The Debbie Lewis Show, 8/6

The Debbie Lewis Show
Sunday, August 6th

The Debbie Lewis Show, for August 6.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Take talk with you anywhere we'd be on the news talk thirteen seventy app lets you. Keep up with the latest breaking news and our search for top thirteen seventy in the App Store or find the links at top thirteen seven. Find it. It's Saturday we talked about money and finances and today we're gonna cover some misconceptions. That she may have about annuities. You say Devi I don't. Know anything about annuities. Rates or Devi I hate annuities OK now we have somewhere to start let's find out why you feel this way if you even know what annuities are. You've probably heard someone say I bots and deposit the name of product. And I hated it or I lost money or didn't work. This means it probably didn't understand it to start with somebody sold as something that we didn't understand and we just went along with the it's never a good idea. I sit down and talk with all my client to try to explain them. Over and over in many different ways I give east after read it so it I'm not kidding you in at 20 product you don't dynasty. Nobody wants to invest in something that we don't honesty and mean there's no point in there's play if things that are out there that we can't understand so. Let's talk about some things it's humane. Not have the right information about when it comes to a new duties. Now many of CNET TV ads were the financial advisor looks strangely Cameron says he would never sign newly to a client. Natalie does he think he never solid but he also goes on to provide a rationale and duties are confusing. And pitted it subject to to tax problems that the steered tactic. It's not real it's just scare tactic you know if you buy stock and they paid dividends. I could say the same thing you could lead to. He's subject to tax problems yet he's got to pay taxes on it. If he's also the email a lot of money on its capital gains if you sell a house and you. You triple what it's worth and you got the money out you may have tax consequences. Thereof real things are not made up. If you make money the government once their share and I don't care how you make money the government still wants their share so. Darrent things that got me thinking that we probably have some misconceptions about this. And the media does not help actually they make stuff up. And then you have friends. Or people cocktail parties. Or soccer practice or where every Iraq and they Don yeah I know when I bought an annuity what happened I'll lost my shirt. Well you can't unless you take it out early and you don't abide by the rules but the same thing can be said for an IRA or four rolling K. If you take it out early and don't abide by the rules you're gonna have to pay taxes on. So number one let's do the first thing annuities are confusing well while the bottom per CN nudity may be new to you annuities have been around for decades. And at the same way the same structure it hasn't changed any immunity regardless if it's fixed. Indexed or variable. Is built to provide. Some measure of safety to you. The recipient. Now safety comes with a time commitment. Just like a CD in the bank to protect the financial integrity of the insurance carrier providing a safety. New tees have surrendered charges that are called penalties for accessing them money ahead of the scheduled time. Is just like going to the bank and getting a six month CD in going back three days later and saying now I want my money. There's going to be a penalty for that does it make seems as CDs or bad that just means that your breaking the rules so I wouldn't she and it. If you didn't. Leave the money there percent purity time. Typically the longer the time commitment. That you're willing to tie up your money for the greater earnings potential that that in nudity carrier will provide. Therefore it's important that I take the right choice of timing. Based on your goals and your needs not mine it's your money you tell me wanna set aside for five years. We do an annuity for five years you went for ten years you get higher greater return and you get it for ten years. That's how it works it's an insurance product. That's why it's Colin and never to annuities don't do what a client would like them to do. That is not true overcoming this misconception requires that you set. Expectations. Are what you want the money to do you see telling the truth. You that say how long you're tied how much money you have. You have to know what the penalties are gonna be if you take it out early. There's shouldn't be any mistaking there are penalties it's like. Back in the days when I did an and mortgages. That were like 801010s. Or piggyback loans or first in the second the second queen always had a pre. Payment penalty. And so now customers to last me daddy I want alone I don't wanna read payment penalty and I got to pick they don't have many more. There's nothing like that on the market anymore it's changed. So let's consider these nuances we need to get a annuities. A fixed annuity has a declared industry that means they're gearing teen. At some interest rate whatever it is it's guaranteed for the full entire surrender charge appear similar to a bank CD. Then there's something called indexed annuities and they provide. Interest credits. Based on a market index there is usually a minimum and maximum interest