2013 Increased Insurance Pricing Delayed for a Few Life Insurance Carriers

Posted on by in Tax Law.

Last fall I made a concerted effort to inform clients that if they were interested in permanent guaranteed life insurance, they needed to get their applications in and dated before December 31, 2012 as premiums were slated to rise between 8% and 20% on January 1, 2013.

Just as predicted, most of the companies have announced price increases, some quite significant.  However, it seems that there are a number of companies that have not yet announced price increases; they were strong enough to meet the reserves required by law for the time being. But, Tom of Pittsburgh Brokerage Services, thinks it is only a matter weeks or maybe months, until those price increases are announced.

As such, if you are interested in permanent guaranteed life insurance, there is still time to lock in the lower 2012 prices before the last companies announce their rate increases.

If you have insurance and are wondering if you are sufficiently insured, or if you think you may need insurance, and you want to lock in yesterday’s rates while they last, please call Alice to schedule your free insurance evaluation.  412.521.2732

The 2013 Outlook for Pittsburgh Finances

Posted on by in Tax Law.

2013 brings plenty of financial changes from tax rates to property assessments. What impact will these changes have on you? What impact will they have on Pittsburgh?

Join us this evening at 7:05 pm on
KQV 1410 AM.
Program also streams live at www.kqv.com

On tonight’s The Lange Money Hour, CPA Jim Lange welcomes Pittsburgh City Controller, Michael E. Lamb, to the KQV studios.

Managing Pittsburgh’s financial affairs for the last five years, Controller Lamb has put a focus on making City government more transparent. He created www.OpenBookPittsburgh.com, a website that lets citizens search and view all City contracts, as well as campaign contributions and expenses for all candidates running for office in Pittsburgh. Controller Lamb also released Pittsburgh’s first Popular Annual Financial Report (PAFR), a user-friendly document that provides a clear picture of the state of Pittsburgh’s finances, demographics and government.

It is sure to be an engaging and informative hour. Since the show will be live, you are welcome to join the conversation by calling the KQV studios at 412-333-9385. You can also e-mail questions to jim@paytaxeslater.com. Please put The Lange Money Hour in the subject line.

If you are not able to tune in tonight, KQV will rebroadcast the show on Sunday, January 6th and 13th at 9:05 a.m. The program will also be available soon at www.paytaxeslater.com, in the archive of The Lange Money Hour presentations

Emergency Fiscal Cliff Survival Guide

Posted on by in Tax Law.

This emergency guide is my best attempt to help you survive the fiscal cliff.  As yet there is no agreement to avoid “going over the cliff.”  There may be a partial solution passed before the deadline, but we can’t pin our hopes and our money on that possibility.  Accordingly, we have developed recommendations for what you should do between now and the end of the year. This emergency alert is not intended as an economic outlook or a political statement.  It is my best advice for what you should be doing between now and the end of the year to protect yourself and your family.

If no agreement is reached, tax rates on income, estates, gifts, capital gains and dividends will increase.  There are specific action points to protect your family from each potential increase.  Please understand that I am realistic enough to recognize that going over the cliff, (meaning there won’t be any meaningful changes to the tax laws before year-end) it is possible, even likely, that there will be some compromises after year-end.  Of course, advice will vary from taxpayer to taxpayer.  In addition, these recommended action points may be inappropriate for you depending on your situation and what tax changes will occur before year-end, and changes after year-end.  Obviously, if appropriate, we encourage you to seek individual attention with your trusted advisor, CPA, attorney, etc.  Our office will make every effort to accommodate your needs even if we have to work evenings and weekends.

For the Emergency Fiscal Cliff Survival Guide follow this link: https://paytaxeslater.com/eblast/2012_12_27/

Ed Slott on The Lange Money Hour

Posted on by in Tax Law.

If you missed the show last night, it’s not too late!  Tune in to KQV news radio 1410AM to listen to the encore presentation on Sunday Morning at 9:05!  Ed and Jim discuss lots of key retirement and planning issues that you wont want to miss!

