA, the Non-Deductible IRA and the newer Roth IRA.
Traditional IRA
Traditional IRA - Individual Retirement Account, is a tax-deferred investment and savings account that acts as a personal retirement fund for people with employment income. The maximum contribution is $5000 annually in 2010 and 2011 with an additional $1000 if over 50 years old. There are two primary types of IRAs: Regular and Spousal. Regular IRAs are designed for individuals with earned income, while Spousal IRAs are designed for married couples in which only one of the spouses has earned income. You have the option of investing in a wide variety of investments. (See IRS Publication 590).
For Regular and Spousal IRAs:
Your contribution is fully tax-deductible if:
* Neither you nor your spouse participated in a company-sponsored retirement plan.
* You contributed to a company-sponsored retirement plan: are single and earned less than $56,000 in 2010 and 2011 or married and filing jointly and had a joint income of less than $89,000 in 2010 and 2011.
Your contribution is partially tax-deductible if:
* You contributed to a company-sponsored retirement plan: are single and earned $56,000 but less than $66,000 in 2010 and 2011 or married and filing jointly and had a joint income of $89,000-$109,000 in 2010 and 2011.
Your contribution is not tax-deductible if:
* You contributed to a company-sponsored retirement plan: either single and earned more than $66,000 in 2010 and 2011 or married and filing jointly and had a joint income of more than $109,000 in 2010 and 2011.
Non-Deductible IRA
Similar to the Traditional IRA, the Non-Deductible IRA allows a working individual under the age of 70 ½ to contribute up to $5,000 of compensation each year. Unlike the Traditional IRA, the Non-Deductible IRA contribution is made with ìafter-taxî dollars ñ the income tax deduction allowed the Traditional IRA is not available to the Non-Deductible IRA. For the most part, the Non-Deductible IRA is utilized by those who do not qualify for the Traditional IRA, but can benefit from the “tax deferral” of earnings allowed with the Non-Deductible IRA.
Roth IRA
Roth IRA - is an individual retirement account with a maximum contribution of:
* For 2009 and beyond the maximum contribution is $5,000 with additional $1,000 contribution.
* Contributions to a Roth IRA are not tax-deductible. However, the investments grow tax free and earnings may be withdrawn tax free after 59 ½ as long as the account has been open 5 years.
* Eligibility for contributions to a Roth IRA is phased out for married couples filing jointly with an AGI between $167,000 and $177,000 for 2010 and 2011 and single individuals with an AGI between $105,000 and 120,000 for 2010 and 2011.
* See IRS Publication 590
To Help Decide Which IRA Is Best For You...
Many factors must be considered, such as current and future income tax rates, investment returns, what the money will be used for and when, income, marital status, and the availability of a retirement plan at work. We can assist you in examining your personal situation to help you tailor your retirement plan to your individual needs.
Health Insurance
Welcome to the health insurance section of our Web Site. This section covers the basics of health insurance. If you would like to get an individual health insurance quote or a group health insurance quote simply complete and submit the appropriate form.
http://www.leebenhamassociates.com
http://www.leebenhamassociates.com
Wednesday, 13 April 2011
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Taxation On The Sale Of A Home
For most of us, our home represents our largest asset. Over time, the management of this asset can make a big difference in our overall financial outlook. One of the largest planning opportunities home ownership brings is the favorable tax treatment afforded the sale of a primary residence.
Home Sale as Capital Gain
The gain on the sale of a home is considered a gain on the sale of a capital asset. Any taxable profit you make is subject to a maximum long-term capital gain rate of 15% (5% for gains in the 10% to 15% federal income tax brackets) if you owned the house for more than 12 months. Gain on the sale of a home may only be taxable to the extent it exceeds $250,000 ($500,000 for joint filers) if certain conditions discussed below are met.
To determine your profit (gain), you subtract your basis from the sale price minus all costs and commissions. For instance, if you sell a house for $250,000, and must pay your broker 6% of the sale price -- or $15,000 -- your sale price for determining capital gain tax is $235,000 ($250,000 minus $15,000).
Say you bought that house 20 years ago, for $35,000. You have since redone the kitchen and bathrooms, put in new windows, added a bedroom, and a new roof. Your basis in the house is $35,000 plus the cost of all of the capital improvements you have made, providing you have paperwork to verify the costs. Let's assume the total cost of those improvements over the 20 years you owned the home is $40,000. In such a case, your basis would be $75,000. Your capital gain would be $235,000 minus $75,000, or $160,000. If you are in the 28% federal tax bracket or higher, your capital gain tax on your home sale would be $32,000 unless you use the principal residence exclusion.
The Primary Residence Exclusion
A $250,000 exclusion for single filers ($500,000 for joint filers) is now available to all taxpayers. You can claim the exclusion once every 2 years. To be eligible, you must have owned the residence and occupied it as a principal residence for at least 2 of the 5 years before the sale or exchange. If you fail to meet these requirements by reason of a change in place of employment, health, or other unforeseen circumstances you can exclude the fraction of the $250,000 ($500,000 if married filing a joint return) equal to the fraction of 2 years that these requirements are met.
Taxation On The Sale Of A Home
For most of us, our home represents our largest asset. Over time, the management of this asset can make a big difference in our overall financial outlook. One of the largest planning opportunities home ownership brings is the favorable tax treatment afforded the sale of a primary residence.
Home Sale as Capital Gain
The gain on the sale of a home is considered a gain on the sale of a capital asset. Any taxable profit you make is subject to a maximum long-term capital gain rate of 15% (5% for gains in the 10% to 15% federal income tax brackets) if you owned the house for more than 12 months. Gain on the sale of a home may only be taxable to the extent it exceeds $250,000 ($500,000 for joint filers) if certain conditions discussed below are met.
To determine your profit (gain), you subtract your basis from the sale price minus all costs and commissions. For instance, if you sell a house for $250,000, and must pay your broker 6% of the sale price -- or $15,000 -- your sale price for determining capital gain tax is $235,000 ($250,000 minus $15,000).
Say you bought that house 20 years ago, for $35,000. You have since redone the kitchen and bathrooms, put in new windows, added a bedroom, and a new roof. Your basis in the house is $35,000 plus the cost of all of the capital improvements you have made, providing you have paperwork to verify the costs. Let's assume the total cost of those improvements over the 20 years you owned the home is $40,000. In such a case, your basis would be $75,000. Your capital gain would be $235,000 minus $75,000, or $160,000. If you are in the 28% federal tax bracket or higher, your capital gain tax on your home sale would be $32,000 unless you use the principal residence exclusion.
The Primary Residence Exclusion
A $250,000 exclusion for single filers ($500,000 for joint filers) is now available to all taxpayers. You can claim the exclusion once every 2 years. To be eligible, you must have owned the residence and occupied it as a principal residence for at least 2 of the 5 years before the sale or exchange. If you fail to meet these requirements by reason of a change in place of employment, health, or other unforeseen circumstances you can exclude the fraction of the $250,000 ($500,000 if married filing a joint return) equal to the fraction of 2 years that these requirements are met.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Tax Aspects Of Working At Home
How much of their home office expenses can be deducted is one of the most misjudged tax questions faced by home workers. The reality of home office expense deductibility is much more complex than the common perception.
When Can Home Office Expenses Be Deducted?
The costs associated with maintaining a home office can be deducted only if strict IRS guidelines are met -- generally that the office is used exclusively for business purposes.
The Taxpayer Relief Act of 1997 has eased the requirements for determining if the costs associated with a home office can be deducted. The new law states that a home office qualifies as a 'principal place of business' if (1) the taxpayer uses the office to conduct administrative or management activities of a trade or business and (2) there is no other fixed location of the trade or business where the taxpayer conducts substantial administrative or management activities of the trade or business.
Deductions will continue to be allowed for a home office meeting the above two-part test only if the taxpayer uses the office exclusively on a regular basis as a place of business and, in the case of an employee, only if such exclusive use is for the employer's convenience.
Home Office Deduction Limits
The home office deduction is limited to the gross income from the activity, reduced by expenses that would otherwise be deductible (such as mortgage interest and taxes) and all other expenses related to the activities that are not house-related. A deduction isn't allowed to the extent that it creates or increases a net loss from the activity. Any disallowed deduction may be carried over to future years.
Tax Aspects Of Working At Home
How much of their home office expenses can be deducted is one of the most misjudged tax questions faced by home workers. The reality of home office expense deductibility is much more complex than the common perception.
When Can Home Office Expenses Be Deducted?
The costs associated with maintaining a home office can be deducted only if strict IRS guidelines are met -- generally that the office is used exclusively for business purposes.