credit. Where the minimum provides protection against the index going down so there's a floor and atop a Florida sailing. You get something in between. And there's something called variable annuities and these have sub accounts a lot like mutual funds they provide protection against loss via their death benefits feature. That means if you haven't and it would be. And you die a it's gonna pay off like a term insurance policy plus they often provide further guarantees real life time income writer. You don't know what that is and each idea. I'll lifetime. And come writer means that the little box that we check out on the application it says for an extra how much money. We want guaranteed income for life and then when we die our beneficiary is gonna get a guaranteed income for their life. Yes it is a product it really works and it does pay off. So another misconception is there hi feats. Now. With a fixed or indexed annuity client would typically pay a fee in the form of a surrender charge which is unavoidable. If you take it out early if you leave the money and there's no surrender charge that is not a chart. For a variable annuity a client could run into three different types of fees one of the investment management and that goes to that annuity company. Another one for the insurance company's expenses. And the third for the guaranteed lifetime income writer. Because of these fees it's important that we make. The client understand the amount of safety provided by a variable annuity. And figure out if it's worth the extra fees. And number four annuities can cause tax problems. Out also OK and so on your house and so can taking money out of the 41 K. You you don't pay money on a new lady until you start driving income from. So let's talk about this if you have a forum KR 457. Or an IRA. Those funds can be transferred. Into an annuity tax free. So imagine a low clouds in the sky and it goes from the IRA clout of the borrowing K cloud over to the annuity cloud you're not taking any money out you're not cash and so you don't pay tax on. Does move it to another clout. Now Roth IRA annuity. Is as long easier keep the money in the annuity for at least five years before you take you withdraw. It doesn't take any withdrawals before 59 and a half the withdrawals are interest credit they can be completely tax free however. As with all Marat firings in corporate retirement plans win you ultimately take with draws that's when they're taxed as ordinary income. So if you don't take money out so you're seventy. You get to be taxed on whatever the radio is when you're seventy. Pins on how you see the market and on the seat things are gonna change do you think it you're going to have higher. Income tax brackets when you're retired making less than ten typically not. But some people believe that the sky's falling and next you're gonna have a 200% tax okay well that's not gonna happen but if you believe that they knew better pay tax on now you might wanna mix the two together that way you're paying some taxes now when you're younger. And sun taxes when your older. You gonna talk to your CPA we're gonna make sure your CPA and you agree on what you wanna do now I can put you in that product. Per regulars Sabine. Which is called non qualified money that means money that I save dad that I maybe got 101000 or 20000. In my savings account and now I decide I want to buy an annuity. This is the tax deferral. That means that tax deferral. Means you can control when you take. That taxes. By controlling when you take the withdrawals. Unlike direct stock investments annuities to knock off by for capital gains tax. So educate you about the annuities structures the timing of these structure all these are important. Things that I need to explain to you both so you can make the right decision. There is not just one way to do it is there's a million different ways and lady. Out there this is not something that you cannot an instinct I have charts I have grass I've got forms we can figure this out together he gets it I'm not a numbers person. You don't have to be a numbers person you have to be able to read it. Let me draw little charts. And ask you simple questions lie to you wanna pay your taxes. Right now. Do you wanna pay taxes on the money later most people say it later is better all depends on your point of view it depends if you're working or not. A lot of a lot of people have to think about is different ways so there again there is no right way or wrong way to buy an annuity that. The question is. Or your job or personal security to provide income for ever and yes long term care also has writers on it. That if I don't use my long term care policy it turns into a life insurance policy upon my death my kids getting so all of these things do have. Extra riders on them and if you have an annuity now. And you don't like what it's doing or you been given an annuity by a parent that is deceased. Or family member that is deceased or a spouse that is deceased and is now you're annuity. Let's take a look at it and see if we can turn it into another kind of annuity that might fit your needs better. Yes there are long term care annuities and term policy. On annuities they have different writers on the do different things. This is a very sophisticated product but it's very simple to understand. Everyone is different. And if someone says I invested in an annuity and I lost money. And I had to take