More Than Just Life Insurance
My services are different because my team of CPA’s, Attorneys, CIO’s, and Advisors will work with you to build and implement solutions that are tailored to your specific needs and objectives. Those solutions are centered around 5 different categories that include Income Planning, Estate Planning, Wealth Accumulation, Tax Planning, and Asset Protection. As your personal CFO I will evaluate your situation and develope a plan that is tailored to meet your specific needs and objectives.
I focus on using solutions rather than products to provide my clients with a safe predictable income no matter what the market does. Life Insurance in Naples should focus on systems that offer specifically designed solutions that have tax favored incentives and will provide an income that will not be outlived.
Do you know what the difference is between tax avoidance and just not paying taxes? About 20 years in jail! A very good product that can be used for a tax shelter is an indexed annuity. When some of us hear about annuities we run for the hills. The only thing is its hard to understand that all of the bad news you hear is about variable annuities and I never will use those in my planning! I have used in the past a product that is known as an indexed annuity. These types of annuities can have no fees and only ride up with the market, never down. When the market goes down the cash value never falls in the annuitants policy. Here is a chart that shows a good example of the differences between CD growth, Stock growth, & an Indexed Annuities growth.
After looking at this chart it is evident of the actual benefits of an indexed type annuity. Not only will this benefit your portfolio but when it comes tax time you can avoid unwanted taxes. For example I have several life insurance in Naples clients that receive monthly payments for life by one of these types of products. When it comes tax time they are only responsible for paying taxes on money that they have used throughout the year if there is no RMD. Unlike instruments like CD’s or Bonds they are not taxed on reinvested interest earnings which can make huge differences in your portfolios balance. As you can see the tax advantages here are outrageous. Unlike stocks, bonds, and cd’s that make your tax liability increase and include fees those earnings you think your making are actually a lot less than it appears. Everyone thinks the market grows at a steady 10% each and every year. However, if you look back to the S&P 500 from its original established date the growth is only around 5%. There are always a couple of good years in every decade but the multiple down years usually play into leveling the earnings. If your retired you can not afford these fluctuations and do not have time to wait on the corrections!
If a downturn occurs in the market as it did over 2008, retired individuals that continue to pull out money they need to maintain their lifestyle will possibly find themselves running out of income!
Insurance carriers typically have to maintain legal reserves that are equal to 1.05-1.07 for every dollar its insureds put in. If an insurance company’s reserves drop below .99 cents for every dollar put in, the company is deemed insolvent and the insurance commissioner makes the other state insurers buy them out. Out of the some 129 banks that have gone out of business I have not heard of one insurance company failing. That banking number continues to climb as debt and instability within the market place increases. I have answers to your concerns and its always worth a second opinion!
Josh Sparks
