In late 2019, SECURE Act was passed as a way to help Americans save more for their retirement. In March 2022, the SECURE Act 2.0 has passed in the U.S. House of Representatives and aims to improve the goals of the original SECURE Act. The Senate proposed a similar bill in May 2021, and as the House's version moves forward, the two bills will likely combine before the final Senate vote. Here are what investors should know if the SECURE Act 2.0 passes as proposed: #1- Required Minimum Distribution (RMD) age will increase from age 72 to age 75 with this RMD schedule:

• Age 73 starting in 2023 (for individuals who reach age 72 after Dec. 31, 2022, and age 73 before Jan. 1, 2030).
• Age 74 starting in 2030 (for individuals who reach age 73 after Dec. 31, 2029, and age 74 before Jan. 1, 2033).
• Age 75 starting in 2033 (for individuals who reach age 74 after Dec. 31, 2032).

#2- RMD penalties would decrease. Currently, for investors who forget to take their total RMD, there is a 50% penalty on the RMD amount missed. The SECURE Act 2.0 would decrease the liability to 25%, and if the mistake is promptly corrected, it drops to 15%. #3- Qualified Charitable Distributions (QCDs) would be enhanced. People aged 70½ and older can transfer up to $100,000 tax-free each year from their traditional IRAs directly to the charity. The SECURE Act 2.0 would index the cap each year for inflation. It would also allow a one-time transfer of $50,000 through a charitable remainder trust or charitable annuity. #4- Catch up provisions for 401(k) and 403(b) plan participants ages 62, 63, or 64 would increase by an extra $10,000 per year. Participants over age 50 enrolled in these retirement plans can currently contribute $6500 more for 2022. The SECURE Act 2.0 would provide an even more significant boost of $10,000 in catch-up contributions to investors in their 60's. #5- Catch-up contributions must be made into a Roth IRA instead of the employer-sponsored pre-tax retirement savings accounts starting in 2023 (in the house version). Currently, the employee can decide which account they want their catch-up contributions to go toward, either the Roth IRA or the 401(k) or 403(b). #6- Catch up limits for IRA and Roth IRA owners ages 50 and older would be indexed for inflation. Since 2006, the $1000 extra hasn't increased, regardless of inflation. #7- Employees would automatically enroll in their employer's retirement savings plan. Employees will automatically be enrolled at a 3% contribution rate but can opt-out or save less or save more up to their IRS contribution limit each year. #8- Employee retirement savings plan contributions would automatically increase each year by 1% up to a maximum of 10%. #9- Employers can contribute their match into the employee's Roth IRA or pre-tax retirement savings account. Currently, all employer matching dollars deposit into the pre-tax account. #10- The Savers tax credit would simplify in one 50% credit. Under the SECURE Act 2.0, the saver's credit would phase out at AGIs over $24,000 for single filers, $36,000 for head-of-household filers, and $48,000 for joint filers. If 2.0 passes, retirement savers with the lowest incomes will get more significant tax benefits, while others would no longer qualify. #11- Employers can contribute their match and their employee's contribution while the employee pays on their student loans. #12- Part-time workers' 401(k) plan participation eligibility moves from three to two years. The SECURE Act will shorten the timeline for part-time workers that want to participate in their employer's retirement savings plan. While the SECURE Act 2.0 hasn't become law, it will impact investors differently depending on their situation. Keep in touch with your financial professional as the bill moves into the Senate or if you have questions about the act.     Sources: https://www.kiplinger.com/retirement/retirement-plans/602821/secure-act-2 https://www.investopedia.com/house-passes-secure-act-2-0-5224312 https://www.congress.gov/bill/117th-congress/house-bill/2954/text     Important Disclosures This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by Fresh Finance. LPL Tracking #1-05269778

Whether your child was just born or is heading toward high school graduation, a 529 savings plan may help you put aside funds to pay for college expenses without paying taxes (federal and some states) on any dividends and gains.¹ However, 529 plans have some specific rules, regulations, and restrictions that parents must know before college begins. Here are the answers to some of the most commonly-asked questions about 529 college savings plans.

What Are Qualified Expenses?