a loss on it they're not telling you the total truth maybe they needed that money and they took it out of the pages surrender charge. There's a chart with every new agents and if you take the money out early. Two years early three years nearly four years early. This is the penalty. That she won't pay much you pay a penalty but things happen. Sometimes you think you have lots years that you don't need the money in something changes dramatically in your life to make you change. When you need the money. Okay that's no one's fault let's stay. On this side an era on the side of caution and think chewing things that you like and understand and can. Make money doing my name is Debbie Lewis and this is what I do email me at Debbie at Debbie Lou. Early show. Dot com for more information and we'll be right. Hi this is Gordon Deal join me weekdays 4 this morning America's first news to hear the stories you'll be talking about and searching for all day as we go beyond the headlines and above the chatter weekdays at five on talk thirteen seventy. They vehemently ball late in Europe with the three mart and you tell me. With insurance quotes tell me what your job is there premarket why you're so he need to have a ram. Okay three are clear what caused an insurance marketing organization our workers general agency. And my job is to help Maureen and financial advisors I'm not try to. He would act that they product. About sixty different insurance company has been you know. Capital than prospect of peace for life long term cure it the ability unanimity. And that my job is to help. Beat financial partner on the lead product for their client. And and why is it it's so important an independent I've always said you know is whether you're buying insurance from independent players and or. For Matt captive market there's a big difference because I call you. You'd shop all the quotes for me. And that's why Sarah. That's correct sell well eight in New York light earned Northwestern Mutual or what we thought captive agent. Has the ability to go outside to. And peace song that meant it might not be with all the companies because they're organization might limit the amount of companies that they can get bitten split. Ended their ability to keep their jobs that is dependent I'm. How much. It is they do with the company didn't believe that. So while it's not the only company that you don't see a big debt and we edited and hit the coaching in met company's products. And Middle East there's a product it better for the client. At a outside the that they might push you toward the product that not. But most beneficial for you. One of the things that's come and I know we weren't gonna get into this in the call bit but the Department of Labor is said that we need to have a fiduciary duty and it's easy for me to have that because. I'm independent I don't care which company you did your policy with as long as you like it I get paid the same everywhere. But if I was a captive agent with a private company. Then I get more bite sell different policies in their eyes fell other companies so it's really easy for me yet. Tend to be a fiduciary in and you're a big part of valley. The and and that who are important to do business with people that have designation. What he would say charter holder on field used her older I have my HSB. And those professional designation such as the CFP. All due to that will be entered already. 08 age it indeed goes without saying that though. You would like to look out for those that the people that you knew but that's what. And that means I've been doing and how long but a lot of the private companies they don't work quite like that so it's it's a huge deal this year with a captive agent. It's not a huge deal if you've already been independent as we've already been doing it. It OK so when I call you a lot whenever anybody else cause you. What are the most popular products that are out there now what are we all asking for a what do our clients need to think about. Well I mean I want to thank the people really need to think about now as you are living longer you're in the United States than what people are dying young is. Taking care of themselves and their voltage. So long term care in the long term care people the numbers say now that about 70% over the people over the age of 65. In any uncertain long term care circuits. And for bill that would be about 2.2 years that the average or they're you know the three point one year. And if you look around and it caught the upright at Lauren. I hear enough ground and you've been in the city at eight it's about a 100000 dollars a year from writer's room. If you more world you're looking at somewhere between seat you know 100000 dollars if you put that out for three or five years if you get alzheimer's they could be that this tank you're. They added more money than most people have made up for retirement. If you haven't put. Port eight portion of your income. Here you take here in long term journey in the future that you're really out hitting a 100% of your income and act that put an end up happening. And most people do not want your happy spend down their app that indeed genetic equal that they employed it. Does that mean a Medicare mama's gonna have different hair and beyond came in different places him basically had the will the government. And I don't think anybody wants that he will we know I think you look well what are