​The coronavirus pandemic has touched nearly every aspect of our lives. Perhaps nothing has been impacted as much as the way we work. While millions of Americans have lost their jobs during the pandemic, those who remain employed have seen their work change drastically.
 
In many professions, work-from-home has become the norm; not the exception. Some people have seen their work paused during this time. Others are on a mini sabbatical until their work gets back to normal. And for those who have lost their job, this may be a frightening time as they try to navigate an uncertain job market.
 
In many ways, this time could be seen as a small trial run for retirement. Your schedule isn’t clearly defined. You may be spending much of your time at home. Your work responsibilities may be limited or cut significantly. There are lessons you can take from this time and apply to your retirement. Below are a few of the biggest takeaways:

​During normal times, our schedule is often dominated by work obligations. You have to be at the office or your workplace at specific times. You have meetings and conference calls. You may have projects due by a specific time. Everything else in life often seems to get scheduled around work.
 
But during this pandemic, much like retirement, traditional work schedules have become blurred or even nonexistent. Work-from-home allows you to complete things during non-traditional working hours. You may find that personal tasks bleed into the work day.
 
If your work responsibilities have been cut or if you have lost your job, you may have found that time has lost its normal structure. How many of us have asked during this time, “What day is it again?”
 
You may find it helpful to maintain a schedule, even when you aren’t required to. Set the alarm and get up by a certain time. Keep a morning routine. Block off time for activities like fitness or work or even a new hobby. A schedule will help you maintain some normalcy and reach your goals.

​Much like our schedules, very often our purpose in life is dominated by work. For many people, the pandemic has made them reevaluate the role work plays in their lives. It’s similar to the process many retirees go through right after they end their careers. Without the purpose that comes from work, they may feel lost and even depressed.
 
This could be a good time to evaluate what is most meaningful to you. Sure, work is important, but after retirement you may need to find a new purpose. It could be family or friends. It may be a new hobby or a dedication to volunteer services. The choices are limitless. You just have to find the passion that is right for you.

Our social lives also often revolve around work. If you go into an office or workplace everyday, you may spend more time with your coworkers than anyone else in your life. Working from home can be a difficult transition, especially if you thrive on social interaction.
 
Retirement can make for a similarly difficult transition. If you’re nearing retirement, consider who your social circle may be after retirement, and how you’ll connect with them. Video conferencing solutions, like Zoom, have become popular during the pandemic, but they’re not just for work. You can use those platforms to connect with friends, family, coworkers, and more, even if you can’t connect in person.
 
Ready to plan your transition into retirement? Let’s talk about it. Contact us today at Marshall Life and Financial Solutions, Inc. We can help you analyze your goals and implement a strategy. Let’s connect soon and start the conversation.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20275 - 2020/7/20

The United States set a somber record on Thursday, July 16, 2020, with more than 75,000 new COVID-19 cases. In fact, the U.S. set new single-day COVID-19 records 11 times between June 17 and July 16. Dr. Anthony Fauci predicts the country will soon top over 100,000 new cases each day.1
 
COVID-related deaths are also increasing in some states. Florida set its single day record for COVID deaths on July 16, with 156. Nine other states also set single-day death records the same week.1
 
The resurgence in coronavirus cases has led some states to enact new measures. More than half of all states now have some kind of mask mandate. California has even rolled back its reopening, closing bars, indoor dining, gyms, and more.2
 
What does this mean for the economic recovery? And what does it mean for your financial future? It’s impossible to predict what will happen in the short-term, but knowing where things stand today may help you make important decisions with your strategy.

The stock market continues to rally in spite of the increasing COVID numbers and the return of restrictions. As of July 16, the S&P 500 is nearly back to even for the year. In fact, it’s up 43.71% since hitting a low 2237 on March 23.3 NASDAQ set a record-high on July 9 when it reached 10,617.4
 
The continued gains are good news for investors, especially after the sharp decline in March. However, that decline also shows us just how quickly the market can turn, especially if state governments introduce new orders that close businesses.
 