Generally, 529 funds are tax-free when spent on qualified expenses, such as tuition, books, fees, and room and board. However, understanding what constitutes an eligible expense is sometimes challenging. Here are some things to know about qualified expenses:

• Books, supplies, and equipment are qualified; however, laptops and other tech devices are qualified expenses only if required for enrollment or attendance at a school.
• Airfare or driving expenses to and from college are not qualified expenses.
• Health insurance is not a qualified expense.

Room and board, including off-campus housing, is a qualified expense. However, it is capped at the room and board amount your college estimates in its total cost of attendance. This rule means that if your college publishes its cost of attendance as including $10,000 in room and board, but you have an off-campus apartment that costs $2,000 per month, you may only be able to use your 529 withdrawal to pay for $10,000 of your rent.

What Happens if Your Child Gets a Scholarship?

Getting a full-tuition scholarship may create a challenge. You may need to change what to do with the 529 funds earmarked to pay for college tuition. Fortunately, several options allow a 529 custodian to avoid paying penalty fees on the 529 funds.²

• Withdrawal of the scholarship amount from the 529 account is penalty-free but not tax-free.
• The 529 funds may pay for the student’s postgraduate education.
• The 529 funds may pay for qualified expenses of grandchildren, other children, or other family members. The beneficiaries of a 529 account may change at any time. As long as the withdrawn funds pay for qualified expenses, they remain tax-free.

When Should Funds Be Withdrawn?

It is important to note that any 529 withdrawals must pay qualified expenses incurred in the same year. Taking out funds Dec. 20 and spending them Jan. 2 might result in a penalty, even if the payment is qualified. Schedule withdrawals carefully to avoid problems and ensure that you spend the money on a qualified expense during the calendar year you make each withdrawal. Another strategy worth considering is that 529 accounts held by grandparents are not a parental asset and the funds withdrawn are counted as the student’s income. This distinction means that waiting until the last couple of years of college to use the grandparent’s 529 funds may help the expected family contribution remain lower during the first few years of college.

Sources

¹ https://www.usnews.com/education/best-colleges/paying-for-college/articles/2015/06/17/4-common-questions-about-spending-529-college-savings-funds ² https://www.collegechoicedirect.com/home/frequently-asked-questions.html   Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05255895

April brings more than possible rain showers. It also marks Financial Literacy Month in the U.S. Whether you’re interested in a quick refresher or seeking to learn something new, it may be worth the effort to brush up on some financial concepts that give you a broader knowledge base from which to make financial decisions. Here are several ways to invest in your financial education for this Financial Literacy Month.

Check Out the Library

With financial topics and discussions available in online articles, blogs, podcasts, radio, television shows and just about every other type of media, the library may be an overlooked resource for those seeking to improve their financial literacy. However, it may be cost-effective to check out a book from the library since it is free. Your librarian may be an invaluable resource for identifying areas of knowledge that you would like to boost and helping you select the appropriate books to read.

Think About Your Budget and Taxes

Whether you are good at budgeting or tend to take whatever comes financially, spring presents an opportune time to take a hard look at your income and spending and decide what changes may be worth making. While gathering the information you need to file your income tax return, you may be able to identify patterns and get an early start on any changes you would like to make this year. For example, if you did not contribute to a 401(k) or traditional individual retirement account (IRA) last year, running a few calculations might help give you a good idea of how much you may save in taxes by starting contributions now. Suppose your overall tax rate is quite low due to other credits and deductions. In that case, it may be worth talking to a financial professional to see whether contributions to a Roth IRA or Roth 401(k) are better for your situation.

Enroll in an Online Course

Online courses and seminars were already popular pre-pandemic. Today, many are pursuing a degree or just seeking additional knowledge by taking classes through the internet. With many financial literacy courses available, if you would like to brush up on a few key concepts or prefer a basic economics course, there are plenty of options to consider.