some of the things that I NGU. Every time. Animation that I need to. Burden. Important you know in all your agent forward and know what you're looking at copper now. I act without a 100000 dollars and a day and the number six years 78. You don't have to cover all of that you can congress some ability your app that he he covers the whole bit. You know. And had to kind of like a deductible if you get on your health insurance where you have some money the first day 60000 covered by a long term care. And another 3040 at the proper goodbye. You know I acted that you can out though. It is important and the earlier you get the better now you probably. Well the product don't really fits the community is already. You kind of want to be a big body in your early fifties. That but it never too late and even in you're sick even he's avenue that you're getting how. There are things that you can be a big east lovers for a long term care they're now annuities with long term care there's like this you're that long term care writers. And their you know traditional want to hear any of these were hyper product which are very popular nowadays as. Now the hybrid products is what I use a lot because I'd seen the light. I wanna win it in there is either site he's claiming the hybrid product in and while I got some minds. Sure so traditional long term care patent number of issues associated with that is what people are more familiar where. But that is product that every major issues. That all the Powell he would not. The ukrainians and I guarantee that act yet they didn't eat at the instructor out literally hit your great accurate diary that your boat he just happened. It attacked this. And a lot of companies have been doing that and a lot of companies have been. The leading the traditional market place there wouldn't be too long term care insurance is a relatively new kind of in certain insurance market world. And they like that they Eaton avenue as work started. And the company to rapidly under estimated the cost of medical inflation and how many people were gonna continue to hold on of these Powell is. What they've been doing it they have been making any money. To that had to raise rates when you're seventeen years old when you can't afford it that you're already have a long term care. It is a big problem because when they get older. There they're running out of money anyway. That is correct so not a second at the second problem and if you you if you want to cure all being apparently short thought out policy year. India are to end it. Top 30203040. Years and then you make some money there is no return a pretty there's no cash about that and other. The third and last album tradition long term care is if I go ahead and I think. And it never you long term care isn't what Batman and associated with the these are going to benefit products are. Have put together to solve those kind of prop it it if you're good morning to you might evidence he the year candidates get into money. You know some money that you might have. But you kind of need. And it it you. You know at that benefit is keeping levers a or a foot long term care. So what you've been happening return premium function you get your money back well there's certain money years. Early and he. Hot spot in the market right now. You know people out there and it certainly is money certainly hurt the knee and why you're matters or one America. It is a major carrier there so tortured market what the book the ones that are in Tibet and at the forefront of what's going on in that market. I think though one that I've written lately are one America and we use Cindy knows quotes you. I trust you have done a lot of the shop inform me and you can look at this and they want this streaming an amazing maybe 2000 dollars higher. Or whatever there's different parameters on that and we also talk about different writers that the company had now tell us about some of the riders and YE. You or me decide to light some of those riders better than others. Knowing that picture right. And so an addiction didn't demand they're gonna be it won't be indemnity there is something to reimbursement. Well it real simple that there are predicting reimbursement Ryder eutectic good fit. And show. If this show. Cost so you're gonna show you spent. 234000. Dollars on long term care. And you can get reimbursed from the company in indefinitely writers a little bit different. If you can't do you know sort picked activities of daily living former. Long term care you know your tradition cultures of long term care but they're gonna just do it in the go ahead and and send you to check. Where all the work with a different this coming out of might insure it's really important to note the differences between the true long term picture right here. Went public chronic illness turned accelerated the Ryder. So a lot of companies have. Bottom writers on there there like insurance I'll eat better they call them reliance. Because while they're doing and they're tolerating the portion of your depth and who do you mind. I need to hang up our sport it you want 5000 dollars a town about an hour they might take fifteen or twenty or 30000 topic that benefit. Because they're accelerating it or not foresee your debt benefit and leaving united under the law. We added significant back in caught a true long term chair right here. Is it the fact that that need it not to. Probably eating long