If you’re concerned about another potential downturn or future risk, this could be the right time to explore risk-protection strategies. For example, products like annuities allow you to participate in a portion of the market upside but also protect you against losses. A financial professional can help you determine which risk-management strategy is right for you.

While the number of new unemployment claims has declined for 15 consecutive weeks, unemployment numbers are still much higher than they were pre-COVID. In February, there were approximately 200,000 new unemployment claims each week. That number exploded to 6.867 million new claims in one week in late March. While new claims have declined since that point, they’re still more than double their level during the height of the Great Recession in 2009.5

In March, the government passed the CARES Act, which, among other things, provided direct stimulus payments to many Americans. A recent study found that 74% of recipients had used all of their stimulus payments within four weeks.6
 
As the coronavirus pandemic continues to impact Americans, Congress is considering a second round of stimulus payments. In May, the House of Representatives passed the $3 trillion HEROES Act to provide a second round of direct stimulus payments.6
 
In an interview in mid-July, Treasury Secretary Steve Mnuchin indicated that a second round of stimulus payments was a possibility, even if it doesn’t align exactly with the HEROES Act. Senate Leader Mitch McConnell and President Trump have also recently expressed their willingness to negotiate a second stimulus package.
 
While stimulus payments may provide a nice boost, they’re not a replacement for long-term strategy. At Marshall Life and Financial Solutions, Inc, we can help you analyze your needs and goals and implement strategies to limit your risk exposure. Let’s connect soon and start the conversation.
 
1https://www.nytimes.com/2020/07/17/world/coronavirus-updates.html
2https://www.theguardian.com/us-news/2020/jul/15/california-coronavirus-shutdown-businesses-restaurants
3https://www.google.com/search?q=INDEXSP:.INX&tbm=fin&stick=H4sIAAAAAAAAAONgecRowi3w8sc9YSntSWtOXmNU5eIKzsgvd80rySypFBLnYoOyeKW4uTj1c_UNDM0qi4t5FrHyePq5uEYEB1jpefpFAAAU6wGESAAAAA#scso=_Ap0RX4PNDdvRtAbPobiYBQ1:0
4https://www.cnn.com/2020/07/09/investing/stock-market-supreme-court-trump/index.html
5https://finance.yahoo.com/news/coronavirus-jobless-claims-unemployment-week-ended-july-11-175149759.html
6https://amp.usatoday.com/amp/112232064
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20279 - 2020/7/21

What’s your biggest retirement fear? If it’s running out of income in retirement, you’re not alone. According to a recent study from Transamerica, the number one fear for Baby Boomers is outliving their assets and running out of income.1 Boomers aren’t alone. Generation X is also projected to be far behind on their retirement savings, with an average balance of only $64,000.2
 
These numbers may explain why 52% of workers expect to work beyond age 65. Among Boomers, that figure jumps to 68% who expect to or are already working past age 65.3
 
Continuing your career into your late 60s or even early 70s is one way to accumulate more savings and protect your retirement income. However, it’s not the only option. Depending on your goals and needs, you may just need slightly more income to reach your objectives.
 
Below are four creative ways to stabilize your income in retirement:

The sharing economy is based on individuals sharing their own goods and services with others. Uber is an example. Airbnb is another. There are a growing list of websites and apps that allow you to earn money simply by sharing your own goods, such as your car or extra space in your house.
 
Granted, you may not want to drive an Uber around town. However, that’s not the only option. If you’re an empty nester with extra space, you could rent bedrooms to guests. There are some services that let you rent out storage space. There are even services for renting out tools or other useful goods.
 
The best thing about the sharing economy is that you can participate as much or as little as you like. You set your terms, prices and schedule, so it doesn’t come with the commitment of actual employment. Be creative and research opportunities to generate extra income in a way that fits your lifestyle.

​After a career that spanned decades, your most valuable asset may be your experience and knowledge. Why not use that knowledge to generate income after you retire?
 
You could use your industry contacts to become a consultant. Or you could coach or mentor younger individuals in your industry who want your advice. There are plenty of websites that offer a platform to do this.
 
