Money News: Retirement Solutions for the Affluent

AddThis Social Bookmark Button

Having a comfortable nest egg is not a guarantee that retirement worries will vanish. According to a recent Gallup Poll, the majority of Americans, low income as well as the more affluent, report to be “very” to “moderately” concerned about their retirement savings.

Retirement has its own set of worries which can be as consuming as pre-retirement which caused probably more than you a few sleepless nights. Upon entering retirement, no longer will you have the regular income or paycheck you have been accustomed to receiving. So, even if you have earned the comfortable retirement, it is going to take some critical planning to sustain and grow your financial portfolio over the next several decades. 

In this plan you will want to include ways to minimize the taxation of your estate and provide effective means for continue growth of your assets.

Although, we cannot guarantee you the best and most peaceful sleep, we can offer some solutions that may help you rest a bit easier.

Let’s say you have an estate that is over 1 federal state tax exemption, or 5.5M and you are a business owner. It is likely that much of your estate value could be in the form of equipment, property and other non-liquid assets.

Should you pass on without a plan in place, your heirs would be called on by Uncle Sam demanding 50% of your estate to be paid in taxes. Your heirs would then be forced to sell off your assets at pennies on the dollar.

AJ of Hugo, MN had a very similar experience…AJ’s father passed away with his estate assessed at 7.7M dollars. Upon his passing, 3.8M of his estate was owed in death and estate taxes. Since most of the estate was in real estate and proper planning was not made, every piece of property was sold to pay taxes. The property was sold at 40% of its appraisal at the time of his fathers’ death.

Ten years after his father’s passing, the family had yet to see any money from the estate…

A.J. stated: “If we are lucky, maybe at the end of the year, after we pay the last $350,000 to federal and more to the state, my mother, sister and I may have all of $200,000 to split between us…Great!”

In order to avoid this type of scenario, AJ’s father could have set up an A-B trust to allow for 2 exemptions instead of only one and taken out a second-to-die life insurance policy. Any liquid assets, could have been gifted to his children and heirs prior to death.

Another very important thing to include in your plan and one that can quickly eat away at your nest egg, is long term care. Ask yourself the question, “Do I have a plan in place that would avoid a majority of out of pocket cost, in the event my spouse or I should require long-term care?” If your answer is no, this is a subject that you should be addressing. A good Long-Term Care policy would definitely be in order.

Financial Retirement Planning is a very important and arduous task, not meant for the faint of heart. So, in order to maximize the growth of your assets and investments, insure that you pay the lowest taxes possible and structure a long-term care plan, it is always advantageous to consult a trusted financial advisor. A good partnership with an experienced and reputable advisor will help educate and empower you to remain financially independent throughout the duration of your golden years and beyond.

Retrieved from: The Personal Case against the Estate Tax

2015 Policy and Taxation Group http://policyandtaxationgroup.com/estate-tax-horror-stories/

About Reid Abedeen

Reid Abedeen is a partner at Safeguard Investment Advisory Group, LLC (www.safeguardinvestment.com). As an investment advisor, Abedeen has helped retirees for nearly two decades with issues such as insurance, long-term care planning, financial services, asset protection and many other areas. He holds California Life-Only and Accident and Health licenses (#0C78700), and holds a Series 65 license, and is registered through the Financial Industry Regulatory Authority (FINRA). Abedeen is a family man who owes much of his fulfillment in life to his wife, Smyrna, and his three children, Yusef, Leena and Adam.

Haute Tease

  • HL Lifestyle: National Pizza Day Presents The Pizza Capital of Every State

    AddThis Social Bookmark Button

    Papa John’s Pizza benefited handsomely from Peyton Manning after the Super Bowl. “The Sheriff” shook hands with Papa John after the game and mentioned his love for the delicious steaming meat lovers supreme. Though these were supposedly unpaid, they are unsurprising given Manning’s financial ties to both brands.

     
  • Interview & Review: Midwinter Graces: Holiday Magic from Tori Amos

    AddThis Social Bookmark Button

    Midwinter Graces, the recent release from feminist rocker Tori Amos, gift wraps traditional seasonal tunes and modernizes them into a collection of holiday favorites destined to become a Christmas classic.

