Thanks from B Snyder Insurance

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Thanks from B Snyder Insurance

 

Thanks.

I am thankful for you being you. Awesome, special, important, valuable and generally incredible.

Friends, family and clients all over the country.

 

This won’t happen to me…will it? A true story.

They said buy term and invest the rest. A true story about life’s realities.

We have all heard the radio guru’s that encourage us to buy term life insurance and invest the rest in the stock market, IRA, 401K, etc… what they aren’t telling us is the truth about what really could happen.

Buy term and invest the rest

That’s not true… is it?

 

This is a true story about a client of mine and the names are changed but the reality is this could happen to you too. My client, Bob and his wife, Sue, were in the ministry and traveled the U.S. preaching, teaching, and singing for most of their adult life. Both of their first spouses passed away and they got married and continued to minister. They made decent money and were able to put away a modest savings for the eventual retirement they hoped to enjoy. All seemed to be going as planned, and then their life went through some changes. 

She developed a medical condition that prevented her from being able to minister and sing for months at a time.  He wasn’t able to go out as much due to her medical needs, doctor appointments, and helping around the home which naturally cut down on their income. He started to have some medical issues himself, which tends to happen as we get older. Ulcers, insulin dependent diabetes, and high blood pressure: any of these by themselves aren’t a problem, but combined, can be. They weren’t too worried because they had very little debt other than the home, and he had a term life insurance policy in case the unexpected happened. They would be ok, right?

Now fast forward to today: They still have the health issues and medicare has reduced the health care costs, but the truth is they have had to spend most of their savings to supplement the small social security they receive. He even had to sell his classic truck, the motorcycle, and one of the cars to pay cash for a newer car that would last them for the rest of their life, hopefully.

Unfortunately, his term policy has expired and while they can keep the policy in force, the premiums have already increased over 50% and will continue to go up each year until they can’t afford it anymore. Then what? This is where I came in. They called me and asked me to help them get life insurance to provide her the funds if he were to pass before she did. 

We discussed the need for a permanent policy that would last for the rest of  his life, but they decided on another term policy due to the higher cost of the permanent policy. What they wanted was a larger benefit like the original term had, but they wanted it to be effective whenever he passed and it had to be affordable! I did my preliminary interview, asking all the pertinent questions about health, medications, finances, and beneficiaries. I called the underwriters at several companies and described his conditions. They initially felt that he would be a candidate for a standard rating and at least a substandard rating of B or C. This substandard rating means the premiums are higher than normal, but allows the client to get the insurance he is looking for. We chose a company, filled out an application and ordered the paramed exam. This exam is performed at the clients home and usually requires a blood sample, urine, and blood pressure test. Then the samples are sent to the lab and the lab sends the results to the insurance company. This gives the company a much truer picture of the clients health than just answers on the application. So far so good.

We knew it would take several weeks for the insurance company to determine the rating and we really weren’t too worried about it. Then I got the email: DECLINED. What? …Why? … How can that be true? All of the normal questions I knew Bob would have and frankly, so did I. I called the underwriters and they explained how the combination of the conditions along with his age, prevented them from issuing a policy. So, even though he seemed to be in pretty good health, from the insurance company point of view, the risk was too high. Now what to do?

I called Bob and shared with him the information I had received. Of course, he was disappointed, but said he understood. Then we talked about the other options, including a smaller, simple issue, final expense policy. These policies are usually pretty easy to get, by simply filling out the application, doing a phone interview with an underwriter and letting them check the medical and prescription history.  In most cases, the company will approve it within a week. The downside to these policies is the amount of death benefit is normally limited up to $20,000 and the premiums are higher than a fully underwritten policy. Bob didn’t really like the small benefit because while it would pay for the funeral, it wouldn’t be enough for Sue to live on. 

So, here we are today:

  • Bob and Sue are still concerned about the finances and how one will survive when the other passes away
  • They are confused because they thought they were taking all the right steps with their finances and yet, the “buy term and invest the rest” mantra they heard from the radio show gurus didn’t work like they said it would
  • They still don’t have a permanent plan in place and the term policy cost is continuing to go up

Could this happen to you? Absolutely! If you followed the “buy term and invest the rest” idea, you may find your finances didn’t last as long as you hoped they would. You may have found your investments didn’t perform like they did in the past and taxes and inflation have taken more than you planned on. Your medical costs have gone up and your Social Security increase wasn’t enough to keep up.

