American Insurance Advisors Blog
Is your retirement fund at risk?
by Jeff Pratt on 04/18/11
What I mean by "at risk" is can you lose some or all of your retirement fund due to the down turn in the stock market or real estate? If this is where you have your money, then yes, it is at risk.
Why has everyone been told that you need to take on risk of all your money in order to receive decent returns for retirement? How did those fifty and 60 year olds feel in 2008 and 2009 when they lost 40% of their retirement money due to the collapse of stocks and real estate? It had to of been a gut wrenching feeling for them being so close to retirement.
What if I told you there was another option for you to get predictable results and never lose a dime of your principal? You would probably think it's just a bank account. Wrong! It will actually give you more than the .25% interest that a bank gives. How about some of these advantages:
- Your principal doesn’t lose value due to a stock or real estate market crash.
- It increases by a guaranteed contractual amount each year.
- You don't have to depend on luck, skill, or guesswork in choosing the right stock, mutual fund or other investment, and you can stop chasing after the best way to invest your money.
- Your plan has tax advantages. Your growth is not taxed and what you pull out is not taxed (based on current tax law).
- You are in control of the equity in your plan, and you don't have to sell or liquidate your plan, investments or assets to get your hands on your equity
- Recapture a large percentage, even all of the principal and interest you pay out to banks, lenders and creditors over your lifetime, back into your own pocket.
- Create one account that acts as your emergency fund, your own financing pool, and your retirement account, growing larger every year with no market risk.
And the list goes on... The bottom line is that there is an alternative to your retirement and savings options. You don't have to risk all of your money and hope that you have enough in your account so you can retire at age 65.
Each account is designed personally for you. To learn more about The Family Retirement Plan, contact me at 248-895-0000 or visit http://saferetirement.thefamplan.com
I look forward to teaching you about this safe money concept.
How Will Healthcare Reform Effect You?
by Jeff Pratt on 09/15/10
Many of the Healthcare Reform changes will not take effect for a couple more years. However, there are some recent changes that some of the insurance companies are putting into place to prepare for the Healthcare Reform Laws.
The most recent change that will impact individuals and employers is the elimination of pre-existing condition exlusions for children under age 19. This does not apply to grandfathered individual plans. This law will require insurance companies to accept children under age 19 with no pre-existing condition limitation. What is not specified in the law is what an insurance company can charge in the way of premiums for these children. Insurance companies that medically underwrite to determe rates for certain health risks may have significant rate increases for these children. I do not see any rating limitation so they could make the coverage unaffordable for families.
Many health insurance carriers have eliminated new sales of child-only health insurance policies. I have worked with many clients who needed affordable health insurance for their child only. Although this law seems to help and protect children, I feel it will be very costly to obtain this type of coverage.
I will update as changes take place with Healthcare Reform.
