Advanced Equities Wealth Management

Preserve Income and Protect Savings

Taking the appropriate steps to mitigate risk is just as critical to your financial future as the many things you do everyday to generate income and create savings. By addressing your financial life in its totality, we believe you may be able to help prevent potential losses while attempting to maximize your ability to reap the rewards that an extensive education and years of hard work have earned.

Three critical risk management initiatives could potentially preserve and protect your current income stream, the value of your business and the financial security of your family. Specifically, we believe you should consider selecting the appropriate disability, long-term care and life insurance coverage which may offset serious threats to your wealth. What's more, under certain business structures you can deduct some policy costs as well as enjoy return of premium, if available.

A Costly Proposition: The Future of Long-Term Care

According to a 2006 Market Survey of Nursing Home and Home Care Costs conducted by MetLife, this year’s average daily rate for a private room in a nursing home is $206 (a 6.8% increase from the 2004 rate of $192). That’s $75,190 if 12 months of care are required, which equates to $187,975 if you are in a 35% Federal, 5% State tax bracket.

If you have not taken the proper steps to insure against long-term care expenses, you may be forced to pay these costs out-of-pocket. The appropriate policy, purchased within an optimized corporate structure, may make a substantial difference in pre- v. post-tax spending. And, the earlier you purchase your coverage plan, the less expensive the premiums are likely to be.

[NOTE: Long Term Care insurance contains benefits, exclusions, limitations, eligibility requirements and specific terms and provisions under which the coverage may be continued in force or discontinued. Policies MAY NOT BE AVAILABLE IN YOUR STATE or variations may not apply. For more information about cost, coverage, restrictions and may not be renewable, you should contact an agent licensed to do business in your state of residence.]

What Will You Leave Behind?

Benjamin Franklin once said, "In this world, nothing is certain but death and taxes." And, if that is true, death is not simply a risk for you and your family's financial future…it is an inevitable obstacle.

In order to preserve the lifestyle of those you leave behind, a variety of choices are available. Depending on your needs, you may wish to consider Term Life, Whole Life and/or Universal Life insurance as a component of your integrated financial plan. Ask Advanced Equities Wealth Management how to establish the appropriate risk management strategy for your unique needs.

Accidents Happen

The ability to perform at your peak every day is imperative for any top professional. So, when accidents happen, it may mean the end of an illustrious career. Living without income might significantly impact you and your family, let alone your business. In light of this, we believe you should consider short- or long-term disability policies to cover the potential loss of earnings.

However, before you purchase your policy, think about things from an integrated planning perspective. For example, if your Disability Income premium was $5,000 annually for own-occupation coverage, it could cost you up to $8,333 in after-tax income in a 35% Federal tax, 5% State tax scenario. That’s a $3,333 difference in one year. Now, take that cost across a 25-year career. It’s the difference between more than $83,000 in taxes vs. $193,835 in pre-tax savings compounded at 6% over the same time period!

Financial independence is not just about generating wealth, it may also be about reducing vulnerability to unexpected events. Talk to Advanced Equities Wealth Management about whether implementing long-term care, life and disability insurance policies should be a part of your integrated financial plan before risk becomes reality.

[NOTE: This information provides only a brief explanation of coverage. Modifications of types of coverage may not be applicable in some states. Coverage may not be available in all states. Exclusions and limitations may apply. A complete statement of any coverage, applicable terms will only be found in the statement of coverage found in an individual policy. Renewal premium may increase periodically depending on your location. Policies may or may not be renewable. Details on available coverage and cost may be obtained from your licensed insurance agent. Combinations of coverage may be subject to underwriting guidelines, benefit periods chosen and occupational classes.]