The Insurance Doctor

Category: financial planning

  • 5 Reasons 529 Plans are a Waste of Time

    5 Reasons 529 Plans are a Waste of Time

    5 Reasons why 529’s are a waste of time

    Unless you are getting other people like grandparents to contribute money to your child’s 529 they are a waste of time for the following reasons:529 college savings plan

    1. They reduce the amount of endowment “free” money students can qualify for:  Ex. With $100,000 in a 529 the first $25,000/year is on you!

    2. High fees, charges and broker commissions:  Most 529’s have front or back end charges as well as annual fees regardless if it’s making money.

    3. Exposure to stock market fluctuations: The market can go down 50% during your student’s high school senior year and the money is gone with no time to recover.

    4. Limited fund and investment choices: Most states have only 1 fund family to choose from.  If you choose a different fund family odds are you will lose your resident state’s income tax deduction.

    5. What happens if your only child gets a scholarship?: All funds withdrawn in this scenario would incur a 10% withdrawal penalty.

    There are several other options as to where to stash money and how to pay for college that won’t have market risk or adverse effects on potential scholarship money.

    Contact Robert today for a better way to fund your child’s college education

  • 5 Planning Issues for Same-Sex Couples

    5 Planning Issues for Same-Sex Couples

    Five Planning Issues Same-Sex Couples Should Discuss

    All couples in long-term relationships should discuss finances however gay and lesbian couples need to even more because of unclear and ever-changing rules.

    1. What is our current situation? Partners need to get on the same page as to their debt, how much and to whom do they owe money. How much do you spend and how much do they save?same sex couples, financial planning
    2. What does retirement look like? Both partners should go to socialsecurity.gov to see what type of benefits are available to them and based on ages when to elect income benefits to start.
    3. Should we get married? This is a critical decision. First take a look at wages earned. If both are high wage earners then they would be paying more taxes by remaining unmarried. Also if one partner has a college-bound student remaining unmarried is the better choice as the FAFSA (Free Application for Federal Student Aid) would only include one person’s wages.
    4. What happens to assets when we die? A will, power of attorney and health care proxy are recommended to give clear directives on the wishes of each partner. If unmarried with no will etc, the states laws of intestacy come into play and odds are a blood relative will inherit the estate.
    5. What happens if we break up? Unmarried same-sex couples in it for the long haul may want to draft a cohabitation agreement. Divorce actually provides an orderly system with protections that unmarried same-sex couples cannot take advantage of.Contact Rob here today for a free financial consultation today
  • 3 Reasons & Solutions to have multiple retirement accounts

    3 Reasons & Solutions to have multiple retirement accounts

    Many folks have employer-sponsored retirement accounts like a 401k or 403b which is a good thing.  In fact, 80% of large companies offer a qualified (pre-tax) plan some of whom will life insurance, New Yorik city, match your contributions.  That being said it’s wise to set up at least one other supplemental plan for yourself because;

    1. You will pay later for today’s tax break: You will pay tax on 100% of your withdrawals which can bump up your tax rate and you won’t know what the tax brackets will look like at that time.
    2. Limited planning flexibility: If you need money to make an important purchase and inching up to the next tax rate the purchase might put you over the top hurting your bottom line.
    3. Limited access in the event of an emergency: If you are under age 59.5 and need to withdraw funds quickly you are facing a 10% penalty and taxation.

    Because of these issues we recommend setting up at least 1 other after-tax plan such as a Roth IRA, life insurance cash value policy, and/or a non-qualified after-tax account like mutual funds or annuities.

    Ask Robert about your 3 possible solutions for retirement accounts here or call him at (917)359-3985

     

  • 6 Tips to Get Your 2017 Financial House in Order

    6 Tips to Get Your 2017 Financial House in Order

    Now that we are in the final month of 2016 it’s easy to get off track from our goals.  Follow these 6 tips and with a little time and effort your 2017 finances will be more organized and less stressful.

    1. Organize your paperwork: It’s hard to feel in control when you can’t find anything. Gather all papers, shred duplicates/old statements and put them all in a box insurance, New York, financial servicesor accordion file.
    2. Go Paperless: I know habits are hard to break.  Wherever possible create electronic files.  See if you can receive e-bills instead of paper.  Use a flash or thumb drive as a back-up and keep it off-premises.
    3. Protect against identity theft: You can request a free copy of your credit report once per year from all 3 credit bureaus. Go to AnnualCreditReport.com. Another great tool is Credit Karma which allows you to track your credit scores throughout the year.
    4. Put your finances on autopilot: Use EFT direct deposit for all checks, pension and social security received. Set up automatic payments for recurring bills.  It’s easy and will save time going forward.
    5. Create your 2016 tax file: Most people have to scramble to pull together all tax forms etc. Start now by setting up a 2016 file and stashing forms/receipts etc as needed.
    6. Review your insurance coverage: Protect your nest egg and your family by regularly reviewing your life, health disability and long term care insurance.  If this is confusing to you contact us for a 2nd

    Your financial house needs regular upkeep.  Putting in a little time and organization will decrease clutter and help you focus on your goals and objectives.
    Contact Robert here for more ideas to get your financial house in order.

