About Me

My photo
John Nicholson is the founder of www.The 401K Man.com, an independent insurance & financial services agency dedicated to helping others find their solutions through the myriad of choices when seeking insurance, retirement and financial advice. John's career path began with helping others in the late 1980's and early 1990's. The 401K Man is an independent agency servicing the Midwest which provides a wide variety of choices as opposed to one size fits all plan available at many of the larger financial or "brand" insurance companies & firms. We offer many solutions from basic insurance policies to comprehensive estate planning.

Monday, February 17, 2014

Tax Free

TAX FREE

Retirement Income

If you were told that a tax free retirement was possible and approved by the I.R.S. we are sure like many others you would shrug it off and say, Oh sure! We are here to tell you though that it is true actually and also been in existence for quite some time (decades) just not that well publicized.
Insurers have had the ability to provide an tax free income stream for quite some time if the policy was properly structured. In most instances it has distinctively better benefits than a Roth account due to no income limitations. These policies are not available through an average insurance company or agent. You must call a professional well versed in the product that is offered so as not to cause major problems later with the policy structure and funding. 
It is quite often done for well off business leaders and high level sales people and not really noticed by the masses. Many of whom were led to believe they always would do better in the stock market with investments than through a multi tiered retirement planning program. 
401K Fixs are difficult to summarize in a few easily digestible paragraphs with each individuals goals and incomes sometimes drastically different from one persons to another. If you considering a rollover it is important to look at all options.
A tax free retirement plan is a great way to gain more than a typical rollover offered through bank or brokerage house. Most people do though want the same thing when it comes to the end result, the LARGEST amount saved in the end for their retirement income stream. Few realize the true cost of fees from funds yearly and the worst cause of all losses occur when the markets drop unexpectedly late in the retirement cycle. 
Taxes are also a big concern as well in the overall picture that you must weigh in on when evaluating your retirement and 401K plan. If you choose to self direct or look into maintaining assets you will establish a way to avoid yearly fees from funds expenses and potentially realize the true advantage of compounding tax free.  
Taxes can easily be divided into two categories, "Do you want tax deductions?" or a tax free income for life? most would opt for a stream of income without a yearly taxable base. If you would like more information on how to structure your 401K plan to supply you a tax free income through one of the many options available.
A Health Savings Account is just one option that has the benefit of being funded with 401K funds and if properly done will have no tax consequence, even better funds can earn interest and not be taxed
If you would like more information on how to invest your 401(K) safely with low or no risk call the experts toll free at 877-775-0812 You also may send your questions or request a free initial consultation at our website www.The401Kman.com.

Saturday, February 15, 2014

Life Insurance Retirement Plan

Much like a Roth I.R.A. which has tax free advantages a Life Insurance Retirement plan will actually offer a greater tax free benefit. This retirement tool  has been around for much longer than its more famous "tax free" counterpart the Roth I.R.A. Quite simply people forget the tax advantages of insurance in many cases. There are some distinct benefits similar to retirement accounts like a Roth IRA though. The biggest benefit here is that it has no income restrictions which are a stopped at 173,000 for Roth contributions. By utilizing a L.I.R.P. your contributions to the policy first cannot exceed a certain amount (I.R.S. M.E.C. limits) but most importantly can also grow tax free afterwards. When you either earn to much or lack the necessary income to utilize a Roth account the L.I.R.P. is probably the best answer as a portion of a balanced retirement portfolio. It also can avoid  triggering a lowering of your Social Security benefits amount eligiblity. In order to properly utilize a L.I.R.P. there are few choices available to you in the insurance policy that must be set up. One is the choice of a accumulation strategy for the client, the most common is an indexed strategy which is funded with dollars whose growth is linked to the upward movement of the stock markets indexes and will typically return around 13% to 15%  but could also be 0% with no losses in a down market. The second choice is the insurance company investment portfolio which typically tend to be a safe but have a modest rate of return around 3% to 5%. The third choice is passing your contributions through a Mutual fund portfolio  which the insurance company will hold as a sub account but exposes you to all the stock markets volatility.
  The next thing needed is for you to set up a term type policy within  your policy that will have additional benefits in which the I.R.S. requires premiums to be paid into with limits (M.E.C.) and restrictions.  You also must make sure your policy will not have to many expenses (Life Insurance policy, Long term care benefits)  and still have robust growth that can be withdrawn as loans against the policy tax free, which lowers the policy death benefit potentially. For more information and to see if this the right solution to your retirement portfolio call or email us toll free at 877-775-0812 for a qualified professional to discuss your needs. You can also submit your questions below or schedule a free initial consultation with our contact tab. 

