The Importance of Reviewing Your Beneficiaries

by Marylove Moy 19. November 2014

Beneficiaries

September was Life Insurance Awareness Month but in my mind every month is an awareness month! My time spent in the Financial Services world has taught me many things; one lesson that I learned from clients is the importance of reviewing one’s beneficiary designations on personal documents, investments, retirement plans and insurance.

I know of one individual who was married and divorced at a young age. She was a teacher in a local high school who remarried in her early thirties. Fast forward 30 years when she tragically passed away in an automobile accident. It was determined that her ex-husband of her brief early marriage was the recipient of her retirement plan (over $1,000,000) because she never updated her beneficiary forms!

I encourage everyone to commit to review their designations. These decisions can be complicated because of many factors such as estate tax laws, Social Security and Medicaid eligibility to name a few. It is always wise in an important financial decision to consult with a trusted attorney, accountant, knowledgeable family member or friend or a financial advisor.

The LPL Financial Advisors at 1st Mariner Financial Services would be happy to review your beneficiary papers with you. We work very closely with knowledgeable outside estate attorneys to help you access the advice you need. Please take the time to go over your designations; your loved ones are too important to leave their future to chance.

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

www.finra.org / www.sipc.org

 

NOT FDIC Insured Not Bank Guaranteed May Lose Value
NOT a Bank Deposit    Not Insured by Any Federal Government Agenc

 

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Individual Retirement Accounts: An Introduction

by Marylove Moy 2. June 2014

Individual Retirement Accounts

Do your eyes glaze over when you see the term IRA? Are you sick and tired of all those ads on tv talking about retirement? I hear ya! These days, retirement – and retirement planning – is the 800 pound gorilla in most people’s homes.

Well, have no fear...let’s take a look at what an IRA is and how they have evolved over time. Once we understand the history, we can move on to other related topics: investing, planning and other retirement ideas.

Basically, an IRA is an “individual retirement plan” provided by many banks and financial institutions that provides tax advantages for retirement savings. In essence, interest and/or earnings grow tax-deferred until the owner withdraws the funds.

The IRA account was introduced in 1974 in the Employee Retirement Income Security Act (ERISA). Taxpayers could contribute up to $1,500 AND deduct the contribution from taxes. If you fast forward to tax year 2013, the annual dollar amount has increased dramatically to $5,500 for those under age 50, and $6,500 for those over 50. Congress is increasingly worried that individuals will not have enough money to live on when they retire, hence the increases in allowable contributions.

I can feel your eyes drooping reading this article… Enough for today! We can move on to the importance of opening an IRA, types of IRAs and investment ideas another day!

Securities offered through LPL Financial, member FINRA/SIPC: www.finra.org; www.sipc.org. Insurance products offered through LPL Financial or its licensed affiliates. 1st Mariner bank is not a registered broker/dealer and is not affiliated with LPL Financial.

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following state: (MD)

NOT FDIC Insured Not Bank Guaranteed May Lose Value
NOT a Bank Deposit    Not Insured by Any Federal Government Agenc
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Traditonal vs. Roth IRAs: How to Choose

by Marylove Moy 23. January 2014

Roth vs Traditional IRAs

One of the most frequent questions asked to our 1st Mariner Financial Advisers is regarding the choice of a Traditional or Roth IRA*.

It is complicated...

At first glance, the Roth IRA is very appealing since it offers the long term investor the ability to withdraw funds TAX FREE (after age 59 ½, a holding period of 5 years or for very specific exception situations). Investors must bear in mind that the Roth does not offer the possible tax deduction of the Traditional IRA.

In reality, it usually comes down to numbers. However enticing the idea of the Roth IRA may be, in many situations an investor is better off contributing to a Traditional IRA.

Therefore, the first step in deciding which IRA is better for you, is to determine if you are eligible to contribute to a Roth IRA. (There are strict income limits which apply to Roth IRAs.) Higher income earners have IRS-imposed limits governing their ability to make a Roth IRA contribution. For example, in 2014, individuals earning $112,000 and couples earning $178,000 begin to have their dollar amount contributions limited and ultimately phased out at higher income levels.

There are many online calculators offered that assist you in making the decision. I urge you to take the time to work through this calculation! The calculator can determine your eligibility and project the long term values of both a Traditional and Roth IRA using your age, salary, percentage contribution and expected rate of return. These values are only projections, but you owe it to yourself to complete the exercise. It is your future!

Both types of IRAs offer similar contribution amounts and investment options.

These are but a few of the many considerations in your retirement planning. For most individuals, their 401(k)s and IRAs represent the single largest part of their net worth (aside from personal residence); I urge you to seek the guidance of a financial professional in making these important decisions.

*Not insured by FDIC or any Federal Government Agency.

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