Beware of FOMO and Get Rich Quick Schemes

In 2021, meme stocks and crypto bubbles made millionaires of some, while others lost it all.¹ Many meme stock investors are relative newcomers to the stock market and, as a result, may have passed on misconceptions and misinformation to others. But the fear of missing out (FOMO) of previously unheard-of gains is real and has led many to pursue more risky trading strategies like puts, calls and excessive margin trading. A key part of financial literacy involves assessing the quality of information you receive. Even the strongest companies are not impervious to catastrophe. Any investment that promises high percentage returns or indicates that even the worst-case scenario is positive should prompt further investigation before investing. If an investment sounds too good to be true, there may be a good chance it is. ¹ https://news.yahoo.com/meme-stocks-a-lot-of-people-will-lose-a-lot-of-money-interactive-brokers-founder-says-183945123.html       Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05241799

What to look for and what’s not important

  If you are shopping for a financial professional, you need a good checklist of questions to ask. What you are looking for is someone who handles clients like you – and who is financially wise. As you assess a professional who manages your assets, for instance, do yourself a favor: Don’t rely on his or her investment record. Clients have differing needs. A money manager whose investment performance touched the stars last year may falter this year. More important nowadays may be how skillful a financial professional is at preserving your assets. That may range beyond market forecasts into such realms as insurance. Losing the ability to work and generate income, because of a sudden disability, can be more ruinous to your financial well-being than a slide in the stock market. This list of questions to a prospective professional will help you decide whether the person is a suitable fit for you: What Don’t You Do? Some financial professionals are strictly asset managers. They run your portfolio and do no planning. Others are wealth managers and their mandate is broader: They help plan the risk in your life. Within these categories are specialists in such areas as insurance and estate planning. You may hire a professional to help you draw up an investment plan aimed at pursuing enough assets to see you through retirement. But the financial professional may know zilch about creating a trust to pass along wealth to your grandkids. So, you will need another expert for that. Who Is Your Typical Client? Let’s say you are starting out and have a net worth of $50,000. It may not make sense for you to hire a financial professional who typically handles multi-millionaires. You may want to find a financial professional who focuses on your occupation. Say you are a doctor: A professional who knows about malpractice insurance and practice partnerships could be more appropriate for you than one who mainly deals with corporate executives. Or you may want a financial professional specializing in your life stage. Perhaps you are widowed. Or a new parent. Or divorced. What Clients Don’t You Want? One professional may not want anyone with under $100,000 to invest. Another may only want those people. Beyond asset size, goals and styles also are important. What Is a Recent Client Success Story? Guiding clients as they work to unknot a problem, helping mitigate calamity or managing their holdings are key ways that financial professionals help out. If a prospective professional can point to specific stories where he or she helped develop a client’s success, it may offer you comfort the financial professional can aid you too. What Is the Worst Thing You Have Seen Someone Do Financially? To err is human. Sometimes, a financial professional is called in to help repair problems people have created for themselves. Sometimes, clients go against a professional’s counsel and drive into a ditch. Clients, after all, are not required to follow professional financial advice. This question can help you gauge an financial professional’s nose for trouble. Believe it or not, there are professionals who told their clients to retreat into defensive positions prior to the 2008 market debacle, to lighten up on debt or to back out of heavy real estate exposure. On a smaller scale, some financial professionals may warn clients to avoid questionable moves like keeping most of their assets in employer shares or chasing hot stock tips.

Bottom Line

Asking a prospective financial professional these questions can help you decide whether you can work together. And remember, it is a partnership.       Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This article was prepared by RSW Publishing. LPL Tracking #1-05246421  

