Income tax season is upon us again!! As we deal with 2011 income taxes and compile all that stuff needed to complete tax returns, we are also being inundated with lots of media coverage on the potential of various tax increases on federal, state and local. Often overlooked in planning is a provision of the federal tax code dealing with the income tax treatment of immediate annuities. All annuities are income tax deferred – a big advantage with today’s income tax environment. But in addition to just deferral, the tax treatment of non-qualified immediate annuities holds an additional huge advantage.

The IRS divides all payments received from a non-qualified immediate annuity into two parts: a non-taxable portion that represents return of capital and a taxable portion that represents the earnings on that annuity. As a result, a portion (i.e., the portion representing premiums paid) is excluded from gross income. This portion of each annuity payment that is excluded is determined by multiplying each payment by an ‘exclusion ratio.’ This fixed immediate annuity exclusion ratio is what’s huge – let’s look at that ratio. This ratio is determined by dividing your investment in the annuity by the expected return. For example – you have a fixed immediate annuity that pays you $200 monthly for 20 years. Do the math $200 X 12 = $2,400 X 20 years = $48,000. Your investment in the contract is $24,000 divided by $48,000 = 50 percent exclusion ratio. This means 50 percent of each $200 payment ($100) is excluded from gross income. The rest of the payment ($100) is treated as ordinary income.

Just a caution here, too – rules are different for variable immediate annuities. Since variable immediate annuity payments fluctuate in value, it is impossible to estimate the expected return at the starting date of the variable annuity. Since I am not licensed to provide variable annuities, I am using only the fixed (non-variable) immediate annuity in this example.

In today’s lower interest environment, impacting monthly income plus the terrific advantage of the exclusion ratio, I normally recommend immediate annuities for a much shorter period of time – usually five to seven years. The exclusion ratio on this shorter time-period is greatly enhanced. Let’s look at an example with the minimum allowable time period of five years. An amount of $25,000 invested in a five-year immediate annuity today, will provide $419 monthly income for 60 payments (five years). The same formula applied to a five year immediate annuity is $419 X 60 payments = $25,140. Initial investment $25,000 divided by $25,140 = 99 percent exclusion ratio.

This is a fantastic tax advantage to consider in your planning. Just as there are investment alternatives to protect assets from risks, immediate annuities are alternatives you may utilize to help minimize the income tax bite. Lower income taxes results in higher monthly income – a very nice benefit. Let us help you determine appropriateness of this strategy for you. Call us for details.

Beginning in February, we will resume our “Choices” dinner workshops. The next workshop is scheduled for Thursday evening at 6 p.m. at Bennigan’s in Bettendorf. At these workshops, we review the risks we face in life enhanced in our retirement. One of the risks to income is taxes. Remember the higher the tax, the lower the income. The exclusion ratio is one of the strategies we discuss at our workshops. I encourage you to attend our workshops to hear of this strategy and other strategies we use to manage and protect assets safely for our clients. See our ad below.

Happy Valentines Day!

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at
(563) 332-2200.

As we turn the calendar to another year, I am sure you are aware that 2011 ended up not a strong stock and mutual fund year. For a long time now, I’ve encouraged retirees and soon to be retired folks (within 10 to 15 years of retirement) to look into the safe money harbors offered with fixed and fixed index annuities. I continue to make this recommendation. Build a portfolio of safe money harbors using a combination of annuities to establish a ‘split annuity’ arrangement for those valued retirement assets.

Begin this process by resolving early this year to apply the Golden Investment Rule to your retirement assets. This simple rule results in a percentage by subtracting your age from the number 100. A person age 60 for example subtracted from 100 results in 40 percent. According to the Golden Investment Rule, that is the maximum percentage of valued retirement assets exposed to risk with stock or mutual fund investments. A person age 70 subtracted from 100 results in 30 percent as the maximum percentage of retirement assets invested in stock and mutual funds. What is your risk according to the Golden Investment Rule? Start off 2012 by taking action to take control of your situation. Don’t be a victim of the market. Take control by first applying this Golden Investment Rule to your situation. Remember this rule is a simple guideline. Individual circumstances may cause exceptions to the rule. If the result of the Golden Rule has your retirement money within these guidelines, you are in great shape. But if you are outside these guidelines, we encourage you to take action to bring your assets within the Golden Rule guidelines.