The Taxpayer Relief Act of 1997 has eased the requirements for determining if the costs associated with a home office can be deducted. The new law states that a home office qualifies as a 'principal place of business' if (1) the taxpayer uses the office to conduct administrative or management activities of a trade or business and (2) there is no other fixed location of the trade or business where the taxpayer conducts substantial administrative or management activities of the trade or business.
Deductions will continue to be allowed for a home office meeting the above two-part test only if the taxpayer uses the office exclusively on a regular basis as a place of business and, in the case of an employee, only if such exclusive use is for the employer's convenience.
Home Office Deduction Limits
The home office deduction is limited to the gross income from the activity, reduced by expenses that would otherwise be deductible (such as mortgage interest and taxes) and all other expenses related to the activities that are not house-related. A deduction isn't allowed to the extent that it creates or increases a net loss from the activity. Any disallowed deduction may be carried over to future years.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Tax Aspects Of Working At Home
How much of their home office expenses can be deducted is one of the most misjudged tax questions faced by home workers. The reality of home office expense deductibility is much more complex than the common perception.
When Can Home Office Expenses Be Deducted?
The costs associated with maintaining a home office can be deducted only if strict IRS guidelines are met -- generally that the office is used exclusively for business purposes.
The Taxpayer Relief Act of 1997 has eased the requirements for determining if the costs associated with a home office can be deducted. The new law states that a home office qualifies as a 'principal place of business' if (1) the taxpayer uses the office to conduct administrative or management activities of a trade or business and (2) there is no other fixed location of the trade or business where the taxpayer conducts substantial administrative or management activities of the trade or business.
Deductions will continue to be allowed for a home office meeting the above two-part test only if the taxpayer uses the office exclusively on a regular basis as a place of business and, in the case of an employee, only if such exclusive use is for the employer's convenience.
Home Office Deduction Limits
The home office deduction is limited to the gross income from the activity, reduced by expenses that would otherwise be deductible (such as mortgage interest and taxes) and all other expenses related to the activities that are not house-related. A deduction isn't allowed to the extent that it creates or increases a net loss from the activity. Any disallowed deduction may be carried over to future years.
- Sent using Google Toolbar"
Tax Aspects Of Working At Home
How much of their home office expenses can be deducted is one of the most misjudged tax questions faced by home workers. The reality of home office expense deductibility is much more complex than the common perception.
When Can Home Office Expenses Be Deducted?
The costs associated with maintaining a home office can be deducted only if strict IRS guidelines are met -- generally that the office is used exclusively for business purposes.
The Taxpayer Relief Act of 1997 has eased the requirements for determining if the costs associated with a home office can be deducted. The new law states that a home office qualifies as a 'principal place of business' if (1) the taxpayer uses the office to conduct administrative or management activities of a trade or business and (2) there is no other fixed location of the trade or business where the taxpayer conducts substantial administrative or management activities of the trade or business.
Deductions will continue to be allowed for a home office meeting the above two-part test only if the taxpayer uses the office exclusively on a regular basis as a place of business and, in the case of an employee, only if such exclusive use is for the employer's convenience.
Home Office Deduction Limits
The home office deduction is limited to the gross income from the activity, reduced by expenses that would otherwise be deductible (such as mortgage interest and taxes) and all other expenses related to the activities that are not house-related. A deduction isn't allowed to the extent that it creates or increases a net loss from the activity. Any disallowed deduction may be carried over to future years.
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Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Taking The Mystery Out Of Capital Gains
Under the recently enacted Jobs and Growth Tax Relief Reconciliation Act of 2003, generating long term capital gains or acquiring dividend income could be two of your big opportunities to save on taxes. Be aware that the Act of 2003 created “sunset provisions”, however, meaning that the tax rates on both capital gains and dividends may go up again unless congress acts to extend the rates. The lower rates are currently only legislated through 2010.
Taxation of Long-Term Capital Gains
The maximum tax rate on net capital gain is 15% for most taxpayers, and 5% for taxpayers in the 10% and 15% tax rate brackets for property sold or otherwise disposed of after May 5, 2003 (and installment sale payments received after that date). The reduced rate applies for both the regular tax and the alternative minimum tax.
(Note: The higher rates that apply to unrecaptured section 1250 gain, collectibles gain, and section 1202 gain have not changed.)
Tax Treatment of Capital Losses
If you incur losses from the sale of a capital asset, you can deduct those losses to the extent they equal capital gains from the sale of other assets. If your losses exceed your gains, you can only deduct up to $3,000 ($1,500 if you are married and filing separately) of capital losses in a tax year against other income on Form 1040. You can carry losses forward and continue to deduct $3,000 ($1,500 if filing separately) annually against other income until your losses are used up.
- Sent using Google Toolbar"
Taking The Mystery Out Of Capital Gains
Under the recently enacted Jobs and Growth Tax Relief Reconciliation Act of 2003, generating long term capital gains or acquiring dividend income could be two of your big opportunities to save on taxes. Be aware that the Act of 2003 created “sunset provisions”, however, meaning that the tax rates on both capital gains and dividends may go up again unless congress acts to extend the rates. The lower rates are currently only legislated through 2010.
Taxation of Long-Term Capital Gains
The maximum tax rate on net capital gain is 15% for most taxpayers, and 5% for taxpayers in the 10% and 15% tax rate brackets for property sold or otherwise disposed of after May 5, 2003 (and installment sale payments received after that date). The reduced rate applies for both the regular tax and the alternative minimum tax.
(Note: The higher rates that apply to unrecaptured section 1250 gain, collectibles gain, and section 1202 gain have not changed.)
Tax Treatment of Capital Losses
If you incur losses from the sale of a capital asset, you can deduct those losses to the extent they equal capital gains from the sale of other assets. If your losses exceed your gains, you can only deduct up to $3,000 ($1,500 if you are married and filing separately) of capital losses in a tax year against other income on Form 1040. You can carry losses forward and continue to deduct $3,000 ($1,500 if filing separately) annually against other income until your losses are used up.
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Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Gift Tax Fundamentals
The federal government imposes a substantial tax on gifts of money or property above certain levels. Without such a tax someone with a sizable estate could give away a large portion of their property before death and escape death taxes altogether. For this reason, the gift tax acts more or less as a backstop to the estate tax. And yet, few people actually pay a gift tax during their lifetime. A gift program can substantially reduce overall transfer taxes; however, it requires good planning and a commitment to proceed with the gifts.
Advantages of Gift Giving
You may have many reasons for making gifts -- for some gift giving has personal motives, or others, tax planning motives. Most often you will want your gift giving program to accomplish both personal and tax motives. A few reasons for considering a gift giving plan include:
* Assist someone in immediate financial need
* Provide financial security for the recipient
* Give the recipient experience in handling money
* See the recipient enjoy the property
* Take advantage of annual exclusion
* Paying gift tax to reduce overall taxes
* Giving tax advantages gifts to minors
Gift Tax Annual Exclusion
Probably the easiest way to reduce the size of your taxable estate is to make regular use of the gift tax annual exclusion. You may give up to $13,000 each year to as many persons as you want without incurring any gift tax. If your spouse joins in making the gift (by consenting on a gift tax return), you may (as a couple) give $26,000 to each person annually without any gift tax liability.
Unlimited Gift Tax Exclusion
In addition to the $13,000 exclusion, there is an unlimited gift tax exclusion available to pay someone's medical or educational expenses. The beneficiary does not have to be your dependent or even related to you, although payment of a grandchild's expenses is perhaps the most common use of the exclusion. You must make the payment directly to the institution providing the service -- the beneficiary himself or herself must not receive the payment.
Gift Programs and Your Estate
Use of the gift tax exclusion in a single year may not affect your estate tax situation significantly, but you can reduce your taxable estate substantially through a planned annual program of $13,000 (or $26,000 if you are married) gifts. All gifts within the exclusion limits are protected from federal estate taxes.
In addition to reducing the size of your estate, another major tax advantage of making a gift is the removal of future appreciation in the property's value from your estate. Suppose that you give stocks worth $50,000 to your children now. If you die in 10 years and the stock is worth $130,000, your estate will escape tax on the $80,000 appreciation.
- Sent using Google Toolbar"
Gift Tax Fundamentals
The federal government imposes a substantial tax on gifts of money or property above certain levels. Without such a tax someone with a sizable estate could give away a large portion of their property before death and escape death taxes altogether. For this reason, the gift tax acts more or less as a backstop to the estate tax. And yet, few people actually pay a gift tax during their lifetime. A gift program can substantially reduce overall transfer taxes; however, it requires good planning and a commitment to proceed with the gifts.
