How Can I Upgrade My Insurance — Tax-Free? by Joe Swanson, CRPS of www.joeswanson.com
Responding to the changing needs of consumers, the life insurance industry has developed some exciting alternatives. These alternatives go much further in satisfying a variety of financial needs and objectives than traditional types of insurance and annuities. Advancements Modern contracts offer much more financial flexibility than traditional alternatives. For example, universal life and variable universal life insurance policies allow you to adjust premiums and death benefits to suit your financial needs. Modern contracts can also provide you with much more financial control. While traditional vehicles like whole life insurance and fixed annuities provide returns that are determined by the insurance company, newer alternatives enable you to make the choices that will determine your returns. For example, variable annuities and variable universal life insurance allow you to allocate your premiums among a variety of investment subaccounts. These subaccounts range from conservative choices, such as fixed-interest and money market portfolios, to more aggressive, growth-oriented portfolios. Your returns will be based on the performance of these subaccounts. Withdrawals made from a variable annuity prior to age 591/2 may be subject to a 10 percent penalty. Generally, a surrender penalty will apply if the withdrawal is made during the early years of the policy. Variable annuity subaccounts fluctuate with changes in market conditions. When surrendered, your principal may be worth more or less than the original amount invested. There are many differences between variable- and fixed-insurance products. Variable universal life insurance offers several investment subaccounts that invest in a portfolio of securities whose principal and rate of return fluctuate. Also, there are additional fees and charges associated with a variable universal life insurance policy that are not found in a whole life policy, such as management fees. Whole life insurance offers a fixed account, generally guaranteed by the issuing insurance company. A Dilemma So what do you do if you’ve accumulated a substantial amount within your old life insurance policy or annuity? If you cash out your existing contracts and trade up to one that better suits your financial needs, you will have to pay income taxes on what you’ve saved. One solution to this problem is known as the “1035 exchange,” found in Internal Revenue Code Section 1035. This provision allows you to exchange an existing insurance or annuity contract for a newer contract without having to pay taxes on the accumulation in your old contract. This way, you gain new opportunities for flexibility and tax-deferred accumulation without paying taxes on what you’ve already built up.The rules governing 1035 exchanges are complex, and you may incur surrender charges from your “old” policy. In addition, you may be subject to new sales and surrender charges for the new policy. You’ll need the help of a financial professional. But it may be worth it. If you want to take advantage of today’s modern alternatives, consider a 1035 exchange.
Joe Swanson Minnesota Financial Planner© 2006 Emerald Publications
Joe Swanson, CRPS • Principal Financial Group, • 11100 Wayzata Blvd, Suite 161 • Minnetonka, MN • 55305 • Phone: (952) 277-4259 Toll Free: 800 277-7095 • Fax: (952) 277-4301 • www.joeswanson.com • swanson.joe@principal.com
Sunday, December 31, 2006
Saturday, December 30, 2006
by Joe Swanson Minnesota Financial Advisor / Planner
How Can I Keep My Money from Slipping Away? by Joe Swanson Minnesota Financial Advisor / Planner
As with virtually all financial matters, the easiest way to be successful with a cash management program is to develop a systematic and disciplined approach.
By spending a few minutes each week to maintain your cash management program, you not only have the opportunity to enhance your current financial position, but you can save yourself some money in tax preparation, time, and fees.
Any good cash management system revolves around the four As — Accounting, Analysis, Allocation, and Adjustment.
Accounting quite simply involves gathering all your relevant financial information together and keeping it close at hand for future reference.
Gathering all your financial information — such as mortgage payments, credit card statements, and auto loans — and listing it systematically will give you a clear picture of your overall situation.
Analysis boils down to reviewing the situation once you have accounted for all your income and expenses. You will almost invariably find yourself with either a shortfall or a surplus.
One of the key elements in analyzing your financial situation is to look for ways to reduce your expenses. This can help to free up cash that can either be invested for the long term or used to pay off fixed debt.
For example, if you were to reduce restaurant expenses or spending on non-essential personal items by $100 per month, you could use this extra money to prepay the principal on your mortgage. On a $130,000 30-year mortgage, this extra $100 per month could enable you to pay it off 10 years early and save you thousands of dollars in interest payments.
Allocation involves determining your financial commitments and priorities and distributing your income accordingly. One of the most important factors in allocation is to distinguish between your real needs and your wants.
For example, you may want a new home entertainment center, but your real need may be to reduce outstanding credit card debt.
Adjustment involves reviewing your income and expenses periodically and making the changes that your situation demands.
