Dennis Postema presents "Understanding the 1035 Exchange", an explanation of what a 1035 is, how it works, and how valuable it can be to you and your family. TheRetirementInsitute.org Check out the blog here: http://theretirementinstitute.org/2015/10/01/understanding-the-1035-exchange
Views: 938 The Retirement Institute
http://www.SaveIncFinancial.com (877) 576-0814 Get Whiteboard Animated Videos like this one for your business here: http://www.jilladdison.com/get-monthly-videos-for-a-low-monthly-rate A 1035 exchange is a provision in the tax code that allows you, as a policyholder, to transfer funds from a life insurance, endowment or annuity to a new policy, without having to pay taxes.The IRS allows holders of these types of contracts to do this in order to replace outdated contracts with new contracts that have improved benefits, lower fees and different investment options.A 1035 exchange is limited to the following situations: You can replace one annuity contract for another annuity contract that has identical annuitants; You can replace one life insurance policy for another life insurance policy, endowment policy or annuity contract; And you can replacing one endowment policy for an identical endowment policy or an annuity contract.The IRS has provided strict guidelines that the owner, insured and annuitant must be the same on the new contract as listed on the old in order to qualify for the tax-free treatment. The IRS has ruled in several previous cases that if an owner cashes out of a current contract and immediately applies the proceeds to a new contract it will not be treated as a tax-free event or Section 1035 Exchange. The funds must pass directly from one insurance company to the other.Contact us today to make sure you take advantage of this tax strategy correctly. http://youtu.be/t8FrjGga62U
Views: 1239 RetirementPlanning
EduTrainer Steve Savant coaches you through the different tax-free 1035 policy exchange options. Edutrainment Workshops: The Essentials for Life Insurance - 1035 Exchanges Life policies must be on the life of same person. Annuity contracts must be payable to the same person(s). When contracts are assignable, there should be a direct transfer of funds between insurance companies. The cost basis of the old policy (including certain riders and/or rating) is carried over to the new policy. If cash or other property is part of the exchange, any gain will be recognized up to that amount. A permanent policy with an outstanding loan can be exchanged for another similar policy with the same indebtedness. If the indebtedness is reduced in the exchange, there will be income tax consequences. If there is a recognized gain, it is ordinary income. Life Insurance Basic Entry Manual: Order- [email protected] Download Lincoln Benefit Life's user friendly proposal software and follow Steve Savant as he teaches the basic concepts of life insurance at www.lblsales.com/etw EduTrainment workshops is sponsored by Lincoln Benefit Life, An Allstate Company
Views: 1839 BrokersAlliance
What are 1035 exchange life insurance to annuities – What is a 1035 exchange life insurance to annuity? 1-800-566-1002 http://www.RetireSharp.com . What are the best types of 1035 exchange life insurance to annuities and learn how you can avoid the most common mistakes that individuals have made when looking to do a 1035 exchange life insurance to annuity. 1035 Exchanges Explained An annuity policy that was appropriate for a purchaser at one point in time may not always be the best investment option at a later date. Financial situations change as investors age. In addition, annuity companies are continuously updating their products to meet changing market needs. As a result, an annuity may become outdated for the annuitant, or it may just be under-performing. At some point in time, an investor may find that he would like to exchange his annuity contract for a new one. If this is the case, there are some situations where the exchange could qualify for favorable tax treatment. A Section 1035 Exchange allows an investor to swap an existing annuity policy for a new one without tax consequences. The exchange must take place between two different insurance companies for it to qualify for the tax benefit. A person would want to use a 1035 exchange for the following reasons: o To avoid taxation on the gain in the original contract. o To preserve the adjusted basis, which is the sum of premiums paid minus the dividends received, in the original contract. For an exchange to qualify as a 1035 exchange, several guidelines must be met. The annuitant for the new contract must be the same as the one for the original contract. The actual exchange must happen directly between the two insurance companies. If the purchaser surrenders the old contract, receives a check, and then invests in a new contract, this exchange will not qualify as a 1035 Exchange. If these guidelines are not met, the exchanged will not be considered a 1035 exchange and the proceeds from the original contract will be taxed as ordinary income. Life insurance and endowment contracts, in addition to annuity contracts, are eligible for the favorable tax treatment. The types of the new and original contracts do not need to be the same. For example, a holder could have a life insurance contract that they would like to exchange for a new annuity contract. This exchange is allowed. However, an investor cannot exchange an original annuity contract for a new life insurance contract. There is also flexibility in the number of contracts that can be exchanged. Two or more original contracts can be