  • 5 Last Minute Year End Tax Tips

    5 Last Minute Year End Tax Tips

    Following these 5 tips can save you money in 2016!

    Whether you are an individual and/or business owner, the following 5 tips can save you money in 2016!tax savings year end strategies

    1. Maximize 401K deductions for 2016: Unlike IRA’s and SEP’s, 401K contributions can only be deducted in the tax year they are deposited. Taxpayers should check their pay stubs to make sure they are maximizing their 401k limit which is $18,000 for 2016. (higher if they are over age 50).
    2. Prepayment of State Taxes: Individuals can deduct taxes paid to state and local agencies on their schedule A. By paying before year end they can claim the deduction for 2016 instead of waiting to next year.
    3. Donation to Charity: Any donations to charity must be made by December 31st, 2016 to be considered a completed gift for the 2016 tax year.
    4. Deferral of Income until 2017: Individuals can request bonuses be deferred until January. Cash basis service businesses may consider delaying their November and/or December billings until January to minimize 4th quarter income and defer taxes on that income until 2017.
    5. Prepayment of personal/business expenses: Individuals and business owners may look to prepay expenses for supplies, materials and/or services to accelerate deductions for 2016 instead of 2017.Get your 2017 plan off to a good start by getting your FREE ‘financial check-up’ with Robert here today.
  • 6 Tips for your Financial New Year’s Resolutions

    6 Tips for your Financial New Year’s Resolutions

    Six out of ten American’s will make some type of financial based New Year’s resolution for 2016. Usually there’s a triggering event like receiving your December 2015 credit card bill or spousal pressure to name two. Follow these tips;2016-resolutions

    1. Consolidate Financial accounts: Close 1 or 2 existing financial accounts that you are not tracking or have insignificant monies in. This will save brain space, reduce statement clutter and avoid paying unnecessary fees.
    2. Increase your 401k/employer retirement contributions: Raise your contributions 1%/year minimum. You won’t feel the difference however over time it can make a major impact when entering retirement.
    1. Develop a budget and/or expense statement: Review credit card, bank and checkbook statements to get a handle on inflow and outflow of money. Start using a program like quick books or if old school draft a budget by hand and hang it up where you can see it. This can cause heavy emotional denial however better now than later.
    2. Set up a system to save systematic money: Either something informal like putting the $20 you are saving in gas on fill-ups in a jar. Formal ideas like buying a cash value life insurance policy or setting up an Eft thru your bank account.
    3. Protecting your health saves your wealth: We all know about the escalating cost of health insurance and health care in general. Renew that gym membership, yoga studio or dust off that treadmill in the garage.
    4. Bring balance to your life: Take that vacation you have been putting off. The rest and rejuvenation will impact you health. Statistics show that one who works 46 weeks/year will out produce a 52 week/year worker. It will give you something to look forward to and forces one to be very productive before leaving and when returning home. Use frequent flyer miles if need be.

    Contact Robert today to help achieve your New Year’s Financial Resolutions

  • URGENT: Special Enrollment Period Ends

    URGENT: Special Enrollment Period Ends

    The Special Enrollment Period (SEP) for health insurance ends this Thursday April 30th.

    Most folks will have to wait until 10/1/2015 to enroll for coverage which starts on 1/1/2016 at the earliest.  That’s 8 months with no coverage!

    health insurance, special enrollment periodWhat is the ‘SEP” special enrollment period? It’s a time outside of the open enrollment period during which you and your family have a right to sign up for health coverage.

    In the Marketplace, you qualify for a special enrollment period 60 days following certain life events from an approved short list that involves a change in family status (for example, marriage or birth of a child) or loss of other health coverage.

    Contact us here if you or loved ones are in this predicament as we have options to get immediate coverage.

    Please Note: It’s too late to avoid the “2015 penalty” by obtaining coverage now.

  • Just Married? 7 Money-saving tips for Newlyweds.

    Just Married? 7 Money-saving tips for Newlyweds.

    With spring finally here we are now thrust into “Wedding Season” in most parts of the country.

    For those folks tying the knot or are going to a wedding feel free to share these helpful tips.

    Click here to download the PDF with 7 tips.

    Newly married or know someone who is? Contact Robert today.