In working with clients, often I find retirement assets invested just the opposite from the Golden Investment Rule. Not too long ago, I visited with a client age 65 that had over 80 percent of assets in stock and mutual funds. The account values had taken a terrific hit over the past several years. Had this person applied the Golden Investment Rule to his nest egg earlier, a much greater portion of those assets would have been safe from market declines. My advice to readers today is to simply take a few minutes to put pencil to paper and calculate how close you come to being within the guidelines of the Golden Investment Rule. Use the fixed and fixed index annuity to protect money from the stock and
mutual fund market risk.

Most annuities allow an annual right to withdraw up to 10 percent, some offer the right to annuitize or take monthly payments after the first year with others at the end of five years. Long-term care costs are often a withdraw exception to the penalty. Death of an owner or annuitant allows passing annuity to beneficiary without penalty. Required Minimum Distributions (RMDs) for qualified are often penalty free. These exceptions create flexibility.

As you know, there are advantages and disadvantages for every financial product. The fixed and the fixed index annuity provide safety from stock and mutual fund market volatility. That’s a huge advantage. Holding periods could be a disadvantage, but a minimized disadvantage with the penalty free exceptions for withdraws. Look into the annuity to gain the larger advantage of safety and flexibility. Resolve to apply that Golden Investment Rule to your assets. Use the annuity as a safe money harbor to bring you in within that guideline.

Throughout 2012, we will continue our monthly informational meetings for folks aging into Medicare (see our ad below). Medicare 101 will be Friday, January 20 at 10 a.m. We will also continue our periodic “Choices” dinner workshop at Bennigan’s Feb 9. Call us anytime for reservations or additional details.

Happy New Year!!

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at
(563) 332-2200.

Medicare Advantage Plans provide an alternative way for people to receive Medicare benefits. This year’s annual enrollment period ends Dec. 7. Medicare beneficiaries wanting to make changes to their Medicare choice for 2012, can do so up until Dec. 7. Close to 12 million Medicare beneficiaries have already elected a Medicare Advantage Plan. At the end of this year’s enrollment period, participation in Advantage plans will increase by another 10 percent, demonstrating their increasingly popularity.

Let’s do a brief review of the Medicare Advantage Plans (Medicare part C). Offered by private insurance companies, these plans implement the Medicare plan – part A (hospital), part B (medical services) and many plans also include part D (prescription drugs). A significant number of our clients have chosen this alternative to original Medicare.

Advantage Plans are often referred to as the one-card system versus Original Medicare’s three-card system. When choice of Medicare is with Original Medicare, a beneficiary has a Medicare Card for base Medicare Coverage (hospital and Medicare services). A Medigap policy (or Medicare Supplement) policy requires a second card, and the prescription drug plan necessitates a third card…..thus the three-card system. Unlike original Medicare, Advantage Plans include hospital, medical services and prescription drug plan with a single card….thus the one-card system.

Medicare Advantage plans normally have a $0 monthly premium or a minimal monthly premium. Medigap or Medicare Supplement plans have a substantial monthly premium. In addition, most medigap plans offer an age-based premium resulting in annual premium increases. Although, some Medigap companies have community-based premiums resulting in a more level premium system.

Because of the lower or $0 monthly premium offered by Medicare Advantage plans, copayments or coinsurance payments are required under most plans. These plans, however, limit the out-of-pocket costs to a dollar amount each year.

There are pros and cons – advantages and disadvantages – to either Medicare choice. This year’s annual enrollment period is over on Dec. 7 for 2012. However, the CMS (Center for Medicare and Medicaid Services), the federal regulatory agency offers some Special Enrollment periods throughout 2012. A person relocating or moving from one Medicare Region to another Medicare Region during the year, is permitted to change Medicare plans. Other “Special Enrollment Periods” are available for persons with some chronic conditions, persons admitted to or discharged from a nursing home or assisted living facility. Medicare persons receiving extra help or Medicaid, may also elect to change Medicare choice during the year instead of waiting for the next annual enrollment period.