exchanged for a new contract as long as the owner is the same on all of the original contracts. It is important to know that there are times when it might be better to surrender the original policy than to perform a 1035 Exchange. If there is no gain on the original contract, a 1035 Exchange would not offer an advantage unless the annuitant wanted to preserve the adjusted basis in the contract. A 1035 Exchange is a time consuming process and can take several months to complete. Some insurance companies offer incentives to switch between companies so it is important for the purchaser to consider all of his options in addition to his financial position when deciding whether to enact a 1035 Exchange. Feel free to subscribe to our YouTube channel and receive instant access on different retirement related topics. Thanks for watching! Related Search terms: 1035 exchange life insurance to annuity retirement 1035 exchange life insurance to annuity income 1035 exchange life insurance to annuity explained 1035 exchange life insurance to annuity reviews 1035 exchange life insurance to annuity review What is the best fixed 1035 exchange life insurance to annuity vs the top immediate income 1035 exchange life insurance to annuity https://www.youtube.com/watch?v=L_N2XU0n7Og
Views: 648 retiresharp
Do you have an existing policy that you want to use for Infinite Banking? Have you considered a 1035 exchange? It is super convenient to get Infinite Banking started. By rolling over an existing policy into a new policy designed for Infinite Banking, you're carrying over the cash value from your existing policy into your new policy without taxation. Check out the entire video fro more information. 🔴 SUBSCRIBE for more FREE banking tips: https://www.youtube.com/c/wealthnation?sub_confirmation=1 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ 🎓CONTINUE LEARNING: 🌟Join our Patreon community for exclusive Infinite Banking content ➡️ https://www.patreon.com/wealthnation 🏦52 Ways to Own Your Own Lifestyle ➡️https://bit.ly/2V5Nzr5 📚Book Recommendations ➡️https://kit.com/WealthNation ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ 💻 LEARN WITH OUR COURSE-GET A BETTER FOUNDATION TO START BANKING Blueprint Bundle ➡️https://bit.ly/2VSsYDK ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ 🤝BECOME OUR CLIENT: It only takes 2 steps ➡️ https://wealthnation.io/infinite-banking/ 1. Watch our free (60min) Masterclass to ensure banking is something you want to commit to 2. Once you watch the video you will be promoted to apply to become our client ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ 📲CONNECT WITH US ON SOCIAL MEDIA: Instagram ➡️ https://www.instagram.com/wealthnation.io/ Facebook ➡️ https://www.facebook.com/WealthNation.io/ ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ DISCLAIMER *Wealth Nation makes content available as a service to its customers and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. ** Some of these links go to one of our websites and some are affiliate links where we'll earn a small commission if you make a purchase at no additional cost to you.
Views: 579 Wealth Nation
http://www.nepwealth.com (781) 416-1700 A 1035 exchange is a provision in the tax code that allows you, as a policyholder, to transfer funds from a life insurance, endowment or annuity to a new policy, without having to pay taxes. The IRS allows holders of these types of contracts to do this in order to replace outdated contracts with new contracts that have improved benefits, lower fees and different investment options. A 1035 exchange is limited to the following situations: You can replace one annuity contract for another annuity contract that has identical annuitants. You can replace one life insurance policy for another life insurance policy, endowment policy or annuity contract. And you can replacing one endowment policy for an identical endowment policy or an annuity contract. The IRS has provided strict guidelines that the owner, insured and annuitant must be the same on the new contract as listed on the old in order to qualify for the tax-free treatment. The IRS has ruled in several previous cases that if an owner cashes out of a current contract and immediately applies the proceeds to a new contract it will not be treated as a tax-free event or Section 1035 Exchange. The funds must pass directly from one insurance company to the other. Contact us today to make sure you take advantage of this tax strategy correctly. https://www.youtube.com/watch?v=_QfdEFGHwtg&index=10&list=PLXNeyc8iY01xULA0dB__LNUoIEnV__dK0
Views: 42 New England Private Wealth Advisors
Similar to a 1031 exchange in Real Estate 🏘, a 1035 exchange lets you avoid tax and transfer your “cost basis” when exchanging life insurance policies. Do you have a policy that isn’t performing the way it ought to be? Is your insurance agent wanting you to exchange into a new life insurance policy? Should you do this? Here’s an overview with Pros and Cons and what you want to know to decide whether a 1035 is the best idea for you. Also some clarification around when it makes sense to take a policy loan - triggered by a recent conversation with Dr. Jim. Thank you Dr. Jim! Resources: Atlanta Workshop - May 4th 2019 How to Read a Life Insurance Illustration - Video
Views: 86 Life Benefits
