HELPING YOU BUILD, PROTECT & PRESERVE YOUR ASSETS
You’re looking to build, protect, and manage your wealth to provide you the confidence your future deserves. Our financial advisors work with you every step of the way to deliver personalized wealth management strategies to help you tackle your financial goals. Our approach to planning is dynamic, and we update your plan as needed to reflect changes in your life.
You work hard every day to support your family and we want to make sure you are making the most sound plan for budgeting, insurance costs, planning for taxes, and saving for your future. This can be a lot to take on by yourself. The team at Berry Financial Group has a network of resources to help you develop a financial plan to allow you to feel stable in our ever-changing economic climate.
Your retirement should include some of the best days of your life, giving you time to spend with your friends and family and exploring new places and hobbies. We help you plan to make each moment count by giving you added confidence that your retirement savings will last.
Don’t put all your (NEST)eggs in one basket. You’ve got plans — a lot of them. Wouldn’t it be more fun to focus on your dreams than constantly worrying about what the market’s doing? Diversifying your retirement assets among a variety of vehicles — including a mix of both insurance products and investments, depending on what is appropriate for your situation — may offer you the best chance of meeting your retirement income goals.
Anyone who invests in the market should understand it involves potential risk of principal. So, to provide some security not found in the stock market, you may want to include some insurance products in your financial strategy. These products, such as annuities, can provide supplemental income throughout retirement and protect your money from declines due to stock market losses.
Fill the Medicare gap with supplemental insurance. Medicare provides a certain level of coverage for your medical expenses, but it won’t cover all expenses. Medicare supplement insurance plans are designed to help you cover certain charges, or “gaps,” that Medicare doesn’t cover, such as copayments, deductibles and coinsurance costs. These charges can add up quickly during sudden or unexpected illnesses.
Medicare supplement insurance covers expenses not covered in Part A and Part B such as acupuncture, chiropractic services, deductibles, coinsurance and copayments, dental care, eye exams, hearing aids, travel and prescription drugs.
Anyone who is eligible for Medicare and is enrolled in Part A and Part B may consider supplement insurance. Even if you are in good health and believe that standard Medicare will provide the coverage you need, it may be a good idea to purchase supplemental insurance. If your health status changes, your ability to enroll for supplemental insurance may be compromised.
Life is meant to be lived; cherish the exciting moments, and relish in those all too brief moments of relaxation. Berry Financial Group serves as a vessel to help our clients maneuver Medicare and avoid the confusions and frustrations that come with senior health insurance. So, sit back, relax, and read on – we’ve got you covered.
LIFE INSURANCE PLANNING
Life insurance isn’t for those who have died — it’s for those who are left behind. When shopping for life insurance, consider needs such as replacing income so your family can maintain its standard of living, as well as paying for your funeral and estate costs. A general rule is that you may want to seek coverage between five and seven times your gross annual income.
As far as the various types of policies go, they can generally be placed into one of two categories: term and permanent. Term insurance generally provides coverage for a specified period of time and pays out a specified amount of coverage to your beneficiaries only if you die within that time period.
In a level premium term policy, you pay the same amount of premium from the first day of the policy until the term ends. A permanent insurance policy, on the other hand, will stay permanently in effect for the rest of your life, as long as premiums continue to be paid.
Retirement is the day that your money works for you, instead of you having to work for your money. Ask yourself, “Will I have enough?” Figuring out the best way to make your savings stretch over the next 25 to 30 years can not only be confusing, it can also be overwhelming. But it doesn’t have to be that way. Insurance products like annuities can provide a steady and reliable income stream for the rest of your life, while investment products create opportunities for long-term growth. We can help you incorporate both in a financial strategy designed to put you on the path to the retirement lifestyle you want.
Each person’s idea of retirement is different. While some people will never quit working, others may slow down, and others will stop working completely. Some want to travel, others want to garden. Others want to turn a hobby into a new business. Regardless of your personal circumstances, we can custom design a retirement and income plan to suit you, keeping in mind that safety, growth and income are not mutually exclusive.
