The need for LTC/HHC Insurance has never been greater. I am reminded on a daily basis from real life stories of children stricken with the cost of taking care of their ageing parents. My advice for all producers is to complete a fact finder for your clients needs. As baby boomers retire at a rate of 10,000 per day in America, a large portion of them will require some assistance. The cost is extreme. Usually ranging from $3500.00 per month to $8,000.00 per month. (per person) Many insurance companies offer coverage. It is prudent for your client to obtain coverage at an earlier age, therefore the premiums will be affordable as they age. My advice is to promote this coverage for anyone over the age of 50. The coverage is available to your prospects into their 80's. So it is never to late to discuss this important coverage. The products are strictly underwritten as the carriers are taking on a huge risk. As a licensed professional you have a responsibility to inform your clients of what products will protect there life savings. More importantly you should inform them on how they may keep there independence & dignity in there golden years.
I am proud of the quality business that my family of Global Insurance Group agents have provided to our clients. The LTC/HHC business will be utilized in the future by a large portion of our clients.
Friday, August 6, 2010
Wednesday, February 3, 2010
Converting an existing traditional IRA to a Roth IRA. New tax laws for 2010.
A Roth conversion is the conversion of a traditional IRA or SEP contract to a Roth IRA. A conversion results in a taxable event. This conversion allows the taxpayer to gain the benefits of a Roth IRA. The ultimate decision of whether or not to convert to a Roth IRA will require thorough quantitative analysis, and the consultation with the client’s tax advisor.
Some considerations:
What is new for 2010?
On Jan 1st 2010, every taxpayer will be allowed to convert their traditional IRA to a Roth IRA. The IRS is allowing taxpayers who convert in 2010 & only 2010 the option to defer paying the tax in 2010 and spread the conversion income to half in 2011 and half in 2012.
Obviously converting a traditional IRA to a Roth IRA is a taxable event and could result in additional impacts to your clients personal tax situation, including the taxation of current social security benefit payments. Your clients should be prepared to pay all of the taxes that the conversion will create.
Previously, there were limitations on converting. There was a $100,000 modified adjusted gross income (MAGI)
The converted amount may be subject to the 10% federal early withdrawal penalty if withdrawn with five years.
Income from the conversion may have a short-term ripple effect on other items, such as taxation of social security and Medicare cost.
Your client should consult with their tax advisor prior to the conversion
Some considerations:
What is new for 2010?
On Jan 1st 2010, every taxpayer will be allowed to convert their traditional IRA to a Roth IRA. The IRS is allowing taxpayers who convert in 2010 & only 2010 the option to defer paying the tax in 2010 and spread the conversion income to half in 2011 and half in 2012.
Obviously converting a traditional IRA to a Roth IRA is a taxable event and could result in additional impacts to your clients personal tax situation, including the taxation of current social security benefit payments. Your clients should be prepared to pay all of the taxes that the conversion will create.
Previously, there were limitations on converting. There was a $100,000 modified adjusted gross income (MAGI)
The converted amount may be subject to the 10% federal early withdrawal penalty if withdrawn with five years.
Income from the conversion may have a short-term ripple effect on other items, such as taxation of social security and Medicare cost.
Your client should consult with their tax advisor prior to the conversion
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