http://www.lifenetinsurance.com A 1035 exchange is where you take cash from one permanent policy and move it to another. An upside down 1035 exchange is a bit different! See for yourself! LifeNet Insurance Solutions 11505 Eastridge Drive NE #420 Redmond, WA 98053-5758 P: (800) 698-7033 F: (866) 250-3070 [email protected] Get Your FREE No-Obligation Instant Quote Today! http://www.lifenetinsurance.com/term-life-insurance-calculator/ Video Transcription: Hi. This is Lenny Robins, at LifeNet Insurance Solutions. Today, I'd like to talk about a 1035 Exchange. A 1035 is the IRS section which allows you to transfer part or all of the cash within a whole life policy into another life insurance policy without paying current income tax. Typically what you've been able to do is transfer that money into a universal policy with guaranteed premiums. Assuming your health is the same, you've been able to get either a lower premium or increase the face value of the policy. Today, there's another choice that you have. Many policies today are what are called a Term/UL policy. In other words, the policy acts like a term policy for 10, 15, 20, even 30 years in length, but converts to a universal policy after that. It's possible to move money from a whole life policy into a term policy with several carriers today, and that's something you've just not been able to do in the past. Remember, if you have a small whole life policy with cash value and you want to convert that into a term policy, you can do that today; haven't been able to do that in the past. This is Lenny Robins, from LifeNet Insurance Solutions. Thank you for watching.
Views: 125 Lifenet Insurance Solutions
http://www.advancedplanningfinancial.com (949) 474-8440 A 1035 exchange is a provision in the tax code that allows you, as a policyholder, to transfer funds from a life insurance, endowment or annuity to a new policy, without having to pay taxes. The IRS allows holders of these types of contracts to do this in order to replace outdated contracts with new contracts that have improved benefits, lower fees and different investment options. A 1035 exchange is limited to the following situations: You can replace one annuity contract for another annuity contract that has identical annuitants; you can replace one life insurance policy for another life insurance policy, endowment policy or annuity contract; and you can replace one endowment policy for an identical endowment policy or an annuity contract. The IRS has provided strict guidelines that the owner, insured and annuitant must be the same on the new contract as listed on the old in order to qualify for the tax-free treatment. The IRS has ruled in several previous cases that if an owner cashes out of a current contract and immediately applies the proceeds to a new contract it will not be treated as a tax-free event or Section 1035 Exchange. The funds must pass directly from one insurance company to the other. Contact us today to make sure you take advantage of this tax strategy correctly. https://youtu.be/1O3tmLnLjXM
Views: 49 Albert Aizin
The 1035 exchange permits a tax free transfer of life insurance cash values to another life insurance policy AND carries the cost basis from the old policy to the new policy. Life insurance cash values accumulate tax deferred. There is still a non-taxable cost basis and taxable gain when/if those taxables gains are removed from the policy. This means upon termination of the policy, the policyholder will have to recognize all of the gain (cash value minus cost basis) as income and will owe income taxes on said income. As you might imagine, this would be a huge deterrent to canceling and old policy buying a new one. The same is true for annuities and endowment contracts. We don’t hear much about endowment contracts these days because tax law changes in the 80’s rendered them unachievable. So the life insurance industry picked up a tax preferred transfer known as the 1035 exchange. This means the policyholder need not worry about recognizing the taxable gain in the policy as income and he/she can move from one contract to another without tax roadblocks. There are some important rules TRANSFERRING DIFFERENT PRODUCTS The 1035 exchange does permit a tax free transfer from one product type to a different product type, but there’s a specific order for this. Think of it in defending order as follows: 1. Life Insurance 2. Endowment Contracts 3. Annuities Rules permit a lower numbered product type to transfer to a same or higher numbered product type, but not in reverse. In other words, life insurance can transfer to life insurance, endowment contracts, and annuities. But endowment contracts can only transfer to endowment contracts and annuities (effectively just annuities today). This allows someone to take an old life insurance policy with cash value and transfer it to an annuity for the annuity benefit. It does not allow someone with an annuity to transfer the cash value to a life insurance policy. COST BASIS The 1035 exchange also preserves the cost basis of the old contract and carries to the new contract. This could have positive tax benefits to someone. Example 1 Transfer a life poor performing life insurance policy to a better designed life insurance policy and keep the cost basis so the policy holder has more basis to withdraw from the contract (before gain per FIFO) Example 2 Transfer a life insurance contract to an annuity a long with out of pocket premiums and take advantage of annuitization to create an stream of retirement income. The carried cost basis helps augment the tax free portion of the income stream. This is done by taking advantage of what’s known as the exclusion ratio One quick additional note. A 1035 exchange can only happen if the old contract has cash value. So one cannot take a policy with no cash value and 1035 exchange to a new policy to preserve cost basis credits in new policy.