 

Time is running out to lock in low rates on insurance premiums.

Posted on by in Estate Planning, Life Insurance.

The January 1, 2013 deadline is approaching fast and we are already seeing changes being made to permanent policy rates.  Revisions to actuarial guideline 38 are going to cause many premiums to skyrocket.  For more information visit our site www.paytaxeslater.com and check out all the resources we have available on insurance in the middle of the page.  We have had radio shows on the topic, and there is currently a transcript and mp3 available for download.  We also have posted an open letter to our clients and friends regarding this important issue, (which can be found directly at: https://www.paytaxeslater.com/articles/insurance_increase.pdf)

Take some time today to read and evaluate this information and then call us for a complimentary insurance review.  412-521-2732

Life Insurance Premiums to Increase on Many Guaranteed Policies…

Posted on by in Estate Planning, Life Insurance.

Life insurance often plays an important role as one component of an overall retirement and estate plan. A new development in the world of insurance commands our attention.  Insurance premiums on many permanent policies are going up and many plans will never be available at current rates again.

Interest rates have dropped over the last decade and remain stagnant today. This has caused chaos in conservative investment vehicles including bonds, fixed annuities, money market accounts, and certificates of deposit. Now, these lower interest rates are going to drastically affect life insurance product design pricing for many guaranteed life insurance products. The National Association of Insurance Commissioners (NAIC) has seen the need to make adjustments in the way that life insurance companies finance and carry reserves on their policies. In September, the NAIC approved revisions to Actuarial Guideline 38 (AG38) requiring insurance companies to hold more cash reserves in order to guarantee many life insurance policies.

Some insurance companies have already begun changing their policies, but certainly by January 1, 2013, we are going to see a dramatic change in product design and the pricing of life insurance in this country. The most common increase in pricing for guaranteed policies is projected to be between 8 and 15 percent, however, industry wide, the premium increases are going to peak as high as 25 percent.

Life insurance is more than just a death benefit.  It is the only vehicle ever fashioned that creates an instant estate. Life insurance can ease the worry of outliving your resources, help fund a college education, bolster retirement prospects, help you maximize your social security or required minimum distributions, pay for estate and income taxes, and, in some cases, a combination policy can provide for long-term care coverage as well as life insurance.

If you are unsure if you need life insurance, or you’d like to get information about how life insurance can augment your portfolio and improve your loved ones, beneficiaries’, and even your own financial future, now is the time to find out more.

Please, call us today and schedule a complimentary appointment to evaluate and discuss your insurance needs taking into account whatever insurance you already own.  You won’t be sorry.

Please call Alice, at 412.521.2732 to set up your free insurance evaluation today.

Hurricane Sandy

Posted on by in Tax Law.

We hope all of you are safe and warm this morning.  It looks like the storm in Pittsburgh turned out to be less severe than we thought it was going to be and for that we are thankful.  With all the flooding, power outtages, injuries and even deaths that Hurricane Sandy caused, we feel very lucky not to have born the brunt of it.  Our thoughts are with those who have.

It’s days like today, looking at the deaths that this storm has caused, the injuries, the damage to homes and businesses, that we realize how important what we do, financial planning, estate planning, insurance, etc really is.

Announcing the ASK Campaign for John Bogle

Posted on by in Index Investing, The Lange Money Hour.

 

What Would You Ask Vanguard’s Founder and former CEO John C. Bogle If You Had the Chance?

Jim Lange is pleased to offer you the opportunity to ask industry giant, John Bogle, your most pressing investment and retirement questions!

This is an unprecedented opportunity to get advice and recommendations from the founder of the largest mutual fund company in the world.

The Lange Money Hour welcomes Mr. John C. Bogle, of The Vanguard Group, as our special guest, November 28, 2012, at 7:05 p.m. on KQV 1410AM, re-airing the following Sunday, December 2nd at 9:05 a.m.

We are issuing an open invitation to submit your most imperative, difficult, and fretful questions to be posed by Jim, to Mr. Bogle.