term future it's unfair insurance like that is. No direct dollar for dollar opted out and it's and a lot of differences there there's a lot of that what did I. Eagle on and off plane. Victory it eat you opted to get the money that he's been pretty permanent war it is indeed be Kapalua where you can't get back get back got. That's really important work that somebody you don't get elected. Big power all the lies you. It's important that we know that these writers are out there because there's still some long term care policies laid it. They don't have any writers for this they're just long term care if you don't use it elusive. And and and a lot of people hapless intern all is that doll better copy you're told that don't have these Ryder jailed. That it would only benefit of the traditional long term care that's great and there are you don't plus and minuses about all of those. I usually not in my opinion by eight permanent life insurance policy. Nowadays without a liar on it for long term care you know it definitely taught more to get my concern like that. They like it had a tremendous value associated lit bit and you're protecting yourself against something that virtually all of us and sit in the future. Juan that's just it I think a lot of people don't wanna make this decision or look at it I think almost the quotes have been saying you slightly. My clients are on our fifties and it's Mets less expensive and our fifties and only guitar seventies if you have more questions you know you can always email me at Debbie add Debbie Lewis showed dot com and we'll be back with more of my show in just a few moments this is Debbie Lewis thanks for listening. Keep up with the latest breaking news in Austin and around the world. Take a moment to make sure you're following us on Twitter at top thirteen seventy elevenths waiting began. Just one more way to stay connected with top thirteen cent indeed the right choice. We do better in life and be happier healthier analysts stressed. When he gives thanks for everything attitude of gratitude is helpful for mental health. What article I read this we talked about gratitude it has been said it can do wonders for your health resurgent. Research holds and I think full attitude can improve sleep. Self esteem reduce pain alleviate anxiety depression and increase your overall satisfaction with life. Oh my gosh sign me up this season lucky appreciation color your world. Think all the things that your grateful for meditate and focus on his her creativity. Articles. That spurred me on find more about gratitude. The benefits of practicing gratitude or nearly endless people who regularly practice gratitude by taking time to notice to reflect upon things are thankful for. Experienced more positive emotions feel more alive sleep better express more compassion and kindness to even have stronger immune system. In gratitude doesn't need to be reserved for only. Momentous occasion shirt he might express gratitude after receiving a promotional work if you can also be thankful for something as simple as a great piece of pie. Thanks there's a new science of gratitude to can make you happier this is research done by UC Davis psychologist Robert Emmons. He did it showing is simply keep beating gratitude journal regularly writing brief reflections on moments of which we're thankful. Can significantly increase your wellbeing and my satisfaction. And we all want that. You think it just that one of these findings as compelling enough to motivate you to angry dis an action. But if you're anything like most people this motivation lasts only about three days until riding in your gratitude journal every evening loses out to watch Tina. Something on Netflix so here are few. Keys that he is discovered and research supports that Apple's not only start a gratitude practice but maintain it for the long haul. Number one freshen up your things the best way to reap the benefits of gratitude. It's known as the new things are grateful for every day and gratitude journal works because it's slowly changes the way we perceive situations by Justine Elmo we focus on. When you might always be thankful for your great family. Just writing I'm grateful for my family week after week doesn't keep her brain on alert for fresh grateful moments get specific are writing. Today my husband gave me his shoulder rub when I knew he was really stressed or my sister invited me over for dinner so I didn't have to cook over a long day. Be sure to stretch yourself be on the great stuff right in front of you opening your eyes to more of the world around you can deeply enhancer gratitude practice. Making game at a noticing new things each and every day. To get real about your gratitude practice. Being excited about the benefits of gratitude can be a great thing because it gives us the kick we need to start making changes there's all of our excitement about sleep being. Better because of our new found gratitude keeps us from anticipating. How hard will be tomorrow night and we attempt to journal. Or are likely to fumble and lose momentum. Well we want to do is to achieve a goal in using the tick me of mental contrasting. Being optimistic about the benefits of a new habit while also being realistic about how difficult Dylan had that may be believed this to exert more effort. For instance if you tend to be exhausted at night except that it might not be the best time to focus on a few extra