I hope this doesn’t happen to you, and you can prevent this by taking some proactive steps today. Talk with your insurance agent or financial planner and review all of your policies. You are as young  and probably in as good as health as you will ever be and the time to get your family properly protected is now. The truth is, the likely hood that you would be in the same situation as Bob and Sue, go up every day you wait. 

If you have any questions, please feel free to contact me to discuss your situation and we will work together to protect your family in the most efficient way possible. Your friends and family may like to read this or have questions of their own, so share this with them and they can contact me as well.

For more information and other useful articles about life insurance and retirement, click on the yellow button and I will send out an occasional letter with interesting articles about life insurance and tax free retirement income to you. 

Annuities helped my mom and dad in retirement.

LEADING BY EXAMPLE: HOW MY MOM AND DAD SUCCESSFULLY

PREPARED FOR RETIREMENT AND HOW ANNUITIES HELPED THEM

annuities: retirement nest eggs

Retirement nest egg: Annuities

Annuities and Retirement are two words that go together well.

I grew up in the Fort Lauderdale, Fl. area where my family lived a comfortable life. We weren’t rich but as a youngster, it seemed like we were doing OK. My Dad worked in the Broward County school system and was also a wedding photographer. Mom stayed at home raising us five kids, and she really taught us the value of saving. She was a coupon queen, and we used to laugh at her because she was so intent on saving money. Little did we understand back then just how important that would be, but now we do. She didn’t discuss her insurance and annuities much, but she did teach us the value of saving and planning ahead.

Dad retired and they began to travel. Hawaii, Alaska, and they even went on a bicycle tour around Holland (the country, not Michigan). Now, it all started to make sense: Mom saved money for over 40 years, a penny here, a nickel there, and now look at them. We may not have had the name brand clothes or shoes, and we took a brown paper bag with our lunch in it every day, but Mom had a plan and she stuck to it. She saved money when it was coming in so that when it stopped, she would still have plenty left. What a novel idea! Dad had stopped doing photography after 40 years and I learned that most of that income went into saving accounts, annuities and investments to help supplement the pension that came after he retired. The house and all their stuff had been paid for, so other than utilities and normal monthly expenses, they didn’t have any bills. They had more than enough to see them through. Dad has since passed and Mom is being well taken care of and will have plenty of money thanks to the annuities and her Long Term Care policy she bought several years ago (another smart idea).

If you are like my Mom and Dad, you probably have a nice nest egg set aside and hopefully you didn’t lose a bunch of it when the stock market crashed the last two times! But now you’re asking, “What should I do with it so that I can have enough to last a lifetime?”  You may also be worried about taxes and how they have already started to go up. And how long will Social Security and Medicare be available? And are there any guarantees? And what about leaving some to the kids? I understand these are very serious concerns and I am here to help.

You want guaranteed interest rates? Check! Tax deferred growth? Check! Lifetime income? Check! Money for emergencies and the ability to leave an inheritance? Check! You can have all of this in a Fixed Income Annuity (FIA).

When you own a FIA, you receive a fixed guaranteed interest rate and/or the option of putting your money in an index crediting account that will perform like the stock market. So when the market goes up, so does your interest rate. But when the market goes down, you don’t lose any of the principal or growth that you have earned. The tax you would pay on your earnings will be deferred until you start to take money out, so your money grows with triple compounding: Interest on the principal, interest on the interest, and interest on the taxes you aren’t paying. Nice, Huh? When you are ready to start receiving your monthly income through a lifetime income rider, the insurance company will tell you exactly how much you will get, and even if your account runs out of money, you are guaranteed to continue to get that same amount until one or both of you pass away. If there is any money left in the account when you pass, that money will be left to your beneficiaries. Of course, there are several options that need to be discussed and there is no one size fits all so we would need to look at your specific situation before we could determine what is best for your retirement plans.

You can have the peace of mind that my Mom has, knowing that all of your hard work, scrimping and saving has been worth it and with a FIA, you won’t have to worry if there is going to be enough.

On another article, I will be discussing how a FIA is safe from negative returns during a down market and how it benefits from the greatest concept ever: Annual Reset.

If you have any questions, feel free to call me and we can discuss your specific situation and see if a FIA is the right choice for you.

Thanks for your interest, and if you like this post, please share with your friends and family.

Billy Snyder

Retirement. Can I have 100% of the money I’ve invested and pay 0% in taxes? YES

Senior Couple Enjoying Beach Holiday

Retirement happiness and peace of mind

100% invested – 0% in taxes

You have worked hard, invested wisely and spent modestly and yet every time you earn a little money, you have to give some of it to the I.R.S. Now, with a little known concept, you can get back all of what you invested for retirement and when you start to take it out, pay 0% in taxes.

