A new Ohio law attempts to impose ‘best interest’ fiduciary standards onto life insurance and annuity providers. However, these standards are extremely vague and still leave from for abuse to consumers. Many annuity providers and so-called financial advisors plant their product as a solution to a variety of problems, when in reality another product is likely more useful. Below are 4 cautionary tales from clients that have come to us for help in the past. If any of these situations have happened to you or a loved one, or are currently happening, we encourage you to seek out additional financial tools and professionals.
A good leader starts by leading themselves. I had the pleasure of talking with my good friend Mary Rauchenstein on my podcast this week about what qualities a good leader posses, and what the differences are between a leader, mentor, coach and manager. You can use these strategies to start managing your own financial life.
The worst way to invest is by acting on emotions. When unexpected changes occur in the economy, most people tend to panic. Financial resilience isn’t about avoiding all those bad things that can happen to you (for example, a pandemic, or getting laid off) because, inevitably, those things will happen. Instead, financial resilience is about being able to deal with those things when they do happen.
Over the past few weeks, I’ve been asking my clients to send me their most recent tax return. By looking through their returns for missed opportunities and mistakes, there’s a few patterns I’ve noticed.
Permanent life insurance policies offer both a death benefit and cash value, which you can withdraw from at almost any point in your life. Life insurance offers more flexibility, and ROI than many other savings options.
A private annuity arrangement supplies the annuitant with a stable retirement income, keeps assets within the family, and minimizes the tax burden for heirs.
The future increase in estate taxes could cause problems for your inheritance and retirement income down the road. To protect yourself from heavy taxation, know what tax laws are changing, be proactive in your retirement planning, and look at perusing difference inheritance strategies such as gifting and life insurance.
Many people are investing in digital currency with the belief that it is safe from government overreach and economic trouble. Although cryptocurrencies operate independently from third parties through their own trusted technologies, that does not mean that governments cannot indirectly affect your investments in them. They can still heavily tax your investment, penalize you for them, and restrict your access to them in some form. Bitcoin can be a good investment if you go into it with an informed mindset, and a dangerous one if you don’t.
The current high price of higher education is unsustainable, and saving for it can be difficult and painful. Future changes in the higher education system could affect how you save for your children’s education.
As the baby-boom generation phases into retirement, the future of social security is uncertain. There are a few strategies the government may use to close the gap in income, and you need to be prepared for each possibility.