June 2017
“Enjoy the little things, for one day, you may look back and realize they were the big things.”
– Robert Brault
GOLF TIP
Practice putting with tees Next time you are on the practice green, line up a putt that doesn’t break and put two tees on either side of your putter head, so that the putter can just pass through. Put the ball in the middle of the tees and try to putt without hitting them. This teaches you to putt using the putter’s sweet spot.
BRAIN TEASER
Giving Them The Run Around
An elderly man walks. Two young men in excellent physical condition are just a few feet behind him, and they are sprinting. No matter how fast they run, they can’t catch up with him. Why can’t they – and where are these people?*
DID YOU KNOW?
Neil Armstrong missed a deadline, nearly missed going to the moon.
In 1962, he turned in his application for the second round of NASA astronaut hiring several days late. Dick Day, NASA’s assistant head of flight crew operations, knew that Armstrong had “the right stuff” and secretly slipped his tardy application into the candidate pile on his behalf.(4)
Last week’s answer:
A tooth.
MONTHLY NEWS AND INFORMATION FOR CURRENT AND FUTURE RETIREES
Can Your Life Insurance Policy Help You Out in Retirement?
Under certain circumstances, it can play a crucial financial role. Besides a death benefit, a permanent life insurance policy can accrue cash value over time (provided the premiums are paid). That cash value could prove useful in or near retirement. If you need to, you could withdraw some of it to pay for medical procedures, home improvements, long-term care, or a child’s college education. It could even provide you with additional retirement income. Moreover, distributions from a permanent life insurance policy are tax free as opposed to distributions from traditional IRAs (and some other retirement plans), which are taxed at regular rates.
There is one notable negative to all this. When you take cash value from a life insurance policy, it is not a withdrawal – it is a loan. You are borrowing against the value of your policy, and in doing so, you reduce its death benefit. You can restore the full value of the death benefit by paying back the loan in full – but that loan may carry 7-8% interest. Also, life insurance premiums and fees can be costly when weighed against other retirement savings vehicles. Dollars that fund a permanent life insurance policy are also dollars that could alternately go into your other retirement accounts, which you do not pay premiums to keep up.1
How Can You Actively Age?
The Centers for Disease Control and Prevention says that less than a third of adults aged 65-74 are physically active. Adhering to a fitness routine may be half the battle. What can you do to make working out less like work?
One, find an activity you truly enjoy – hiking, yoga, Zumba, softball, pickleball, what have you. Think about what motivates you most to exercise, keep it top of mind, and link it to that activity. Another way to make a sport or workout even more enjoyable: listen to some music, podcasts, or audio books, safety permitting. Finding others to join you may help dedicate you to it, and so can scheduling time for it. Importantly, you should talk to your doctor to see what kind of exertion your body can take on and how the sport or fitness pursuit you embrace corresponds to the pursuit of your fitness or weight loss goals. On another note, you can also look for other ways to incorporate more walking and movement into your everyday life.2
On the BRIGHT SIDE
In 2014 (the most recent year for which data is available), the average contributor to a traditional IRA received a $4,885 federal income tax deduction.3
For more news from Adams Wealth Management, click here.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
Citations.
2 – money.usnews.com/money/blogs/on-retirement/articles/2017-01-19/12-steps-to-a-longer-healthier-retirement [1/19/17]
3 – fool.com/retirement/2017/02/04/retirement-in-2017-5-stats-everyone-should-know.aspx [2/4/17]
4 – tinyurl.com/ybsnunue [6/8/16]
Other Information:
Adams Wealth Management Group LLC (“Adams Wealth Management”) is a registered investment adviser offering advisory services in the State of Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Adams Wealth Management in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of Adams Wealth Management, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.
All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment strategy or plan will be successful.
MONTHLY NEWS AND INFORMATION FOR CURRENT AND FUTURE RETIREES
Can Your Life Insurance Policy Help You Out in Retirement?
Under certain circumstances, it can play a crucial financial role. Besides a death benefit, a permanent life insurance policy can accrue cash value over time (provided the premiums are paid). That cash value could prove useful in or near retirement. If you need to, you could withdraw some of it to pay for medical procedures, home improvements, long-term care, or a child’s college education. It could even provide you with additional retirement income. Moreover, distributions from a permanent life insurance policy are tax free as opposed to distributions from traditional IRAs (and some other retirement plans), which are taxed at regular rates.
There is one notable negative to all this. When you take cash value from a life insurance policy, it is not a withdrawal – it is a loan. You are borrowing against the value of your policy, and in doing so, you reduce its death benefit. You can restore the full value of the death benefit by paying back the loan in full – but that loan may carry 7-8% interest. Also, life insurance premiums and fees can be costly when weighed against other retirement savings vehicles. Dollars that fund a permanent life insurance policy are also dollars that could alternately go into your other retirement accounts, which you do not pay premiums to keep up.1
How Can You Actively Age?
The Centers for Disease Control and Prevention says that less than a third of adults aged 65-74 are physically active. Adhering to a fitness routine may be half the battle. What can you do to make working out less like work?
One, find an activity you truly enjoy – hiking, yoga, Zumba, softball, pickleball, what have you. Think about what motivates you most to exercise, keep it top of mind, and link it to that activity. Another way to make a sport or workout even more enjoyable: listen to some music, podcasts, or audio books, safety permitting. Finding others to join you may help dedicate you to it, and so can scheduling time for it. Importantly, you should talk to your doctor to see what kind of exertion your body can take on and how the sport or fitness pursuit you embrace corresponds to the pursuit of your fitness or weight loss goals. On another note, you can also look for other ways to incorporate more walking and movement into your everyday life.2
On the BRIGHT SIDE
In 2014 (the most recent year for which data is available), the average contributor to a traditional IRA received a $4,885 federal income tax deduction.3
For more news from Adams Wealth Management, click here.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
Citations.
2 – money.usnews.com/money/blogs/on-retirement/articles/2017-01-19/12-steps-to-a-longer-healthier-retirement [1/19/17]
3 – fool.com/retirement/2017/02/04/retirement-in-2017-5-stats-everyone-should-know.aspx [2/4/17]
4 – tinyurl.com/ybsnunue [6/8/16]
Other Information:
Adams Wealth Management Group LLC (“Adams Wealth Management”) is a registered investment adviser offering advisory services in the State of Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Adams Wealth Management in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of Adams Wealth Management, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.
All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment strategy or plan will be successful.
