Thousands of Baby Boomers are retiring each day, and many are wondering about the possibility of having to pay for expensive long-term care. Long term care insurance was created to cover the costs of skilled nursing, assisted living and other types of care as you age. Long term care policies are expensive and should be considered carefully.

The expense is determined by some of the features you choose such as: Inflation protection. One of the main reasons to buy long term care insurance is to protect against rising prices. Inflation riders can be automatic, and are usually 5 percent annually, which is the most expensive. They can also be periodic, which means they’re set at increments of every couple of years. Another factor that determines the cost of long-term care insurance is the elimination period – most policies require you to pay for yourself for the first 20 to 100 days of care. The shorter the period, the higher the premium. Medicare pays for up to 100 days of skilled care following a hospital stay, so check to make sure the policy day count includes the days when Medicare pays.

Long term care insurance pricing varies with the Level of care provided. The three levels of care, are skilled care, or fulltime nursing care, which is the most expensive. Then there’s intermediate care, which is regular skilled care but not full-time. And lastly is custodial care, or assistance with daily living by non-medical personnel. This is the least expensive type of care.

There are many other features to consider when shopping for long term care insurance. Give us a call today or stop by our website to learn more.

Al Smith

(303) 744-1128

Retirement Planning, Financial Advisor

Littleton CO

The post What to Look for in Long-Term Care Insurance appeared first on Golden Eagle Financial Ltd..

Roth IRAs are funded with money that you’ve already paid tax on, and then they grow tax-free. This is different than traditional pre-tax funded retirement accounts. Roth IRAs offer many advantages that other traditional retirement accounts don’t.

First, you can withdraw your money tax-free during retirement, which allows you to manage your taxable income. And second, with no annual distribution rules, you’re free to take your money out only when you want to.

There are two ways to put your funds into a Roth IRA; through contributions and conversions. Contribution rules include contribution limits. And to contribute money to a Roth IRA, you must earn compensation, or income, but remain below IRS mandated income levels. High earners can’t contribute.

Conversions have very few limitations. Anyone can convert an account such as an IRA, 401(k) or SEP IRA into a Roth IRA. You don’t need to have income, but if you do, there’s no income limit and there are no restrictions on the size of the conversion. You can convert one million dollars if you like! You will, however, owe income tax on any amount that you convert, so conversions should be scheduled when your tax rate is lowest.

To learn more about Roth conversions and contributions, give us a call today.

Al Smith

(303) 744-1128

Retirement Planning, Financial Advisor

Littleton CO

The post Roth IRA – Convert or Contribute? appeared first on Golden Eagle Financial Ltd..

To keep your investment portfolio on target for financial goals, you want to balance risk and diversify your assets. That’s the purpose of asset allocation – the process of dividing your portfolio among major categories like cash, stocks and bonds.

Historically, the returns of these three major asset categories have not moved up and down at the same time – so including a mix of these assets in your portfolio can protect against losses. There is no perfect formula for asset allocation – it differs with each individual depending on their risk tolerance and time horizon. Risk tolerance is the amount of your investment you’re willing, or able, to lose in exchange for greater possible returns.

Risk tolerance is closely tied to time horizon, or the amount of time you have to invest. An investor saving to make a down payment on a home in 5 years might choose less risky investments than someone saving for retirement in 20 years. A longer time horizon allows more time to recover from loss.

Asset allocation may be one of the most important investment decisions you make with your portfolio – call us today to learn more.

Al Smith

(303) 744-1128

Retirement Planning, Financial Advisor

Littleton CO

The post Why is Asset Allocation Important to Investing? appeared first on Golden Eagle Financial Ltd..

Al Smith

(303) 744-1128

Retirement Planning, Financial Advisor

Littleton CO

The post About Golden Eagle Financial appeared first on Golden Eagle Financial Ltd..

Too many young people can’t afford college, and many more leave college under a mountain of debt. Here are 5 ways to plan for a debt-free education.

First, invest early in college savings plans like 529s or state prepaid tuition plans – parents and grandparents can participate. Second, avoid loans if possible – they’re easy to obtain but difficult to get out from under after graduation. Third, start your scholarship search early – you’ll have time to learn the requirements and boost your chances through academics or other activities.

Fourth, dual enroll or take advanced placement courses in high school – you’ll get college credits for free or very low cost. Fifth, stay local – attend a state community college and then transfer. The tuition is lower than most private schools, and you’ll save money if you can live at home for a few years. Also, while relocating may not be an option, keep in mind that some cities and states, like San Francisco and New York, offer free college tuition – although restrictions apply.

Everyone should have a chance to attend college – to find out more on how to fund a college education, give us a call or visit our website today.

Al Smith

(303) 744-1128

Retirement Account, Financial Advisors

Littleton Co

The post 5 Steps Toward a Debt-Free College Education appeared first on Golden Eagle Financial Ltd..

• Leading Alternative to Long Term Care Insurance
• The only nationwide home care options for seniors
• Cost-effective investment for your peace of mind
• No age limits or medical underwriting

The True Freedom Plans are the most viable alternative to traditional Long Term Care Insurance

Contact Al Smith to secure your True Freedom Plan today!

Al Smith

(303) 744-1228

al@goldeneaglefinancialltd.com

The post What are True Freedom Plans? appeared first on Golden Eagle Financial Ltd..

A question we’re commonly asked is, “Is it possible to drastically reduce taxes in retirement, or even eliminate them? It’s possible, but you must start planning before you retire.

Many people don’t realize that Traditional IRAs and 401(K)s are fully taxed upon withdrawal, so the key is to diversify your retirement income. You can do that by saving and investing in tax-advantaged and non-taxable accounts, such as a Roth IRA, while you’re still working. Once you’re retired, it’s all about monitoring your adjusted gross income to control your tax bracket. You can limit the amount of taxable income you need to withdraw by pulling income from your tax-free accounts.

Also, by withdrawing from non-taxable accounts, instead of selling investments that trigger taxable income, you reduce the amount of your Social Security benefits subject to income tax.

To find out how you can reduce your taxes in your retirement years, call us, or visit our website today.

Al Smith​

(303) 744-1128

wealth management, retirement planning

Littleton Colorado

The post Is a Tax-Free Retirement Possible? appeared first on Golden Eagle Financial Ltd..

Many people believe Social Security will pay for their retirement, but Social Security was designed to be just a complement to a pension and investments. So don’t rely only on Social Security for your retirement because it probably won’t be enough to maintain your current lifestyle.

However, planning for your Social security benefits is important. Many retirees decide to wait until age 70 to draw on Social Security benefits because you can increase your benefits significantly by delaying the age at which you retire. However, remember, beginning at age 72, you must begin taking the required minimum distributions from an IRA, which also adds to your taxable income. Be aware that in retirement, tax deductions may be reduced, resulting in more taxable income.

You can plan for your Social Security, investments and pensions to all work together to reduce your tax burden. Sustainable lifetime income is the goal so you need to have a plan for all sources of income to work together in your retirement.

Need help with your plan? We can work with your tax professional in order to help you develop a Social Security strategy. Call us today. We’re here to help.

Al Smith
(303) 744-1128

Financial Advisors, wealth management
Littleton CO

The post How Can Social Security and Retirement Planning Work Together For Your Benefit? appeared first on Golden Eagle Financial Ltd..