Wednesday, November 19, 2008
www.legacyannuities.com
TAX DEFERRED-FIXED ANNUITIES
IN SPITE OF WHAT WE SEE ON THE NEWS EVERY DAY THERE ARE REASONS TO BE OPTIMISTIC ABOUT THE FUTURE. PEOPLE ARE LIVING LONGER AND HEALTHY LIVES. AND ENJOYING THEMSELVES LONG AFTER THEY RETIRE. BUT TO REALIZE THE PROMISE OF THE FUTURE ONE MUST ALSO CONSIDER ITS CHALLENGES. WHAT ARE THE CHALLENGES THAT WE MUST BE PREPARED TO FACE IN THE FUTURE?
THERE IS THE CHALLENGE OF INFLATION.
THE CHALLENGE OF A VOLATILE INVESTMENTS AND SAVINGS ACCOUNTS. AS WE HAVE SEEN IN RECENT YEARS… INTEREST RATES CAN GO UP AND DOWN AND THE STOCK MARKET CAN GO UP AND DOWN.
THERE IS THE CHALLENGE OF TAXATION. I AM TALKING ABOUT NOT JUST INCOME TAXES, BUT CAPITAL GAINS TAX, TAX ON SOCIAL SECURITY INCOME AND ESTATE TAXES AS WELL.
THESE ARE ALL CHALLENGES THAT YOU HAVE PROBABLY THOUGHT ABOUT FROM TIME TO TIME. BUT THERE IS ONE ADDITIONAL CHALLENGE THAT I FIND THAT MANY PEOPLE DON’T REALLY PAY MUCH ATTENTION TO AND THAT IS THE CHALLENGE OF THE POTENTIAL THAT IF WE LIVE LONG ENOUGH WE MIGHT OUTLIVING OUR INCOME.
OVER THE NEXT FEW MINUTES I AM GOING TO TALK NOT ONLY ABOUT THESE CHALLENGES… I AM GOING TO TALK ABOUT A POSSIBLE SOLUTION AS WELL.
FIRST, LET’S TALK A LITTLE MORE ABOUT INFLATION. THIS SLIDE SHOWS THE PRICES FOR MANY OF THE THINGS WE ALL BY AS THEY WERE IN 1963 AND THEN WHAT THEY HAD INCREASED TO BY THE YEAR 2000.
THE CONCERN THAT WE ALL MUST SHARE IS… WILL OUR INCOME KEEP PACE WITH ANY POTENTIAL INCREASES IN FUTURE COSTS OF LIVING?
IF IT DOESN’T, THEN WE WILL BE FORCED TO DEAL WITH SOME VERY MAJOR PROBLEMS. FOR EXAMPLE, AT 4% INFLATION, THE PURCHASING POWER OF $100,000 ERODES TO JUST $30,000 OVER A PERIOD OF 35 YEARS. THAT WOULD MEAN THAT OUR SAVINGS WOULD ONLY BUY ABOUT ONE THIRD OF IT WOULD TODAY!
Fixed Annuities
TAX DEFERRED-FIXED ANNUITIES
IN SPITE OF WHAT WE SEE ON THE NEWS EVERY DAY THERE ARE REASONS TO BE OPTIMISTIC ABOUT THE FUTURE. PEOPLE ARE LIVING LONGER AND HEALTHY LIVES. AND ENJOYING THEMSELVES LONG AFTER THEY RETIRE. BUT TO REALIZE THE PROMISE OF THE FUTURE ONE MUST ALSO CONSIDER ITS CHALLENGES. WHAT ARE THE CHALLENGES THAT WE MUST BE PREPARED TO FACE IN THE FUTURE?
THERE IS THE CHALLENGE OF INFLATION.
THE CHALLENGE OF A VOLATILE INVESTMENTS AND SAVINGS ACCOUNTS. AS WE HAVE SEEN IN RECENT YEARS… INTEREST RATES CAN GO UP AND DOWN AND THE STOCK MARKET CAN GO UP AND DOWN.
THERE IS THE CHALLENGE OF TAXATION. I AM TALKING ABOUT NOT JUST INCOME TAXES, BUT CAPITAL GAINS TAX, TAX ON SOCIAL SECURITY INCOME AND ESTATE TAXES AS WELL.
THESE ARE ALL CHALLENGES THAT YOU HAVE PROBABLY THOUGHT ABOUT FROM TIME TO TIME. BUT THERE IS ONE ADDITIONAL CHALLENGE THAT I FIND THAT MANY PEOPLE DON’T REALLY PAY MUCH ATTENTION TO AND THAT IS THE CHALLENGE OF THE POTENTIAL THAT IF WE LIVE LONG ENOUGH WE MIGHT OUTLIVING OUR INCOME.
OVER THE NEXT FEW MINUTES I AM GOING TO TALK NOT ONLY ABOUT THESE CHALLENGES… I AM GOING TO TALK ABOUT A POSSIBLE SOLUTION AS WELL.
FIRST, LET’S TALK A LITTLE MORE ABOUT INFLATION. THIS SLIDE SHOWS THE PRICES FOR MANY OF THE THINGS WE ALL BY AS THEY WERE IN 1963 AND THEN WHAT THEY HAD INCREASED TO BY THE YEAR 2000.
THE CONCERN THAT WE ALL MUST SHARE IS… WILL OUR INCOME KEEP PACE WITH ANY POTENTIAL INCREASES IN FUTURE COSTS OF LIVING?
IF IT DOESN’T, THEN WE WILL BE FORCED TO DEAL WITH SOME VERY MAJOR PROBLEMS. FOR EXAMPLE, AT 4% INFLATION, THE PURCHASING POWER OF $100,000 ERODES TO JUST $30,000 OVER A PERIOD OF 35 YEARS. THAT WOULD MEAN THAT OUR SAVINGS WOULD ONLY BUY ABOUT ONE THIRD OF IT WOULD TODAY!
Fixed Annuities
Labels: www.legacyannuities.com
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