Views: 66 theinsuranceproblog
http://annuityguys.org/1035-exchange-replacing-an-annuity Keeping the taxman at bay may seem next to impossible these days, however with annuities the IRS/Congress blessed us with one strategy to maintain the tax-deferred status when we move from one annuity to another - the 1035 exchange. Watch as the Annuity Guys examine the proper use of a 1035 exchange. (Learn more, click our link above. Full article at http://annuityguys.org) Disclosure: Videos are educational and conceptual only and not a solicitation. They are not to be considered investment, insurance, tax or legal advice. It is recommended that you work with licensed professionals for individualized advice before making any important financial decisions. Annuities are not FDIC insured and their guarantees are based on the claims paying ability of the issuing insurance company. State Guarantee Associations, while offering specific protections, are not the same as FDIC insurance. Read more Annuity Guys disclosure at: http://annuityguys.org/about-us/site-terms-conditions-and-disclosure
Views: 871 Annuity Guys
Views: 82 Linas Sudzius
Views: 58 Linas Sudzius
We all upgrade our cars and our phones as our needs and products change. How does our need to upgrade relate to life insurance and annuity products? Today's short video takes a look at the useful tax benefit of the 1035 Exchange which allows you to exchange an existing life insurance policy, annuity or qualified account for a similar product type. For a comprehensive look at 1035 Exchanges, check out: https://www.insuranceandestates.com/1035-exchange-tax-benefits/ AND https://www.insuranceandestates.com/1035-exchange-life-insurance/ How would a 1035 exchange benefit you and why would you do it? Life changes continually…maybe you just had a baby, bought a new house, got promoted, paid off a mortgage or the kids left for college. These kinds of life changes an necessitate a need for upgrading coverage. Second, new features and benefits may create a benefit for upgrading. I&E, our first priority is to consider any existing life insurance or annuities when discussing your planning goals. If your current coverage or product appears outdated, the 1035 allows the upgrade and this means you aren't locked in to a bad plan or product. One way to benefit, as I mentioned in our previous video on policy and annuity reviews, is by taking advantage of new living benefits for disability or long term care. For more on living benefits and life insurance, visit: https://www.insuranceandestates.com/long-term-care-rider-vs-chronic-illness-rider/ Third, upgrading to a different product due to changing life circumstances can allow you to lock in market gains, perhaps by rolling an old 401(k) or IRA into a qualified annuity for retirement. Check out this post for more on rolling retirement accounts into qualified annuities: https://www.insuranceandestates.com/qualified-and-non-qualified-annuities-an-important-tax-difference/ You also may be able to use cash value in an existing product to obtain new benefits such as reducing premiums in a new product. There are few rules to be aware of and some additional questions to answer in order to determine if a 1035 Exchange can benefit you. What are you waiting, for connect with us today, like, subscribe and get notifications for future topics. Thanks for watching! I&E.com
Views: 108 InsuranceandEstates.com
David Reyes, The Retirement Architect | August 10, 2014
Views: 16 Reyes Financial Architecture, Inc.
