Financial Intel Monthly

Medicare Prescription Drug Coverage

Aug 12, 2016 3:04:34 PM / by The Retirement Group (800) 900-5867 posted in CAM Annuity, Early Retirement, Economy, ERB, ESRO, Hewitt, In Service Withdrawal, Monarch, netbenefits, Northrop Grumman, Option 1, Option 1 withdrawal, PPA, The Retirement Group John Jastremski, 401k, 72T, Age Penalties, att workshop, Best adviser, medicaid, medical, medicare, Workshops

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man and child walking near bushes during daytime

If you're covered by Medicare, here's some welcome news--Medicare drug coverage can help you handle the rising cost of prescriptions. If you're covered by original Medicare, you can sign up for a drug plan offered in your area by a private company or insurer that has been approved by Medicare. Many Medicare Advantage plans will also offer prescription drug coverage in addition to the comprehensive health coverage they already offer. Although prescription drug plans vary, all provide a standard amount of coverage set by Medicare. Every plan offers a broad choice of brand name and generic drugs at local pharmacies or through the mail. However, some plans cover more drugs or offer a wider selection of pharmacies (for a higher premium) than others, so you'll want to choose the plan that best meets your needs and budget.

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Here is what you need to know for 2014 By John Jastremski

Jan 27, 2014 5:08:22 PM / by The Retirement Group (800) 900-5867 posted in CAM Annuity, Chevron, In Service Withdrawal, Jeremy Keating, Michael Reese, Michael Tomren, Option 1 withdrawal, The Retirement Group, The Retirement Group John Jastremski, 72t, age penalties, att workshop, benefit commencement date, Best adviser

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2014 IRA Deadlines Are Approaching

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Funding Your Future with a Fixed Annuity

Sep 27, 2013 11:57:56 AM / by The Retirement Group (800) 900-5867 posted in CAM Annuity, Early Retirement, ExxonMobil, Financial Planning, Hewitt, hr1stop, Lump Sum, netbenefits, Option 1 withdrawal, Pension, Retirement Planning, Texas Instrument, The Retirement Group, The Retirement Group John Jastremski, The Retirement Group LLC, Verizon, 401K, 401k, 72t, age penalties, Alex Mele, AT&T 401K, AT&T Pension, AT&T seminar, att workshop, benefit commencement date, Best adviser

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The Retirement Group
800-900-5867
Fax: 866-936-0750
info@theretirementgroup.com
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Funding Your Future with a Fixed Annuity
A fixed annuity is a contract between you and an annuity issuer, usually an insurance company. In its simplest form, you pay money to the annuity issuer; the issuer invests the funds and pays the principal and its earnings back to you or to your named beneficiary. What's fixed about a fixed annuity? The issuer guarantees (subject to its claims-paying ability) a minimum rate of interest on your investment and a fixed benefit amount if you elect to annuitize.When is an annuity appropriate?

Annuity contributions are made with after-tax dollars and are not tax deductible. That's why it's often advisable to fund other retirement plans first. However, if you've already contributed the maximum allowable amount to other plans and want to save more toward your retirement, an annuity can be an excellent choice. There's no limit to how much you can invest in an annuity, and the funds grow tax deferred until you begin taking distributions.

Once you begin withdrawing from your annuity, you'll pay taxes (at your regular income tax rate) only on the earnings, since your contributions to principal were made with after-tax dollars. Like a qualified retirement plan, a 10% tax penalty may be imposed if you withdraw from an annuity before age 59½.

Annuities are designed to be very-long-term investment vehicles. In most cases, if you take a withdrawal, including a lump-sum distribution of your annuity funds within the first few years after purchasing your annuity, you may be subject to surrender charges imposed by the issuer. However, many companies allow options for withdrawals or distributions without incurring a charge. As long as you're sure you won't need the money until at least age 59½ and you understand the costs (including fees) involved, an annuity is worth considering.

Two distinct phases to an annuity

There are two distinct phases to an annuity contract: the accumulation phase and the distribution phase.

In the accumulation phase, you're putting money into the annuity. You can choose to pay your premiums in one lump sum, or you can make a series of payments over time. These payments can be of equal amounts made at equal intervals, or of variable amounts at irregular intervals, depending on the terms of the contract.

