Why Athene Fixed Index Annuity for lifetime pension

If you wish to allocate a portion of your savings or retirement/pension in a safe Fixed Index Annuity with no negative market participation, text Connie Dello Buono, 0G60621, at 408-8541883 to show you Athene’s annuity products that suits your retirement savings goal of tax less, fees less, avoid probate, safe with no participation in market downturns and more benefits as shown below.

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About Connie Dello Buono, Financial Consultant 4088541883 connie@connielifeins.com

Insurance Broker protecting families, seniors and business owners (insurance for life, income, health, retirement, estate and mortgage equity).

Connie Dello Buono is a California Licensed Life and Health Insurance Agent, 0G60621. Serving clients in the bay area, Santa Clara county and the greater bay area communities. Connie started helping seniors with caregivers and with life insurance products that can be used even with health issues.

Life Insurance as asset, life, and retirement income protection

We are focused on helping our clients achieve a secure retirement using fixed annuities and index universal life insurance, a final expense plan using single issue whole life insurance with no medical tests, mortgage protection insurance plans from Americo, AIG, Mutual of Omaha, Transamerica, AIG, John Hancock, American Amicable and 10 more insurance carriers, mostly A rated.

The many riders are important to protect the client during accidental death (doubles the death benefit amount), disability, loss of income/job, terminal/chronic/critical illness or living benefits riders, Return of Premium or cash back, paid up addition and getting back all premiums paid at 100 yrs of age.

Health Care strategist and founder of Motherhealth bay area caregivers

Health Author , Curated Health at Balboa Press

Asset protection from MediCal recovery

Long term care is costly. Be proactive, include a life insurance agent and estate planner/lawyer in your retirement planning.

Text 408-854-1883 for tax free, avoid probates Index Universal Life Insurance, to grow your savings for lifetime retirement savings and for lifetime retirement income, with no negative returns like 401k, Athene Fixed Index Annuity can avoid probate, safe and have guarantees for your lifetime retirement income with no market downturn.

Ruth and John, a married couple, spent their lives, their working lives, building up their nest egg for retirement. They enjoyed the fruits of their labor and they both retired for about 10 years. Then John was diagnosed with Dementia. Ruth cared for him for as long as she possibly could, about seven years, but eventually, John needed to be placed in a care home because she could no longer care for him. She found a skilled nursing facility that cared for late-stage Dementia patients, and they charged a whopping $12,000 a month. Within two years, their savings was wiped out, and Ruth applied for long-term care benefits through Medi-Cal. She was able to keep their house, as it is exempt from calculations and qualifying for Medi-Cal. And because she had spent all the savings paying for his care prior, they met all the requirements to qualify for Medi-Cal, and John’s health care or skilled nursing facility costs were paid for by Medi-Cal for another 18 months until he passed away.

After John’s death, Ruth lived another five years, and at her death, all their assets were to go to their two children. However, the only asset left in their estate was their house, ’cause it was exempt at the time John applied for Medi-Cal. Well, after Ruth died, the children received a notice from Medi-Cal demanding to recover the $216,000 they had spent on his care during those 18 months.

You’re thinking to yourself, “Can they do that?” Yes, they can. It’s called Medi-Cal Recovery. And as a result, the children received pretty much nothing, because Medi-Cal places a lien on the house, the house is sold, and their recovery debts are paid through that money. And it’s only after those debts are paid do the children inherit.

Could Ruth and John have prevented this? Yes. They could’ve prevented the depletion of their savings for his care initially, and they could have protected their home from any recovery that Medi-Cal would seek after they both passed away. But she didn’t seek out that advice or that help, and often people don’t know that it’s out there. If she had contacted a qualified attorney who handles Medi-Cal benefit planning, she could have at least saved the home from recovery.

2020 Tax Brackets and Rates

Text 408-8541883 and agent near you to show you income and disability benefits from life insurance products like Index Universal Life Insurance and Fixed Indexed Annuities.

In the United States we have what is known as a progressive tax system. This means that we pay a higher percentage in taxes as our income goes up. What people may not necessarily realize is that we actually pay taxes at each one of these tax brackets along the way.

There are 12 states with zero or less income taxes such as Nevada.