Despite earlier predictions that the new healthcare law, which begins cutting government subsidies to these plans in 2012, would destroy the Advantage program or increase premiums, neither has happened, and the popularity of these plans continue to grow. If you are currently a Medicare beneficiary or are currently assisting a family member or friend with Medicare choice, benefits and coverage, please allow us to be of service.

High costs of health care continue as a threat to our assets. Medicare planning helps protect these assets from this risk. Check with us to determine your eligibility to enroll in Medicare.

Stock and mutual fund volatility is an additional threat to our assets. Our protection strategy for this risk is with the guaranteed annuity and building annuity portfolios for clients. We look forward to your call to schedule a time for a visit to determine the appropriateness of annuity portfolios for you.

Best wishes to all for the Christmas Season.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at
(563) 332-2200.

The roller coaster ride for those aboard the stock and mutual fund markets continues. You hear me say continually, “None of my clients have lost money.” I continue with that statement. We only provide fixed and fixed index annuities for clients that provide income while maintaining principle with our split annuity strategies. I do not offer securities, mutual funds, or variable accounts. I voluntarily surrendered my securities license several years ago.

I’d like to share with you a couple client examples. I have a 62-year-old client that came to us originally in 2004. At that time, she was retiring with a nice employer pension plan and social security. In addition, she maintained a 401K plan. As a single retiree, she indicated that monthly income from pension and social security was adequate and would not need to draw from the 401K plan, but she wanted to make sure the plan would be available when needed later in life. Remember what was going on in the investment world in 2004 – the year she retired. Allow me to refresh your memory. Remember, too, the years 2000, 2001, 2002 – years immediately before her retirement. These were the three consecutive years the stock and mutual fund markets lost considerable value. In 2003 and again in 2004, we had some recovery. When my client retired, she was concerned with additional market downturns and the resulting affect on her 401K balance. We recommended she rollover the 401K value to an IRA funded with an index annuity. Following our recommendation, the 401K balance was approximately $48,124. Her annuity balance today is approximately $56,245 following a couple withdraws during this period. The yield to date on this annuity is 8.1 percent. More important than yield is the fact that our client has not lost any value. Nothing lost in these recent drastic market downturns. Nothing lost in these last three months of extreme volatility.

Folks, this client is an example of the type of security we provide for our clients through our annuity strategies. I firmly believe when a person is retired or soon to be retired, valued retirement money should not be subject to risks…. such as stock market declines. Valued retirement money needs to be safe from these risks. That’s the value of the fixed index annuity.

Another client of ours just renewed his index annuity that he contributed $18,000 non-qualified money in 2004. Current value is $22,669. Yield to date is 3.35 percent. Again this client has not lost money with these terrible last couple months. This annuity is somewhat different from previous client but fact remains – no losses incurred.

Annuities are designed for longer-term investments. Annuities have holding periods that may range from as little as four years to as high as 16 years with some flexibility for withdraw during holding period. Annuities like all financial products have benefits such as the guarantees and safety. But, they also have disadvantages too. It is important to consult with a financial professional that understands both.

The bottom line on annuity strategies is safety from market volatility. That is the value of the annuity. The bottom line on the index annuity is potential for stock market gains but no risk for losses.

Reminder to all – the annual enrollment for Medicare began Oct. 15. Enrollment period begins earlier this year and will end earlier this year. Ending annual enrollment is Dec 7. That’s a big change!! If you are a Medicare Beneficiary and wish to change your choice of plans for 2012 – remember these time periods.

Enjoy the remaining days of this beautiful fall season. Happy Thanksgiving.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at
(563) 332-2200.

A big change and welcome relief for the Medicare Annual Enrollment period this year is moving the date to begin Oct. 15 and ending Dec. 7. What a welcome relief! The Annual Enrollment period allows Medicare Beneficiaries the option to change their choice of health plans and/or prescription drug plans for 2012. In prior years, the Annual Enrollment period has been Nov. 15 to Dec. 31. With traditional holiday season, this time period was really not convenient for many Medicare Folks. This year’s change in dates is a nice change.