For an experienced SF Bay Area real estate agent visit http://iLiveInTheBayArea.com Like me on Facebook: http://fb.com/iLiveInTheBayArea Thumbs up, favorite, share, subscribe and make a comment! Most people are aware of the fact that when you sell a long term investment such as real estate or stocks, you have to pay taxes. But did you know there's a way you can defer that and not even pay a SINGLE PENNY?? It's called a 1031 Tax Deferred exchange. If you're looking to avoid paying capital gains tax, the 1031 exchange is by far the most common financial technique...now that's good to know. Contact Davide Pio Today | SF Bay Area Real Estate http://iLiveInTheBayArea.com | 510-815-2000
Views: 70457 Davide Pio - CCIM, LEED AP
Carl Barnowski The Annuity Hack discusses the true costs and specifics investors and annuity owners should pay attention to when they are thinking about exchanging one annuity for another. Often financial decisions are made when individuals are under stress or emotionally charged. Often annuity investors are upset about the experience they've had with their current contract and rush to rid themselves of it only to make another bad decision and locking themselves into another disaster. New annuity products come on line and sometimes it's appropriate to make an exchange for better performance, changing needs or because the contract owner finds out something that they were unaware of and want to avoid like forced annuitization. At the end of the day, a clear economic benefit must exist to consider going down this path and my advice is to get those benefits in writing like we do with my trademarked Annuity Report Card. Stay tuned for more annuity insider information. Carl Barnowski
Views: 122 Assurance Claim Services, LLC
https://www.thebenefithaven.com/membership We have seen countless agents shy away from taking about or writing annuities simply because they don't know how transfers work. Well, if that is where you are at with annuities then this video explaining how simple transfers are will solve that problem. Agents are notorious for leaving thousands of dollars on the table because they don't talk about what they don't understand. The problem is not getting trained on the basics and not knowing where to get the answers. Having the confidence to talk about something knowing that if your client has a question you can get the answer, can be the difference in failing and succeeding as an agent. That's what our videos and VIP membership through The Benefit Haven is all about. Join us today at, https://www.thebenefithaven.com/membership Join our free Facebook group and be part of a national community of professional agents. Get your specific questions answered about product, sales, prospecting, case design and much more. Getting your questions answered in a timely manner can be the difference in making the sale or losing it. Join us today at https://www.facebook.com/groups/TheBenefitHaven/ We also provide agents with the most affordable marketing system there is. See how this Six-Figure marketing package can work for you. https://www.thebenefithaven.com/appointmenthaven Are you happy with your current commission and vesting schedule contracts? If so great. If not, The Benefit Haven offers top level contracts with a multitude of carriers, and immediate vesting. Take a loot at https://www.thebenefithaven.com/joinus. The Benefit Haven is here to help agents become successful, or for agents to break through to have even more success than they are currently having.
Views: 2 The Benefit Haven
http://www.lifenetinsurance.com/1035-exchange A tax free 1035 exchange can help you get the most for your money when it comes to permanent life insurance. Do you have a cash value policy? Let that cash work for you. Find out how. LifeNet Insurance Solutions 11505 Eastridge Drive NE #420 Redmond, WA 98053-5758 P: (800) 698-7033 F: (866) 250-3070 [email protected] Get Your FREE No-Obligation Instant Quote Today! http://www.lifenetinsurance.com/term-life-insurance-calculator/ Video Transcription: Hi. This is Terri Robbins, with LifeNet Insurance Solutions. Today, we're going to talk about 1035 Exchanges; this is a tax-free exchange of money from one insurance policy to another. Do you have a whole life policy, or a universal or variable life policy that has cash available in it? Did you know that most of the time, your beneficiaries will not receive this income? Instead, that cash will go to the insurance company and your beneficiary will only get the death benefit when you pass away. If you borrow from the cash value, your beneficiary will get the face value, minus the amount of the loan when you pass away. This money's sitting there not doing you a whole lot of good, but it's certainly helping the insurance company. We can help you change that. 1035 Exchange allows you to take money from one policy and put it into a new policy of a similar kind. The policy we generally use is a guaranteed- premium universal life insurance policy. Unlike a whole life insurance policy, it is guaranteed that the premium will remain the same for the entire life of the policy. That's a great benefit. Additionally, this policy does not build cash value, or it's not set up to build a cash value. We can take the money from your old policy, put it into this one and pay down the insurance cost, and thereby, assuming that you are insurable at the current time, we can get you either the same, about the same premium and have more coverage, or lower your premium and have the same coverage. You may be able to keep some of the cash; it just really depends on your situation.
