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Richard Ericson |
September 4, 2014 |
Annuity Taxes
How annuities are taxed can be dependent on the types of funds you use to invest in the annuity. When you invest with qualified funds, withdrawals are taxed as ordinary income. When you invest in an annuity contract with non-qualified funds, withdrawals are taxed as ordinary income until you get to the principal, which has already been taxed. When you use tax-free or Roth investments to fund your annuity contract, withdrawals maintain their tax-free status. Qualified – The first and most common option is utilizing...
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Richard Ericson |
April 9, 2014 |
Fixed Annuities, Index Annuities
A little boy runs into his grandpa and says, “Can you make a sound like a frog?” Grandpa replies, “of course I can make a sound like a frog. Why do you ask?” The boy says, “Grandma says when Grandpa croaks we can all go to Hawaii.” Grandma and Grandpa knew their money was protected and safe in Grandpa’s indexed annuity. There are many common questions that I am asked by investors as they learn about indexed annuities. “What happens to my fixed annuity when...
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Richard Ericson |
March 3, 2014 |
Annuity Basics
What TIME is it? How much TIME do you have until you retire? When is the best TIME to retire? One of my rules is, “on TIME or sooner.” My young son has inherited this trait too. I don’t know if that is positive or negative, but it’s about TIME! The simple definition of time: The regulation of occurrence, pace, or coordination to achieve a desired effect, as in music, the theater, athletics, or mechanics. Think about common references to time regarding your investments. When...
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Richard Ericson |
January 28, 2014 |
Index Annuities, Inflation
You know you’re getting old when you are telling your children how much things used to cost. When I was a boy, my father used to moan when gas prices hit $0.30 a gallon. We sold our boat when gas prices skyrocketed to $0.40 a gallon. In 1980, a Porsche 911 cost $32,000. Today, the similar Porsche runs $151,000, which is a 371% increase! At that rate, in another 25 years, that same car will run $600,000. Various driving conditions call for different tools, and...
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Richard Ericson |
January 7, 2014 |
Annual Reset, Annuity Basics, Fixed Annuities, Index Annuities
Potential can be such an enticing, positive word. I’ve recruited and coached young men with potential. In my opinion, potential can also be a negative word. The young man that still has potential is not real useful in the game. Potential checks don’t cash very well at the bank. Potential returns are marketed to consumers, and consumers invest for potential all the time. Potential returns, at some point, are not real useful to you. If I could guarantee you an average rate of return of...
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Richard Ericson |
December 17, 2013 |
Long Term Care
I listen to you and what you want. There are two areas that I hear over and over again: Long Term Care and a safe investment that make more than 1%. Almost all clients I meet with want and understand the need for long term care. However, almost all the clients I meet with do not have long term care. The number one reason is, “what if I don’t use it”, or “I feel like I’m not getting anything for my premium.” At the same...
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