Most retirees and baby boomers are looking for contractual some type of guarantees and benefits, using their money smartly . the New York post published alternative similar to using your money doing double duty.
The vast majority of investors have some type of a CD-type guaranteed rate of return that is a protects, of the bank and their money, seems to get merger earning less than 1% in some cases.
They want no move because they do not see an alternative, and a simple to understand other structures that can guarantee percentage return and a possible LIFE Time of income, with a beneficiary options, and nursing home previsions. The days of DC buyers with high interest rates are in the past.
Senior want security, and life incomes they feel this is there life savings, and you can do more. What about Dorothy she is 58 years old she is a widower, she has done well for here self but her CD is only earning less than 1.5%. The $75,000 in a CD, currently and is not needing this money anytime in the future she wants it to go to her children and grand children but wants to avoid taxes. Dorothy’s house is paid for and she was 3 pension from husband and hers from the state, along with a small amount of social security . She lives very comfortable, has her long term care paid for and has relatively little expense. She wants to have a life time income on the $75,000 while she is alive and give something to the children, and grand children. What works well is called double duty dollars, using one asset to pay for another asset. This approach is revolutionary, making dollars do 2 function simultaneously , reducing the tax liabilities ( consult your tax advisor)
By choosing to use a fixed-rate annuities contract to provide immediate money being paid back and taking that money to pay for a protection asset that is currently tax free. This provide the best of both worlds, she can have a life time income that pays for a her wishes and it is life time guaranteed. Upon her passing the benefits are tax free passed to her grand children ( under current tax law), Thus removing this asset from her estate, if planed properly.
Certificates of deposit still have their place in a portfolio, and it’s important to know some other alternative that are not as highly published about. Insurance companies provide guaranteed rates of return and is typically higher than what can be expected to be from Banking institution. Make sure you ask what the state guaranteed trust level is and if your agent doesn’t know the level for that state they you should call our office to get specific information about the state back program.
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