For example, as a new parent, you might be wise to shift some assets in order to start a college education fund for your child.
Using the four As is an excellent way to help you monitor your financial situation to ensure that you are on the right track to meet your long-term goals.
© 2006 Emerald Publications
Joe Swanson, CRPS 401k Minnesota Financial Advisor Planner
• Principal Financial Group,
• 11100 Wayzata Blvd, Suite 161
• Minnetonka, MN
• 55305
• Phone: (952) 277-4259 Toll Free: 800 277-7095
• Fax: (952) 277-4301
• www.joeswanson.com
• swanson.joe@principal.com
PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of these web-sites provided here, you are leaving this site. Princor makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising
Joe Swanson is licensed in Minnesota Wisconsin Oregon and Ohio (additional states can be made available) to offer insurance products, and life insurance (including variable life), annuities (including variable annuities), securities and if applicable - investment advice. This site is not a solicitation of interest in any of these products in any other state. IMPORTANT CONSUMER INFORMATION: Joe Swanson may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if (s)he is excluded or exempted from the state's registration requirements. Follow-up, individualized responses to consumers in a particular state by Joe Swanson that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker-dealer, investment advisor, BD agent or IA representative or any financial institution (s)he represents, contact your state securities law administrator. Principal Life Insurance Company, Des Moines, IA 50392. Principal Life maintains certificates of authority to transact insurance in all 50 states. Its NAIC identification number is 61271.
http://www.joeswanson.com/research.cfm
http://www.joeswanson.com/location.cfm
Joe Swanson Minnesota Financial Planner
Joe Swanson, CRPS Minnesota Financial Advisor
Minnesota Financial Advisor
Minnesota 401k Expert
As with virtually all financial matters, the easiest way to be successful with a cash management program is to develop a systematic and disciplined approach.
By spending a few minutes each week to maintain your cash management program, you not only have the opportunity to enhance your current financial position, but you can save yourself some money in tax preparation, time, and fees.
Any good cash management system revolves around the four As — Accounting, Analysis, Allocation, and Adjustment.
Accounting quite simply involves gathering all your relevant financial information together and keeping it close at hand for future reference.
Gathering all your financial information — such as mortgage payments, credit card statements, and auto loans — and listing it systematically will give you a clear picture of your overall situation.
Analysis boils down to reviewing the situation once you have accounted for all your income and expenses. You will almost invariably find yourself with either a shortfall or a surplus.
One of the key elements in analyzing your financial situation is to look for ways to reduce your expenses. This can help to free up cash that can either be invested for the long term or used to pay off fixed debt.
For example, if you were to reduce restaurant expenses or spending on non-essential personal items by $100 per month, you could use this extra money to prepay the principal on your mortgage. On a $130,000 30-year mortgage, this extra $100 per month could enable you to pay it off 10 years early and save you thousands of dollars in interest payments.
Allocation involves determining your financial commitments and priorities and distributing your income accordingly. One of the most important factors in allocation is to distinguish between your real needs and your wants.
For example, you may want a new home entertainment center, but your real need may be to reduce outstanding credit card debt.
Adjustment involves reviewing your income and expenses periodically and making the changes that your situation demands.
For example, as a new parent, you might be wise to shift some assets in order to start a college education fund for your child.
Using the four As is an excellent way to help you monitor your financial situation to ensure that you are on the right track to meet your long-term goals.
© 2006 Emerald Publications
Joe Swanson, CRPS 401k Minnesota Financial Advisor Planner
• Principal Financial Group,
• 11100 Wayzata Blvd, Suite 161
• Minnetonka, MN
• 55305
• Phone: (952) 277-4259 Toll Free: 800 277-7095
• Fax: (952) 277-4301
• www.joeswanson.com
• swanson.joe@principal.com
PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of these web-sites provided here, you are leaving this site. Princor makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising
Joe Swanson is licensed in Minnesota Wisconsin Oregon and Ohio (additional states can be made available) to offer insurance products, and life insurance (including variable life), annuities (including variable annuities), securities and if applicable - investment advice. This site is not a solicitation of interest in any of these products in any other state. IMPORTANT CONSUMER INFORMATION: Joe Swanson may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if (s)he is excluded or exempted from the state's registration requirements. Follow-up, individualized responses to consumers in a particular state by Joe Swanson that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker-dealer, investment advisor, BD agent or IA representative or any financial institution (s)he represents, contact your state securities law administrator. Principal Life Insurance Company, Des Moines, IA 50392. Principal Life maintains certificates of authority to transact insurance in all 50 states. Its NAIC identification number is 61271.
http://www.joeswanson.com/research.cfm
http://www.joeswanson.com/location.cfm
Joe Swanson Minnesota Financial Planner
Joe Swanson, CRPS Minnesota Financial Advisor
Minnesota Financial Advisor
Minnesota 401k Expert
Friday, December 15, 2006
Sandwiched Between Two Generations?
