August 2015

I'm sure everyone is extremely excited that the political season is kicking into high gear tomorrow night with the first Republican debate. Geez, even President Obama told everyone to watch! The debate should be very interesting to say the least.

In any event, like always, we've been busy. Matt (Kelly's husband) is working out great as our new office manager. Matt and Kelly have spent a lot of time updating internet, phone, and database systems at the office to better serve everyone in the future.

Kelly and I recently went to a "Mastermind" event in Chicago that was attended by some of the top retirement planners in the country. As always, it was very education and we learned a lot that we're eager to share with everyone. There are going to be some very important changes coming in January 2016 to the insurance industry that everyone needs to be aware of. Regulators are requiring insurance companies to update their mortality tables from 2000 versions to 2012 tables. On average, folks are living 3-5 years longer and that will have a definite effect on annuity and life insurance planning! Some of this is good, some maybe not so much.

Here's one thing I can pass along to you without question: if you're looking to set up a guaranteed income plan for retirement, then you'll never be able to do it as efficiently as you can right now! Make sure to read my Lake Norman Magazine article next month (September edition) where I discuss this in more detail. If you really can't wait until next month to read it, then let us know and we can send you an early copy.

One other thing I'll pass along after hearing some of the top Institutional Wealth Managers speak at the event is this: if you're invested in the stock market, BE VERY CAREFUL! We are currently in the midst of the second longest bull market in history. The average gain in a bull market is 156%, and we're currently at 225%. So, what does that tell you? Not to mention, we are in the biggest bond bubble in history. Volatility will likely become the norm according to many of the experts. Can you afford to lose 20-40% of your portfolio? If not, give us a call or shoot us an email to find out some strategies to protect at least a portion of your assets. Enjoy this month's articles!

Until next month,

James Stillman

The Power of Zero &
Planning For A Tax Free Retirement

Part 2

Lake Norman Magazine, August 2015

Last month, we discussed how taxes in retirement can erode your spending power and how wonderful it would be if you could enjoy a "Tax Free Retirement". Most baby boomers - for example - have accumulated most of their retirement assets in 100% taxable IRAs, 401(k)s, 403(b)s, etc. So, right when you need the money the most (when you take it out to actually fund your retirement), you get hit with the taxes you've deferred over all those years. Not to mention that heirs must also pay taxes on inherited IRA assets. These taxes can easily reach 40% - 50%. Ouch!

Now, I know you got the tax deduction each year (and that's a good thing in most cases), but let me ask you a question. Let's assume you're a farmer that plants a multitude of crops each year. Would you rather pay tax on the seed (small amount) or the harvest (large amount)? I think the answer is obvious.

All content is intended for informational purposes only. Any guarantees are for insured products only and are dependent on the claims paying abilities of the insurer. All investments carry some risk and you should be advised by your personal financial advidor before implementing any strategies discussed, as they are not suitable for everyone. James D. Stillman is an Investment Advisor Representative of JDS Wealth Management Corporation and Global Financial Private Capital.

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This Month

The Power of Zero & Planning For A Tax Free Retirement - Part 2

Emotional Responses Are Rarely Logical

Broken Clocks Are Still Right Twice A Day