Folks if you are happy with your Medicare Choice, no action required during the Annual Enrollment Period. Your plan will renew automatically. Annual notification of changes will be mailed to all soon. But if you wish to change that choice, you may do so beginning Oct. 15. The new plan choice then will become effective Jan. 1, 2012.

Let’s review the choices we have for Medicare. This choice is available for Medicare Beneficiaries that do not have a retiree plan provided by a former employer. Really the choice is simple. If we do not have major medical insurance continuing from a former employer, we may opt to remain with Original Medicare or opt to select a Medicare Advantage Plan. Original Medicare is major medical insurance provided by the government and regulated by the Center for Medicare and Medicaid Services (CMS). Medicare Advantage Plans are offered by private insurance companies, but are
regulated by CMS. In order to participate in Medicare, retirees must have paid into the social security system for a total of 40 quarters or 10 years.

President Lyndon Johnson’s ‘Great Society’ in the later part of the 1960s, introduced Original Medicare with two parts: Part A Hospital and Part B Medical Services. These two original parts have not changed. However, since there is a deductible for hospitalizations and co-insurance for medical services, most Medicare folks elect to purchase a Medicare Supplement or Medigap policy to cover that deductible and co-insurance. And this is where the complexity with Medicare begins. Medicare Supplement policies are standardized. All benefits are identical from insurance company to insurance company, but the premium could be different. In 2011, there remains 10 Medicare Supplement policies and 30 prescription drug plans for these Medicare Regions. That’s where the confusion and complexity of Medicare rests. What was originally two basic parts to original Medicare has now split into two additional parts – a Medicare Supplement and a Prescription Drug plan. This is one choice Medicare beneficiaries have.

Another choice we have is the Medicare Advantage Plan. Advantage plans are not offered by Medicare, but these plans are clearly regulated by CMS. This year, there are eight different Medicare Advantage Plans offered by private insurance companies for these Medicare regions. Medicare Beneficiaries may choose one plan as an alternative to Original Medicare. Most Medicare Advantage Plans (but not all) include a prescription drug plan.

To make sense of these choices, our firm will continue monthly Community Meetings. Our next meeting is scheduled for Oct. 14, 10 a.m. at the Bettendorf Public Library. Please call us for details or for a reservation (563) 332-2200. In addition to the monthly Community Meetings, we will be available again at HyVee Devils Glen Rd to answer your Medicare questions beginning Oct. 4.

On the financial side, our firm continues to offer safety from stock and mutual fund volatility. See our ad below referencing relief from the drama associated with market volatility. Call us or email us for details on these safe money harbors.

Enjoy these beautiful fall days.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at
(563) 332-2200.

Why do people buy fixed annuities? What makes fixed and fixed indexed annuities so popular? They offer a unique and attractive blend of safety, growth potential, tax advantages, lifetime income, liquidity and estate advantages.

The top priority for most people when they are saving their money, without question is safety. No one puts money in a place where they expect to lose it. They put their money in a place where they expect to get it back one day, hopefully with some nice growth. The great thing about fixed annuities is that they uniquely offer three levels of protection.

1: By contract, a fixed annuity guarantees your principal is protected, and that you can receive it back again as long as you avoid any penalties for early withdraw.

2: Even if your insurance company fails, the value of your annuity (up to $100,000) is guaranteed by your state insurance guaranty fund.

3: If you have a problem with the insurance company that issued your annuity, and you wish to get a regulator involved, no matter where that insurance company is located, the regulator is located in your state.

With these three levels of protection, fixed and fixed index annuities offer excellent safety. In addition other benefits include:

Growth potential – Many fixed annuity carriers offer very competitive rates of interest. Fixed index annuity carriers provide potential for growth based on the performance of a market index.

Tax advantages – Both Non-qualified and qualified fixed and fixed index annuities offer terrific tax advantages. These benefits are unique in the financial products industry. Federal and state income tax deferrals exist, as well as additional social security tax benefits are often attractive features.

