Life Insurance

Life Insurance is the building block of a strong financial plan. It is a great way to protect your family, business, or assets in the event of your death.  Almost as bad as not having Insurance is not having enough insurance.  For example, if you are a provider for you family and earn $200,000, is a $250,000 policy enough to truly protect your family.  Essentially, in this example, this is a policy that would replace your production for only 1.25 years not included debt and taxes owed.  For some, this may be satisfactory...for most, not so much.  If this is concern for you and your family take the time to have an analysis completed.

Annuities

An annuity is a great way to guarantee income for a defined period of time or for the rest of your life.  You can contribute to an Annuity either in a lump sum or over a period of time to create a stream of income during you retirements years.  These days annuities come with so many options.  You can choose to have the funds in your annuity grow at an fix rate (fixed annuity), a variable rate based on the stock market (variable annuity), or a fixed indexed annuity which can have significant growth without the added risk of a downturn in the market.

412(e)(3)

A 412e3 plan is a Defined Benefit Pension under Internal Revenue Code 412(e)(3).  It is often an overlooked as it provides small business owners tremendous benefits.  Not to be confused with a 401k, which is a defined contribution in which one would contribute to a retirement plan while deferring taxes on those funds to a later date.  However, it cannot save you from Medicare Taxes or Social Security Taxes.  Along with the American Care Act, you actually give up as much as 15.3% which can add up to a lot over a 5, 10, or 20 year period.  Under many circumstances a fully insured 412e3 plan contribution can be deducted from Federal and State income, Medicare and Social Security Taxes, and the Affordable Care Act.  On top of being able to put more money into a 412e3 plan, thus increasing you tax deduction, it also cost less to administer than a 401k plan.