E.T.F.s

E.T.F.s

An E.T.F. or Electronically Traded Fund are sometimes called the Mutual Fund of the 21st century. Currently there are over a trillion dollars of assets invested in E.T.F.s. Mutual Funds which have been around since the great depression while E.T.F.s only about twenty years. There are some significant differences between the two. We are going to break down the differences in the following few paragraphs in order to help everyone recognize the differences and benefits that they can offer individually. Mutual funds operate by pooling the buying power of many individual investors to buy a group of stocks or bonds which hopefully will creates a share of profits for the investors to benefit from mingling a large amount of investor money. The E.T.F. on the other hand promises very similar results though at a lower cost by giving you an opportunity to invest in a much smaller portion of the market by trading the major indices individually, tracking in a certain sector only, shorting a sector, or in a major commodity only. There are many more ways to invest including exercising options and since they are exchange traded just like stocks you have the ability to trade and customize your portfolio just like stocks. All E.T.F.s are indexes that are similar to an Indexed Mutual Funds  though without an active manager. Occasionally some families of E.T.F.s will suffer low trading volume and often times highly sought after groups will have major swings during after hours when U.S. markets may be closed. Now the Mutual Funds price at the end of day after trading closes and will be different in their swings than their sort of newcomer brother. The real decision is in the amount of attention of which you want to pay to earn your gains. If you choose to pursue E.T.F.s in your portfolio they can be more tax efficient than Mutual funds most of the time and at a lower cost but this hinges on how you much you utilize them. A great resource would be to call the professionals here at The 401 Man at 877-775-0812 to find out more information. Or visit our website at The401Kman.com and ask your questions or set up your free initial consultation at your convenience. 

Annuities

Annuities are a very important component of any future savings plans for retirement. A Fixed or Indexed Annuity can guarantee a lifetime income stream in the future with no losses.
The other great features of an annuity have to do with the fact that an annuity will always have a greater rate of return than what a bank typically will offer through a Certificate of Deposit rate.
Annuities can offer options which are called riders and these will vary by what the insurance carrier has put into the annuity contract and will offer added benefits to you.
 For far to long most of Wall St. has wanted you to invest with the chance of losing instead of having a way to have earn guaranteed income or the potential for gains without the risk.
This is where an annuity will shine it is a contract to guarantee you gains (Fixed Annuities) or ride the markets up with no chance of losses (Indexed Annuities) The downside is that you are guaranteed gains but not at the same rate that Wall St may earn.
I will explain it here, if you have an Indexed Annuity contract that guarantees 5% monthly cap rate on your investment principal, and in January the market increases  by 5%, that is good February the months average gains are 7%,  and March the market index drops by 4% you will have your principal gain in January of 5%, February gains of 5% (The other 2% goes to the insurance carrier you have a 5% cap rate) and March when the markets average plunged 4% your principal had ZERO gains and ZERO losses, ( The insurance carrier has absorbed the losses of the market swings)  Now  lets say at the end of the year if you have no losses ( A few months of ZERO gains) and a few months at 5% and a few at 3%without losses. the insurance carrier will now add all the months together and then divide by 12 months to average your rate of return.
  • If the markets drop you have no losses of your gains or your principal.( locking in gains). 
  • You will always have the potential for gains (markets goes up), tax free while in existence taxes apply when you take withdrawals. (No broker fees, trading fees, maintenance, hidden costs).
Annuities are a very important component of any future savings plans for retirement. A Fixed or Indexed Annuity can guarantee a lifetime income stream in the future with no losses.
The other great features of an annuity have to do with the fact that an annuity will always have a greater rate of return than what a bank typically will offer through a Certificate of Deposit rate.
Annuities can offer options which are called riders and these will vary by what the insurance carrier has put into the annuity contract and will offer added benefits to you.
 For far to long most of Wall St. has wanted you to invest with the chance of losing instead of having a way to have earn guaranteed income or the potential for gains without the risk.
This is where an annuity will shine it is a contract to guarantee you gains (Fixed Annuities) or ride the markets up with no chance of losses (Indexed Annuities) The downside is that you are guaranteed gains but not at the same rate that Wall St may earn.
I will explain it here, if you have an Indexed Annuity contract that guarantees 5% monthly cap rate on your investment principal, and in January the market increases  by 5%, that is good February the months average gains are 7%,  and March the market index drops by 4% you will have your principal gain in January of 5%, February gains of 5% (The other 2% goes to the insurance carrier you have a 5% cap rate) and March when the markets average plunged 4% your principal had ZERO gains and ZERO losses, ( The insurance carrier has absorbed the losses of the market swings)  Now  lets say at the end of the year if you have no losses ( A few months of ZERO gains) and a few months at 5% and a few at 3%without losses. the insurance carrier will now add all the months together and then divide by 12 months to average your rate of return.
  • If the markets drop you have no losses of your gains or your principal.( locking in gains). 
  • You will always have the potential for gains (markets goes up), tax free while in existence taxes apply when you take withdrawals. (No broker fees, trading fees, maintenance, hidden costs).

ANNUITIES,
 Facts OR Fiction?