Another option is to talk to your former employer about consulting opportunities. They may want to retain your experience and knowledge and may be willing to do so in a flexible way. Don’t assume that retirement means completely walking away from your career, contacts and experience.

​Do you have life insurance that has a significant amount of cash value? Did you know you can tap into that cash value for supplemental retirement income?
 
You can take withdrawals from your life insurance policy. If you’re withdrawing your own premiums, the distributions are tax-free. If you withdraw earnings, the distributions are taxable.
 
You also may be able to take tax-free loans from the policy, assuming you have enough cash value after the loan to support the death benefit. You repay the loan over time. If you pass away with a remaining balance, that amount is deducted from the death benefit. A financial professional can help you determine if your life insurance makes a good source of supplemental income.

Your concern may not be the amount of your income but rather the certainty of it. You may have to rely on withdrawals from your savings to provide retirement income. Market volatility could make those withdrawals unpredictable. There’s also the risk that you could run out of income if you have a long retirement.
 
One way to minimize those risks is to guarantee your income using a tool like an annuity. You can take up to a certain withdrawal amount every year. Assuming you stay within the policy’s withdrawal limits, your income is guaranteed for life, regardless of how long you live or how the market performs.
 
We can help you develop your retirement income strategy. It starts with an analysis of where you are today and where you want to go. Contact us today at Marshall Life and Financial Solutions, Inc. Let’s connect soon and start the conversation.
 
1https://www.kenoshanews.com/business/investment/personal-finance/these-are-baby-boomers-top-3-retirement-fears/article_b5d4a1e0-f853-5beb-9ce6-392d0bd1aa70.html
2https://www.fool.com/retirement/2020/06/16/gen-xers-are-alarmingly-behind-on-retirement-savin.aspx
3https://www.kenoshanews.com/business/investment/personal-finance/more-than-half-of-workers-expect-to-work-past-65-heres-why-you-should-plan/article_3789fd58-82d9-57c0-bfeb-73900f3cb27e.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20197 - 2020/6/22

​Do you have an old permanent life insurance policy that has accumulated cash value? Having an unused life insurance policy isn’t a bad thing. It’s certainly better than the alternative.
 
However, your needs today may not be the same as they were when you purchased the policy. You may have purchased your life insurance when you were younger. Perhaps you had young children in the home or a spouse who relied on you for financial support. Maybe you were still in the early stages of your career and saving for the future.
 
Today, your situation may be much different. You may be nearing retirement with a sizable nest egg. Maybe you don’t have a mortgage or other debt that would be a burden to your spouse if you passed away. Perhaps your children are grown and no longer financially dependent on you.
 
You may feel like your life insurance policy is no longer necessary. Why not surrender the policy and take the cash value?
 
Just because your old policy is no longer needed for its original purpose, doesn’t mean it isn’t useful. In fact, you can use it to achieve other goals, like providing supplemental income, leaving a legacy for family, and more.
 
One effective purpose for the policy is to use it to support your grandchildren’s education. In fact, life insurance can be a flexible, efficient tool to support your grandchildren as they further their education.
 
Tax-efficiency. As you may know, cash value accumulates inside a permanent life insurance policy on a tax-deferred basis. You don’t pay taxes on the growth as long as the funds stay inside the policy.
 
However, you also may be able to take tax-free distributions from the policy. One way to do this is by taking withdrawals. When you take a withdrawal, your premiums come out before your gains. Premium distributions are tax-free. Withdrawals of gains are taxed as income.
 
Another way to take a tax-free distribution is to take a loan from the policy’s cash value. You don’t pay taxes on the distribution, and you repay the loan over time. If you pass away before repaying the loan, the balance is deducted from your death benefit.
 
Flexibility. You can take a withdrawal from a life insurance policy at any time for any reason, assuming you have enough cash value in the policy to support the death benefit. That differs from other college savings tools, like 529 plans, which require you to use withdrawals for qualified education expenses.
 
That flexibility could help you support your grandchildren in whatever way they need. For instance, maybe they need help with tuition, but maybe they need more help with other expenses, like food or rent. Or perhaps you have a grandchild who is charting his or her own path and skipping the traditional college experience. You can use your policy to help them in whatever way you like.
 