Sandwiched Between Two Generations?
Joe Swanson www.joeswanson.com Minnessota Financial Advisor Website
(ARA) - It's not corned beef on rye or ham and cheese. The "sandwich" generation is the 40-something Americans, sandwiched between two generations: their parents and their children. And today, many are being squeezed by the responsibilities of caring for both -- often all in the same household.
But how do you prepare a household to meet the diverse needs that may range from infant to elderly? Luckily, recent innovations can help this generation make their home safer and more accessible for both their children and their parents while remaining functional and stylish.
Avoid the Bathroom Blues
About 30 percent of all accidents in the home are caused by falls, and the majority of them take place in the bathroom. This confined space with hard, wet surfaces can be treacherous at any age, but children under five and adults over 70 have the highest rates of unintentional falls. Fortunately, it's easy to make this room safer for your children, parents and yourself:
* Install a night light to make nighttime trips to the bathroom easier and safer to navigate.* Use adhesive-backed, non-slip tread strips on tub/shower floors to reduce the chance of falls.* Mount grab bars to provide assistance when getting in and out of the tub. New products, such as Home Care by Moen's SecureMount Grab Bars are easy to install and can be mounted vertically, horizontally or even diagonally. Now with the SecureMount anchor system, the grab bars can be securely installed into any type of wall surface including dry wall, tile and tub surround, without a wood stud. Plus, they are available in a variety of designs and finishes to maintain a stylish bathroom appearance.* Add an elevated toilet seat to help relieve stress on mom and dad's knees, legs and back. Home Care by Moen offers a Locking Elevated Toilet Seat that sits securely on the toilet rim and locks into place for added safety.
Deter Dangers in the Den
The family room, or den, is often the social gathering point in the house. But it can quickly become cluttered with cords from lamps, appliances and video game controllers. Consider a few minor changes to eliminate some of the dangers in the den:
* Remove area rugs or carpets that can create tripping hazards.* Use wireless controllers for video games and computer appliances to eliminate the chance of falls, as well as an unsightly mess of cords.* Space furniture so there is a clear walkway for both active kids and parents with walkers or wheel chairs.
Keep Kitchens Clean and Clear
When not in the den, families spend the majority of their time in the kitchen. However, from sharp knives to hot temperatures, the kitchen can be a recipe for disaster. These few hints can make the heart of your home less hazardous:
* Bind long cords from coffee makers, toasters and other kitchen appliances and be sure they do not hang from the counter.* To prevent unintentional burns, never leave the stove unattended with children in the room. Consider purchasing protective knob covers to prevent children from turning on the stove.* Store sharp cutlery in a wood block or purchase shields to protect fingers from sharp cuts.
Safer, Happier, Homier
www.joeswanson.com
Joe Swanson www.joeswanson.com Minnessota Financial Advisor Website
(ARA) - It's not corned beef on rye or ham and cheese. The "sandwich" generation is the 40-something Americans, sandwiched between two generations: their parents and their children. And today, many are being squeezed by the responsibilities of caring for both -- often all in the same household.
But how do you prepare a household to meet the diverse needs that may range from infant to elderly? Luckily, recent innovations can help this generation make their home safer and more accessible for both their children and their parents while remaining functional and stylish.
Avoid the Bathroom Blues
About 30 percent of all accidents in the home are caused by falls, and the majority of them take place in the bathroom. This confined space with hard, wet surfaces can be treacherous at any age, but children under five and adults over 70 have the highest rates of unintentional falls. Fortunately, it's easy to make this room safer for your children, parents and yourself:
* Install a night light to make nighttime trips to the bathroom easier and safer to navigate.* Use adhesive-backed, non-slip tread strips on tub/shower floors to reduce the chance of falls.* Mount grab bars to provide assistance when getting in and out of the tub. New products, such as Home Care by Moen's SecureMount Grab Bars are easy to install and can be mounted vertically, horizontally or even diagonally. Now with the SecureMount anchor system, the grab bars can be securely installed into any type of wall surface including dry wall, tile and tub surround, without a wood stud. Plus, they are available in a variety of designs and finishes to maintain a stylish bathroom appearance.* Add an elevated toilet seat to help relieve stress on mom and dad's knees, legs and back. Home Care by Moen offers a Locking Elevated Toilet Seat that sits securely on the toilet rim and locks into place for added safety.