Annuities are a greatly debated product for people considering retirement options. Many times the Wall street crowd wants someone to invest in the markets and earn commissions over and over from the investment of your hard earned retirement nest egg. Many times offering some form of Variable Annuity and sometimes choices in Mutual Funds or E.T.F.s.
A balanced portfolio is key towards having income for retirement. A Variable Annuity is NOT the investment to do it in, Fixed and Indexed Annuities are. Below are some common misconceptions with annuity products.  
Facts
  • Fixed Annuities do not lose money, Your contract guarantees in writing the set payment and amount you will recieve. If you do not understand it consult someone who does, we are available toll free at 877-775-0812 to assist with questions.
  • Indexed Annuities are correlated to the market but you are not participating in the markets the insurance carrier or Annuity provider is typically doing that for you and guaranteeing no losses of your principal and your yearly gains. 
  • Indexed Annuities provide for growth on a yearly basis but have monthly fluctuations along with the market index you may choose from along with a cap or limit on gains along with the cap or limit on losses (yearly).
We have a large group of fiduciaries, planners and specialists who can assist you providing answers which will allow you to really boost your retirement planning in these slower growth economic times, please feel free to contact us at 877-775-0812 to discuss your retirement and financial planning needs.
ANNUITY OPTIONS
 Annuity options can vary greatly from insurance company or provider to provider. Beginning choices start with the length of time, the payout of the benefit, the choice for the indexing vehicle (called a crediting method) along with more choices of benefits commonly referred to as riders which vary dramatically among the companies offering annuity products.
Since an annuity is a contract with an insurer they are offering a myriad of ways to choose benefits or options through the riders you may choose from.
 All companies that offer Annuities have a way to customize them beginning with the time frame which will be more beneficial to you the longer the time frame you agree to if you solely are looking for cash accumulation. As an added incentive to you the consumer they now have options such as Long Term Care and many other benefits to add value.  
 Since the carriers vary slightly with regard to many more terms it is impossible to keep all the information updated on our website, but a simple call to determine your goals with one of our registered representatives will certainly help you  in obtaining the answers you seek. We are available toll free at 877-775-0812 

CONTINGENT ANNUITY

Contingent Deferred Annuities are a fairly new product which can offer a lifetime income guarantee when combined with investments. Contingent Deferred Annuities are similar to a Variable Annuity but instead of funds or assets chosen by an Insurer (currently most offered through some insurance carriers) the policyholder ( with the help of his financial planner ) will choose the investment vehicle. The assets can be invested in a 401K, mutual fund account or a managed money account. This type of investment is very important currently with the low interest rate environment to help if other assets are depleted since a guaranteed income stream can be triggered if account assets are depleted. With people living much longer this is geared towards not running out of assets later in retirement. People who live beyond their life expectancy and  that run out of income will now have something to fall back upon. This is currently classified as an insurance product being an annuity but does have a fee for the guarantee. Since there are so many reserve requirements and checks and balances that insurers have to comply with it is considered a fairly safe investment. Carriers who offer this type of product are charging approximately 75 to 150 basis points. The real benefit to those who are looking for a benefit from a  C.D.A.  begins with a lower taxable rate due to this being classified typically at a  capital gains rate of 15% versus their current rate. The information provided is a general statement not to be considered tax or investment advice, for which you must contact a registered or licensed professional.

We have a large group of solutions for your retirement.Call upon our advisers, planners and fiduciaries who could help you provide services which will allow you to really boost your retirement planning in these slower growth economic times, please feel free to contact us at 877-775-0812 to discuss your retirement and financial planning needs. A Fixed Annuity is a contract with an insurance carrier for a length of time that will provide you added income to your principal. Your principal or the amount you have deposited with them will grow to a pre-agreed amount or pay out a predetermined amount over time. You have contracted with the insurance company to guarantee you a added amount to your principal without risk over a period of time. A fixed Annuity is simply that the agreement is fixed or predetermined. There are many types of Annuities on the market to accomplish different goals please feel free to read over all the pages on our site regarding Annuities and call us with any questions. We cannot provide a way to quote exactly what the Annuity value would be on the site without knowing a few more details so feel free to call and talk over your goals with one of our registered representatives at 877-775-0812. You can also use our contact tab below and submit your questions to be answered online or schedule a free consultation.

Grantor Retained Annuity Trust is a fairly new term which utilizes a portion of the Internal Revenue Tax Code allowing stocks or investment vehicles to have gains inside of a Roth I.R.A. while simultaneously going un-taxed. It is considered the most powerful and tax efficient wealth transfer tools available currently They are always for a set period of time most typically 5 or 8 years. These have been introduced to allow retirees not to completely run out of income if all assets become depleted from poor planning, exceptional planning or old age. These are also very useful if looking to pass income derived from an asset to an heir with virtually no gift tax. If you are looking for answers or solutions for your retirement call us toll free at 877-775-0812 to find out more about your alternatives to a dormant 401K or rollover solution. Always consult a tax professional or C.P.A. regarding a Grantor Retained Annuity Trust to be sure structure is properly set up in a trust, Roth 401K, or proper type account due to I.R.S. code and the gains that could be accumulated with certain investments.An Indexed Annuity is a great retirement vehicle for safe investment which could potentially grow better than a Fixed type of Annuity. Choosing the method of indexing your growth an Indexed annuities potential is parallel to the growth of the stock market indices but not in the market so if the stock markets drop you will be not suffering losses with your principal investment and gains.

