Are Tax Exempt Earnings Your Goal?

If you want to ensure your financial well-being after retirement, you should consider investing in an Individual Retirement Account (IRA).  Pension funds and social security just aren’t secure anymore.  But what kind of IRA should you choose?

 

The answer to this question depends on a variety of factors.  While traditional IRAs allow you to defer taxes, your earnings are tax-exempt with a Roth IRA.  All you have to do is wait at least five years and until you are at least 59.5 years old to withdraw funds.  Even if your investments earn you a vault full of money, you won’t owe Uncle Sam a penny.  However, unlike the traditional IRA, you still have to pay taxes now on that portion of your yearly earned income you invest.  So which tax benefit is more advantageous for you?

 

Choosing the retirement option that makes the most sense for your economic circumstances requires a lot of careful thought and planning, and we pride ourselves on providing expert guidance to our clients.

 

We recommend a Roth IRA to clients contemplating early withdrawal or wishing more flexibility than a traditional IRA offers.  With a Roth, there are some circumstances when you can withdraw your initial investments (though not the profits) without penalty before either of the qualifying time periods is up.  And first-time homebuyers can be allowed to withdraw up to $10,000 of their IRA profits penalty-free regardless of their age, as long as the money derives from investments that have been in the IRA at least five years.

 

If you are interested in learning more about Roth IRAs and other investment options, give us a call at 401-433-1111 or contact us via email at hdaigneau@allstate.com, and we can arrange an appointment at your earliest convenience.

Do You Need Insurance As A Renter?

Do you think home insurance is just for homeowners?  Protecting your personal property and ensuring costs are covered should fire or flood destroy your rental property is not only smart, but in some cases you could be legal responsibility.  So what kind of insurance do you need as a tenant and what should you be sure you have covered to protect your belongings?

 

What Does Renter’s Insurance Cover?

 

Depending on where you purchase your renter’s insurance, the types of claims that will be covered can vary.  In general, renter’s Insurance coverage is similar to that of homeowner’s insurance in that it covers vandalism, theft, and fire.  In most cases this also includes personal liability, meaning that you are covered even if you are the cause of the damage, and it usually includes not only the property itself, but the contents as well.  The extent of the coverage can vary from minimum legal coverage to comprehensive coverage, depending on your personal situation and needs.  Since the minimum coverage required in apartment building or apartment complex (and state) can vary, you will need be sure how much liability coverage you need.  We can help you find a policy that is right for your situation and budget.

 

Renter’s insurance will also cover your personal property in the event of a theft (some limits under the policy may apply).  If you come home from work or a weekend away and find that your apartment has been broken into and your personal property has been vandalized and/or stolen your renter’s policy is there for you.  Renter’s insurance will also be there for you if your car is broken into and your personal property (computer, gym bag, wallet…) is stolen from your car.

 

What Does Renter’s Insurance Cost?

 

Like most insurance policies, the more comprehensive the policy, the most costly it will be, but overall, renter’s insurance is usually a very affordable type of insurance.  In most cases we can help you purchase a renter’s policy for less than $145 a year.  One option that will always make renter’s insurance more affordable is to combine it with another type of insurance, usually car insurance.  We have these types of combined policies available, and since these are two types of insurance that you are required to have anyway, combining them to save money is a great idea for making insurance more affordable.

 

Give us a call to get more information, 401-433-1111!

 

Insure Your Pay Check and Protect Yourself with Disability Insurance

When it comes to selecting the insurance policies you need to protect yourself and your family from unforeseen events, you have probably covered all of the basics.  Auto insurance, homeowner’s insurance, life insurance.  Many people never look beyond these main three.  There is one particular policy, however, that is often overlooked and that could prevent you from losing everything in the event that you are unable to work.  Disability insurance is one of the policies that everyone should carry, but in many cases it is overlooked.

 

You Really Do Need It

 

Many people balk at the cost of paying for disability insurance, especially when they are already paying premiums on so many other policies, most of which are not optional.  It is easy to let something like disability go.  However, becoming disabled is a very real risk that each of us faces every day.  Accidents, injuries, illness-there are many things that could leave you unable to work and thus without an income.

 

Disability insurance is designed to protect you in the event of any sort of disabling event that puts you in the position of being unable to earn your regular salary.  You may have some coverage with your employee benefits, but in most cases it isn’t really enough to pay your living expenses and take care of yourself and your family.  A disability insurance policy will make certain you have money to continue paying the bills and living your life in spite of a disability.

 

More Than A Good Idea

 

Most people will acknowledge that having disability insurance is a good idea, and yet many of them still won’t take out a policy.  Much like health insurance, disability insurance is one of those policies everyone wishes they had when it is too late.  You can’t get coverage once you are already disabled.  Sadly, this is the time when many people realize just how important it really is.

 

Disability insurance should be considered just as important as those top three: auto, home, and life.  It truly is a must-have insurance policy that will make an incredible difference should the day come when you need to use it.