Capital Gains

Long-term capital gains are taxed using different brackets and rates than ordinary income.

 For Unmarried IndividualsFor Married Individuals Filing Joint ReturnsFor Heads of Households
 Taxable Income Over
0%$0$0$0
15%$40,000$80,000$53,600
20%$441,450$496,600$469,050
 Additional Net Investment Income Tax
3.8%MAGI above $200,000MAGI above $250,000MAGI above $200,000
Source: “2020 Tax Brackets,” Tax Foundation and IRS Topic Number 559

Qualified Business Income Deduction (Sec. 199A)

The Tax Cuts and Jobs Act includes a 20 percent deduction for pass-through businesses against up to $163,300 of qualified business income for single taxpayers and $326,600 for married taxpayers filing jointly (Table 7).

Filing StatusThreshold
Single Individuals$163,300
Married Filing Jointly$326,600
Source: Internal Revenue Service

Annual Exclusion for Gifts

In 2020, the first $15,000 of gifts to any person is excluded from tax. The exclusion is increased to $157,000 for gifts to spouses who are not citizens of the United States.

Go to irs.gov and use there programs to negotiate for a payment plan

One tax team who tells you that they can help you lower your IRS bills said that there are two hardship programs, one is called Currently Not Collectable status and the other is called Partial Pay Installment Agreement.

It is better that you do it yourself , to negotiate with the IRS directly for a payment plan you can afford and to explain your financial hardships as they do not have this program when you chat with the IRS online.

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Estate plan and the new tax law

Estate plan and the new tax law

An estate plan is like a car or a house: It needs regular maintenance to function as intended. Yet unlike your car or home, external events can create the need for adjustments. Among such events is legislation like the tax bill Congress passed in late December.

So this is an important time to schedule a meeting with your estate planner and be certain your plan is up-to-date. Even if your estate plan won’t be affected by the new tax law, it’s smart to confer with your estate planner periodically to be certain your current wishes are reflected in your estate planning documents.

During this checkup, you may find that your plan no longer meets all of your needs because of changes in your life and the lives of your heirs. Or you may find that your plan didn’t cover your needs from the get-go. In my experience, many clients leave their estate planner’s office with a thick folder of documents and fail to read them carefully or discuss them in detail with their planner before signing.

When you meet with a professional for a thorough evaluation and possible updating, you might ask these key questions to assure your plan documents fully support your interests and those of your heirs.

1. Will the new federal law affect my estate tax picture?

Estate tax is the tax that estates pay governments upon death; when it applies, there’s less left for your heirs. The federal government exempts a certain amount of an estate’s value from this tax and Congress just doubled that amount, known as the exemption. The new law eliminated tax on estates for many wealthy families.

There will no longer be any federal tax on estates valued between $5.6 million and $11.2 million. Previously, the limit was $5.6 million. By exempting estates between $5.6 million and $11.2 million ($22.4 million for married couples), Congress gave substantial relief to all but the wealthiest families, since only about 5,000 estates a year are estimated to be above the new limit. So unless you’re rich (but not ultrarich), the doubling of the exemption shouldn’t affect your estate plan.

2. What does the new tax law mean by the exemption limit for married couples?

This can be confusing, since couples generally die one spouse at a time. The exemption limit for couples refers to portability — the ability of a spouse to avoid estate tax on amounts inherited from the other spouse that were within the exemption limits. The new law preserves portability, which was introduced in a revision of tax rules by Congress in 2012.

Related: The Trump tax calculator — will you pay more or less?

To assure that exemption limits from the estate of a deceased spouse are portable, estate planning documents of the surviving spouse must correctly invoke portability, using the right language. Otherwise, the estates of these spouses might be forced to create something known as a bypass trust — a costly, time-consuming route that can have the effect of reducing the amounts that heirs ultimately receive.

3. Will the new federal law affect my state estate tax?

There are 15 states that still have some form of estate tax: Minnesota, Iowa, Nebraska, Washington, Oregon, Kentucky, Tennessee, Pennsylvania, New Jersey, Massachusetts, Rhode Island, Connecticut, Delaware, Maryland and the District of Columbia.