The Indexed Annuity can potentially offer double digit growth tied to markets while providing safety. A little known fact of the current low interest rate environment today is the fact that 100,000 dollars with a 10 % bonus ( available with some annuities) placed in certain types of Indexed Annuities will pay more interest than one million dollars on deposit at a bank.

401(K) fixes has over a dozen fortune 500 insurance and financial institutions that we are affiliated with to provide Annuities and other related retirement and income generating products with, feel free to call toll free 877-775-0812

Alternative Investments

ALTERNATIVE INVESTMENTS

Many types of alternatives investment choices are currently available which can be perfectly safe such as Annuities, structured settlements, tax liens and real estate notes.
Investment clubs which pool money for investment purposes or allow a person to choose to borrow or lend from have also gained a tremendous amount of popularity from investors.Many of these alternative products are available through our organization from licensed, registered professionals in our network.
One alternative which is gaining popularity is buying court ordered structured settlements, a previously owned annuity or Whole Life Insurance policy from someone who wants the income immediately and will sell the future rights to the income for a lesser lump sum portion payment now.
A Self Directed I.R.A. will allow you to invest your 401(K) or 403(B) retirement account with your own choice of investments and grow them. 
Roth accounts can also grow many alternative investments in a tax free manner giving you a tremendous growth rate when the proper investment is chosen. To find out more call the experts here at 401(K) fixes.
A Third party administrator is required to maintain assets in a self directed I.R.A. We have a large group of fiduciaries who could help you provide services which will allow you to really boost your retirement planning in these slower growth economic times, please feel free to contact us toll free at 877-775-0812 to discuss your retirement and financial planning needs. You can also use the contact tab below to submit a question or request a free initial consultation of 20 minutes via our contact tab below.
Alternative investments are one of the fastest growing asset classes among investments.
There are many forms of alternative investments that are available to invest in throughout the world and the United States. Real estate, Tax liens, Gold, E.T.F.s, M.L.P.s, futures, commodities and more are all making major inroads as new forms of investment besides the stock market.
Growth in alternative investments has become almost mainstream for driven investors seeking better rates of return than the conventional stocks and bonds route. 
Our advisers specialize in Roth I.R.A.sSelf Directed I.R.A.s  along side retirement, financial and investment planning. This growing field continues to grow and offer many choices that can be fully securitized and backed fortune 500 companies, court ordered or even pooled. We also have many other choices along with rates of interest in the double digit growth area. If you would like more information on these opportunities contact  The401Kman toll free at 877-775-0812 

529 Plans & Coverdell Plans

It is sad to see how many people are unaware of the potentially useful benefits of a 529 investment plan. 
Primarily used as an investment vehicle for college or higher education expenses, the plan has many attributes that make it very useful for planning purposes beyond the college bound funding it was set up to enable. 
The 529 Plan as a retirement vehicle is often overlooked with so many chances to fit where many other financial plans may not.
These are a very good way to avoid trusts that can be very limited and sometimes final in the way there scope is allocated. Below are just a few of the benefits a 529 Plan could offer, 
  • Estate planning solutions are one topic to review with a 529 Plan, as contributions made to a 529 plan are removed from your estate.
  •  The 529 Plan provides one of the lowest cost estate planning vehicles available with the ability to change plan beneficiaries and investments yearly.
  • $65,000 contribution limits for individuals or up to 130,000 for couples to contribute along with the ability to donate to an unlimited amount of beneficiaries can make this a very useful estate planning tool.
  • The 529 plan has the ability to grow tax free and offer a lower cost alternative to withdrawing money in retirement with a 10% tax penalty after potential decades of growth on the principal.
Call to discuss your goals with one of our licensed registered financial planning specialists. Our affiliations with dozens of Fortune 1000™ financial and insurance institutions will give you safe money and alternative investment choices you may have never been introduced to locally. Please call us toll free at 877-775-0812 to learn more about our planning and other opportunities offered.You can also use the contact tab below to submit your questions or set up a free consultation on our calendar at your convenience.

The following definition of a 529 plan was taken directly from the American Funds website:
“Named after Section 529 of the Internal Revenue Code, 529 savings plans provide a tax-advantaged way to save for qualified higher education expenses. These plans are generally sponsored by individual states, while plan assets are professionally managed by independent investment firms or state government agencies.”
529 plans: key features and benefits
  • Save for anyone: With a 529 plan, investors can save for anyone — their child or grandchild, niece or nephew, friend, or even themself.
  • Tax advantages: Earnings in 529 accounts can grow free from federal tax, and withdrawals for qualified higher education expenses are free from federal tax, and some states also allow for a deduction (or credit against) contributions.
  • Contribution limits: Investors can contribute up to $14,000 ($28,000 for married couples) annually without gift-tax consequences. Under a special election, you can invest up to $70,000 ($140,000 for married couples) at one time by accelerating five years’ worth of investments.
  • Income limits: There are no income limits, so investors can contribute regardless of how much income they earn.
  • Investment flexibility and options: Though plans are administered by individual states, investors can choose among many types of investment options, regardless of where they live. These investment options can also be changed, but investment allocation changes can only be done at certain number times and dates on an annual basis.
  • Control: The investor, as the account owner rather than the beneficiary, maintains full control of all account assets and determines the timing and amount of distributions.
  • Beneficiary options: Investors can change beneficiaries, without penalty, provided the new beneficiary is a member of the previous beneficiary’s family.

