Money Matters: Satisfied Smiles

Chuck Dudley

Chuck Dudley

It goes without saying………….the future is the great unknown.  All of us have hopes and dreams of what our future will be.  Sometimes it works out, sometimes not.

If you’ve read this newsletter for very long, you know how important it is to properly and intentionally plan for your hoped for future.  At times, I seem like the proverbial broken record (for those readers who actually remember records!!).  You have to take steps to plan.  No waiting until next year.

Today I have a couple of stories of plans that worked.  Seeing the satisfied smiles was great, because it meant the plan had come together and was going to significantly improve their retirement years.  Isn’t that what we all want?

THE 162 BONUS PLAN

Very simply, a 162 Bonus plan is a supplemental benefit plan that is possible under Section 162 of the IRS code.  Taxes are paid when the contribution is made, and the retirement income can be distributed tax-free from surrenders and loans.

It is a different type of retirement income, one that is not subject to market fluctuations.  And, it is not subject to Social Security calculations to determine how much of your Social Security is taxable.  Consulting with your tax advisor would be very important when looking at a 162 Bonus Plan.

THE SATISFIED SMILES STORIES

A lady client was about to retire.  She knew she had some type of plan we did 10 years ago, and even though we had updated it for her over the years, she really wasn’t sure what it was going to do for her.

We had the insurance company run an in-force ledger to make sure we were we needed to be.  Bottom line of this story is a good one.  She has options depending on what she wants to do with her other retirement vehicles.  She can take a higher income for 10 years, or a little lower one for 15 years.  And at the end, there is some cash value left over and death benefit too.

I was so happy that she was happy!  The reality was, she wasn’t expecting this and hadn’t planned on it for retirement.  But all of a sudden, there was extra income, tax-free for her first 10 or 15 years.  Yes, a very satisfied smile!

The second story is similar, yet a little unfortunate.  A family member of the client has developed a terminal illness.  Even though the client wanted to continue to work, it just wasn’t possible as it was evident the spouse needed to care for the ill one.

Again, we ran in-force ledgers to see if our plan was going to work.  And it did, providing a tax-free income for 15 years, and a buffer to help while this illness is cared for.  It was very comforting to the client, knowing that the income would be there and help out during this difficult time.

The client was hoping it was going to be in the neighborhood of our original projections, and was very satisfied when we visited about the positive outcome.  Another satisfied smile.

We can help you create a good ending, as well.  All it takes is some action and some discipline.

 

ACTION PLAN

If you really want to make sure you have right ideas for moving forward in a positive manner, we will listen.  We’ve been able to help families and businesses learn to use money wisely, and we’d like to help you too.  We would be honored to visit with you about how to help you and your business.  My number is 501-318-0010, or you can send me an email at cdudley@argentfinancial.com.

An hour of your time spent analyzing your situation might make a lifetime of difference

Arkansas Insurance Producer # 1005698

That’s all for this month! If you’ve enjoyed what you read, please share Money Matters with a friend, family member or loved one.

Sincerely,

Chuck Dudley

 

About

Argent Financial Group

Celebrating its 30th anniversary in 2020, Argent Financial Group (Argent) is a leading, independent, fiduciary wealth management firm. Responsible for more than $30 billion in client assets, Argent provides individuals, families, businesses and institutions with a broad range of wealth management services, including trust and estate administration, investment management, ESOPs, retirement plan consulting, funeral and cemetery trusts, charitable organization administration, oil and gas (mineral) management and other unique financial services. Headquartered in Ruston, Louisiana, Argent was formed in 1990 and traces its roots back to 1930.

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