Views: 163 Lifenet Insurance Solutions
With constant revisions to information reporting rules and regulations, it is crucial to remain up-to- date with the current laws to avoid those dreaded penalties. This is particularly true when it comes to the intricacies of Internal Revenue Code Section 1031 and 1035 “like-kind” exchanges. For Full Webinar - http://auroratrainingadvantage.com/webinars/like-kind-exchanges1/ Follow Aurora Training Advantage on Twitter: https://twitter.com/AuroraAdvantage Like Aurora Training Advantage on Facebook: https://www.facebook.com/AuroraTrainingAdvantage Subscribe to our channel: https://www.youtube.com/channel/UC-hGKYcj4218a3WrH_ytf9g
Views: 17 Aurora Training Advantage
Target helps you surprise your clients with unexpected solutions using 1035 exchanges to avoid tax gains. Take a look at how easy it is to get started. More InSights: http://targetins.com/insights More about Target Insurance: https://targetins.com/
Views: 70 Target Insurance Services
http://www.yoursouthernheritage.com/what-is-a-1035-exchange/ A 1035 exchange provides a means for exchanging an annuity contract or life insurance policy without being treated as if it had been surrendered or sold. http://www.youtube.com/watch?v=Kc127Z11qhw For more financial information visit us @ http://www.yoursouthernheritage.com/
Views: 18 Your Southern Heritage
Views: 40 Linas Sudzius
Click Here for Free Long Term Care Insurance Quotes: http://skloff.com/long-term-care-insurance/
Views: 15 Skloff Financial Group
Presented by: Mark Maurer, CFP®, MBA, President and CEO Exchanging an existing life insurance policy or annuity can be a great tax-deferred option for your clients: * no taxes on gains * favorable tax treatment on cash values * cash values may result in a paid-up new policy or lower costs
Views: 4 LLIS
With penalties and added fees, many traditional variable annuities can drag down investment performance. Fortunately, you can perform a tax-free 1035 exchange to our low-cost Investment-Only Variable Annuity (IOVA), Monument Advisor. What a difference it can make to cut investment costs over twenty years of saving in a tax-deferred account.
Views: 184 Nationwide Advisory Solutions
So let's say you've got yourself a rental property and you've worked hard to get rents up and keep expenses low. The property is profitable and you are looking to trade up by selling it and buying a more expensive property. The problem is that if you sell, you will have to pay capital gains tax on the sale as you would with a fix and flip or wholesale deal. That tax could be a heavy hit if you have sold the property for a gain, and it will stunt your growth as an investor. What can you do? 📘My New Book "Raising Private Capital" Available now on Amazon https://amzn.to/2B1xbfM That's where a 1031 exchange comes in. A 1031 is a vehicle through which you can sell rental real estate and roll all the gain into a new purchase. Sound good? In today's video, I go into detail on the rules of 1031's. As always, please email us any real estate questions to [email protected] and we will answer them on an upcoming episode! Learn more about The DeRosa Group at http://www.DeRosaGroup.com or on BiggerPockets.com - https://www.biggerpockets.com/renewsblog/author/mattfaircloth/ Matt & Liz, founders of DeRosa Group, were recently second-time guests on the BiggerPockets Podcast. Check it out: https://www.biggerpockets.com/renewsblog/bp-podcast-203-finding-deals-funding-contractors-mentors-matt-liz-faircloth/ Find us on Facebook https://www.facebook.com/thederosagroup/ Learn More about The DeRosa Group by Checking out our popular videos: How I bought a 18 Unit apartment with NO MONEY out of Pocket https://www.youtube.com/watch?v=3dDRVGYI1wg&t=14s How I turned a Duplex into 20 units https://www.youtube.com/watch?v=JzhkWhyssaM&t=1s How to Remove a Bad Tenant (without having to evict) https://www.youtube.com/watch?v=FnGZQOebixY&t=1s Tips for Hosting a successful Open House https://youtu.be/8DBtD1OcjKQ Best ways to Collect Rent From Tenants https://www.youtube.com/watch?v=iOeTxzDjXWY&t=3s The Pros and Cons of Using LLC for Rental Property https://www.youtube.com/watch?v=edHaGYXhH1I&t=24s 21 Year Old Makes $23,000 on First Wholesale Deal https://youtu.be/UkeUxkLQTFc Chat with Chatto Episode 001 First Actions Steps to take Learning to Wholesale houses https://youtu.be/fzXubrnuGKM
Views: 23599 Derosa Group