Advantages of Gift Giving
You may have many reasons for making gifts -- for some gift giving has personal motives, or others, tax planning motives. Most often you will want your gift giving program to accomplish both personal and tax motives. A few reasons for considering a gift giving plan include:
* Assist someone in immediate financial need
* Provide financial security for the recipient
* Give the recipient experience in handling money
* See the recipient enjoy the property
* Take advantage of annual exclusion
* Paying gift tax to reduce overall taxes
* Giving tax advantages gifts to minors
Gift Tax Annual Exclusion
Probably the easiest way to reduce the size of your taxable estate is to make regular use of the gift tax annual exclusion. You may give up to $13,000 each year to as many persons as you want without incurring any gift tax. If your spouse joins in making the gift (by consenting on a gift tax return), you may (as a couple) give $26,000 to each person annually without any gift tax liability.
Unlimited Gift Tax Exclusion
In addition to the $13,000 exclusion, there is an unlimited gift tax exclusion available to pay someone's medical or educational expenses. The beneficiary does not have to be your dependent or even related to you, although payment of a grandchild's expenses is perhaps the most common use of the exclusion. You must make the payment directly to the institution providing the service -- the beneficiary himself or herself must not receive the payment.
Gift Programs and Your Estate
Use of the gift tax exclusion in a single year may not affect your estate tax situation significantly, but you can reduce your taxable estate substantially through a planned annual program of $13,000 (or $26,000 if you are married) gifts. All gifts within the exclusion limits are protected from federal estate taxes.
In addition to reducing the size of your estate, another major tax advantage of making a gift is the removal of future appreciation in the property's value from your estate. Suppose that you give stocks worth $50,000 to your children now. If you die in 10 years and the stock is worth $130,000, your estate will escape tax on the $80,000 appreciation.
- Sent using Google Toolbar"
Benham and Associates Trusted Insurance Professionals
Attention AgentsIf you are not making at least 125% First Year Life Commissions Call Today Benham and Associates is networked with the top IMO’s in the industry. Our goal is to get the agents that use our services the support and compensation they deserve. Because of our unique relationships with the IMO’s we are able to recommend the proper IMO for your agency insuring you get the compensation and support you deserve. Best of all its free!! Call today and find out how much your worth.
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Sunday, 10 April 2011
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Year End Financial Planning
The best financial decisions are made with the benefit of time, thoughtful consideration and trusted professional advice. As tax time once again approaches, there are many things you can do to give you the flexibility to make the best long term financial decisions and prepare to minimize expenses, taxes and the headache of organizing your finances at the last minute.
Organize Your Tax Records Early
In preparing for this year’s tax filing you should begin to organize tax records including year end investment statements, capital gains and losses from asset sales, transaction records from real estate transactions, interest and dividend records for the year (1099s), payroll and withholding statements (W-2s), records corresponding with deductible expenses such as property taxes and insurance, business income and expense records, etc.
Review Your Insurance Coverages
At least once each year you should gather your insurance records together and review the adequacy of your coverages. Be sure to evaluate all coverages including life insurance, disability insurance, homeowners insurance, auto insurance, liability insurance, renters insurance, etc.
Store Your Documents
All your difficult to replace legal and financial documents should be stored in a safe and fireproof location. Consider renting a safe-deposit box at your local bank or credit union, or purchase a fireproof lockbox from your local office supplies outlet. Documents you should store include wills, trusts, powers of attorney, titles of ownership (your home, cars, etc.), Social Security cards, birth certificates, photographic negatives, list of personal possessions, etc.
Review Your Estate Plans
Does your will still fairly reflect your personal wishes for the distribution of your assets? Have the personal or financial circumstances or your beneficiaries significantly changed over the past year? Have you considered a gifting program to move assets from your estate to those you wish to enrich? Have you reviewed your estate plan in light of changing estate tax laws or changes in your personal financial position?
Prepare to Minimize Your Income Tax Liability
Consider estimating your federal and state income tax liabilities periodically to ensure proper withholding levels and quarterly estimated tax payments. This will prove especially important if you sell significant assets during the year or experience large swings in your income level. Consider maximizing your deductible expenses and savings such as qualified retirement plans, charitable giving, deductible expenses, etc. Be careful to meet all IRS dates and deadlines for withholdings and filings.
Review and Improve Your Balance Sheet
Consider increasing your long-term saving and decreasing your debt. If you are not maximizing your tax-deductible employer sponsored retirement plans and your individual tax-advantaged saving plans you should evaluate your monthly cash flows with a focus on increasing your monthly saving. The other side of your balance sheet, the liabilities side, is equally important in maintaining a healthy personal financial position. Every effort should be made to completely eliminate the need for short-term debt (credit cards and debit balances) and to efficiently manager your long-term debt (mortgages).
Simplify Your Financial Holdings
Simplifying your financial holdings can eliminate much of the drudgery of financial record keeping. If you have credit cards you do not use, cancel them and eliminate the extra statements. Consider consolidating your credit lines to the greatest extent possible. Review your investment holdings for non-performing assets or redundant accounts and consolidate your investments.
Summary
Although you may be able to think of more exciting ways to spend your time, organizing your financial records and planning your financial future will pay huge dividends in the long run. Do what you can on your own and seek professional advice from a trusted advisor where additional work needs to be done.
Year End Financial Planning
The best financial decisions are made with the benefit of time, thoughtful consideration and trusted professional advice. As tax time once again approaches, there are many things you can do to give you the flexibility to make the best long term financial decisions and prepare to minimize expenses, taxes and the headache of organizing your finances at the last minute.
Organize Your Tax Records Early
In preparing for this year’s tax filing you should begin to organize tax records including year end investment statements, capital gains and losses from asset sales, transaction records from real estate transactions, interest and dividend records for the year (1099s), payroll and withholding statements (W-2s), records corresponding with deductible expenses such as property taxes and insurance, business income and expense records, etc.
Review Your Insurance Coverages
At least once each year you should gather your insurance records together and review the adequacy of your coverages. Be sure to evaluate all coverages including life insurance, disability insurance, homeowners insurance, auto insurance, liability insurance, renters insurance, etc.
Store Your Documents
All your difficult to replace legal and financial documents should be stored in a safe and fireproof location. Consider renting a safe-deposit box at your local bank or credit union, or purchase a fireproof lockbox from your local office supplies outlet. Documents you should store include wills, trusts, powers of attorney, titles of ownership (your home, cars, etc.), Social Security cards, birth certificates, photographic negatives, list of personal possessions, etc.
Review Your Estate Plans
Does your will still fairly reflect your personal wishes for the distribution of your assets? Have the personal or financial circumstances or your beneficiaries significantly changed over the past year? Have you considered a gifting program to move assets from your estate to those you wish to enrich? Have you reviewed your estate plan in light of changing estate tax laws or changes in your personal financial position?
Prepare to Minimize Your Income Tax Liability
Consider estimating your federal and state income tax liabilities periodically to ensure proper withholding levels and quarterly estimated tax payments. This will prove especially important if you sell significant assets during the year or experience large swings in your income level. Consider maximizing your deductible expenses and savings such as qualified retirement plans, charitable giving, deductible expenses, etc. Be careful to meet all IRS dates and deadlines for withholdings and filings.
Review and Improve Your Balance Sheet
Consider increasing your long-term saving and decreasing your debt. If you are not maximizing your tax-deductible employer sponsored retirement plans and your individual tax-advantaged saving plans you should evaluate your monthly cash flows with a focus on increasing your monthly saving. The other side of your balance sheet, the liabilities side, is equally important in maintaining a healthy personal financial position. Every effort should be made to completely eliminate the need for short-term debt (credit cards and debit balances) and to efficiently manager your long-term debt (mortgages).
Simplify Your Financial Holdings
Simplifying your financial holdings can eliminate much of the drudgery of financial record keeping. If you have credit cards you do not use, cancel them and eliminate the extra statements. Consider consolidating your credit lines to the greatest extent possible. Review your investment holdings for non-performing assets or redundant accounts and consolidate your investments.
Summary
Although you may be able to think of more exciting ways to spend your time, organizing your financial records and planning your financial future will pay huge dividends in the long run. Do what you can on your own and seek professional advice from a trusted advisor where additional work needs to be done.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
The Time Value Of Money
One well-known fact of economic life is that a dollar received today is worth more than a dollar received a year from now.
Time and Money
The relationship between time and money provides the foundation for virtually every financial decision you will make. Whether you are saving money for a future event or considering a loan to pay for a current financial need, you will be greatly impacted by the time value of money.
This is true for two main reasons. First, a dollar received today can earn interest or appreciate in an investment account, thus increasing it's value with time. Second, inflation impacts the value of your dollar. As the price of goods increases with time due to inflation, the value (or purchasing power) of your dollar decreases.