Lifetime income – Annuities typically offer a variety of income options that may guarantee income for lifetime. Recent trends for income is to provide income for a term certain period, not for lifetime. Split annuities often maintain highest yield on income while guaranteeing principal.

Liquidity options – Most annuities provide penalty free access for a portion of principal during emergency situations, such as illness and/or death in addition to annual free withdrawals.

Estate advantages – At some point during our lives, people become motivated to consider what will happen to their money after our death. An estate advantage offered by annuities is speed.

An annuity is a contract that avoids probate and settlement costs as long as beneficiary information is current.

Overall, the annuity is a financial product offered by a life insurance company with many advantages over other products. Annuities are intended to be longer-term financial products. Fixed and/or fixed index annuities offer terrific guarantees, as well as all the other advantages mentioned here. We encourage readers to investigate the annuities to determine appropriateness for your individual situation.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at (563) 332-2200.

A little-noticed provision of the Affordable Care Act creates a public option for long-term care insurance – the Community Living Assistance Services and Support Plan (CLASS). Under the current law, this will be a national voluntary insurance program available after October 2012 to help pay for services and support for long-term care. The full details of the costs and benefits are not yet available. However, US Health and Human Services Secretary, Kathleen Sebelius, says her department is currently preparing to address details for the rollout of CLASS.

Our understanding, as of this date, is CLASS will be available for most working adults age 18 or older who voluntarily enroll in this new program either directly or through their employers without answering questions about their health. Note, the availability for CLASS is for working persons. And also note, good health is not an eligibility requirement. Fully-retired persons will not be eligible for CLASS. Working either full-time or partial employment is required. Those who enroll, pay the premium and meet the benefit eligibility requirements will receive benefits for long-term care services and supports such as personal assistance, homemaker services, specialized transportation and assistive technology to help address care needs. Pre-existing medical conditions will not disqualify someone from enrolling. Individuals who enroll will be eligible to receive benefits when they meet specific requirements regarding functional limitations.

Critics of the CLASS Act say the program will not be financially sustainable and will help create another long-term drag on the
federal deficit. The administration is acknowledging problems as rules and regulations are being developed. Further, President Obama’s deficit commission recommended reform or repeal of the CLASS Act. Final status of CLASS remains to be determined, but as of this date, it is scheduled for rollout October 2012. Full details will be available then.

Whether the law survives in its entirety, is amended or even repealed, it emphasizes the importance of long-term care planning. We have options for long-term care planning. Traditionally the planning option has been with long-term care insurance. Costs and eligibility for long-term care insurance remains an issue. There are other options or “choices” for long-term care planning. Some annuity contracts provide special benefits for long-term care costs. In addition – creative use of annuities with long-term care insurance premium is a very attractive option. Many companies today issue life insurance policies with special long-term care provisions.

CHOICES workshops resume during the month of August. See our ad below. The workshop covers topics such as the long-term care planning issue and many other topics related to your retirement years. We introduce “6 New Ideas” you probably have not heard before. Join us for CHOICES this month.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at (563) 332-2200.

New realities are-reshaping American retirement. That calls for new strategies and not just in your planning during the years leading up to your retirement. Your investment needs are different during the retirement years, due to factors known – and unknown.

What is known? – The retirement KNOWN. What factors do we know that will affect retirement?

We know that we need to plan for longer retirements. With healthcare advancements and healthier lifestyles, we’re now living longer than past generations – and retirements could potentially last 25 – 30 years or even longer. Life expectancies are much longer today. Life expectancy for women in 1945 was 68.4 years – for men life expectancy in 1945 was 62.9. Compare that with 2010. Life expectancy for women is around 80 and for men around 76. These expectancies are taken from Life Tables for the Social Security Actuarial Study no 120.

What’s the conclusion of this? A known for retirement planning is – we need to plan for longer retirements.

Another known – we know that the sequence of returns has a big impact on how long our retirement money will last. During our working lives – the accumulation phase of retirement, the sequence of market returns is not as important as long as the money remains invested. We continue to contribute….the dollar cost averaging principle applies here…..market returns as along as we are continuing to work is not as important to us BUT returns has a big impact once we retire and begin taking income from our retirement money.