2022 has been a challenging year for investors so far. The S&P 500 Index just had one of its worst Aprils in decades, and May is off to a rocky start. Bond investors have not fared much better as rising interest rates have pushed down bond prices. Bond losses have made the stock market volatility feel even worse than usual. Markets don’t like uncertainty but it’s getting a healthy dose of it this year, dealing with high inflation, tighter Federal Reserve monetary policy, COVID-19 shutdowns in China, and snarling global supply chains, all while the war in Ukraine continues. Investing mistakes often take place during periods of elevated volatility. One of the most frequent is trying to time the market by jumping in and out. Market timers must be right twice, and timing the return to the market can be extremely difficult to pull off. Markets can turn quickly, and missing even just one big up day can significantly reduce returns over time. The biggest daily gains tend to come in down markets, making them especially difficult to predict. Time in the market, not timing the market, may be more beneficial to long term investors. When markets are shaky, it can be helpful to look to long-term fundamentals that have provided the foundation of positive returns for stocks and bonds over the long run. For stocks, gains depend on the ability of corporations to grow earnings, which they have continued to do during first quarter earnings season—S&P 500 Index earnings per share are on track to increase 10% year over year. For bonds, the key fundamental has simply been the ability of borrowers to make required payments. Corporations and consumers enjoy strong balance sheets and have the financial firepower to pay their debts. While the future is always uncertain, we believe those fundamentals remain in place. Even against a potentially supportive fundamental backdrop, the volatility we’ve seen in stocks this year is not unusual. Although negative returns for a full calendar year are infrequent, corrections are fairly common. Since 1980, the S&P 500 has been negative for a calendar year just seven times, but the average decline within any year has been 14%. Mid-term election years have tended to see increased early year volatility, as the honeymoon period for a new president ends and political uncertainty rises. Inflation can also be challenging. Years with inflation over 5% have seen more frequent stock market declines than a typical year, but stocks have still been higher more often than not. Amid the global economic and geopolitical uncertainty, the core domestic economy is still quite stable. Weekly consumer spending data is above typical baseline levels. Job seekers are participating in a tight labor market with twice as many openings as unemployed people. Businesses are enjoying high profit margins despite cost pressures. The economy is expected to grow in the latter part of this year after a surprise contraction in the first quarter, though the growth path may be bumpy as monetary policy is recalibrated from exceedingly loose to moderately tight and consumers and businesses adjust to higher borrowing costs. Our base case is still for above-trend economic growth in 2022. We believe patient investors stand a better chance of meeting their long-term goals. No one has a crystal ball, but at lower valuations, history suggests the chances of above-average returns going forward may be rising. It’s tough to do during times like this, but we encourage long term investors to stick to their game plan. Please contact us if you have any questions.     Important Information This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. All data is provided as of May 9, 2022. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All index data from FactSet. This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.   1-05279947

As a small-business owner, you may be looking for the next big thing—an investment that might double your profits within the next year or allow you to maintain your income while working just a few hours a week. However, business success may depend on many incremental investments you make along the way. By including investments that fall outside the financial realm, you may better position your business and yourself to take advantage of future opportunities. Here are four key investments that may help your business thrive.

Invest in Your Health

Starting a company is all-consuming. You may find yourself relying on too many fast-food meals and getting too little exercise as you put in the long hours needed to get your business going. Nevertheless, business success may be anticlimactic if you are not healthy enough to enjoy it. Invest in yourself by taking time for self-care, exercise, time with family, and healthy meals. Realize that your business may only be as healthy as you are.

Invest in Your Education

Education is more accessible than ever, including pay-per-credit-hour classes at local community colleges and online courses from some of the country's most reputable universities. Small-business owners may take advantage of these educational opportunities to expand their knowledge on any number of subjects. Perhaps you want a greater understanding of grants or loan opportunities that may be available. You might desire to learn about a new marketing strategy. Investing in your education may give you a knowledge base to support you throughout your entrepreneurial efforts.

Invest in Financial Professionals

If you try to run your business while also doing your taxes and keeping your books, you may find that there are not enough hours in the day to do everything. It is challenging to stay abreast of legal, tax, and regulatory changes that impact your business. Under such circumstances, financial professionals can be beneficial. Having a financial professional handle your taxes and help you work towards making your business more tax-efficient may positively affect net income even with the existing revenues from sales. For example, you might change the way your company operates or the state in which your business is located to improve the tax efficiency for your business.

