Category Archives: Regular Blog

Hey, did you catch wind of this little-known fact? Now you can roll over any leftover 529 plan funds into Roth IRAs – and it’s pretty darn exciting! This nifty rule came into play starting January 1st, 2024. Let’s break it down with a bit of strategy – are you playing defense or offense? On the defensive side, you might’ve considered the classic 529 objections – “My kids will get a scholarship” or “They’re heading to a budget-friendly in-state school.” … Continue reading

The 4% rule (or theory) says that at retirement, with a portfolio of 60% stocks and 40% bonds, one could withdraw 4% of the initial savings amount (and increase it by inflation every year). Then, the retiree would have a 90% chance of the growing income continuing for 30 years without the savings being completely depleted until the end of those 30 years. And a 10% chance the money will run out. By the way, a 100% stock or a … Continue reading

Medicaid is a joint program with the federal government and is run by each state (the rules are generally similar but do vary by state). Below is an example from the CLTC course (a 600+ page textbook to pass the test) to earn the “Certified in Long-Term Care” designation. By the way, it does not matter if it’s a first, 2nd, or 3rd marriage, but the point is that Medicaid does not recognize prenup agreements in any state. I’ve always … Continue reading

For years I’ve been touting life insurance as a unique asset class (we own 7 policies). Now let’s explore why I believe Social Security (and pensions for those lucky few) should be considered as another asset class too. When clients review their Social Security Planning report that I sometimes include in my fee-based planning, they are often astonished by the substantial benefits they can expect to receive over their lifetime. The total amount can exceed $1 million and even reach … Continue reading

Here’s just one example of how a couple could use funds in their IRA to fund unlimited years of LTC coverage from my book, “Long-Term Care: The Elephant Lurking in Your Retirement.” For their circumstances, ages, and health, this product made the most sense for their goals out of the two dozen asset-based LTC products we offer. Charles and Patty are aged 62 and 61 and in very good health. They took $200,000 out of one of their IRAs and … Continue reading