Another known – we know we need to prepare for a retirement that will cost more. If we look at only two consumer goods – gasoline and groceries…..we know…..another known is that retirement will cost more. Add to those two consumer goods – the increasing cost of health care as we age…. We know we need to prepare for a retirement that will last longer.

Another known – we know that spending may not decrease in retirement. Retirees are commonly thought to reduce spending in retirement. But several surveys show that with increased costs – desire for travel and leisure time activities, often retirees do not decrease spending in retirement.
Folks these factors are what is KNOWN in retirement.

What don’t we know about retirement? Let’s identify the unknowns in retirement.

We don’t know how much longer traditional pensions plans will exist. There’s been a huge shift from employer-provided pension plans that paid retirees a steady stream of income (defined benefit plans) to the defined contribution plans. This change shifts the responsibility for ensuring lifetime income to the individual. Defined contribution plans are replacing defined benefit plans. Early baby boomers have the benefit of both …we don’t know how long this luxury will last.

We don’t know how market volatility will affect retirement savings in the future. Our IRAs, 401ks, and 403bs are all subject to the ups and downs of the stock market – and in recent times we have all seen how volatile markets are – what is the impact of this continued volatility on our defined contributions plans ? We just don’t know.

We don’t know the long-term solvency of social security. The ratio of covered workers to Social Security beneficiaries has changed significantly with fewer workers per recipient. In 1950, we had about 16 workers paying into the social security system for every 1 retired social security beneficiary. In 2005, there were a little over three workers paying into the social security system for every one retired social security beneficiary. The forecast is that by 2025 – slightly over two workers for every one retired social security beneficiary. Many proposals are being discussed to raise retirement age and to somehow change benefits.

We don’t know about our own health and longevity and the impact on spending and accumulation values.

These are the unknowns in our retirement….and consequently these are the risks we face with retirement money. Now…..having identified knowns and unknowns – what do we conclude with all this? The only logical conclusion is we need to look for a more balanced solution than previous retirees. We need more life time income…..to replace what we lost when traditional pensions are being replaced……..we need new ways to think about the need for lifetime income to replace what we lost. We need to protect our retirement savings from market downturns.

We need a flexible financial product that provides increasing lifetime income. This flexible financial product is called an “annuity.” I don’t know why they are called annuities…..I don’t know where that name came from…..but what I do know is that people like what annuities do…..people like the safety and guarantees of fixed annuities….and that safety and guarantees of fixed annuities applies to index annuities too. Value, flexibility, guarantees, growth potential is the characteristics of annuities. These characteristics are known. Call us for additional details on the annuity arrangements available.

On June 9 and 14, we will be hosting another round of our “Choices” workshops. This workshop is for persons and couples retired or soon to be retired (within 10-12 years). All are encouraged to attend – but especially women are encouraged. Ladies, if you can’t get him to attend, then attend yourself.

Note these stats – in the U.S. the average life expectancy for women is more than five years longer than men. Ninety percent of all women will be solely responsible for their finances at some point in their lives. According to Kiser Communications, senior women control a household net worth of $19 trillion and own more than 75 percent of all the money market CD accounts. Not only are women assuming control of more wealth, they’ll likely be controlling it for a longer time in the future.

Allow me to give you an example of a couple who attended a workshop a few years ago. This husband and wife came in for an appointment following our workshop. When we looked through all of their statements, we catalogued them for reference – usually statements from about A to J – 10 statements at the most. Well, these folks had so many different things going on, so many statements each month; their stack of statements was about two inches thick.

Then the lady looked at me and said, “There’s something I need to tell you before we start that I haven’t even told my husband!” Her husband looked around and said, “Oh really?” “Yep! Ever since we got this money, I have gone to bed at night with no clue what I’d do if something happened to him. I have no idea what we’re doing!” Her husband looked at her and said, “Well, honey, I’ve got news for you. I don’t have any idea what we’re doing either!”