Deter Dangers in the Den
The family room, or den, is often the social gathering point in the house. But it can quickly become cluttered with cords from lamps, appliances and video game controllers. Consider a few minor changes to eliminate some of the dangers in the den:
* Remove area rugs or carpets that can create tripping hazards.* Use wireless controllers for video games and computer appliances to eliminate the chance of falls, as well as an unsightly mess of cords.* Space furniture so there is a clear walkway for both active kids and parents with walkers or wheel chairs.
Keep Kitchens Clean and Clear
When not in the den, families spend the majority of their time in the kitchen. However, from sharp knives to hot temperatures, the kitchen can be a recipe for disaster. These few hints can make the heart of your home less hazardous:
* Bind long cords from coffee makers, toasters and other kitchen appliances and be sure they do not hang from the counter.* To prevent unintentional burns, never leave the stove unattended with children in the room. Consider purchasing protective knob covers to prevent children from turning on the stove.* Store sharp cutlery in a wood block or purchase shields to protect fingers from sharp cuts.
Safer, Happier, Homier
www.joeswanson.com
Saturday, December 9, 2006
Personal Finance 101: A Young Person's Guide to Saving
Personal Finance 101: A Young Person's Guide to Saving
Joe Swanson, CRPS 401k Health Disability Income Minnesota swanson.joe@joeswanson.com 942 277 4259 www.joeswanson.com
(ARA) - Instant gratification, credit cards and I need it now. America's youth are growing up in a culture dominated by these ideas and values. So it's no surprise young adults today are not preparing for their financial futures.
Recently, Stowers Innovations, Inc. conducted an Internet survey of people interested in learning more about financial matters. Less than 10 percent of the 18 to 34 year olds surveyed have a specific plan for retirement at a specific age.
"Young people may think retirement is a long way off. But the truth is, if they don't start saving now, they may not be able to retire at all," said Sam Goller, executive director of Achieve Financial Independence Week (TM) and author of "Yes, You Can . . . Achieve Financial Harmony" and "Yes, You Can . . . Afford to Raise a Family." "The earlier people begin investing, the greater the likelihood they have of accumulating wealth. Why? It takes significantly less money to accomplish what you want when you have more time working for you."
Retirement isn't the only thing today's young adults are failing to consider. The Stowers Innovations survey found short-term savings are also an issue, with 48 percent of young adults admitting they do not have an emergency fund to cover three-months of living expenses should they face a financial crisis.
"For their own financial security, young adults need to have the mindset that the only person they can count on to take care of them is themselves," said Dr. Sheelagh Manheim, psychologist, co-author of "Yes, You Can . . . Find More Meaning in Your Life" and consulting psychologist for "Yes, You Can . . . Raise Financially Aware Kids." "I don't think any adult child willingly wants to live in their parent's basement. But that sometimes happens because some young people fail to plan and think long-term financially."
The following six tips are designed to help young adults analyze their current financial situation, pay off debt and save for the future.
Start Now: Don't procrastinate when it comes to saving for retirement; begin now. Take advantage of company sponsored retirement programs such as a 401(k) or Simple IRA. Another option is a Roth IRA. This individual retirement account will allow you to begin saving tax-free, and tax-free withdrawals may be made after age 59 and a half.
Get Rid of Debt: Today's "buy now, pay later" mentality has forced many Americans into debt. The GoodLife survey found more than 47 percent of adults 18 to 34 had over $8,000 in debt, not including a home mortgage. And 57 percent did not know how long it would take to pay off these debts. Analyze your current debt situation and create a plan that pays off the debt quickly. By paying off debt, you will have more money to save for the future.
Make a Plan and Stick to It: After analyzing your current financial situation, determine a financial plan that suits you. Once your plan is set, stick to it. Consistency is key. Be sure your plan includes measures to eliminate debt and save for the long- and short-term.
Say No to Credit Cards: Credit card companies regularly flood college campuses enticing students with free T-shirts and other gifts. While credit cards can be a useful financial tool when used properly, the key is paying them off every month and avoiding interest payments. Say no to credit card spending when you don't have the money to zero-out the balance each month.
Talk with your Parents: Almost 48 percent of young adults first learned about saving and financial planning from their parents. Ask your parents and find out what has worked for them and what hasn't. Learning from their mistakes can help prevent you from making your own, and learning from their successes can help point you in the right direction financially.