Annuities may be either immediate or deferred; the terms simply refer to when the distribution phase begins. Immediate annuities are typically purchased with a single payment and the distribution phase usually begins within a year of the purchase. While deferred annuities may be purchased with a single lump sum premium payment, they are most often purchased with a series of periodic payments. The distribution period is deferred until some time in the future.

In the distribution phase, you begin taking money out of the annuity. You may withdraw some or all of the money in lump sums, or you may annuitize. Subject to the claims-paying ability of the issuer, annuitization provides a guaranteed income stream for either a specified period or for life.

Why buy an annuity?

  • To provide income to supplement what you receive from Social Security, pension plans, and other employer-sponsored retirement plans.
  • To create a lifetime income stream.
  • To maintain financial independence. For example, you can use annuity funds to pay for long-term care expenses and stay in your own home, rather than rely on your children for care.
  • To invest for any specific purpose or long-term goal, such as providing a legacy for your heirs or making a charitable gift.
  • To grow funds on a tax-deferred basis.

How a Fixed Deferred Annuity Works

  1. In the accumulation phase, you (the annuity owner) send your premium payment(s) (all at once or over time) to the annuity issuer. These payments are made with after-tax funds, and you may invest an unlimited amount.
  2. The annuity issuer places your funds in its general account.* Your annuity contract specifies how your principal will be returned as well as what rate(s) of interest you'll earn during the accumulation phase. Your contract will also state what minimum interest rate applies.**
  3. The compounding interest on your annuity accumulates tax deferred. You won't be taxed on these earnings until funds are withdrawn or distributed.
  4. The issuer may collect fees to manage your annuity account. You may also have to pay the issuer a surrender fee if you withdraw money in the early years of your annuity.
  5. Your annuity contract may contain a guaranteed** death benefit or other provisions for a payout upon the death of the annuitant. (The annuitant provides the measuring life used to determine the amount of the payments if the annuity is annuitized. As the annuity owner, you're most often also the annuitant, although you don't have to be.)
  6. If you make a withdrawal from your deferred annuity before you reach age 59½, you'll not only have to pay tax (at your ordinary income tax rate) on the earnings portion of the withdrawal, but you may also have to pay a 10 percent premature distribution tax, unless an exception applies.
  7. After age 59½, you may make withdrawals from your annuity without incurring any premature distribution tax. Since annuities have no minimum distribution requirements, you don't have to make any withdrawals. You can let the account grow tax deferred for an indefinite period. However, your annuity contract may specifiy an age at which you must begin taking income payments.
  8. To obtain a guaranteed** fixed income stream for life or for a certain number of years, you could annuitize which means exchanging the annuity's cash value for a series of periodic income payments. The amount of these payments will depend on a number of factors including the cash value of your account at the time of annuitization, the age(s) and gender(s) of the annuitant(s), and the payout option chosen. Usually, you can't change the payments once you've begun receiving them.
  9. You'll have to pay taxes (at your ordinary income tax rate) on the earnings portion of any withdrawals or annuitization payments you receive.

* These funds are invested as part of the general assets of the issuer and are therefore subject to the claims of its creditors.

** All guarantees are subject to the claims-paying ability of the issuing company.

This material was prepared by Broadridge Investor Communication, and does not necessarily represent the views of John Jastremski, Jeremy Keating, Erik J Larsen, Frank Esposito, Patrick Ray, Robert Welsch, Michael Reese, Philip Catalan, Brent Wolf, Andy Starostecki and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. The publisher is not engaged in rendering legal, accounting or other professional services. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

John Jastremski is a Representative with FSC Securities and may be reached at www.theretirementgroup.com.

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Securities offered through FSC Securities Corporation, member FINRA/SIPC. Investment advisory services offered through The Retirement Group, LLC. a registered investment advisor not affiliated with FSC Securities Corporation.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2011.
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OPTIONS FOR TAKING MONEY OUT OF A ROTH

Sep 5, 2013 4:08:00 AM / by The Retirement Group (800) 900-5867 posted in Brent Wolf, Chevron, Early Retirement, Economy, ERB, Hewitt, Jodi Ripp, Lump Sum, netbenefits, Pension, Pension Options, The Retirement Group, The Retirement Group John Jastremski, Verizon, 401k, 401K.com, Age Penalties, Benefit Commencement Date, benefits help

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Explaining some of the intricacies of withdrawals.