All of those statements added up to be a considerable sum, but the more important issue was getting this couple into programs in which they could understand what was going on with their money. In about four months, we had that huge stack of monthly statements down to about seven simple programs that they both understood. Now, they know what’s going on, and their money can never go backwards in value. Today, that husband and wife sleep well at night knowing that if something happened to either one of them, the other would know that everything is in place.

My point is – this might be your current situation. My experience in business has been the wife usually knows less about the assets than the husband, OR the wife knows all and the husband knows little. What is your situation as spouses? Your spouse may go to bed at night with no clue what to do if something happened to you, because each spouse may not know everything about their current financial situation. The amount of money is not the issue. The issue is that we want to make sure that each spouse understands what you are doing.

Choices workshops are intended to bring together many topics related to your retirement years and introduce you to the “Six New Ideas” you probably have not heard before. With a 99.6 percent quality rating, this workshop is built around retirement needs now and in the future.

Wives and husbands – don’t be one of those who don’t know what’s going on. Join our workshop. Then participate in our no-cost consultation to determine if we can improve your current situation. See you at Bennigans. Don’t forget to call for a reservation 866-552-7738. Ask for reservation code 2200.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at (563) 332-2200.

Earlier this year, we re-introduced our “Choices” workshops for our clients and potential clients. See our ad below promoting the June 7 and 9 evenings at Bennigans in Bettendorf.

These workshops are in fact workshops – not seminars. Our intention with these programs is to provide easy to understand information on the “Choices” we have with our retirement plans; savings & investment plans, insurance plans and life plans. Safety from stock and mutual fund volatility as well as other risks remains paramount. Today – safety from the taxation risk is included.

I read somewhere – since World War II, our federal government has spent $1.17 for every $1 received. That’s close to 70 years of the infamous deficit spending. Taxes are going to become increasingly a risk in retirement. Tax results in lower income. Tax is a risk to our retirement dollars. “Choices” offers some taxation protection strategies.

In addition, we are fully aware of the terrific hit that many retirees and near retirees have taken with money following the 2008 stock and mutual fund market downturn. Some recovery has been realized over past couple years but full recovery has not yet occurred. Further – the unrest in today’s world could result in another terrific downturn. “Choices” is designed to help alleviate some of this anxiety and frustration by offering alternatives to traditional methods of accumulating and distributing valued retirement money. AMD “Choices” emphasizes the importance of reviewing the overall retirement plan frequently when retired. Planning during retirement must continue.

The tale of Mt. Everest is an excellent analogy. Allow me to tell the tale again. That peak remains the ultimate challenge of ardent and adventurous climbers from across the world. Do you know that nearly 190 climbers have perished on Mt. Everest? However, not known or recognized with this statistic is more climbers have perished, not in the pursuit of the awesome goal of reaching the top, but perished after reaching the summit. They died coming down the mountain, not on the climb. All their life climbers prepared, trained and worked out continuously to meet the challenge – the climb. Lacking in their preparation was how to descend that magnificent peak.

The tale of Mt. Everest is like our own retirement plan. We have spent years saving, investing and monitoring our retirement nest egg with the complexity of 401ks, 457 Plans, 403b Plans, IRAs (traditional and Roth). We annually reviewed progress and rode the peaks and valleys of the markets all with the intention of reaching the top – retirement time. Then – we stop planning.

Folks – take the Mt. Everest story to heart with your own retirement. Don’t perish on the decent. Don’t stop retirement planning when retirement begins. Retirement planning needs to continue during retirement just as adamant and as serious as during our working years. Retirement planning needs to continue and become longevity planning. Ladies – this is especially true for you. Life expectancy for a 65-year-old female is well over 20 years. At age 75 life expectancy is almost 14 years. At age 85 life expectancy is over 7 years. Living to the ripe old age of 95 and beyond is very common today.

“Choices” reviews and examines the strategies necessary to make sure we outlive our assets and not the other way around. Many of us desire to live to age 95 with good health. I doubt any of us desires to live to 95 and be broke. Join us for “Choices.” See the ad below. Welcome to the beautiful month of May.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJU and Associates, Inc. He can be reached at (563) 332-2200.