When it comes to estate planning, it’s crucial to have all of your assets and beneficiaries listed and up to date. However, because this planning can be relatively messy at times, what you want may not always come to pass. For example, what happens if your beneficiaries predecease you? 

Although this situation can be rare, there’s already a process for what happens to your assets. It’s called per stirpes, and it can ensure that your money or property will pass down to living heirs should your beneficiaries die before you do. 

As you begin estate planning, you will face difficult choices, further complicated by the current pandemic. However, it’s essential that you have a plan in place to protect your loved ones financially. There are many different ways you can do so. 

Today, we’re going to discuss two of them. Wills and trusts are both estate planning tools, meaning they help you control who inherits your assets after you pass away. The similarities between the two end there, though.

Not everyone can qualify for a traditional life insurance policy. Depending on your health and lifestyle, an insurance underwriter might be reluctant to approve your application for a policy.

If you have only applied to a company or two, don’t give up on a traditional life insurance policy yet. Every company has different standards that they follow, and something that disqualifies you from one might not disqualify you from another. 

Let’s get right to it and answer the question before getting into the details. A power of attorney is a legal action that offers someone else of your choosing to make decisions on your behalf if you’re unfit or under contract. 

Its most common use is for people to have a go-to friend or family member to act on their behalf if they become sick or injured and can’t make decisions themselves. Power of attorney agreements are an essential part of the estate planning process and are usually connected to a will or trust fund. 

Usually, when people think of estate planning, they imagine filling out a will or establishing a trust. However, some assets allow you to name beneficiaries directly through a process called transfer on death (TOD). 

Transfer on death can be beneficial in various circumstances, particularly if you want to avoid probate. Today we’re going to discuss the ins and outs of TOD and when it is most beneficial. 

There’s a ton of noise out there regarding the One Big Beautiful Bill. But how does it affect retirees? For many retirees, there won’t be any major game changers, but there are some key changes you need to know.

Fortunately, there are no significant changes to tax bracket structures. However, there were several changes to standard and itemized deductions, as well as increased gift and estate tax exemptions. We also get some new deductions, lose others, and see many modified credits, deductions, and phase-outs.

If you’re nearing retirement, you might have life insurance or an annuity you no longer need. If so, you should be aware of what’s called a 1035 exchange.

A 1035 exchange can help you if you’re unsure about what to do with an old life insurance policy or an annuity.

This post was last updated on June 29, 2025, to reflect all updated information and best serve your needs.

Investing in yourself is one of the most important things you can pursue. It’s more than setting up a retirement account or buying a home. Self-investment comes in many forms, including:

Annuities can be incredibly confusing, but they don’t have to be. Once you understand the most common annuity acronyms, it’s a lot less scary. Each annuity contract will be unique to your needs, the insurance company, and the optional riders available.

When buying an annuity, it’s best to zoom out and look at your entire financial picture first, and then decide if an annuity is right for you. We don’t want you to get excited about one particular type of annuity first, and then figure out how to make it fit your goals. Your life and retirement goals should drive all your retirement decisions.

This post was last updated on May 25, 2025, to reflect all updated information and best serve your needs.

For some people, the “traditional” idea of retirement just doesn’t fit their lifestyle. The idea of never working again, going to the golf course every day, and just lounging around doesn’t sound very appealing. Luckily, you can craft what retirement will look like for you – even if you don’t really retire.

If we're not careful, we can easily fall victim to pushy sales tactics to buy expensive annuities. Annuities and other life insurance products are often sold using your fears against you. There is a tendency for annuities to be oversold because of the handsome commissions paid to sell them.

To be clear, there are times when an annuity might make sense, but many retirees have other guaranteed income sources like Social Security. There are various annuities (fixed, single premium, deferred, etc.), so it can get confusing.

Most retirees don’t really understand how their Social Security benefits are calculated. The more we learn, the more surprised we are. Social Security has evolved over the years to become a major piece of the retirement puzzle for most Americans.

In short, those who understand Social Security can get the most out of the benefits they earned. On the other hand, if you start drawing Social Security without fully understanding the impact on your situation, it could cost you big time.

Health Reimbursement Arrangements (HRAs) are employer-funded plans that allow employees to pay for qualified medical expenses with tax-free money. HRAs can be used to reimburse employees for a wide range of expenses, including individual health insurance premiums, deductibles, copayments, and coinsurance.

If your employer offers an HRA, you should certainly check it out. It’s a great benefit to help reduce your overall healthcare costs! There are several types of HRAs, so be sure to check your plan documents carefully.

Deciding what pension payout option to choose is a momentous decision with huge impacts on your financial future. There may be several different options – and you don’t want to choose the wrong one. Your company’s plan documents can also be confusing, which makes things more stressful.

However, with the right education and planning, you can navigate this important decision with confidence. The biggest challenge is understanding how each payout option can help work in concert with the other pieces of your life. We hope to give you the tools to make informed comparisons to make the best decision for you and your family.

For many retirees with a pension, maximizing your payout options is vital. Many pension plans use what’s called a Final Average Earnings (FAE) calculation. There are several factors that might affect your retirement pay.

You might not be able to control all the variables in your FAE calculation, but certain things, like deciding when to retire, are generally within your control. You don’t want to make the mistake of retiring too early and missing a benefit or working longer with minimal or no benefit to you.

Coordinating your pension and Social Security benefits are some of the most important decisions you’ll make as you retire. It’s very important you don’t plan either one without looking at your whole financial picture. In other words, we want you to think about your overall retirement income – not just your pension or Social Security.

Your pension income, retirement accounts (401k, 403b, TSP, IRA, etc.), Social Security, and other income (rental property, inheritance, etc.) all factor into how much you need in retirement. Each one of them comes with their own risks and benefits to consider in relation to your other retirement income sources.

Taking a pension lump sum takes careful consideration. If you decide to take a lump sum, you’ll have to decide whether you transfer your lump sum pension payout into your 401k or your IRA. The decision to take a lump sum can’t be reversed, so take it seriously.

Many different factors come into play when we’re sorting through this decision. Pension payout calculations, tax considerations, and personal goals all matter. Also, your investment style and habits around money are very important as well.

Thinking through your pension decisions and transitioning into retirement is hard enough. Adding in planning for your premature death is even more stressful. However, there’s no replacement for peace of mind knowing your family is covered no matter what.

Adding a survivor benefit to your pension isn’t a decision to be taken lightly. There are often many variations and levels of coverage to consider too. Make sure you take your time to think through this decision by looking at your whole financial picture.

Healthcare is not getting cheaper. Are you prepared to cover your healthcare expenses throughout your retirement?

Healthcare is cited as the number one cost retirees face. Even if you have a pension, it can be tricky to ensure all your needs are covered. You’ll want to consider all your options, including Medicare, health insurance offered with your pension, Health Reimbursement Arrangements (HRA), Health Savings Accounts (HSA), COBRA, and the Marketplace.

You’ll encounter many important decisions as you transition into retirement. Almost none are as important as your access to quality healthcare. Your life insurance needs will probably change too.

If you’re trying to retire early, or at least before you’re eligible for Medicare, you’ll have to weigh your healthcare options carefully. You’ll want to make the best decision for you to preserve your health, wealth, and legacy.