     
  • Op/Ed: Is it Really Our Job to Save the Addict

    AddThis Social Bookmark Button

    President Donald Trump recently declared, like his Republican predecessor, a crisis of drug use and addiction that has been decades in the making. Marianne Clyde, a noted mental health expert asks "Is it really our job to save the addict?"

     
  • Chinese Officials Demand Malaysian Government Turn Over Evidence in Missing Airliner Search

    AddThis Social Bookmark Button

    Malaysian Prime Minister Najib Razak announced that the Malaysian government has officially ended the search for MH370 declaring the doomed airliner lost somewhere along the southern corridor in the Indian Ocean south of Perth, Australia.

     
  • OSCAR Trivia: Actors With the Most Oscar Nods, Fewest Wins

    AddThis Social Bookmark Button

    Sometimes, even the biggest A-list celebrities in the world can’t catch a break. An Oscar is considered one of the highest honors a creative can receive in Hollywood, but if history has proven anything it is even the deserving sometimes go home empty handed.  

  • Last I Heard Review – Mob Flicks Just Ain’t What They Used To Be

    AddThis Social Bookmark Button

    Last I Heard,” from Fuzzy Productions and Cine Relevante, brings to the screen a new take on a story as old as the mean streets of Manhattan, that of a Made man losing control and regaining family dominance.

     
  • Money News: The Bear Returns, Dow, European Markets Suffer; Asian Markets Up

    AddThis Social Bookmark Button

    The DOW Jones Industrial Average, struggled to get up under the heavy losses that refused to let up as this third Monday of fighting off the bear was met with a slow steady uncontrollable decline and finally the week was over.

     
  • Beltway Insider: Ebola Update; ISIS/ISIL Military Action Continues; Mid-Term Elections; Nigerian Girls

    AddThis Social Bookmark Button

    President Obama and the CDC continued to implement  challenging reforms incorporating risk assessment guidelines to include health care and military personnel engaged in the assisting the Ebola fight to determine the level of risk, upon return, to the general population.

     
  • The Long Last Days of Summer - Family Style

    AddThis Social Bookmark Button

    With summer shortly coming to a close, friends and family cling to the shore to soak up the last rays and swap stories that only the season can provide. There isn’t much left to cross off on the lists we’ve made in May. Painted the mudroom; check. Gone to a baseball game; check. Spent hours at the beach; double check. In this, I find comfort.

     
  • OCEANA Hosts Celebrity Studded Benefit

    AddThis Social Bookmark Button

    OCEANA, the international oceanic conservation organization, recently launched the opening of its New York office with a celebrity packed benefit on posh Manhattan's Upper East Side.

     
  • Beltway Insider: NSA Obtains Phone Records; Susan Rice Appointed; May Job Numbers; Storm Damage Squeezes Federal Budget

    AddThis Social Bookmark Button

    President Obama, without addressing how the top secret document was obtained, defended the secrecy surrounding the request the National Security Agency has secretly sought and received access to millions of Verizon phone numbers.  

     
  • The Third Wave Review - Miracles in the Midst of Devastation

    AddThis Social Bookmark Button

    The Third Wave,” a Morgan Spurlock Production and Alison Thompson Documentary, tells the story of four aid workers in aftermath of the 2004 Tsunami that decimated Sri Lanka and other countries bordering the Indian Ocean.

     
  • 9 Pretty Pick-Me-Ups – Home Gift Guide

    AddThis Social Bookmark Button

    Spring is that perennial time of renewal. Whether you desire to breathe new life into your personal care regime, beautify your home or add some trendy new styles to your wardrobe, here are some spring pick-me-ups that'll have you sitting pretty all season long.

     
  • Botox Turns 15 - The Inside Scoop on The Wonder Drug

    AddThis Social Bookmark Button

    Botox, the world's most popular cosmetic procedure, turns 15 this week. Launched in 2002, the drug has rung up roughly $21.1 billion since it came on the market in 2002, and one of its most rapidly growing markets is millennials!

     
  • Money News: DOW, NASDAQ, S&P and Top Ten World Markets Close Up

    AddThis Social Bookmark Button

    The DOW Jones Industrial continued to keep the bull market running as the world markets kept pace with the New York Stock Exchange managing to close with impressive rallies for the third straight week.