minutes in schedule your gratitude in the morning instead. Next to make things illness funded by mixing it up. Researchers spam on that intrinsic motivation which is the deep desire from within two persists on task. What are the biggest determinant in is a time me the ability to do things the way we won two. So don't limit yourself internally feel stale try out new and creative ways to track you're grateful moments. Some people put little nodes in a jars some people journalist you surely you can see the mall and you can see how you progress that's what I like about journal. These social about her gratitude our relationships with others are the greatest determinant of our happiness. So it makes sense to think of other people as we build our gratitude list. Robert admin suggested focusing our gratitude on people for him more things fall. Residents circumstances or material items will enhance the benefits we experience so wall or out it. Why not include others directly in your expression of gratitude. Maybe sending gratitude letter. I know that's different but she can do it tell people each and every day which are thankful for when they do it after they do it. Word just to sum up the week it's a great way to keep yourself centered and stress free they said you can't be angry angry politics. Let's just concentrate about being happy and grateful Shelley. Go to the website I'm blogging Debbie Lewis showed dot com. Texas weather can change on a dime. It's. Doing here shortly. When the weather turns severe. Turned to us for what you need to know on air and online at top thirteen sending dot com top thirteen seventy the right choice. This is your favorite shows keep up with the latest breaking news and mark anytime at sock thirteen seventy dot com sock thirteen seventy ranked choice. I thank all of our guests for being with us today that leaves only with long term care. He's my go to guy with free market. They're an insurance Clarence House though what that means is I get to call them with your basic information he helps me shop for the best rates. On all types of ventures term long term care really anything you're looking for to protect you in your family in the long run. We also covered gratitude I talked about a new ladies and duties are really easy to understand if you more questions please don't hesitate to email me. That email addresses Debbie ads Debbie Lewis show dot com or you can log on my website Debbie Lewis show dot com. Where you're gonna find out blog yes I do blog. Lots of articles about annuities and long term care insurance and mortgages are decided investments that I do and a lot of video as you can find out about me there as well. We talked about reverse mortgage. That is a great way. To find it. A way to get to the money fits inside your home. Yeah it is really hard to do I cash out refinance and make that payment every month so reverse mortgage is something that we talked about the went to FHA. That is a great way for you to access that Moneyline a creditor take money out. And do every wallet that you can pay off bills he can take trips you can investing your kids' college education it's about anything you can do if you have questions about that call me as well. Next week on the show Howard Todd is going to be back with us and we're gonna talk. Insurance business insurance if you're small business here in town could you trust. My insurance guy he's the one to trust Stephen Ehlers is with us he is gonna talk about the Texas tax back program. That's a way for seniors to defer their property taxes even further until they passed a law allowing all life insurance product to pay off that and believe that a nice sum of money for their and their estate or beneficiaries. We're also gonna talk about the five steps to be financially. Safe and secure in your future. I know you think we have a down by now when I first got under radio iPad has to be easy I talk for a few months. And get everybody lined out and ten years later I'm still working on how to make sure everybody knows what to do with their money. And help you if you get behind the eight ball. Things happen and I hope he provides. For yourself your future south with your current so that's always that attracts my name is Debbie Lewis thanks so much for being with us and we'll see next week right back here on the station's. Thirteen seven. 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Are you still paying property taxes are you or your spouse 65 years or older do you own and occupy your home stand. Are your total property taxes 2000 dollars or more per year if you answered yes to these questions you can probably qualify for the Texas property tax that program. Call today for your free personal briefing on this program called Debbie Lewis today at 9792203018. That's 9792203018. My insurance products are offered I'm married to sell life insurance corporation Lincoln Nebraska. America's life is not affiliated with the Texas property tax back program nor does it endorse or evaluate program including its effectiveness. The Texas property tax back program is not affiliated with the state of Texas agents cannot provide you any legal financial or tax advice that Texas can expect program does not work for every one. There's no cost or obligation seed Texas. Property tax like program a suitable for you. Get the latest business news from CNBC. 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