Just go to the home page of our website, www.paytaxeslater.com and click the ASK John Bogle button.

As a thank you for participating in our campaign, we will email you a link to the sound file of the interview as soon as it is available.  In addition, our office will transcribe the interview and provide you with the written transcript that you can refer to at your convenience.

Born in Montclair, New Jersey in May 1929, to a family heavily affected by the Great Depression, John C. Bogle had humble beginnings.  Even as a graduate of Princeton University, he could not have known that one day he would be touted by Fortune magazine as one of the investment industries four “Giants of the 20th Century.” (Warren Buffet, Peter Lynch, and George Soros are the other three.)

Mr. Bogle is the founder of The Vanguard Group, Inc. which started operations in 1974.  From the beginning until 1996 he served as Chairman and Chief Executive Officer.  From 1997 until 2000 he served as Senior Chairman.  In 2004, Time magazine named Mr. Bogle one of the world’s 100 most powerful and influential people.  The Vanguard Group is the largest mutual fund organization in the world and it is headquartered in Malvern, PA.  It’s Vanguard 500 Index Fund, founded by Mr. Bogle in 1975, was the first index mutual fund available to the public.

Don’t miss this once in a lifetime opportunity.

As this particular show will be recorded in advance and not aired live, we encourage you to go to our website www.paytaxeslater.com and submit your questions to Mr. Bogle, by Wednesday, November 14, 2012. Just click on the ASK John Bogle button to submit your question. Then tune in Wednesday evening, November 28th, to hear your questions answered by one of the industry’s most influential thinkers.

If you can’t tune in Wednesday evening, KQV will broadcast the show Sunday morning, December 2nd, at 9:05 a.m., and it will be available shortly after at www.paytaxeslater.com, along with the full library of The Lange Money Hour presentations.

Have you done your year-end tax planning?

Posted on by in Estate Planning, Estate Tax, Income Tax.

“Year-end tax planning is always complicated by the uncertainty that the following year may bring and 2012 is no exception. Indeed, year-end tax planning in 2012 is one of the most challenging in recent memory.

A combination of events – including possible expiration of some or all of the Bush-era tax cuts after 2012, the imposition of new so-called Medicare taxes on investments and wages, doubts about renewal of many tax extenders, and the threat of massive across-the-board federal spending cuts – have many taxpayers asking how can they prepare for 2013 and beyond … and what to do before then.

The short answer is to quickly become familiar with the expiring tax incentives and what may replace them after 2012 … and to plan accordingly. Year-end planning for 2012 requires a combination of multi-layered strategies, taking into account a variety of possible scenarios and outcomes(CCH tax briefing 2013).”

If you have questions or concerns about your tax situation in 2013 and beyond, speak to your advisor and start your planning now.

If we can help, call our office at 412.521.2732.

Take the 10-second test!

Posted on by in Estate Planning, Estate Tax, Income Tax, IRAs, Roth IRA, Roth IRA Conversions.

Please take the next 10 seconds to complete this survey about your financial future. . . you might rediscover some opportunities for financial growth.

Are you concerned about outliving your income?

Would you like to reduce (possibly eliminate) your quarterly estimated tax payments?

Would you like to see your grandchildren go to college?

Are you concerned about going into a nursing home?

Would you like to earn more competitive interest and preserve the safety of your nest egg?

Are you concerned about the stock market going down?

Would you like to find out how to take money out of your IRA tax free?

Is your house still titled as joint tenancy? (If yes, you are probably making a serious mistake!)

Are you concerned about which option to make regarding your minimum distribution requirements from your IRA at age 70 1/2?

Do you want to get more information on the Inherited IRA that can possibly continue your IRA for 30, 40, 50 years or longer even after you pass away?

Are you concerned about the likelihood that the government will get over 50% of your retirement accounts after you pass away?

If you have answered, Yes, to 3 or more of these questions, you should come in for a complimentary review!  Call 412.521.2732 and ask for Alice.

Remember, what you don’t know can hurt you!