Time Value Tips
Whether you are saving for retirement or a down payment on a home, college funding or dependant care needs, you will be greatly impacted by a few simple time value tips.
Time Value Tip #1: The longer you have to prepare, the less your objectives will cost. Assuming that you are able to invest your savings and earn a positive return, you will always be better off saving for your goals in advance. Not only will your savings earn interest, but the interest you earn will also begin to earn interest. This is called 'compounding' and was referred to by Albert Einstein as the 'ninth wonder of the world.'
Time Value Tip #2:The higher the interest rate you are able to secure on your savings, the faster your money will grow. Generally speaking, the amount of risk you are willing to take on your investments may help determine your estimated long term rate of return. The longer you have to save for your goals, the more risk you take on your investments, and the greater potential rate of return you should expect. There is no guarantee that taking on more risk will lead to higher return potential.
Time Value Tip #3: It is usually better to postpone paying taxes on your investment proceeds. When you have the choice, you should usually choose to delay paying taxes on investment proceeds as long as possible. This is because as long as you have your investment's growth in your hands, you can continue to earn more interest on that potential for growth (see 'compounding' above.) Once you pay the taxes, you will never earn interest on those lost funds again. One way to postpone the payment of taxes is to invest in 'growth' oriented assets, as opposed to interest oriented assets. Another is to use qualified retirement plans whenever possible. There is no guarantee any objective will be met.
Time Value Tip #4: Factor inflation into your long term plans. When preparing for long-term financial objectives, you must factor inflation into your plan. Planning for such cost increases will help ensure that your saving level is sufficient to meet your objectives.
The Time Value Of Money
One well-known fact of economic life is that a dollar received today is worth more than a dollar received a year from now.
Time and Money
The relationship between time and money provides the foundation for virtually every financial decision you will make. Whether you are saving money for a future event or considering a loan to pay for a current financial need, you will be greatly impacted by the time value of money.
This is true for two main reasons. First, a dollar received today can earn interest or appreciate in an investment account, thus increasing it's value with time. Second, inflation impacts the value of your dollar. As the price of goods increases with time due to inflation, the value (or purchasing power) of your dollar decreases.
Time Value Tips
Whether you are saving for retirement or a down payment on a home, college funding or dependant care needs, you will be greatly impacted by a few simple time value tips.
Time Value Tip #1: The longer you have to prepare, the less your objectives will cost. Assuming that you are able to invest your savings and earn a positive return, you will always be better off saving for your goals in advance. Not only will your savings earn interest, but the interest you earn will also begin to earn interest. This is called 'compounding' and was referred to by Albert Einstein as the 'ninth wonder of the world.'
Time Value Tip #2:The higher the interest rate you are able to secure on your savings, the faster your money will grow. Generally speaking, the amount of risk you are willing to take on your investments may help determine your estimated long term rate of return. The longer you have to save for your goals, the more risk you take on your investments, and the greater potential rate of return you should expect. There is no guarantee that taking on more risk will lead to higher return potential.
Time Value Tip #3: It is usually better to postpone paying taxes on your investment proceeds. When you have the choice, you should usually choose to delay paying taxes on investment proceeds as long as possible. This is because as long as you have your investment's growth in your hands, you can continue to earn more interest on that potential for growth (see 'compounding' above.) Once you pay the taxes, you will never earn interest on those lost funds again. One way to postpone the payment of taxes is to invest in 'growth' oriented assets, as opposed to interest oriented assets. Another is to use qualified retirement plans whenever possible. There is no guarantee any objective will be met.
Time Value Tip #4: Factor inflation into your long term plans. When preparing for long-term financial objectives, you must factor inflation into your plan. Planning for such cost increases will help ensure that your saving level is sufficient to meet your objectives.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Selling Your Home
Once you have decided to try to sell your home, the next big decision you will face is whether you want to sell it yourself of go through a real estate broker. The broker usually charges 5% to 7% of the selling price for her services. However, realtors know the local market, can help you determine a reasonable selling price, and save you a lot of the hassle involved if you sell it yourself.
In selecting a broker, invite several real estate brokers to tell you what they would deem to be a fair selling price and explain their commissions and fees. They'll probably do this for free. You will also want to ask about their past experience in the area.
Most home sales are through agents and brokers. But if the market is a 'sellers market', if your home is sharp, perhaps you will want to try selling it yourself.
Is Fix-Up Necessary Before Listing?
It doesn't hurt to do minor repairs and cosmetic touch-ups prior to showing your home to potential buyers. We hear a lot about 'curb appeal' -- how a house appears from the street. Is it attractive enough for a buyer to even want to come in and look? If there are major repair problems, you may have to lower your price in the end. Maybe what you think is important to do to fix up the house will not appeal to the buyer -- she'd rather do it to suit her own taste.
How Much Should You Charge?
By definition, the value of any asset is whatever a buyer and seller can agree upon when both parties have access to all the relevant facts. With homes there are several ways to get a 'starting point' from which to begin this process.
A good first step is to see what similar houses in similar locations in your community have sold for in the recent past. A local real estate agent will also have a lot of information about recent sales in your area. Don't be overly impressed by the 'asking price' of comparable homes, look to actual 'sales prices' as your best guides. You may also want to enlist the help of a professional home appraiser -- for a cost of between $200 and $400 an appraiser will prepare a detailed evaluation of the estimated value of your home.
What If Nothing Happens?
If it is the economy -- national or local -- you can't do much about it. If no one is expressing any interest in your home, or it simply does not sell, you could consider the following:
* Lower your asking price.
* Make some obvious repairs or upgrades.
* Change real estate agents.
* Try selling the house yourself.
* Offer to finance all or part of the purchase price yourself.
Selling your home may take time and patience, but it deserves your most detailed attention as it is one of the largest transactions you will undertake in your financial life.
Selling Your Home
Once you have decided to try to sell your home, the next big decision you will face is whether you want to sell it yourself of go through a real estate broker. The broker usually charges 5% to 7% of the selling price for her services. However, realtors know the local market, can help you determine a reasonable selling price, and save you a lot of the hassle involved if you sell it yourself.
In selecting a broker, invite several real estate brokers to tell you what they would deem to be a fair selling price and explain their commissions and fees. They'll probably do this for free. You will also want to ask about their past experience in the area.
Most home sales are through agents and brokers. But if the market is a 'sellers market', if your home is sharp, perhaps you will want to try selling it yourself.
Is Fix-Up Necessary Before Listing?
It doesn't hurt to do minor repairs and cosmetic touch-ups prior to showing your home to potential buyers. We hear a lot about 'curb appeal' -- how a house appears from the street. Is it attractive enough for a buyer to even want to come in and look? If there are major repair problems, you may have to lower your price in the end. Maybe what you think is important to do to fix up the house will not appeal to the buyer -- she'd rather do it to suit her own taste.
How Much Should You Charge?
By definition, the value of any asset is whatever a buyer and seller can agree upon when both parties have access to all the relevant facts. With homes there are several ways to get a 'starting point' from which to begin this process.
A good first step is to see what similar houses in similar locations in your community have sold for in the recent past. A local real estate agent will also have a lot of information about recent sales in your area. Don't be overly impressed by the 'asking price' of comparable homes, look to actual 'sales prices' as your best guides. You may also want to enlist the help of a professional home appraiser -- for a cost of between $200 and $400 an appraiser will prepare a detailed evaluation of the estimated value of your home.
What If Nothing Happens?
If it is the economy -- national or local -- you can't do much about it. If no one is expressing any interest in your home, or it simply does not sell, you could consider the following:
* Lower your asking price.
* Make some obvious repairs or upgrades.
* Change real estate agents.
* Try selling the house yourself.
* Offer to finance all or part of the purchase price yourself.
Selling your home may take time and patience, but it deserves your most detailed attention as it is one of the largest transactions you will undertake in your financial life.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Life Cycle Planning
Financial planning means something different to everyone. For some, it's about getting by on their paycheck, for others it's about watching the stock market each day.
Unfortunately, very few of us feel prepared to meet our ongoing financial obligations and objectives. Worries about money have become one of the greatest anxieties of our day.
Because our lives and goals are so different, there is no turn-key solution for managing ones finances and meeting financial goals. We can, however, identify several steps successful people take in planning for and meeting their financial goals.
We call these steps 'Life Cycle Planning' because each step can be tied to the attainment of certain life defining events that almost everyone goes through.
Development of Human Capital
Human Capital is a person's ability to turn their skills and abilities into a livelihood. The development of these skills and abilities helps us maximize our income potential in a competitive marketplace.