Invest in Your Business

When your business starts, it may be tempting to run it as lean as possible to boost profits and increase your attractiveness to lenders. But at some point, running your business too sparingly may create a problem. You might not capture the opportunities to make your business more efficient. Whether upgrading equipment or purchasing new software, investing in your business may yield a higher return on investment if it frees up valuable employee time to help expand your customer base. Be sure to consider investments in technology and assets that might help your business perform better.   Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. This article was prepared by WriterAccess. LPL Tracking #1-05255895

Social Security Retirement benefits are one thing that people know of, but often what they know isn't always accurate. First, the Social Security Trust Fund was created in 1939 as part of Old Age and Survivors Insurance by the Social Security Administration (OASI). The goal of this legislation was to help American workers have financial resources in retirement. But since its inception, there have been myths surrounding Social Security. Here we will answer questions people have about Social Security to help dispel common myths of the program: Q: Can the U.S. Government borrow money from the Social Security reserve fund? The government does not borrow money from the Social Security Reserve fund, and by law, is unable to tap the fund, regardless of the U.S. deficit. There has never been any change in how the Social Security program is financed or how the federal government uses payroll taxes to fund the program. Q: Since a tax funds Social Security, can I deduct it when I file my taxes? There was never any provision of law making the Social Security taxes paid by employees' deductible for income tax purposes. The 1935 law expressly forbid this idea in Section 803 of Title VIII. - SSA.GOV Q: Are Social Security retirement benefits taxed? President Reagan signed the taxation of Social Security benefits into law in April 1983. In 1993, additional legislation was enacted, increasing the benefits subject to taxation from 50% to 85%. Q: Can immigrants and non-U.S. citizens collect Social Security retirement benefits? Legal immigrants and non-U.S. citizens can qualify for Social Security retirement benefits if they earn enough work credits over their careers. They must also have a social security number and have had employment at some time in the United States. Like domestic-born citizens, they must accumulate 40 Social Security work credits by earning one credit for every quarter of earning at least $1,470 for 2021 ($1,510 for 2022) to a maximum of four credits per year. This formula applies to everyone born since 1929, and 40 credits are the equivalent of 10 years’ worth of work. Q: How is Social Security funded? Social Security retirement benefits (OASI) collect from today’s worker and employer payroll taxes to pay current retirees. The collected revenue is used to pay today's recipients, and the additional revenue is invested into the Social Security Trust fund. Q: Does Social Security ever raise the monthly benefit? Since 1975, Social Security has given the cost of living (COLA) raises to keep up with inflation. Typically, the higher the inflation rate, the higher the increase. In 2021 and 2022, the COLA increase was 5.9%, the most significant increase since 1981, when the average inflation rate was 10.32%. Q: Is there a benefit to waiting until full retirement age to collect Social Security? Life expectancy tables indicate that men turning age 65 today have a life expectancy of 84.3 years, and women turning age 65 today have a life expectancy of 86.6 years. While it may be tempting to take your retirement benefit early, waiting until your full retirement age will result in a larger payout over time. However, there are other factors for those nearing retirement to consider when it comes to when to take their benefits. For Americans that will retire after 2035, the future of receiving their projected full retirement monthly benefit looks bleak – the Social Security Administration estimates the ability to pay 77% of promised benefits at that time. What is Social Security's present situation?

• $2.6 Trillion in the fund earning 2.3% in Special Treasuries (redeemable at face value like cash)
• Currently Supports 50 Million beneficiaries through 150 Million workers paying social security payroll tax
• Inability to borrow funds to pay obligations. Benefits only payable out of reserves and current payroll tax inflows (UNDER CURRENT LAW)
• By 2032 - 2037 (without changes), the Reserve is estimated to be exhausted
• Continuing payroll taxes are only enough to pay 73-78% of scheduled benefits
• Declining U.S. population of a 2:1 ratio of workers to retirees (beneficiaries)

  Work with a financial professional While there may not be as much in benefits as we expected, we can do things to prepare for the shortfall. We can plan and replace it with other investments to make up for the shortfall. Together we can review your options, look holistically to the future, and get organized to see the big picture of how retirement may be for you. Contact our office today to review your situation and develop a plan for your retirement strategy.   Sources: ssa.gov https://www.investopedia.com/articles/personal-finance/030416/how-social-security-legal-immigrants-works.asp Inflation rate 1981> https://www.in2013dollars.com/inflation-rate-in-1981#:~:text=The%20inflation%20rate%20in%201981,CPI%20in%201981%20was%2090.90. https://www.ssa.gov/news/press/releases/2019/#4-2019-1   Important Disclosures Content in this material is for educational and general information only. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by Fresh Finance. LPL Tracking #1-05248010    

Market Volatility and the Importance of Staying the Course at Different Ages

When you invest in the stock market, you want to see growth, but unfortunately, in most cases, investments do not grow all the time. Inevitably, the market goes up and down, and to safeguard your potential for long-term growth, you need to understand the importance of staying the course through market volatility. However, you also need to adjust your approach to investing at different ages. Staying the course through market volatility has different implications at ages 20, 30, 40, 50, and into retirement. Check out these tips.