Wait a minute. Did I just say that whole life insurance can be a better college savings plan than a 529 plan? Yes, I absolutely did. Far too many financial professionals, families and investors get caught up in focusing on the name of their plans and investments.
For example, it is traditionally common, popular and acceptable for a retiree to mention that their retirement savings plan is a 401(k) or an IRA, but not so much to say a variable annuity plan. Likewise, it is traditionally common, popular and acceptable for parents and grandparents to say their college savings plan is a 529 plan, but not so much to say a whole life plan.
Therefore, rather than focusing on the name of the college savings plan of choice, the right thing to do is compare and contrast these two options, focusing solely on the facts, features and benefits.
Whole life plans: key features and benefits
  • Save for anyone: Investors in whole life plans can also save for anyone — their child or grandchild, niece or nephew, friend or even themselves. However, a whole life plan offers the ability to save for any person, regardless of their relationship to you, as well as save for any company, institution, or charity an investor may choose.
  • Tax advantages: Whole life plan cash value earnings also accumulate on a tax-deferred basis and, if managed properly (via withdrawals and/or loans), can be also be withdrawn on a 100 percent tax-free basis.
  • Contributions limits: Similar to 529 plans, whole life plans have certain contribution limits, particularly within the first seven years. However, most whole life plan contribution limits can be structured to exceed the limits of a 529 plans, and they are also not limited to the $350,000 lifetime limit of a 529 plan.
  • Income limits: Just like 529 plans, there no income limits, so any investor can contribute, regardless of how much income they earn.
  • Investment flexibility and options: Although whole life plans cannot offer investment upside potential, they do offer no downside investment risk. For many investors, the peace of mind associated with safety and guarantees are far more attractive, particularly when saving for a specific time frame and/or goal (such as retirement or college savings). In addition, whole life plans cash values offer more competitive “safe money” interest rates versus alternative fixed-interest rate vehicles (which are contractually guaranteed), as well the potential for annual dividends.
  • Control: The investor, as the account owner, rather than the beneficiary, maintains full control of whole life plan cash value and determines the timing and amount of distributions.
  • Beneficiary options: Similar to a 529 plan, investors can change whole life plan beneficiaries without penalty, at any time, and for any reason. However, unlike the family beneficiary restrictions of a 529 plan, a whole life plan allows you to change the beneficiary to any person, institution and/or charity, as well as choose as many beneficiaries to receive whatever percentage they deem appropriate.
  • Guaranteed completion: Arguably the biggest advantage of a whole life plan is the ability to guarantee that an investor’s college savings plan will self-complete under all circumstances.
  • Death: With a 529 plan, in the event of a premature death or unexpected disability, an investor’s college savings plan can only offer whatever money has accumulated up that point. However, whole life plans carry have contractual life insurance guarantees which provide large amounts of wealth to be used for college savings (or any other purpose) in the event of a premature death.
  • Disability: In the event of an unexpected disability, an investor is very likely to lose their ability to temporarily or permanently continue funding their 529 plan. However, whole life plans offer the option to add an affordable disability rider which contractual guarantees that, in the event of an unexpected disability, the policy premiums will be made by the insurance company and the cash value will continue to accumulate. (Note: This rider carries a small additional cost as well as age restrictions.)
  • Unlimited money options: If you withdraw money from a 529 plan for reasons other than specifically for qualified higher educational purposes, your earnings will be subject to federal income tax and possibly a 10 percent federal tax penalty. However, the cash value in a whole life plans can be used for any purpose whatsoever, whether related to education or not. (For example, joining a fraternity or sorority, buying a car, food, clothing, spending money, etc.) In other words, a whole life plan can essentially be used as “your own bank account”.
  • No taxes or penalties: There are many instances where college saving plans are simply not be needed, wanted, or utilized. For example, children or grandchildren may receive college scholarships, join the military, or simply choose not attend college. Whole life plan cash values provide important access and flexibility to change your plans for your college savings at any time, for any reason.
  • No financial aid restrictions: A robust 529 plan can negatively impact a student's chances of tapping into various sources of financial aid. However, another important advantage of a whole life plan is the ability to shelter funds from the federal financial aid methodology via the cash value.
  • Ownership change permitted: Unlike 529 plans, a whole life plan offers the ability to change the ownership of the policy at any time for any reason. Changing the ownership in a whole life plan changes both the accumulated cash value as well as the death benefit.