In our early years, usually between age 19 and 25, we set ourselves on a course that largely defines our Human Capital potential. Each of us makes an investment in Human Capital, whether we realize it or not. For some this is an investment of time, gaining experience and skills on the job. For others it is an investment in trade school or college.
It should also be noted that although our greatest focus on Human Capital development is in our early years, this is an investment we should continue to make and assess throughout our working careers.
Management of Expenses, Budgeting
Once our 'Human Capital' investment begins to pay dividends in the way of earnings, we must begin to develop and apply management skills to our newfound earnings.
Without managing our expenses, our wants and needs will invariably outpace our ability to earn. By implementing some form of budgeting we can begin to set our sights on saving and meeting our longer term financial objectives.
A beginning budget can be as simple as setting aside a predetermined percentage of our earnings each month for saving, spending what is left until it is gone, then spending nothing more until next month.
Adequate Liquidity
As our budget begins to pay off in a healthy savings account, we begin to wonder how best to apply our limited savings to our unlimited needs and wants.
Without exception, the first financial need we should meet is to have an emergency fund. An emergency fund allows us to cover unexpected short term needs using cash instead of leveraging our future earnings through costly loans.
As a general rule of thumb, your emergency fund should be adequate to maintain your standard of living for six months.
Adequate Insurance Protection
A major disability, the loss of a family breadwinner, a fire in your home, a major medical problem for a family member... the most dramatic emergencies can seldom be planned for through personal saving.
Although such tragedies can create devastating individual financial hardship, the financial risk of such events can be shared by very large groups of families and individuals through insurance.
Life insurance, disability insurance, property and casualty insurance and major medical insurance all have a place in our Life Cycle planning.
Long-Term Funding Objectives
Once we have accumulated sufficient funds to cover our emergency needs and purchased protection against financial risks, we can begin saving for our long-term goals in earnest.
Life Cycle Planning
Financial planning means something different to everyone. For some, it's about getting by on their paycheck, for others it's about watching the stock market each day.
Unfortunately, very few of us feel prepared to meet our ongoing financial obligations and objectives. Worries about money have become one of the greatest anxieties of our day.
Because our lives and goals are so different, there is no turn-key solution for managing ones finances and meeting financial goals. We can, however, identify several steps successful people take in planning for and meeting their financial goals.
We call these steps 'Life Cycle Planning' because each step can be tied to the attainment of certain life defining events that almost everyone goes through.
Development of Human Capital
Human Capital is a person's ability to turn their skills and abilities into a livelihood. The development of these skills and abilities helps us maximize our income potential in a competitive marketplace.
In our early years, usually between age 19 and 25, we set ourselves on a course that largely defines our Human Capital potential. Each of us makes an investment in Human Capital, whether we realize it or not. For some this is an investment of time, gaining experience and skills on the job. For others it is an investment in trade school or college.
It should also be noted that although our greatest focus on Human Capital development is in our early years, this is an investment we should continue to make and assess throughout our working careers.
Management of Expenses, Budgeting
Once our 'Human Capital' investment begins to pay dividends in the way of earnings, we must begin to develop and apply management skills to our newfound earnings.
Without managing our expenses, our wants and needs will invariably outpace our ability to earn. By implementing some form of budgeting we can begin to set our sights on saving and meeting our longer term financial objectives.
A beginning budget can be as simple as setting aside a predetermined percentage of our earnings each month for saving, spending what is left until it is gone, then spending nothing more until next month.
Adequate Liquidity
As our budget begins to pay off in a healthy savings account, we begin to wonder how best to apply our limited savings to our unlimited needs and wants.
Without exception, the first financial need we should meet is to have an emergency fund. An emergency fund allows us to cover unexpected short term needs using cash instead of leveraging our future earnings through costly loans.
As a general rule of thumb, your emergency fund should be adequate to maintain your standard of living for six months.
Adequate Insurance Protection
A major disability, the loss of a family breadwinner, a fire in your home, a major medical problem for a family member... the most dramatic emergencies can seldom be planned for through personal saving.
Although such tragedies can create devastating individual financial hardship, the financial risk of such events can be shared by very large groups of families and individuals through insurance.
Life insurance, disability insurance, property and casualty insurance and major medical insurance all have a place in our Life Cycle planning.
Long-Term Funding Objectives
Once we have accumulated sufficient funds to cover our emergency needs and purchased protection against financial risks, we can begin saving for our long-term goals in earnest.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
An Introduction To Budgeting
Budgeting is the systematic allocation of one's limited resources (income) to a potentially unlimited number of needs and wants (expenses.) Budgeting your income, though oftentimes tedious and difficult to maintain, can help you better control how your income is being spent.
Some form of budgeting is a necessity if you hope to meet long-term financial goals. One’s ability to control debt is often a good measure of the success of their budgeting methods. For some, a budget is a detailed process of tracking each source and use of their money. For others, it is as simple as setting aside their savings first, then using the remainder for day-to-day living expenses.
If I Just Had Another 10 Percent!
For years, studies have been undertaken by all manner of institutions to find out if people feel like they are able to live within their means. Virtually every study has shown that in our society we not only are not comfortable living within our means, but that the vast majority of us feels that we would need just 10% more income to do so. If we just had that extra 10% we would save for our children's college, we would save for retirement, we would prepare for tomorrow. Perhaps the most interesting revelation from these studies is that how much money we make does not impact the results of the surveys. The person earning $10,000 per year feels they need just 10% more, the person earning $100,000 feels they need just 10% more. The key is not in how much we earn, it is in how we use it.
Defining the Target
Our money is like arrows that we can shoot at targets. We pick the targets we shoot at, then decide afterwards whether or not we picked the right targets. Hopefully, over time, we begin to get a good feel for which targets we would like to hit with our arrows. The sooner that we learn that we have a limited number of arrows, the better we learn to select meaningful and lasting targets. Short term targets like expensive clothes, cars and vacations must be balanced against long term targets like college funding for our kids, an emergency fund, and retirement saving.
As our stage in life changes, our targets should change as well. No one can tell you which targets are right for you, but there are several principles that should be followed by every wise individual. Principles like:
* Preparing for a rainy day by establishing and funding an emergency fund.
* Preparing for an emergency by securing appropriate and adequate insurances.
* Paying yourself first by setting aside a portion of your income every month for long term objectives.
Reasons People Miss the Mark
Everyone knows what it feels like to spend unwisely. Our feelings of regret are strangely absent when we first make the unwise purchase, or the investment we don’t understand. But we soon know with a certainty that our hard earned resources would have been so much better used elsewhere.
An Introduction To Budgeting
Budgeting is the systematic allocation of one's limited resources (income) to a potentially unlimited number of needs and wants (expenses.) Budgeting your income, though oftentimes tedious and difficult to maintain, can help you better control how your income is being spent.
Some form of budgeting is a necessity if you hope to meet long-term financial goals. One’s ability to control debt is often a good measure of the success of their budgeting methods. For some, a budget is a detailed process of tracking each source and use of their money. For others, it is as simple as setting aside their savings first, then using the remainder for day-to-day living expenses.
If I Just Had Another 10 Percent!
For years, studies have been undertaken by all manner of institutions to find out if people feel like they are able to live within their means. Virtually every study has shown that in our society we not only are not comfortable living within our means, but that the vast majority of us feels that we would need just 10% more income to do so. If we just had that extra 10% we would save for our children's college, we would save for retirement, we would prepare for tomorrow. Perhaps the most interesting revelation from these studies is that how much money we make does not impact the results of the surveys. The person earning $10,000 per year feels they need just 10% more, the person earning $100,000 feels they need just 10% more. The key is not in how much we earn, it is in how we use it.
Defining the Target
Our money is like arrows that we can shoot at targets. We pick the targets we shoot at, then decide afterwards whether or not we picked the right targets. Hopefully, over time, we begin to get a good feel for which targets we would like to hit with our arrows. The sooner that we learn that we have a limited number of arrows, the better we learn to select meaningful and lasting targets. Short term targets like expensive clothes, cars and vacations must be balanced against long term targets like college funding for our kids, an emergency fund, and retirement saving.
As our stage in life changes, our targets should change as well. No one can tell you which targets are right for you, but there are several principles that should be followed by every wise individual. Principles like:
* Preparing for a rainy day by establishing and funding an emergency fund.
* Preparing for an emergency by securing appropriate and adequate insurances.
* Paying yourself first by setting aside a portion of your income every month for long term objectives.
Reasons People Miss the Mark
Everyone knows what it feels like to spend unwisely. Our feelings of regret are strangely absent when we first make the unwise purchase, or the investment we don’t understand. But we soon know with a certainty that our hard earned resources would have been so much better used elsewhere.