20s to 30s

At these ages, you should be actively saving for retirement. By investing early, you have the opportunity to amass more wealth than you do if you wait until you are older. When choosing your investments, keep your personal risk tolerance in mind, but don't necessarily sell funds that drop in value. At these ages, you don't need the funds for another 30 to 40 years, and as a result, you have the ability to ride through market volatility. Typically, at these ages, the best course of action when investments drop is to just do nothing.

40s to 50s

At these ages, retirement is looming on the horizon, and ideally, you should be investing as much as you can. Even at these ages if your investments drop in value, you shouldn't necessarily sell. But you should consult with a financial professional and make slight changes as needed. Keep in mind that while the market grows at an average of 7.2% per year, research indicates that the average investor only sees 5.3% growth per year — analysts speculate that this discrepancy may be due to investors selling or cashing out when the market drops.

60s to 70s

At this point, you should reach out to your portfolio advisor and make sure that you are ready to make the leap to retirement. As a general course of action, your investments need to be lower risk during these decades of your life, and your cash reserves should be higher. As a general rule of thumb, you should have at least two years of cash reserves in place. This gives you the flexibility to ride out drops in the market. Typically, when the market drops, it takes about two years to correct.

Retirement 

Now you need an investment strategy that helps you maintain your retirement funds. To deal with market volatility and to outlast downturns in the market, you should have five to 10 years of cash reserves or liquid investments in place. Depending on your financial objectives, you may want to replace high-risk investments with stable and predictable investments such as CDs.

Best Practices for All Ages

Regardless of your age, you should keep these tips in mind during times of market volatility:

• Strengthen your portfolio with high-dividend and value stocks
• When investing during a bear market, don't rush. Ideally, you want to wait until the market bottoms out.
• Increase your cash position to help you weather volatility.
• Actively monitor financials.

  The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial. LPL Tracking # 1-949921  

Source

20% every 3.5 years and 7.2% growth vs 5.3%: https://www.capitalgroup.com/individual/planning/market-fluctuations/staying-the-course.html

Without a doubt, it is important to have enough life insurance coverage to handle any financial contingencies that may affect your family if you die prematurely. However, determining the amount of life insurance you need is not that simple. One past rule of thumb was that you should have enough life insurance to equal five times your annual salary. But more frequently, having the appropriate amount of life insurance coverage requires careful "Needs Analysis" rather than using an arbitrary formula.   The Needs Analysis approach incorporates an evaluation of your family's most important financial obligations and goals. This could include insurance coverage for mortgage debt, college expenses, future family income, and creating liquidity for future estate tax liabilities.   Continuing income for your family. The amount of income you will need to help provide for your surviving spouse and dependents will vary greatly according to your other assets, retirement plan benefits, Social Security benefits, age, health, and your spouse's earning power. Many surviving spouses may already be employed or will find employment, but their income is based on education, training, and experience. Your spouse's income alone, may be insufficient to cover the monthly expenses of your family's current lifestyle. Providing a supplemental income fund will help your family maintain its standard of living.   Mortgage debt. You need to consider whether your life insurance proceeds are sufficient to help pay the remaining mortgage on your home. If you are carrying a large mortgage, you may need a sizable amount. If you own a second home, the mortgage on that home also needs to be factored into the formula.   College expenses. Many people want life insurance proceeds large enough to cover their children's college expenses and possibly graduate school. To determine the amount needed, you have to take into account the ages of your children, the anticipated return from investing the life insurance proceeds during pre-college years, and the projected costs for college adjusted for inflation. This calculation should be revised periodically as your children get closer to college age. Keep in mind, it is impossible to project inflation and earnings with any measure of precision for many years into the future. So, it may be a good idea to be as conservative as possible when estimating long-term investment gains.   Estate taxes. Life insurance can be an effective method for creating liquidity at death to pay estate taxes and maximize the amount of assets transferred to future generations. Using life insurance for estate planning purposes may require working with legal and financial guidance to help you establish the most suitable results.   As you develop your insurance plan, make sure to analyze your existing policies to ensure they’re still meeting your needs. Your insurance agent can help you determine the amount and kinds of coverage that’s appropriate for you.   Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any insurance product. To determine which product(s) may be appropriate for you, consult your financial professional prior to purchasing. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. This article was prepared by Liberty Publishing Inc. LPL Tracking #1-05258205     INLJ7UU-X      