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THE RIGHT BENEFICIARY by John Jastremski

Sep 4, 2013 8:11:00 PM / by The Retirement Group (800) 900-5867 posted in Early Retirement, Economic Report, erik Larsen, Lump Sum, Matt Nelson, Michael Tomren, Option 1 Withdrawal, Pension, Retired, Retirement, Retirement Planning, Seminar, The Retirement Group, The Retirement Group John Jastremski, 401k, Alex Mele, ATT, Benefit Commencement Date, benefits help

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Who have you chosen to inherit your assets?
It may be wise to review your choices.

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IS YOUR ADVISOR PROACTIVE? by John Jastremski

Sep 2, 2013 8:50:00 PM / by The Retirement Group (800) 900-5867 posted in Brent Wolf, erik Larsen, ESRO, Financial Planning, In Service Withdrawal, Jon Guay, Justin Irving, Matt Nelson, Michael Tomren, Monarch, netbenefits, NGC, Option 1 Withdrawal, Pension Options, Retirement, Retirement Planning, The Retirement Group, The Retirement Group John Jastremski, The Retirement Group LLC, Uncategorized, Age Penalties, ATT, benefits help, Workshops, Verizon Workshop

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Here’s hoping your financial consultant has kept up with the times.

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Understanding the Markets

Aug 13, 2013 10:00:30 AM / by The Retirement Group (800) 900-5867 posted in Economic Report, Economy, Financial Planning, Lump Sum, netbenefits, Pension Options, Retired, Retirement, The Retirement Group, The Retirement Group John Jastremski, The Retirement Group LLC, top rated, benefit commencement date

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Understanding the Markets

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Where to Get Disability Coverage

Aug 8, 2011 9:36:58 AM / by The Retirement Group (800) 900-5867 posted in CAM Annuity, Chevron, ExxonMobil, Financial Planning, In Service Withdrawal, Michael Tomren, netbenefits, Northrop Grumman, Pension Options, The Retirement Group John Jastremski, AT&T Pension, AT&T seminar, benefit commencement date, VZ

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Disability insurance comes in many forms--individual policies, group policies sponsored by employers or associations, and government-sponsored programs such as Social Security and workers' compensation. Here are some of the benefits and drawbacks of each type of disability coverage.

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6 STEPS TO GET OUT OF DEBT

Jul 20, 2011 8:46:26 AM / by The Retirement Group (800) 900-5867 posted in CAM Annuity, Chevron, Exxon Mobil, Financial Planning, Hewitt, hr1stop, In Service Withdrawal, Jodi Ripp, Lloyd Silvers, Lump Sum, Michael Tomren, netbenefits, Northrop Grumman, Option 1 withdrawal, Steve Boblis, Texas Instrument, The Retirement Group John Jastremski, 401K, 72t, access.att, age penalties, AT&T seminar, att workshop, benefit commencement date, Best adviser

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    <p align="center"><em style="font-size: 1em; text-align: left;"><b>Why not plan to lighten your financial burden?</b></em></p>

Positive moves to counteract negative cash flow. In its most recent Quarterly Report on Household Debt and Credit, the Federal Reserve Bank of New York put aggregate U.S. consumer debt at $11.4 trillion in the fourth quarter of 2010. Divide that by the Census Bureau’s estimate of 114.8 million households in 2010 and you get an average American household debt of $99,303.1,2

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Will Your Auto Insurance Premiums Go Up after an Auto Accident?

Jul 7, 2011 12:52:01 PM / by The Retirement Group (800) 900-5867 posted in Financial Planning, Hewitt, hr1stop, Lump Sum, Northrop Grumman, Option 1, Option 1 withdrawal, Pension Options, resources.hewitt, Retirement, Seminar, Specialist, The Retirement Group, The Retirement Group John Jastremski, The Retirement Group LLC, top rated, Verizon 401K, access.att, Workshops, Verizon Pension, Verizon Seminar, Verizon Workshop, VZ

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Will Your Auto Insurance Premiums Go Up after an Auto Accident?

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