Finance 101: Educate yourself on financial planning. There are many great resources available, including magazines, books, financial planners and local banks. Surround yourself with as much knowledge as possible so you can make an educated financial plan that will carry you well into the future.
Courtesy of ARA Content
Joe Swanson www.joeswanson.com
Joe Swanson, CRPS 401k Health Disability Income Minnesota swanson.joe@joeswanson.com 942 277 4259 www.joeswanson.com
(ARA) - Instant gratification, credit cards and I need it now. America's youth are growing up in a culture dominated by these ideas and values. So it's no surprise young adults today are not preparing for their financial futures.
Recently, Stowers Innovations, Inc. conducted an Internet survey of people interested in learning more about financial matters. Less than 10 percent of the 18 to 34 year olds surveyed have a specific plan for retirement at a specific age.
"Young people may think retirement is a long way off. But the truth is, if they don't start saving now, they may not be able to retire at all," said Sam Goller, executive director of Achieve Financial Independence Week (TM) and author of "Yes, You Can . . . Achieve Financial Harmony" and "Yes, You Can . . . Afford to Raise a Family." "The earlier people begin investing, the greater the likelihood they have of accumulating wealth. Why? It takes significantly less money to accomplish what you want when you have more time working for you."
Retirement isn't the only thing today's young adults are failing to consider. The Stowers Innovations survey found short-term savings are also an issue, with 48 percent of young adults admitting they do not have an emergency fund to cover three-months of living expenses should they face a financial crisis.
"For their own financial security, young adults need to have the mindset that the only person they can count on to take care of them is themselves," said Dr. Sheelagh Manheim, psychologist, co-author of "Yes, You Can . . . Find More Meaning in Your Life" and consulting psychologist for "Yes, You Can . . . Raise Financially Aware Kids." "I don't think any adult child willingly wants to live in their parent's basement. But that sometimes happens because some young people fail to plan and think long-term financially."
The following six tips are designed to help young adults analyze their current financial situation, pay off debt and save for the future.
Start Now: Don't procrastinate when it comes to saving for retirement; begin now. Take advantage of company sponsored retirement programs such as a 401(k) or Simple IRA. Another option is a Roth IRA. This individual retirement account will allow you to begin saving tax-free, and tax-free withdrawals may be made after age 59 and a half.
Get Rid of Debt: Today's "buy now, pay later" mentality has forced many Americans into debt. The GoodLife survey found more than 47 percent of adults 18 to 34 had over $8,000 in debt, not including a home mortgage. And 57 percent did not know how long it would take to pay off these debts. Analyze your current debt situation and create a plan that pays off the debt quickly. By paying off debt, you will have more money to save for the future.
Make a Plan and Stick to It: After analyzing your current financial situation, determine a financial plan that suits you. Once your plan is set, stick to it. Consistency is key. Be sure your plan includes measures to eliminate debt and save for the long- and short-term.
Say No to Credit Cards: Credit card companies regularly flood college campuses enticing students with free T-shirts and other gifts. While credit cards can be a useful financial tool when used properly, the key is paying them off every month and avoiding interest payments. Say no to credit card spending when you don't have the money to zero-out the balance each month.
Talk with your Parents: Almost 48 percent of young adults first learned about saving and financial planning from their parents. Ask your parents and find out what has worked for them and what hasn't. Learning from their mistakes can help prevent you from making your own, and learning from their successes can help point you in the right direction financially.
Finance 101: Educate yourself on financial planning. There are many great resources available, including magazines, books, financial planners and local banks. Surround yourself with as much knowledge as possible so you can make an educated financial plan that will carry you well into the future.
Courtesy of ARA Content
Joe Swanson www.joeswanson.com
Friday, December 1, 2006
Blue Cross HSA now offers dental in Minnesota
Minnesota Financial Advisor
Blue Cross HSA now has an additional Dental Feature.
www.joeswanson.com
We had seen a rise in requests for Dental Insurance from our Individual HSA policy holders. This is a great addition to the Blue Cross HSA in Minnesota. Delta Dental is the partner in this.
Joe Swanson
Blue Cross HSA now has an additional Dental Feature.
www.joeswanson.com
We had seen a rise in requests for Dental Insurance from our Individual HSA policy holders. This is a great addition to the Blue Cross HSA in Minnesota. Delta Dental is the partner in this.
Joe Swanson
Subscribe to:
Posts (Atom)