Visit Benham & Associates for Life Insurance,Term Life Insurance Quote,variable life insurance
Visit Benham & Associates for Life Insurance,Term Life Insurance Quote,variable life insurance
Life Insurance
Welcome to the life insurance area of our Web Site. This section covers the basics of life insurance and also lets you get an immediate quote on term life insurance and start the application process online. You can also get a quote on other forms of life insurance by completing and submitting the appropriate requests.
Life Insurance
Welcome to the life insurance area of our Web Site. This section covers the basics of life insurance and also lets you get an immediate quote on term life insurance and start the application process online. You can also get a quote on other forms of life insurance by completing and submitting the appropriate requests.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.
Annuities
Welcome to the annuities section of our Web Site. This section covers the basics of annuities. If you would like to get an annuity quote simply complete and submit the appropriate form.
Saturday, 9 April 2011
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Structuring The Terms Of Your Loan
Often it is necessary to borrow money in order to make large purchases like cars, home improvements, college expenses and emergency purchases. Fortunately, our financial institutions make such loans readily available, and fairly easy to get. However, such loans can be fairly complex financial transactions. The more you know before going into a loan, the better prepared you will be to select the loan that best meets your objectives.
Structure Your Loan Carefully
How your loan is structured helps the lending institution determine how much risk they are assuming, and, in turn, what interest rate they will charge. There are three basic loan features that define your loan; whether the loan is paid back in installment payments or as a lump sum, whether the loan is secured or unsecured, and whether the interest rate on the debt is variable or fixed.
Installment Loans vs. Lump Sum Payment
When you take out a loan, you promise to repay the loan, plus interest, based on a contractual agreement. When you choose an installment loan, you borrow a lump sum of money, then pay back a fraction of what you borrowed at regular intervals over an extended period of time. In this manner you pay back both the loan principal and interest gradually. If you prefer, you may choose to borrow a lump sum of money, then pay back the entire loan principal and all accrued interest in a single payment at some future date in a single, lump sum payment.
Secured vs. Unsecured Loans
When a lending institution analyzes the risk they associate with a debt, one of the first things they look at is whether the loan is secured or unsecured. A secured loan is a loan based on your ability to provide collateral of similar value to the amount being loaned to you. In the event of a default, the bank can sell the collateral and recoup most, if not all, of the amount loaned. A home loan is the best example of a secured loan – the bank will loan the majority of the purchase price of the home, but retains a lien against the home for as long as the loan is outstanding.
In contrast, an unsecured loan is based solely on a promise of repayment. Because the lender holds no collateral, unsecured loans hold significantly more risk for the lender. This added risk is usually reflected in a higher interest rate being charged on the funds borrowed.
Fixed vs. Variable Interest Rate
The interest rate you pay on a loan is based on many factors including your credit rating, your payment history, and whether your loan is based on a fixed or a variable interest rate. Fixed interest rate loans carry a rate attached to them that does not change over the period of the loan – it is the same rate the last day of the loan as it was the first. Because the lender cannot change the rate as market conditions change, they usually have higher interest rates to begin with than a variable interest rate loan.
The variable interest rate loan, in contrast, begins slightly lower than the fixed rate, but it is “adjusted” from time to time to reflect current economic factors. If rates drop, the variable loan rate will normally drop. If rates rise, the variable loan rate will normally rise. Because of the initially lower interest rate, the monthly payment on a variable rate loan is lower than it’s fixed counterpart. This lower payment often allows you to qualify for a higher loan balance.
Required Lender Disclosure
Lenders are required to tell you exactly what a loan will actually cost per year, expressed as an annual percentage rate (APR). Some lenders charge lower interest but add high fees; others do the reverse. The APR -- annual percentage rate -- allows you to compare them on equal terms. It combines the fees with a year of interest charges to give you the true annual interest rate. If the lender quotes you a periodic interest rate, this won't be the true interest rate because it does not include the fees he may charge you.
Every lender is required to provide a total cost disclosure before a loan is made. It will tell you exactly what the loan will actually cost you in dollars and cents if you make all payments to the lender as you've agreed.
Structuring The Terms Of Your Loan
Often it is necessary to borrow money in order to make large purchases like cars, home improvements, college expenses and emergency purchases. Fortunately, our financial institutions make such loans readily available, and fairly easy to get. However, such loans can be fairly complex financial transactions. The more you know before going into a loan, the better prepared you will be to select the loan that best meets your objectives.
Structure Your Loan Carefully
How your loan is structured helps the lending institution determine how much risk they are assuming, and, in turn, what interest rate they will charge. There are three basic loan features that define your loan; whether the loan is paid back in installment payments or as a lump sum, whether the loan is secured or unsecured, and whether the interest rate on the debt is variable or fixed.
Installment Loans vs. Lump Sum Payment
When you take out a loan, you promise to repay the loan, plus interest, based on a contractual agreement. When you choose an installment loan, you borrow a lump sum of money, then pay back a fraction of what you borrowed at regular intervals over an extended period of time. In this manner you pay back both the loan principal and interest gradually. If you prefer, you may choose to borrow a lump sum of money, then pay back the entire loan principal and all accrued interest in a single payment at some future date in a single, lump sum payment.
Secured vs. Unsecured Loans
When a lending institution analyzes the risk they associate with a debt, one of the first things they look at is whether the loan is secured or unsecured. A secured loan is a loan based on your ability to provide collateral of similar value to the amount being loaned to you. In the event of a default, the bank can sell the collateral and recoup most, if not all, of the amount loaned. A home loan is the best example of a secured loan – the bank will loan the majority of the purchase price of the home, but retains a lien against the home for as long as the loan is outstanding.
In contrast, an unsecured loan is based solely on a promise of repayment. Because the lender holds no collateral, unsecured loans hold significantly more risk for the lender. This added risk is usually reflected in a higher interest rate being charged on the funds borrowed.
Fixed vs. Variable Interest Rate
The interest rate you pay on a loan is based on many factors including your credit rating, your payment history, and whether your loan is based on a fixed or a variable interest rate. Fixed interest rate loans carry a rate attached to them that does not change over the period of the loan – it is the same rate the last day of the loan as it was the first. Because the lender cannot change the rate as market conditions change, they usually have higher interest rates to begin with than a variable interest rate loan.
The variable interest rate loan, in contrast, begins slightly lower than the fixed rate, but it is “adjusted” from time to time to reflect current economic factors. If rates drop, the variable loan rate will normally drop. If rates rise, the variable loan rate will normally rise. Because of the initially lower interest rate, the monthly payment on a variable rate loan is lower than it’s fixed counterpart. This lower payment often allows you to qualify for a higher loan balance.
Required Lender Disclosure
Lenders are required to tell you exactly what a loan will actually cost per year, expressed as an annual percentage rate (APR). Some lenders charge lower interest but add high fees; others do the reverse. The APR -- annual percentage rate -- allows you to compare them on equal terms. It combines the fees with a year of interest charges to give you the true annual interest rate. If the lender quotes you a periodic interest rate, this won't be the true interest rate because it does not include the fees he may charge you.
Every lender is required to provide a total cost disclosure before a loan is made. It will tell you exactly what the loan will actually cost you in dollars and cents if you make all payments to the lender as you've agreed.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Choosing A Business Continuation Plan
The death of a major shareholder in a closely-held corporation can seriously interrupt continuity and profitability of the business. Surviving shareholders must struggle with how to continue the company as a profitable business with the loss of a key player. Heirs must concern themselves with how to replace the income that the shareholder had earned and how to extract their inherited portion of the company value.
To minimize the areas of conflict and to realize a smooth transition, company owners should enter into an agreement while the parties are still living. This is called a buy-sell agreement. Stock purchase plans are generally arrangements through which shareholders agree to sell their stock interests in the event of specific triggering events such as death, disability, or retirement.
Stock purchase plans are generally classified into three categories: stock redemption plans, cross purchase plans, and hybrid plans.
Plan Types
Under a stock redemption plan, the corporation agrees to purchase all or part of the stock interest of a shareholder. There are three approaches to stock redemptions - full redemptions, partial redemptions and Section 303 redemptions.
In a cross purchase agreement, the remaining shareholders buy the stock interest of a single shareholder. They can either distribute the shares proportionally to what they had before the triggering event occurred or non-proportionally according to what is outlined in the buy-sell agreement.
A hybrid plan, or wait-and-see approach, gives the corporation the first chance to buy. If the corporation does not buy in within a specified time frame (90 days say), the other stockholders will have the option to buy. If that option is not exercised then the corporation must buy.