Now that you know there are more advantages doesn't it make sense to call and make an appointment with an expert to see how a 529 may provide a financial planning solution for your needs?
COVERDELL ACCOUNTS E.S.A.
A Coverdell or Educational Savings Account is a type of account that can be opened to fund educational expenses for schooling. These accounts are still available yet rarely used since a 529 account has more advantageous benefits in most instances.Callus to learn about the differences and which might be a better solution for you.

What is a 529 plan? 
Although rarely discussed as the ideal college savings plan, a solid argument can be made for using whole life insurance versus a 529 plan. So for illustrative purposes, I will refer to the whole life insurance option as a whole life plan.
When choosing a college savings plan, our job as financial professionals is to provide education, personalization and customization. Both 529 plans and whole life plans are excellent college savings plans, and clearly, neither is the best option for every client.  There are also other college savings options to review and consider such as a Uniform Gift to Minors Account (UGMA), Uniform Trust to Minors Account (UTMA), Coverdell Education Savings Accounts, and regular investment accounts. 

4%,5%, 7% or more?

Our group has a large amount of investments that we are asked to look at. Mostly with returns that guaranteed and in excess of 4%. All of the investment opportunities are completely safe. One of the safest we have found and guaranteed here by court order in most instances is lump sum settlements or previously sold annuities, lottery winnings and settlements.
It is really amazing the amount of people that are unaware of the many ways the government has allowed Americans to structure savings for retirement from simple H.S.A. accounts for medical expenses in their retirement all the way to Roth Account 401K conversions available at any time. 
If you have an interest in a even higher rate of return call to discuss your goals with one of our licensed registered financial planning specialists. 
Our affiliations with dozens of Fortune 1000™ financial and insurance institutions will give you safe money and alternative investment choices you may have never been introduced to locally.
Please call us toll free at 877-775-0812 to learn more about the tremendous opportunities offered. You can also use the contact tab below to submit your question or set up a conference call at your convenience with our experts.

401K Rollover solutions

Taking a few little steps to rollover your 401(K) will allow you to transfer your old savings plan from doing nothing into a new savings plan that will give you more money and savings tax free for the future.
If properly done you could have a sizable bonus added to it as well.
We are offering a wide variety of information on our site to help provide solutions. If you are looking to have a sizable retirement income in place, you need to start a planning process which promotes a higher rate of return which is very important along with compounding and deferring the tax. While having a "safe" environment for your money to grow. 
One of our specialties is to find solutions for people starting a retirement plan later in life. We offer a hybrid product that is an Annuity with Whole Life Insurance which is very beneficial  towards growing your retirement while simultaneously offering a loan plan.
We offer a wide variety of ways for plan members to exit from their current plan administrators platform without any risk and can offer a bonus to your retirement plan through our network of fortune 500 listed insurance and financial institutions that we are affiliated with. Our licensed, trained advisors are available at every step of the way to help you through leaving or moving your plan from one carrier to another or to a plan that you can self direct potentially offering large savings for your retirement.
If you would like more information please call our toll free number 877-775-0812 You can also use the contact tab below to submit your questions or set up a short phone consultation via our calendar option.
WEALTH BUILDING
One of the most difficult things today to do is wealth building for retirement through a safe easy program .Some people prefer real estate others swear it is only safe in a bank while others follow what sounds good at the time. Sadly that is mostly attributed to what we hear about people killing it in the stock market. The saddest part is this is the farthest from the truth in most cases. 
There are only a few truly safe ways to maximize wealth building. Compounding of your money while keeping it tax free, and the other very important consideration is your interest rate. Everyone thinks about earning it but isn't keeping it just as important? 
Few people think of insurance as a safe investment  but insurance has the ability to grow value through certain types of policies that allow you the same upward gains available as the market goes up. While you wont have the same rate of returns as the markets you wont have any losses either. If that catches your attention it should. To many people do not know enough about whole life and universal cash value insurance much less a sound financial plan.   
These programs have been approved completely by the I.R.S. for decades. If you had an opportunity to do this in a tax free environment and grow your retirement nest egg would it be worth while? We have programs available that can maximize all of these ideas. We feel along with Albert Einstein that one of greatest wonders of the world is compounding. In our case the power of money compounding while tax free. While not for everyone, depending on your age and tolerance risk if you took just half of your 401K or retirement your retirement could be twice as safe..
If you are not familiar with this topic it has been a Wall St secret for quite some time. Quite often times offered only to executives, certain professionals such as attorneys, doctors, dentists and upper level management from large corporations. Now it is available to almost all, with some restrictions.
Are you more interested in a healthy return on your investments or safety for your investment portfolio? 
Investment planners have a tough time explaining to individuals that what they may have heard for so long (Growth) is sometimes not in their best interest long term.
The idea that you must continue to take a high risk to realize a high rate of return is not necessarily the best move as you near your retirement (Safety). 
Investment objectives and planning are dependent on where you are in life and your asset levels and safety of those assets are critically important as you are nearing retirement.
For decades the typical planning mantra given was to buy and hold. Buy and hold really only matters on what you buy though. 
Holding the right stock with returns inching upwards over time and a dividend paying blue chip stock is the best return on investments for some investors particularly those nearing retirement.
In today's economic world what may be true for some individuals nearing retirement is not for others who have just entered the investment world. Splitting your 401K or retirement may sound preposterous at first but when you think about the risk of losing your 401Ks value versus the guarantee of no losses through an insurance policy it becomes a little clearer. 
Taking the first steps requires a careful analysis of where you would like to be in the future along with your current strategy and retirement goals.
If you like what you see here, then there is so much more to say, why not call The401Kman?  We can offer many solutions and can also help you weigh in on the best course of action. 