Are you worried about the current state of the Social Security system and how its future may affect your retirement income? It’s important to take a long, hard look at your current savings strategy to ensure you’ll be able to compensate for this, or any other, retirement income shortfall. Here are some important savings strategies that can help you work towards your retirement income goals.   Participate in your employer’s retirement plan. Regular contributions to an employer-sponsored retirement plan, such as a 401(k), can be an essential part of solidifying your retirement savings program. Contributions to such plans offer three key benefits: they are made with pre-tax dollars; they reduce your current taxable income; and they enjoy tax-deferred accumulation.   Start an IRA. An IRA (Individual Retirement Account) is a retirement savings vehicle that gives individual taxpayers the opportunity to accumulate tax-deferred earnings on contributions. You can contribute up to $6,000 (or $7,000 if you are age 50 or older) per year to an IRA, and contributions are tax deductible under certain circumstances. It is the combination of these two key benefits—tax-deferred accumulation and deductibility of contributions—that makes an IRA an important retirement savings vehicle for many individuals. Earnings on all contributions enjoy tax-deferred accumulation and incur federal (and, in some cases, state) income taxes only upon withdrawal. Deductible contributions also incur income taxes upon withdrawal. Bear in mind, any withdrawal from an IRA prior to age 59½ may result in a 10 percent federal penalty tax (in addition to federal and state income taxes). In addition, withdrawals must commence when you reach age 70½, at which time you must also stop making contributions.   Consider a Roth IRA. This savings mechanism is unique in that contributions not only accumulate on a tax-deferred basis, but may also be withdrawn free of federal (and sometimes state) income taxes under certain conditions. However, unlike a traditional IRA, you may not deduct any contributions to a Roth IRA. You can contribute up to $6,000 (or $7,000 if you are age 50 or older) per year to a Roth IRA if your income meets certain eligibility requirements. Withdrawals made after age 59½ and after the Roth has existed for more than five years can be made federal income tax free (and sometimes state income tax free), and penalty free. Also, penalty-free withdrawals prior to age 59½ are allowed for qualified first-time home purchases up to a $10,000 lifetime limit. Finally, you do not have to begin taking withdrawals at age 72 from a Roth IRA, and you can continue making contributions after age 72 if you are still working.   Annuities can go a long way. Many people who have become accustomed to the benefits of IRAs also look favorably upon annuities. Annuities come in a variety of options, none of which are subject to the eligibility requirements facing both traditional IRAs and Roth IRAs. Although you cannot take a tax deduction for the money (premiums) put into an annuity, your premiums do enjoy tax-deferred accumulation until withdrawal. Like IRAs, withdrawals from an annuity prior to age 59½ may incur a 10 percent penalty tax. Also, insurers may have their own set penalties for withdrawals taken within the first several years of an annuity’s existence. With annuities, you do not have to begin taking withdrawals when you reach age 72. Also, there is no annual limit on how much premium dollars you can place into an annuity.   Meet with a financial professional. The key to building and maintaining a comprehensive savings strategy is to seek the guidance of a financial professional. Regular reviews may help decrease your insecurity about Social Security and help you make appropriate choices for your particular situation.     Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by Liberty Publishing, Inc. LPL Tracking #1-05246421           RPPSSC02-X