Financial aid. It’s always important to check with financial aid professionals before making gifts. However, generally speaking, life insurance cash value belonging to grandparents does not count as an asset on a financial aid application. That means you can support your grandchild without hurting their chances to earn scholarships, grants and other forms of aid.
 
You don’t need to have an existing policy to make use of this strategy. If you’re in relatively good health and have assets you would like to use to support your family, you may benefit from purchasing a new policy. We can help you evaluate your goals and determine the right strategy.
 
Let’s connect today and discuss how you can best help your grandchildren make their dreams reality. Contact us today at Marshall Life and Financial Solutions, Inc and let’s start the conversation.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20196 - 2020/6/22

​It’s easy to tell when Medicare open enrollment season has arrived. If you’re near age 65 or older, you may receive telemarketing calls from Medicare sales agents. Or perhaps you start seeing Medicare sales booths pop up in retail stores or shopping malls. In fact, it’s common these days to see Medicare sales professionals in grocery stores.
 
There are no shortage of individuals who want to sell you Medicare coverage, especially during open enrollment season. However, just because there are plenty of opportunities to purchase coverage doesn’t mean you should use just anyone for your coverage.
 
Medicare is one of the most important financial decisions you’ll make in your retirement. Fidelity estimates that a 65-year-old retiring in 2019 will pay $285,000 out-of-pocket in retirement. That figure includes costs for premiums, deductibles, copays, and services not covered by Medicare.1
 
Clearly, your Medicare policy will influence the amount you spend on premiums, deductibles, and more. In 2020, there are more than 3,000 Medicare Advantage plans available.2 Choosing the right plan for your needs and budget can not only help you get the care you need in retirement but protect your assets.
 
How do you find the policy that’s right for you? One good step is to talk with an experienced professional before you make any decisions. Below are a few specific ways a qualified financial professional can help you find the right policy and make wise decisions.

​Did you know you can face penalties if you don’t sign up for certain parts of Medicare by the deadline? For example, if you don’t enroll by Medicare Part B by the deadline, you could face a 10% penalty on your premium for each 12-month period you go without coverage.3
 
There are similar penalties for the other parts of Medicare. A financial professional can help you determine when you need to file for certain parts and avoid any potential penalties for a late filing.

​As mentioned, there are more than 3,000 policies available under Medicare Advantage, which is a program that allows private insurers to offer bundled policies. Not all Medicare Advantage policies are right for all individuals. They have a variety of premiums, deductibles, and covered services.
 
Often, when you’re talking to a sales rep over the phone or at a booth in a retail store, they are incentivized to sell one specific policy. That one may not be right for your budget or your healthcare needs. A financial professional who isn’t aligned with a specific carrier can shop the universe of policies to find the right one for you. 

Unfortunately, there are some who use Medicare as an opportunity to prey on older individuals. Medicare scams are common, especially over the phone. Some scammers use tricks to get sensitive information, like your Social Security number. Others may falsely claim that you will lose coverage if you don’t purchase additional coverage or give them payment information.
 
Talk to a trusted professional before you buy coverage over-the-phone. They can help guide you on all your options and help you avoid a potentially costly mistake.
 
Ready to discuss your Medicare strategy? Let’s connect. Contact us today at Marshall Life and Financial Solutions, Inc. We can help you analyze your needs and find the right coverage. Let’s connect soon and start the conversation.
 
1https://s2.q4cdn.com/997146844/files/doc_news/archive/b6f07a26-3aa9-4a98-af00-b1b783cfd552.pdf
2https://www.kff.org/report-section/medicare-advantage-2020-spotlight-first-look-data-note/
3https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-late-enrollment-penalty
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20120 - 2020/5/29 20121 - 2020/5/29

​Did you know Medicare has potential penalties? It’s true. It’s possible that you could pay penalties on your Medicare premiums when you file. Fortunately, though, you can avoid these penalties if you file for coverage by the right deadlines.
 