401K Contribution limits

CONTRIBUTION LIMITS

Contribution limits for 2014 401(K), 403(B) and 457 retirement plans have been announced with limits raised to 17,500.Contribution limits for 2014 SIMPLE plan contributors are the same as they were for 2013 limited to 11,500 per employee

Catch up contribution's

Catch up contributions if permitted by the 401(K) plan are for participants over the age of 50. Traditional and safe harbor plan contribution limits in these cases are $5,500 for the 2014 year. SIMPLE 401k plans catch up contributions are $2,500 for 2014.

Additional Options to fund retirement goals

If you are disappointed with the contribution limit amounts that you can put away towards retirement there are a few fantastic options that most people who do not consult  a financial planner,insurance agent or adviser are not aware of. Roth 401(K)s are another plan available to set up for retirement and Self directed IRAs offer opportunities that are slightly different since they are pre-taxed or taxes paid when you contribute but offer the ability to invest and not have to pay the taxes on earnings inside of self directed IRA when properly set up and administered. Another tremendous and perfectly safe and legal vehicle for a tax free retirement is a properly structured cash value life insurance policy. This will allow you to put money away and grow while giving you the opportunity to borrow against it and still earn a modest amount while providing for your family or retirement funds or even a favorite charity. If you would like more information on this type of program call us toll free at 877-775-0812. To speak to a qualified retirement specialist. You can also submit your questions to us via our contact tab below or schedule a free consultation. 

Friday, February 14, 2014

The Importance of Trusts

TRUSTS

Trusts are used many times to protect your assets in retirement and used for estate planning. It is very important to start your planning early through using a trust for your assets and retirement in order to maximize the benefits you may be eligible for in retirement. A trust might be beneficial for planning on how to provide for loved ones.  
What most people do not grasp or recognize until it is way too late is the importance of setting up trusts and estate planning to benefit your family and loved ones. Many do not know of and are unfamiliar with the term "look back" which the government takes from you and your appointed heirs when you transfer an asset.
You need a 5 year time frame preceding the need to remove yourself from your named assets prior to going to the hospital or nursing home for an extended stay which you may not be financially capable to cover.
 A trust when properly instituted will allow for you to leave your estate safe from creditors, taxes and could also protect you and your family potentially from frivolous lawsuits. We at Estate Planners & Insurance Consultants EPIC-LLC, The401Kman and 401(K) Fixes have access to attorneys who are specialists in this field of work.We will be glad to help with understanding the difficult choices. Most people do not know of the twenty plus different types of law. To many wrongly assume that any attorney will suffice when it comes to estate planning. Our organization has access to Estate Law, Trust Law and Elder law specialists. If you would like more information on how to find the proper specialist for trusts please call toll free at 877-775-0812 

401K Solutions

SOLUTIONS

We are offering a lot of solutions and information that may seem overwhelming at first, since everyone whom may be looking for information on our site has different levels of goals and knowledge. There are many 401Kfixs and retirement solutions that are virtually risk free, compared to the ups and downs of the stock market. Alternative investment choices, annuities, plan choices, insurance solutions, and many other topics are covered in detail throughout the website pages at www.The401Kman.com 
Our main site specializing in solutions for individuals and businesses. Typically many choices are not offered inside the average 401K plans with maybe three or so levels of investment and volatility risk but what may appear to be many fund choices.
If your needs are to expand with a self directed plan or just change providers there is a wealth of information here at our blog site. 
We have a tremendous amount of choices to offer  both the business owner and the employee, for more information call and speak to a licensed, trained specialist to assist you with your goals 877-775-0812 
Fiduciary services, plan assessments, valuations and more are also available.
457,412 and 403b plans vary only slightly from a 401k plans.  A 403b is a retirement savings plans of not for profit organizations or government entities and can be handled in almost the same way for a rollover if you choose to increase your savings.  
If you would like more information on how to invest your 401(K) safely with low or no risk call the experts toll free at 877-775-0812 You also may send your questions or schedule a free initial consultation by calling us toll free.

