According to a February 2021 Barron’s article, there will be 60% more elderly population by 2030. That’s less than a decade away, which means now could be the time to talk about care planning.
If you’re an annuity owner, chances are you’re either part of the 79% that see it as a resource to avoid being a financial burden to your children or part of the 73% that see it as an emergency fund in case of catastrophic illness or nursing home care.
Whichever way you see it, it’s safe to say that your annuity assets are just sitting around, waiting to be used. Much like a “rainy-day” fund.
Why not help give new life to these old contracts? With the Pension Protection Act of 2006, individuals can use proceeds from some annuities potentially tax-free to pay long-term care insurance premiums. This option means you may be holding a product that can bring about triple tax advantages. Simply repositioning certain non-qualified annuities can provide three efficiencies: tax-free transfer, tax deferrals, and tax-free distributions for qualified long-term care (LTC) expenses.
These tax efficiencies, which many people love, can do more with your money or even provide lifetime benefits for LTC (depending on the carrier). And in many cases, if you don’t use it, the remaining annuity value goes to your beneficiary. Think about what this could mean for your financial situation!
It’s time to have a care planning conversation. As your dedicated financial professional, we can help you mitigate the extended care risks and make better use of the money in your portfolio. Reach out to us at (603) 261-3736, and let’s have a conversation.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.