The Simplest Annuity Explainer We Could Write
The insurance companies that create annuities often make them seem like investments. But really they’re more like insurance. At their simplest, annuities offer a guarantee. If you turn over some money, you’ll be guaranteed to get all that money back — plus usually a certain amount more. Or you turn over some money and you’ll be guaranteed a regular check for a certain period. Like insurance to stave off financial disaster, an annuity is something you purchase to guarantee that you won’t run out of money if you live a long time. Such financial guarantees are attractive. After all, we don’t know how our investments will perform: This year may be the first in a while that your stock and bond index funds both lose money. Still, annuities are not a mainstream product. This is partly the fault of the annuity companies, since they have long outsourced the sales process to people who do not always have customers’ best interests at heart. Read the full article at NYTimes.com.
Read moreTax Cuts and Jobs Act of 2017
The last time we had a major tax overhaul was in 1986 with the Tax Reform Act signed by President Reagan. Although it simplified the income tax code for some folks, it also created complexity for others, not to mention a great deal of work for accountants and tax lawyers who were tasked with interpreting and planning around the new law. Tax professionals (and the IRS) now again have their hands full in interpreting and implementing the newly enacted Tax Cuts and Jobs Act, which took effect on January 1, 2018. To ring in the New Year, we thought it helpful to provide clients with a summary of the new law with a specific emphasis on how it affects your businesses and estate planning. Keep in mind that although the new law is effective now, individuals won’t see any change to their tax returns until spring 2019 (when 2018 returns are filed).
Read more