Tuesday, February 4, 2014

401K Dangers

401K DANGERS

401(K) dangers that you may face are multifaceted. Not only are you at risk as the stock markets reach new highs and begin pullbacks or corrections, you have no control until you begin your own plan for retirement.
We felt it important to make you aware of what is needed to save enough for retirement. Along with providing alternatives to the standard plan.  Taking steps now to have multiple streams of income going forward towards your retirement will make a future setback to your 401(K) plan easier to survive when the inevitable market drop happens again.
There is no way for many with an average 401(K) putting away the maximum yearly will keep up with inflation, stock market tumbles, and lack of returns over time. The dangers to a 401(K) are many,
  • FEES 
  • TAXES
  • LOSSES
  • INFLATION
  • POOR FUND MANAGEMENT  
  • LACK OF YOUR ATTENTION                                                                                                                
One of the greatest things you can do to avoid living in poverty during retirement is to take extra steps now.
If you take the time to set up  additional programs for you retirement such as opening a Self Directed I.R.A. or a Whole or Universal Life Insurance these will complement your Social Security, 401(K) and retirement plans.
 Annuities or Whole and Universal life insurance will give you a good guaranteed rate of return along with the ability to compound tax and fee free.
Albert Einstein once said the greatest thing he thought in the universe was the power to compound. Finding investments outside of your 401(K) that can offer no losses and compounding are the first steps towards
 additional safe retirement income planning.

We specialize in helping with retirement solutions and
planning follow us on Google Plus for more timely tips. 

Monday, February 3, 2014

Analyze Those 401K Expenses

Were you confused or curious to find out about the fee charged or the fee disclosure form in your 401(K) statement over the past few years?
You like many others have begun finding a fee disclosure form and probably wondering, if you are being charged to much?
401(K) fixes has a way to help you find out if your plan fees are excessive. Our organization can help you learn more and also help your group step away from a poorly designed plan.We want you to know that the law changed back in 2012 for 401(K)  plans to disclose the fees associated and charged for managing the plans.

Many people are stunned to discover how much the fees being charged are. Estimates that those fees charged for management could potentially be in the tens of thousands over the lifetime of the average American employee.
These are legitimate fees for the most part with the administration expense of following the myriad of regulations designed to protect the beneficiaries and account holders.
Now that there has been some light shed on those fees the exorbitant fees charged by some has come to light recently. There has been a large spike of lower cost providers all clamoring that they are lower, better, faster and god knows what else.
The simple old adage of buyer beware still holds true though. To many business owners are under the impression that fiduciary means they may have best interests of all the plans participants. This in theory is true but may not hold up under closer examination by the Department of Labor and I.R.S. if a full review takes place.  Be sure to ask your representative if they would represent you under an audit. 
Call us toll free at 877-775-0812 to learn what options are available to help plan sponsors and participants never lose a dime again in their retirement savings to excessive fees. submit your questions for an E-mail response.  

The history of the 401K

Your 401(K) retirement plan grew from a variety of needs during the late 1970's. The original idea of this type of retirement program was proposed to supplement a pension and social security. 
The 401(K) plan after being almost eliminated 7 times by Congress in it's early days it has morphed into the current retirement plan for most Americans. Pensions were the norm for decades prior to the 1970s. Retirement savings plans similar to a 401(K) began with a need to avoid excessive tax for business executives in the late 1970's. The 401(K) first appeared in 1981 in a form that is pretty similar to today's plan.
In the economics of the mid 1970's major institutions and U.S. corporate giants and even whole industries were suffering through the worst economic times they had ever faced since the 1930s depression. The 1970s economic crisis had many reasons some were due to the oil crisis, pension debt and high interest rates.
The first waves of retirees whose pensions lacked the ability to keep up with inflation and businesses closing at a high rate were causing the government to find alternatives to a pension plan. High interest rates, taxes and a myriad of other things began causing many companies to fold and close. An alternative was needed to the pension that had been around from beginning of the 20th century. Businesses closed leaving many facing nothing after years of expecting a rightfully earned retirement.

The Pension Benefit Guaranty was formed to take over payments to individuals from bankrupted companies. Organizations threatened to move overseas and the government in an effort to ease the financial burden that pensions were seriously beginning to cost corporate America began a new plan with the passing  of the 1974 Employees Retirement Income Securities Act (E.R.I.S.A) This was the beginning of additional savings plans which contained legislation for a company to offer voluntary programs. These later became the 401(K) type plans which allowed employees to decide where to contribute pretax towards a retirement fund.
As of 2012 the numbers of companies offering true pensions are estimated to be less than 20% in the U.S.
Which brings me to my point for your own financial future do you know how important it is to start multiple programs for retirement, and why?
Your 401(K) is yours but please roll it over if you have left a place of employment. Letting it sit will do nothing. Make sure you transfer the asset from a qualified plan to another qualified plan to  avoid a tax. Even you do not anticipate using it, it will be far wiser to have the rainy day fund potentially accessible and at least gaining some interest versus getting nothing.
401(K) fixes was formed to help you remove your risk from retirement. Our trained licensed professionals can offer you some answers towards your retirement. Call us toll free at 877-775-0812 to reach a representative. Or use the contact tab below to submit your question and set an appointment if you like.