Generally, you’re eligible for Medicare at age 65. However, there are certain windows in which you must apply. For example, you can initially apply for Medicare parts A and B during a 7-month period that starts three months before your 65th birthday and ends three months after. You can also file for coverage during the General Enrollment Period that occurs during the first three months of every year.1
 
If you don’t file for coverage during those periods, you may face a penalty. The penalties vary based on the specific part of Medicare:

​Most people are automatically enrolled in Medicare Part A. It’s funded by your FICA taxes, so Part A generally has no premium. That’s not true for everyone though. Individuals who haven’t earned enough Medicare credits to automatically qualify must purchase Part A. If you’re in that group and fail to do so by the enrollment deadline, you may face a penalty.
 
For Part A, the penalty is 10% for twice the number of years you go without coverage.  For example, assume you delay filing for two years. You may have to pay a 10% penalty for four years.2

​The penalty for not filing for Part B is 10% for every 12-month period you went without coverage. For example, assume you file for Part B two years after you are initially eligible. You would pay a 20% penalty - 10% for each 12-month period that you missed.3
 
It’s important to note that these penalties are permanent. You’ll pay the penalty as long as you pay premiums for Part B. As you can imagine, those penalties could be costly over the course of your retirement.

Part D is Medicare’s prescription drug coverage. You could face a penalty on your Part D premium if you go at least 63 continuous days without prescription drug coverage from the time you are first eligible. You can avoid this penalty by having one of the following:

• Medicare Part D
• A Medicare Advantage plan that includes prescription drug coverage
• Some other qualified prescription drug plan, like employer-based coverage

 
As you can see, it can be costly to miss a Medicare deadline. A Medicare strategy can help you file on time and find the right coverage options for your needs. Contact us today at Marshall Life and Financial Solutions, Inc. We can help you develop and implement the right Medicare strategy for you.
 
1https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/part-a-part-b-sign-up-periods
2https://www.medicare.gov/your-medicare-costs/part-a-costs/part-a-late-enrollment-penalty
3https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-late-enrollment-penalty
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20120 - 2020/5/29

What’s your strategy for retirement? Is it based on your unique needs and goals? Or is it based on general ideas and conventional retirement wisdom?
 
There are plenty of “experts” online offering retirement wisdom for the masses. In fact, if you search “retirement” on Google, you’ll find more than 880 million results with retirement tips and strategies.
 
The problem with retirement advice for the masses is that it’s not customized to your unique goals. There are plenty of pieces of conventional retirement wisdom that aren’t right for every person or situation. Below are two examples of common retirement income rules and tips that may not be right for you:

You should plan on taking 4% withdrawals from your savings to fund your retirement. 

There are many “back-of-the-napkin” formulas meant to simplify retirement planning. One of the most common is the idea that you can take 4% of your assets as income in retirement. The idea is that if you withdraw 4% each year, your assets will last at least 25 years.
 
There are a few problems with this idea. The first is that not everyone will spend money the same way in retirement. You may want to travel or pursue other activities in the early years of retirement. Some people may need to provide support to children or grandchildren. And some will face costly healthcare issues. Not everyone’s spending is the same.
 
This rule also doesn’t account for inflation. It’s unlikely that your spending will stay the same year after year, making it unlikely that you can take the same withdrawal each year.
 
A better approach is to develop a custom budget and spending plan and then implement a strategy to meet your income needs. You also may want to consider financial vehicles like annuities that can provide guaranteed* income to help you meet your goal.

You will spend less in retirement than you do now. 

Another common piece of retirement advice is that your spending will go down after you retire. Perhaps you’ve heard the idea to plan on spending 80% of your current spending in retirement.
 
Again, the problem with this advice is that your spending will differ from others. Many retirees see their spending increase after they stop working. They fill their free time with travel, shopping, dining out, and other activities that cost money. In the later years of retirement, you could see your medical expenses rise as you face healthcare issues.
 
You may see your spending in certain areas decline after retirement, but that doesn’t mean your overall spending will go down. Consider building a retirement budget that is specific to your goals and your plans. That will give you a better idea of how much you may spend in retirement.
 
