Prince Had No Will For 300 Million Dollar Estate
It sounds unthinkable and impossible that Prince did not have a will for his 300 million dollar estate, but half of you reading this right now do not have a will in place either. If you were to suddenly die—and the statistic is that 55% of people have no will when they die—would you be prepared? More importantly, have you considered how expensive it can be for your family if you leave no will or estate planning documents, even if you have very little money to your name?
Very expensive is the answer.
It seems like the exact last thing to worry about because hey—if you die you die. You may think, “What is worse than that?” Let us tell you what is worse. Leaving things unhandled, like being in debt. Leaving a confusing, legally complicated situation exacerbates the untimely death of a loved one twenty-fold and makes the sudden grieving process and ensuing years of family relations potentially strained to complete disaster. We have heard of siblings who hired hit men on each other because their father’s will was not clear. Even when very little money was at stake, we have heard stories of families who never speak to each other ever again or who gain deep battle wounds from the unforeseen events that occur after a death in the family, especially if it is sudden.
We cannot stress enough how important it is to have your affairs in order at all times. Not only does it bring you peace and equanimity in the face of the unknown, but it leaves your family, loved ones and heirs in a state of clarity as well. Insurance is about protecting yourself and your loved ones in the event of the unknown, and this includes what you leave behind beyond just the financial aspect of your legacy. It is about having your affairs in order on a legal level so that there are no hold ups, expensive attorney fees, court fees, taxes, hospital bills, and many other unexpected outcomes. It is difficult enough when it is done right, but any mishandled or unhandled business can cause years of expensive delay.
Please do not be like Prince and assume that it will be handled correctly after the fact. Your hard work throughout your life should be honored and protected.
MYGA’s On The Upswing
MYGAs are a multi-year guaranteed annuity that has a guaranteed fixed interest rate for the term of the contract. They are very similar to a CD but instead of giving your money to a bank, you are giving it to an insurance company.
The MYGA's we recommend run from three to seven years and pay a significantly higher return than a CD (see the chart below for the current rates). Some also come with very flexible rules for taking money out before the end of the contract term.
The following listed rates are for MYGAs with an A-rated company we know and trust called Manhattan Life. For people who want no risk, here is what a MYGA can do compared to a CD.
Currently as of 5/2/16:
1-year CD: .28%
5-year CD: .83%
Money Market: .11%
3-year MYGA: 1.8%
5-year MYGA: 2.85%
7-year MYGA: 2.95%
Update on Medicare Supplement Plans
Plan F vs. Plan N
As Medicare rates continue to rise, people are looking at alternative plans to the Medicare Supplement Plan F. Plan F covers the client 100% for out of pocket expenses as long as the provider is contracted with Medicare. Clients tend to be very happy with this plan and appreciate not getting doctor or hospital bills.
Plan N is similar to Plan F but does not cover the Part B deductible of $166, the Part B excess charges of 15% and you are now responsible to pay doctor visit copays of $20 and ER copays of $50.
Plan N is less expensive, but at the end of the year you might not have any actual savings if you have to pay a lot of excess charges, co-pays and a deductible. This is where Medicare can get tricky. Call us at (424) 288-4254 or schedule an appointment online at twpfinancial.com/schedule to talk about your situation. As always, there is no charge for our consultation services.