Also read: The problems with doing your own estate planning

Some of these states yoke their exemption limits to the federal limits, so the federal increase will automatically trigger the same increase in those states. But some of these states have no such linkage, so their exemption limits will remain the same, assuming their legislatures don’t act to change them. (Some states have limits under $1 million.)

Detailed, state-by-state information on estate tax can be found on the Tax Foundation website.

4. Are my estate documents customized to fulfill my wishes and avoid unintended consequences?

Outcomes directly contrary to your intentions can result when documents aren’t specific enough because boilerplate, off-the-shelf documents were used without being customized to your situation. It’s not uncommon for this to happen with financial powers of attorney (POA), which direct how your finances are to be managed if you’re incapacitated and unable to make decisions.

Without specific provisions to assure your wishes are carried out, vague or overly general POAs — which don’t include specific provisions of wishes, limits and prohibitions — might allow the agent managing these finances (often, the person’s spouse) to:

  • Legally make gifts to whomever they wish and change beneficiaries on financial accounts — 401(k)s, IRAs, life insurance policies and annuities. In some cases, agent spouses have made gifts to themselves or their grown children from their first marriages or have designated these grown children as account beneficiaries without express permission.
  • Discontinue existing financial support for an aging parent or a disabled child
  • Manage the incapacitated individual’s assets in ways that person never would, such as taking risks that jeopardize the inheritance of heirs listed in the incapacitated person’s will

To prevent such negative outcomes, ask your estate planner to assure that your POA is specific enough.

Don’t miss: How to provide for your pet in your estate plan

5. How soon should I come in for another review of my estate plan?

Many experts advise doing a review every three years, and/or after major life changes, including: your divorce or the divorce of a grown child; the birth of a grandchild; your receipt of a significant inheritance; the sale of your business; your retirement; newly developed disabilities or chronic illnesses or a death in your family.

An estate plan should change with changing circumstances. By attending to this, you can show your loved ones that you cared about outcomes affecting them after you’re gone.

David Robinson is a Certified Financial Planner and founder/CEO of RTS Private Wealth Management in Phoenix.

This article is reprinted by permission from NextAvenue.org, © 2018 Twin Cities Public Television, Inc. All rights reserved.

California May Accept ‘Charitable’ Donations To Counter GOP Tax Plan

CA May Accept 'Charitable' Donations To Counter GOP Tax Plan

CALIFORNIA — California lawmakers are worried about the impact of the federal GOP tax bill that was just signed into law. In order to fight the pain of the bill, the state may soon begin accepting “charitable” donations, if some state lawmakers have their way.

Senate President pro Tempore Kevin de León (D-Los Angeles), along with Senator Ben Allen (D-Santa Monica) and Senator Jerry Hill (D-San Mateo and Santa Clara), introduced legislation this week “to protect California residents from the targeted federal tax increases that were enacted in the GOP’s recent tax reform,” a press release from the lawmakers states.

SB 227 — dubbed the “Protect California Taxpayers Act” — would make it so taxpayers in the Golden State could make a “charitable donation” to the state, according to the lawmakers. In return, the taxpayer would receive a dollar-for-dollar tax credit on the full amount of their contribution.

Of the bill, de Leon’s office says:

Taxpayers will then be able to deduct their contribution to the Fund from their federal taxes, as they have historically done with their state tax payments. SB 227 is modeled after laws Senator de León authored in 2014 – SB 798 and SB 174, which provided tax credits on charitable donations made to state college affordability grants, like the Cal Grant program.

“The Republican tax plan gives corporations and hedge-fund managers a trillion-dollar tax cut and expects California taxpayers to foot the bill,” Sen. de León said. “We won’t allow California residents to be the casualty of this disastrous tax scheme.”

Sen. Hill said the legislation will “protect” Californians from losing money in the new tax plan.

The Los Angeles Times first reported on the proposal, noting that charitable donations remain deductible on federal taxes.

Under the federal measure, residents can deduct $10,000 paid in state and local taxes from their federal taxes. The effects of the new cap would be deeply felt in many suburban areas of California where people typically pay more than that to the state and local governments. Through De León’s plan, the first $10,000 would be paid via regular taxes and people would have the option of making a charitable contribution to the state for the remainder,” according to the Los Angeles Times.