Ready to develop a retirement income plan that is specific to your needs and goals? Let’s talk about it. Contact us today at Marshall Life and Financial Solutions, Inc. We can help you estimate your income need and implement a strategy. Let’s connect soon and start the conversation.
 
 
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20024 - 2020/4/22

​You may see a new figure on your 401(k) statement soon. In December of last year, President Trump signed the SECURE Act, which stands for Setting Up Every Community for Retirement Enhancement. The bill’s goal was to make it easier for Americans to save for retirement.
 
One of the provisions in the bill changes the way 401(k) administrators report account balances to participants. At some point soon, your statement will not only include your account’s balance, investment performance, and other traditional information, but it will also include a projection of your future monthly income.
 
The change is designed to give you another perspective on your progress toward retirement. It’s often difficult to estimate your readiness by looking at a lump sum amount. However, if that lump sum is translated into monthly income, you may get a better idea of whether you’re on track to meet your goals.If you aren’t on track, the good news is you can take action. Below are two steps you can take to enhance your retirement income:

Increase your contributions. 

In 2020, you can contribute up to $19,500 to your 401(k). If you are age 50 or older, you can contribute an additional $6,500, bringing your total potential contribution to $26,000.1
 
Of course, you may not be able to contribute that much this year. Even a modest increase can have an impact on your savings and your future retirement income. One strategy is to gradually increase your contributions over time. Start by increasing your contribution by 1% each year. Eventually, you’ll be contributing the maximum amount.

Guarantee your income. 

Another strategy you could implement is to strategize with products that provide guaranteed income in retirement. The SECURE Act makes it easier for 401(k) plans to offer annuities as a strategy option. These vehicles often provide guarantees on retirement income.
 
For example, you may be guaranteed to withdraw a certain amount of income for life, regardless of how the markets perform or how long you live. That could help you minimize risk and protect your cash flow in retirement.
 
Ready to boost your retirement income? Let’s talk about it. Contact us today at Marshall Life and Financial Solutions, Inc. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
 
1https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20021 - 2020/4/22
 
 
Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.  Annuities are long-term, tax-deferred vehicles designed for retirement and contain some limitations.

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC.

It’s been a volatile few weeks in the financial markets. In mid-February, we were still enjoying a relatively healthy economy. And then the coronavirus arrived. Between Friday, February 21 and Monday, March 16, the Dow Jones Industrial Average has dropped by 30.37%.1
 
The rapid decline has left many investors with two questions:

• How much further will markets drop?
• What can I do to protect my assets?

 
There’s no easy answer to the first question. If history is any guide, eventually the decline will stop, and the economy will recover. The second question is even more difficult to answer. There are certainly protection options available, but not all options are right for all investors. Your strategy should be based on your unique needs, goals, and tolerance for risk. Below are a few options you have available:

Shifting to a more conservative strategy. 

You could transition to a more conservative strategy. Many people become more risk-averse as they approach retirement. If you haven’t reviewed your allocation in years, this may be the right time to do so.
 
Of course, a more conservative allocation could limit your participation in a recovery when it happens. Work with a financial professional to find an allocation strategy that limits your exposure to further losses, but still gives you an opportunity to participate in future upside.

Using market risk-protection vehicles. 

Another option is to take advantage of market risk-protection vehicles like annuities. There is a wide range of different types of annuities that can limit your exposure to market risk and protect your future income. For example, some annuities guarantee your principal against downside market loss, but also give you the ability to earn interest. That could be a way to limit further losses but still maintain growth potential.
 
Life insurance is another possibility. Yes, you can use life insurance to limit your exposure to risk. Most permanent life insurance policies have a cash value account. If you have a whole life or universal life policy, this cash value account isn’t exposed to the financial markets. There is no risk of loss due to market decline. However, you may earn dividends or interest so you can grow your cash value on a tax-deferred basis.

Protect your income. 

Are you planning on using your assets to generate income in retirement? If so, every day of losses may mean a reduction in future income. You can guarantee your future income by using financial vehicles like annuities. Many offer optional benefits that pay a guaranteed income stream in the future, no matter how long you live or how the markets perform. A financial professional can help you determine if an income guarantee is right for you.
 