This concept has been around for 20 years or more, yet only a small percentage of people know about it and even less understand the full potential of it. Today, I am going to teach you this concept and if it makes sense, I can show how it could work for you.

This concept allows you to put in as much or as little to your retirement as you can, with money that has already been taxed. It grows tax deferred so you don’t pay taxes on the gains or growth, and it comes out tax free. This is similar to a Roth, yet it has more advantages and is generally safer than investing in the stock market.

How is it safer?

In the market, you can have gains and losses. Your money can earn 5, 10, even 20% one year and then lose that amount or more the next year (remember 2008?). With our concept, you can earn good money, up to 10% or more. However, you can not lose any if the market crashes because the least you can earn is 0%.

Another benefit is that you don’t have to wait until you are a certain age to start taking your money out. Most retirement plans will penalize you if you take your money out before you are 59 1/2 and also make you take money out at 70 1/2.

With our plan, you can use your money how and when you want to. What if you don’t use all of this money before you die, do you lose it? Absolutely not! It goes to your beneficiary and they don’t have to pay taxes on it either. Talk about growing the family tree!

O.K, O.K, this sounds too gook to be true, right? Well let me tell you that millions of dollars are going into this each year and in my opinion, this is one of the best places to put your hard earned money for your retirement.

So, what is it?

It is none other than a Index Universal Life insurance policy. That’s right, life insurance.

An IUL is a life insurance policy that takes some of your premium and invests it and allows your money to grow tax deferred. Then, when you start to take your money out, it comes out tax free. When you pass away, the insurance company pays the remaining death benefit to your beneficiary. Very simple and allows you to keep more of your money and give less of it to your Uncle Sam.

So the bullet points are:

  • Pay with money that has already been taxed
  • The gains grow tax deferred.
  • Your retirement money comes out tax free
  • Your beneficiary gets the remaining death benefit, also tax free

Now for the disclaimers:

This is not a get rich quick scheme. It is a life insurance policy that is intended to be part of a long term retirement plan. If you take your money out too soon, there will be surrender charges which could result in you losing money. Also, if you try to take out too much money during retirement, the policy could run out of cash value and there could be taxes due on your withdrawals. The interest credited to your account is not guaranteed and you could earn more or less than illustrated. These are the rules according to the IRS concerning the taxation of life insurance proceeds as of the date of this writing. The IRS could change these rules which may change the way the proceeds are received and taxed. I am not a tax specialist of any kind and encourage you to speak with your tax advisor before purchasing this policy.

There are other benefits to these policies that I will go into later, so if you wold like to see how this concept could work for you, contact me and we will discuss your particular situation.

 

Welcome to the new website of B Snyder Insurance

Hi Welcome to B Snyder Insurance’s new website.

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Billy Snyder

 

Check out my new website, B Snyder Insurance. I want to help you get the information you need to make an intelligent decision about your life insurance, retirement, and tax-free income.

Click on the links on the website, and sign up for the newsletter. It will be really cool and it will have some good information for you.  Mostly about using life insurance to protect your family or business, how to decrease or eliminate taxes, get retirement money tax-free and other helpful retirement ideas. With all of the different types of life insurance out there, I will try to help you sort it all out. Term, Permanent, Annuities, Indexed Universal Life, Guaranteed Universal Life and the list goes on and on. It can be a little confusing, but I will try to untangle it for you with blogs and videos from myself and other industry leaders.

Doctors, business owners and other professionals need someone who will listen to their concerns and help them find the solution. Whether it’s how to protect the family or business if you pass away ‘before your time’, how to make your money last ALL the way through retirement, or having a health issue that eats up all of your savings, each of these concerns can be addressed with the right insurance from B Snyder Insurance.

I represent most of the top life insurance companies.  We have the best and brightest minds in the industry on our team to determine what is the best insurance product for your particular goals and dreams. Because it really is all about you. When you have a question, check out the website and if you don’t find what you are looking for, let me know and I will get an answer for you.

Also, please ask any questions or make suggestions on future topics you would like to see me cover on the website and I will do my best to get that out as soon as possible.

Thanks in advance,

Billy

Ask the expert week – This week only

radio microphoneI want to invite you to ask the question that is most on your mind when it comes to your financial future. I am hoping you will take advantage of this offer as it is only open for this week. If I use your question in my next blog post I will be sure to thank you personally. Please fill out the form below to ask your question today!