Annuities: Love 'em or hate 'em, I am not going to debate that here. But one thing I am going to rail against is having them in Non-IRA accounts. "Oh no! What's this guy saying???" I can hear my fellow financial planners utter in pure disbelief. "Doesn't he know you don't get double tax deferral by having annuities in an IRA???" My answer to this is simple. What happens when you want to move an annuity that is NOT in an IRA to another account? THINK about this, folks! You have an annuity that is NOT in an IRA and decide you want to move it someplace else. What are your options? Well, let me share with you an example I've seen a million times if I've seen it once. Guy puts $100k into a Variable Annuity in 2003. Now, it's 2018 and he looks at his year end statement and sees the annuity has grown to $180k. Yet, his other account in which he invested $100k into a plain vanilla mutual fund has grown to $375k over the same time, and this is AFTER paying a 3.5% front end commission! To say the least, he isn't happy. So, he wants to move the annuity to his mutual fund that has more than doubled the annuity performance. Guess what??? Unless he is willing to pay taxes on that $80k this year, he can not move the annuity to the mutual fund. The only way to move an annuity to any type of non-annuity account is to pay tax on whatever gain he has...ordinary income tax too mind you. Not capital gains! While the growth on the annuity doesn't seem like much compared to what he receive in the plain vanilla mutual fund account it's still sizeable enough that if he cashes it out, he will probably lose $20k in taxes in not more. Thus after tax the annuity only gave him a $60k or so gain, after 15 years! We're talking a 3.2% rate of return... that's nothing to write home about. Now he can do what's called a 1035 exchange into another annuity. That allows the gains to continue to be deferred. But the problem with 1035 exchanges is you can only move your annuity into another annuity. That's it. You can't 1035 exchange into a mutual fund, a cd at the bank, your checking account, anything. Only annuity to annuity in order to keep the tax deferral. Now, before we go any deeper we need to examine WHY the annuity underperformed as much as it did. Thankfully the answer is quite simple: FEES! Annuities have fees on top of fees. I typed in "Variable Annuity Prospectus" in Google and the first answer that came up was the Transamerica annuity I examine in the video. This charges Mortality and Expense fee of 1.00% or 1.35% depending on the bells and whistles you choose. They also have a .30% for something I can't even explain. Plus the funds they use are going to have fees, typically around .90% to 1.1.0% or so. Plus there is usually an annual account fee and who knows what else. All these fees do in the aggregate is limit your growth. If the market gives you a GROSS 7% and you're paying 3% a year fees, you're only going to net 4% a year. There really is no other way to look at it. Yes, the annuity provides a benefit that the mutual fund account does not. But I examine A. the cost of that benefit B. the likelihood you'll end up using it. No matter how you slice it, the annuity is loaded up with fees, which hurt growth. And when it comes time that you want to move the annuity, the limited growth it did provide will still be a thorn in your side, because if you do move the annuity, you will pay tax. All at once. All at Ordinary Income rates. Which is why if you are going to have an annuity, it should be held IN AN IRA! Because if it's in an IRA you can move it to ANY type of investment that your IRA provider allows you to hold, without an immediate tax.
Views: 1064 Heritage Wealth Planning
Do you know all of the rules (and how they can make or break you) of an annuity 1035 exchange and the replacement of annuities? Did you know that a 1035 exchange is only for non-qualified money (the opposite of qualified money such as non-taxed money like IRAs, 401ks, etc). If done incorrectly, this could cause a HUGE taxable event that you might not be prepared for. This video will show you the rules on moving non-qualified and qualified annuities into another annuity. Furthermore, If you have cash value life insurance or a non-qualified annuity, which means that it's not invested in an ERISA plan like an IRA, 401k or Keogh, and you want to transfer it, you must do so under a 1035 exchange. But, there are rules about what can be transferred where. In this video, Rob Brinkman explains the rules. To download Rob's full (and free) annuity reports right now, simply click the following link. http://annuity123_rob-brinkman.viprespond.com/
Views: 691 Retirement Think Tank
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Click Here for Free Long Term Care Insurance Quotes: http://skloff.com/long-term-care-insurance/
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Join us as we review one of the top LTC Solutions for your clients.
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Annuity Exchange explained by Maryland Annuity Resource. We are your source for Annuities, Retirement, and Income for Life. We offer Annuity Exchange services for all of Maryland, Washington D.C., and Virginia. Exchange your Annuity utilizing the IRS 1035 Exchange provision. For more information click here.http://marylandannuityresource.com/services/annuities/annuity-exchanges/
Views: 18 Maryland Annuity Resource