Ready to protect your nest egg? Let’s talk about it. Contact us today at Marshall Life and Financial Solutions, Inc. We can help you analyze your needs and implement a strategy. Let’s connect soon and start the conversation.
 
 
1https://www.google.com/search?safe=off&sa=X&tbm=fin&sxsrf=ALeKk02Fk2yPH2_A7nU0wQGE5IUIixHyGQ:1584394531365&q=INDEXDJX:+.DJI&stick=H4sIAAAAAAAAAONgecRozC3w8sc9YSmtSWtOXmNU4eIKzsgvd80rySypFBLjYoOyeKS4uDj0c_UNkgsry3kWsfJ5-rm4Rrh4RVgp6Ll4eQIAqJT5uUkAAAA&ved=2ahUKEwiBmOfJ-Z_oAhWUW80KHc2dA3MQ3N8BMAJ6BAgCEAM#scso=_SfFvXsWJMJe1tAbX6pm4BQ1:0
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 19926 - 2020/3/17

Tax time is almost here again. Are you one of those filers who wait until the last minute? You’re not alone. Unfortunately, procrastination can be costly, especially in retirement when every dollar count. If you wait, you may rush and that may cause you to miss valuable deductions, credits, and other strategies.
 
The good news is you still have time to prepare. Below are five actions you can take today to get prepared for tax time and possibly save yourself some money. If you haven’t gotten started on your tax planning, now is the time to do so.

Get organized early. 

Time is a valuable asset, especially when it comes to tax planning. Take time now to organize all your receipts for major purchases, especially for things that may be deductible like business expenses or health care costs.
 
You should also use this time to get all your 1099s, W2s, and other income documents in order. If you haven’t received some yet, call the appropriate administrator and ask for one. The earlier you can ballpark your total income for the year, the sooner you can start analyzing possible deductions and credits.

Track your medical expenses. 

Did you have major medical expenses in 2019? If so, those expenses could save you tax dollars. You can deduct medical expenses that exceed 10% of your adjusted gross income in 2019.1
 
Of course, you need to know how much you had in medical expenses and be able to document those costs to take advantage of this deduction. Track down all statements and receipts to find a total. You also may want to contact your health care provider for documentation if necessary.

Make a retirement contribution. 

Do you have a traditional IRA? If so, you still have time to make a contribution and potentially realize a tax deduction. In a traditional IRA, your contributions are tax-deductible, assuming you meet certain income restrictions. Growth is tax-deferred and your withdrawals in retirement are taxed as income.
 
You can make a deduction up to April 15 and count it as a 2019 contribution. In 2019, you can contribute up to $6,000, or $7,000 if you are 50 or older.2 If you haven’t yet met the maximum, you can still do so and possibly see a deduction on your upcoming return.

Take your RMD. 

If you’re age 70 ½ or older, your tax issues may not involve contributions but rather withdrawals. At age 70 ½, you are required to start taking minimum distributions from your 401(k), IRA, or other qualified accounts. These required minimum distributions (RMDs) amounts are based on your account balances and your age.
 
What happens if you don’t take your RMD? You could face a penalty of up to 50% of the required withdrawal amount.3 Fortunately, you have until April to take your RMD for 2019. If you haven’t done so yet, now is the time to make that distribution.

Think about the future. 

Tax planning isn’t just about your upcoming return. It’s also about your long-term future. What steps can you take now to reduce your tax exposure ion future returns?
 
For example, perhaps you could create tax-efficient income in retirement. Maybe you can take advantage of additional deductions and credits by planning ahead. You may be able to reduce your taxable income by delaying your Social Security filing. A financial professional can help you explore these options and develop the right strategy for your needs.
 
Ready to take control of your taxes this year? Let’s talk about it. Contact us at Marshall Life and Financial Solutions, Inc. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
 
1https://turbotax.intuit.com/tax-tips/health-care/can-i-claim-medical-expenses-on-my-taxes/L1htkVqq9
2https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-contributions
3https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions#9
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
19562 - 2019/12/16