Monday, June 29, 2015

We Can Expect to Live Longer, But Our Money Must Last Longer, Too!

We can expect to live longer, but our money must last longer, too!

Good news! You more likely than not can expect to live a much longer lifespan than in previous
generations. That's the conclusion from the latest mortality tables released last October by the Retirement Plans Experience Committee of the Society of Actuaries. According to the updated tables, a 65-year-old male alive today has a life expectancy of 86.6 years, two years longer when compared to the 2000 mortality tables. It gets even better if you are female because a 65-year-old female today has a life expectancy of 88.8 years, an improvement of 4.2 years over the 2000 tables.

So we can expect to be around much longer, enjoying our golden years and spending time with our loved ones. On the other hand, that also means that now, more than ever, the need to make sure you have enough savings to last through your lifetime is crucial. How fun will it be when you have to face the ordeal of outliving your savings?

Just how much will you potentially need throughout your retirement years? Well, the answer to this question depends on each individual’s particular set of circumstances and could be best answered by a competent retirement adviser. But let me give you some generic insight.

Let's say you are the typical 65-year-old male and you live through age 86.6, as suggested by the latest mortality tables, and you require just $2,000 a month ($24,000 a year) to supplement your retirement income. Without accounting for any adjustment for cost of living increases, that comes to approximately $528,000. For the typical female spending 24 years in retirement, that amount will be $576,000. What if you needed $2,500 a month instead? You’d be looking at approximately $660,000 and $720,000 for the typical male and female respectively.


It is important to point out that these numbers are just averages. So in all likelihood, some folks will fall below them, but others will exceed them. My wish and prayer is for you to exceed them and live a long, healthy life. But keep in mind that it is up to you to make sure that you take the necessary steps to be ready financially. Hopefully I have given you the motivation to act and make sure that you are headed in the right direction.
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Want an independent assessment to confirm that you are on the right track when it comes to saving for your retirement, including the money you will leave to your heirs? Come in so we can help you to  objectively evaluate your current approach. Visit LaserFG.com or call 877.656.9111 right now to book your complimentary session

Monday, June 8, 2015

You Could Eliminate Taxes from Your Social Security Benefit Checks by Shuffling Your Other Income

You Could Eliminate Taxes from Your Social Security Benefit Checks by Shuffling Your Other Income

Yes, it’s possible to collect every last penny of your Social Security retirement checks, completely tax free. But that depends on “where” your other income is coming from.

As the principal of a retirement planning practice, I can confidently tell you – without the need to reference any formal study – that one of the major issues on the list of every single retiree who consults with us is finding ways to reduce the enormous tax bill they face, year after year.

You obviously understand why this is such a huge thing. Who wouldn’t want to keep as much of his or her money as possible, especially in retirement? Personally, I think there’s a much bigger issue at stake, because the overwhelming majority of the folks I’m referring to here don’t consider themselves to be in a higher income bracket, by any measure. So why in the world will paying too much taxes even become an issue? Let me answer it this way: it is one of those “mysteries” that most folks have to literally experience to believe.

The unfortunate truth here is that more and more unsuspecting folks are meeting a nasty surprise as they enter their retirement years. Many Americans seem to be under the mistaken impression that just because they expect to have less income in retirement, their tax bill will shrink, too. It would certainly be great if that were, in fact, the case. But it’s not, at least based on what I see happening in real life, to real people, every day.

One huge blind spot, for lack of a better word, surrounds the way Social Security retirement checks are taxed: in general, if one-half (50 percent) of your Social Security benefits, plus your other countable (note the keyword countable) sources of income amount to more than $25,000 (if you’re single) or $32,000 (if you file jointly with your spouse), up to 85 percent of your Social Security benefit checks may be subject to taxes, on top of and in addition to your other taxable income.

I certainly haven’t met everyone out there, but I’m fairly confident that single folks with the $25,000 base threshold or couples with the $32,000 base threshold wouldn’t consider themselves candidates for paying taxes on their Social Security retirement checks – until they literally experience it.

Here’s some great news! The IRS formula that is used to determine the taxable portion of Social Security benefits does not count income from certain specifically designated sources/accounts. So, in simpler terms, there’s the possibility that by simply reshuffling “where” or “from which account” your non-Social Security income is coming, you may be able to completely skip the tax on your Social Security benefit checks.

Really? Yes, really!

Our latest special report, Skip the Tax, breaks down the rules and also provides suggestions about how you can position yourself to reduce to the bare minimum – or wipe out altogether – any tax from your Social Security checks. You are welcome to grab your complimentary copy HERE.
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If you'd like to learn more about how to reduce your tax bill in retirement, visit LaserFG.com or call 877.656.9111 right now to book your complimentary session with a seasoned financial professional with a proven track record who can help you create the financial future you desire.