Factors to Consider
Many factors need to be considered when determining the best type of stock purchase plan to implement, cost factors, psychological factors, ease of administration, tax implications, and transfer for value rules to name a few. You should seek the advice of financial and legal counsel to help implement your plan.
Choosing A Business Continuation Plan
The death of a major shareholder in a closely-held corporation can seriously interrupt continuity and profitability of the business. Surviving shareholders must struggle with how to continue the company as a profitable business with the loss of a key player. Heirs must concern themselves with how to replace the income that the shareholder had earned and how to extract their inherited portion of the company value.
To minimize the areas of conflict and to realize a smooth transition, company owners should enter into an agreement while the parties are still living. This is called a buy-sell agreement. Stock purchase plans are generally arrangements through which shareholders agree to sell their stock interests in the event of specific triggering events such as death, disability, or retirement.
Stock purchase plans are generally classified into three categories: stock redemption plans, cross purchase plans, and hybrid plans.
Plan Types
Under a stock redemption plan, the corporation agrees to purchase all or part of the stock interest of a shareholder. There are three approaches to stock redemptions - full redemptions, partial redemptions and Section 303 redemptions.
In a cross purchase agreement, the remaining shareholders buy the stock interest of a single shareholder. They can either distribute the shares proportionally to what they had before the triggering event occurred or non-proportionally according to what is outlined in the buy-sell agreement.
A hybrid plan, or wait-and-see approach, gives the corporation the first chance to buy. If the corporation does not buy in within a specified time frame (90 days say), the other stockholders will have the option to buy. If that option is not exercised then the corporation must buy.
Factors to Consider
Many factors need to be considered when determining the best type of stock purchase plan to implement, cost factors, psychological factors, ease of administration, tax implications, and transfer for value rules to name a few. You should seek the advice of financial and legal counsel to help implement your plan.
Benham & Associates ,Long Term Care Insurance,Long Term Care quote
Benham & Associates ,Long Term Care Insurance,Long Term Care quote
Long Term Care Insurance
Welcome to the Long Term Care area of our Web Site. The information that is provided in this section will provide you with information about all the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.
Long Term Care Insurance
Welcome to the Long Term Care area of our Web Site. The information that is provided in this section will provide you with information about all the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.
Benham & Associates, Health Insurance,Health Insurance Quote
Benham & Associates, Health Insurance,Health Insurance Quote
Health Insurance
Welcome to the health insurance section of our Web Site. This section covers the basics of health insurance. If you would like to get an individual health insurance quote or a group health insurance quote simply complete and submit the appropriate form.
Health Insurance
Welcome to the health insurance section of our Web Site. This section covers the basics of health insurance. If you would like to get an individual health insurance quote or a group health insurance quote simply complete and submit the appropriate form.
Visit Benham & Associates for Life Insurance,Term Life Insurance Quote,variable life insurance
Visit Benham & Associates for Life Insurance,Term Life Insurance Quote,variable life insurance
Life Insurance
Welcome to the life insurance area of our Web Site. This section covers the basics of life insurance and also lets you get an immediate quote on term life insurance and start the application process online. You can also get a quote on other forms of life insurance by completing and submitting the appropriate requests.
Life Insurance
* Term Life Quote
* Permanent Life Quote
* Universal Life Quote
* Second-To-Die Quote
Life Insurance
Welcome to the life insurance area of our Web Site. This section covers the basics of life insurance and also lets you get an immediate quote on term life insurance and start the application process online. You can also get a quote on other forms of life insurance by completing and submitting the appropriate requests.
Life Insurance
* Term Life Quote
* Permanent Life Quote
* Universal Life Quote
* Second-To-Die Quote
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.Medicare
Welcome to the medicare area of our Web Site. This section covers the basics of medicare. If you would like to obtain a medicare supplement quote, simply complete and submit the appropriate form.
Friday, 8 April 2011
Benham & Associates, disability insurance,disability insurance quotes etc
Benham & Associates, disability insurance,disability insurance quotes etc
Disability Insurance
Welcome to the disability insurance section of our Web Site. This section covers the basics of disability insurance. If you would like to get an individual disability insurance quote simply complete and submit the appropriate form
Disability Insurance
Welcome to the disability insurance section of our Web Site. This section covers the basics of disability insurance. If you would like to get an individual disability insurance quote simply complete and submit the appropriate form
Benham & Associates ,Long Term Care Insurance,Long Term Care quote
Benham & Associates ,Long Term Care Insurance,Long Term Care quote
Long Term Care Insurance
Welcome to the Long Term Care area of our Web Site. The information that is provided in this section will provide you with information about all the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.
Long Term Care Insurance
Welcome to the Long Term Care area of our Web Site. The information that is provided in this section will provide you with information about all the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.
Benham & Associates ,Long Term Care Insurance,Long Term Care quote
Benham & Associates ,Long Term Care Insurance,Long Term Care quote
Long Term Care Insurance
Welcome to the Long Term Care area of our Web Site. The information that is provided in this section will provide you with information about all the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.
Long Term Care Insurance
Welcome to the Long Term Care area of our Web Site. The information that is provided in this section will provide you with information about all the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Attention Agents
If you are not making at least 125% First Year Life Commissions
Call Today
Benham and Associates is networked with the top IMO’s in the industry. Our
goal is to get the agents that use our services the support and compensation they deserve. Because of our unique relationships with the IMO’s we are able to recommend the proper IMO for your agency insuring you get the compensation and support you deserve.
Best of all its free!!
Call today and find out how much your worth.
(402) 935-0160
Attention Agents
If you are not making at least 125% First Year Life Commissions
Call Today
Benham and Associates is networked with the top IMO’s in the industry. Our
goal is to get the agents that use our services the support and compensation they deserve. Because of our unique relationships with the IMO’s we are able to recommend the proper IMO for your agency insuring you get the compensation and support you deserve.
Best of all its free!!
Call today and find out how much your worth.
(402) 935-0160
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Tuesday, 5 April 2011
Benham & Associates, Health Insurance,Health Insurance Quote
Benham & Associates, Health Insurance,Health Insurance Quote
Health Insurance
Welcome to the health insurance section of our Web Site. This section covers the basics of health insurance. If you would like to get an individual health insurance quote or a group health insurance quote simply complete and submit the appropriate form.
- Sent using Google Toolbar"
Health Insurance
Welcome to the health insurance section of our Web Site. This section covers the basics of health insurance. If you would like to get an individual health insurance quote or a group health insurance quote simply complete and submit the appropriate form.
- Sent using Google Toolbar"
Benham & Associates, Health Insurance,Health Insurance Quote
Benham & Associates, Health Insurance,Health Insurance Quote
Health Insurance
Welcome to the health insurance section of our Web Site. This section covers the basics of health insurance. If you would like to get an individual health insurance quote or a group health insurance quote simply complete and submit the appropriate form.
- Sent using Google Toolbar"
Health Insurance
Welcome to the health insurance section of our Web Site. This section covers the basics of health insurance. If you would like to get an individual health insurance quote or a group health insurance quote simply complete and submit the appropriate form.
- Sent using Google Toolbar"
Benham & Associates,medicare ,medicare health plans,medicare supplement quote
Benham & Associates,medicare ,medicare health plans,medicare supplement quote
Medicare
Welcome to the medicare area of our Web Site. This section covers the basics of medicare. If you would like to obtain a medicare supplement quote, simply complete and submit the appropriate form.
- Sent using Google Toolbar"
Medicare
Welcome to the medicare area of our Web Site. This section covers the basics of medicare. If you would like to obtain a medicare supplement quote, simply complete and submit the appropriate form.
- Sent using Google Toolbar"
Benham & Associates ,Long Term Care Insurance,Long Term Care quote
Benham & Associates ,Long Term Care Insurance,Long Term Care quote
Long Term Care Insurance
Welcome to the Long Term Care area of our Web Site. The information that is provided in this section will provide you with information about all the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.
Long Term Care Insurance
Welcome to the Long Term Care area of our Web Site. The information that is provided in this section will provide you with information about all the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.
Benham & Associates,Financial Planning,Retirement Planning,Stock Quote, Stock Pyramid, Mutual Fund Pyramid
Benham & Associates,Financial Planning,Retirement Planning,Stock Quote, Stock Pyramid, Mutual Fund Pyramid
Financial Planning
Welcome to the financial planning area of our Web Site. This section covers the basics of investing and investment products. A financial questionnaire is available to help you provide the information needed to begin the financial planning process. There are links to get stock quotes and other valuable financial planning information.
Financial Planning
Welcome to the financial planning area of our Web Site. This section covers the basics of investing and investment products. A financial questionnaire is available to help you provide the information needed to begin the financial planning process. There are links to get stock quotes and other valuable financial planning information.
Visit Benham & Associates for Life Insurance,Term Life Insurance Quote,variable life insurance
Visit Benham & Associates for Life Insurance,Term Life Insurance Quote,variable life insurance
Life Insurance
Welcome to the life insurance area of our Web Site. This section covers the basics of life insurance and also lets you get an immediate quote on term life insurance and start the application process online. You can also get a quote on other forms of life insurance by completing and submitting the appropriate requests.
Life Insurance
* Term Life Quote
* Permanent Life Quote
* Universal Life Quote
* Second-To-Die Quote
Life Insurance
Welcome to the life insurance area of our Web Site. This section covers the basics of life insurance and also lets you get an immediate quote on term life insurance and start the application process online. You can also get a quote on other forms of life insurance by completing and submitting the appropriate requests.
Life Insurance
* Term Life Quote
* Permanent Life Quote
* Universal Life Quote
* Second-To-Die Quote
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals
Attention Agents
If you are not making at least 125% First Year Life Commissions
Call Today
Benham and Associates is networked with the top IMO’s in the industry. Our
goal is to get the agents that use our services the support and compensation they deserve. Because of our unique relationships with the IMO’s we are able to recommend the proper IMO for your agency insuring you get the compensation and support you deserve.
Best of all its free!!
Call today and find out how much your worth.
(402) 935-0160
Attention Agents
If you are not making at least 125% First Year Life Commissions
Call Today
Benham and Associates is networked with the top IMO’s in the industry. Our
goal is to get the agents that use our services the support and compensation they deserve. Because of our unique relationships with the IMO’s we are able to recommend the proper IMO for your agency insuring you get the compensation and support you deserve.
Best of all its free!!
Call today and find out how much your worth.
(402) 935-0160
Sunday, 3 April 2011
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals:
"Gift Tax Fundamentals
The federal government imposes a substantial tax on gifts of money or property above certain levels. Without such a tax someone with a sizable estate could give away a large portion of their property before death and escape death taxes altogether. For this reason, the gift tax acts more or less as a backstop to the estate tax. And yet, few people actually pay a gift tax during their lifetime. A gift program can substantially reduce overall transfer taxes; however, it requires good planning and a commitment to proceed with the gifts.
Advantages of Gift Giving
You may have many reasons for making gifts -- for some gift giving has personal motives, or others, tax planning motives. Most often you will want your gift giving program to accomplish both personal and tax motives. A few reasons for considering a gift giving plan include:
* Assist someone in immediate financial need
* Provide financial security for the recipient
* Give the recipient experience in handling money
* See the recipient enjoy the property
* Take advantage of annual exclusion
* Paying gift tax to reduce overall taxes
* Giving tax advantages gifts to minors
Gift Tax Annual Exclusion
Probably the easiest way to reduce the size of your taxable estate is to make regular use of the gift tax annual exclusion. You may give up to $13,000 each year to as many persons as you want without incurring any gift tax. If your spouse joins in making the gift (by consenting on a gift tax return), you may (as a couple) give $26,000 to each person annually without any gift tax liability.
Unlimited Gift Tax Exclusion
In addition to the $13,000 exclusion, there is an unlimited gift tax exclusion available to pay someone's medical or educational expenses. The beneficiary does not have to be your dependent or even related to you, although payment of a grandchild's expenses is perhaps the most common use of the exclusion. You must make the payment directly to the institution providing the service -- the beneficiary himself or herself must not receive the payment.
Gift Programs and Your Estate
Use of the gift tax exclusion in a single year may not affect your estate tax situation significantly, but you can reduce your taxable estate substantially through a planned annual program of $13,000 (or $26,000 if you are married) gifts. All gifts within the exclusion limits are protected from federal estate taxes.
In addition to reducing the size of your estate, another major tax advantage of making a gift is the removal of future appreciation in the property's value from your estate. Suppose that you give stocks worth $50,000 to your children now. If you die in 10 years and the stock is worth $130,000, your estate will escape tax on the $80,000 appreciation.
"Gift Tax Fundamentals
The federal government imposes a substantial tax on gifts of money or property above certain levels. Without such a tax someone with a sizable estate could give away a large portion of their property before death and escape death taxes altogether. For this reason, the gift tax acts more or less as a backstop to the estate tax. And yet, few people actually pay a gift tax during their lifetime. A gift program can substantially reduce overall transfer taxes; however, it requires good planning and a commitment to proceed with the gifts.
Advantages of Gift Giving
You may have many reasons for making gifts -- for some gift giving has personal motives, or others, tax planning motives. Most often you will want your gift giving program to accomplish both personal and tax motives. A few reasons for considering a gift giving plan include:
* Assist someone in immediate financial need
* Provide financial security for the recipient
* Give the recipient experience in handling money
* See the recipient enjoy the property
* Take advantage of annual exclusion
* Paying gift tax to reduce overall taxes
* Giving tax advantages gifts to minors
Gift Tax Annual Exclusion
Probably the easiest way to reduce the size of your taxable estate is to make regular use of the gift tax annual exclusion. You may give up to $13,000 each year to as many persons as you want without incurring any gift tax. If your spouse joins in making the gift (by consenting on a gift tax return), you may (as a couple) give $26,000 to each person annually without any gift tax liability.
Unlimited Gift Tax Exclusion
In addition to the $13,000 exclusion, there is an unlimited gift tax exclusion available to pay someone's medical or educational expenses. The beneficiary does not have to be your dependent or even related to you, although payment of a grandchild's expenses is perhaps the most common use of the exclusion. You must make the payment directly to the institution providing the service -- the beneficiary himself or herself must not receive the payment.
Gift Programs and Your Estate
Use of the gift tax exclusion in a single year may not affect your estate tax situation significantly, but you can reduce your taxable estate substantially through a planned annual program of $13,000 (or $26,000 if you are married) gifts. All gifts within the exclusion limits are protected from federal estate taxes.
In addition to reducing the size of your estate, another major tax advantage of making a gift is the removal of future appreciation in the property's value from your estate. Suppose that you give stocks worth $50,000 to your children now. If you die in 10 years and the stock is worth $130,000, your estate will escape tax on the $80,000 appreciation.
Benham & Associates, disability insurance,disability insurance quotes etc
Benham & Associates, disability insurance,disability insurance quotes etc:
Disability Insurance
Welcome to the disability insurance section of our Web Site. This section covers the basics of disability insurance. If you would like to get an individual disability insurance quote simply complete and submit the appropriate form.
Disability Insurance
Welcome to the disability insurance section of our Web Site. This section covers the basics of disability insurance. If you would like to get an individual disability insurance quote simply complete and submit the appropriate form.
Benham & Associates,medicare ,medicare health plans,medicare supplement quote
Benham & Associates,medicare ,medicare health plans,medicare supplement quote:
Medicare
Welcome to the medicare area of our Web Site. This section covers the basics of medicare. If you would like to obtain a medicare supplement quote, simply complete and submit the appropriate form.
Medicare
Welcome to the medicare area of our Web Site. This section covers the basics of medicare. If you would like to obtain a medicare supplement quote, simply complete and submit the appropriate form.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals:
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.
Benham & Associates
Commitment to professional service is the cornerstone of the Benham & Associates Insurance Agency. By understanding client needs, identifying opportunities and continually improving our products, we consistently exceed expectations with our insight and results. Our team of insurance professionals brings years of combined industry experience to work every day. With extensive problem-solving expertise in all facets of insurance, employee benefits and financial services, our staff is dedicated to providing security, opportunity and value for every client. That commitment has helped make Us one of the fastest growing insurance agencies in the region.
Benham and Associates Trusted Insurance Professionals
Benham and Associates Trusted Insurance Professionals:
"Attention Agents
If you are not making at least 125% First Year Life Commissions
Call Today
Benham and Associates is networked with the top IMO’s in the industry. Our
goal is to get the agents that use our services the support and compensation they deserve. Because of our unique relationships with the IMO’s we are able to recommend the proper IMO for your agency insuring you get the compensation and support you deserve.
Best of all its free!!
Call today and find out how much your worth.
(402) 935-0160
"Attention Agents
If you are not making at least 125% First Year Life Commissions
Call Today
Benham and Associates is networked with the top IMO’s in the industry. Our
goal is to get the agents that use our services the support and compensation they deserve. Because of our unique relationships with the IMO’s we are able to recommend the proper IMO for your agency insuring you get the compensation and support you deserve.
Best of all its free!!
Call today and find out how much your worth.
(402) 935-0160
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