Retirement planning involves organizing your financial resources to achieve your goals at a predetermined time in the future. When developing a retirement plan, it is crucial to ensure that your company retirement plan or IRA’s, investments, income plan, risk plan, and social security are working together and not against each other.
Who will take care of you if you are unable to care for yourself? As the oldest baby boomers begin to wind through their 70’s, one of the biggest concerns may not be outliving income but outliving good health.
You never know what’s around the corner. We can help prepare you financially for long-term care services you may need so that a health crisis doesn’t derail your retirement savings. Considering that you could have to reduce your financial means before Medicaid will pay for long-term care and neither your employer group health insurance nor major medical insurance will cover long-term care, you may want to consider planning ahead for these potential expenses.
We can help evaluate your situation and determine if purchasing a long-term care insurance policy may be the right move to help you feel confident in your financial future
When major life events happen, such as birth, death, marriage, or divorce, it’s crucial that you have a relevant and updated estate plan. Estate planning is the preservation and the distribution of your assets, both during your life and upon your death. It is accomplishing your personal and family goals and easing the management of your financial and legal affairs, as well as minimizing taxes if your estate is large enough for taxes to be of concern.
When we talk about an estate, we mean all assets of any value that you own, including real property, business interests, investments, insurance proceeds, personal property and even your personal effects. An “estate plan,” generally, refers to the means by which your estate is passed on to your loved ones on your death, as well as appointing others to act in the event you become incapacitated.
SOCIAL SECURITY ANALYSIS
The Social Security program allows you to start receiving benefits as soon as you reach age 62. The question is, should you? From the Social Security Administration’s point of view, it’s simple: if a person lives to the average life expectancy, the person will eventually receive roughly the same amount in lifetime benefits no matter when he or she chooses to start receiving them. In actual practice, it’s not quite that straightforward.
There is no single “right” answer to the question of when to start receiving benefits. Can you afford to “retire early” and claim benefits at age 62, should you wait until your full retirement age, or can you wait until age 70 in order to receive the largest possible monthly benefit?
If you have a spouse, the decision about when to start receiving benefits gets more complicated (particularly if one person’s earnings were considerably higher than the other’s). The timing of spousal benefits should be factored into your decision.
Our Social Security Analysis software can help you figure out how much retirement income you’ll receive at different claiming ages using different claiming strategies and will suggest your optimal benefit age and claiming selection.
Delaware Statutory Trusts (DSTs) allow owners of real estate to sell their investment real estate and potentially defer capital gains taxes. DSTs are derived from Delaware Statutory law as a separate legal entity and formed as private governing agreements for the purposes of managing, administering, investing, and/or operating real, tangible, and intangible property; or business or professional activities for profit that are carried on by one or more individuals who act as trustees for the benefit of a party who is entitled to a beneficial interest in the trust property.
Though Delaware Statutory Trusts are not new, in 2004 the IRS came out with an official Revenue Ruling detailing how a DST could be structured in such a way that it would qualify as a property replacement vehicle for 1031 Exchanges. Well known to real estate investors, a 1031 like-kind exchange allows you to defer the capital gains tax on the sale of investment property by reinvesting the proceeds into a similar qualifying property.
As a result DSTs have become an investment vehicle for investors who want the benefits of owning real estate without becoming a “landlord”, as well as current real estate investors who no longer want the responsibilities of being a landlord.
HOW DO THEY WORK
A property is identified and acquired under a DST by a sponsoring real estate investment firm. The same firm, also acting in the capacity as the master tenant, opens up the trust for potential investors to purchase a beneficial interest. In this realm an accredited investor would have an opportunity to own a beneficial interest in a property that would normally be out of reach to them from an investment standpoint. Additionally, they would also benefit from a professionally managed property without any of the associated landlord responsibilities.
WHAT ARE THE BENEFITS OF A DST
- Receive passive income from real estate minus the work
- Own shares of major commercial real estate properties that currently produce income
- Cash out the equity on your highly appreciated property into an income producing property AND potentially defer your capital gains with a 1031 exchange
- Get the benefits of real estate ownership and income without the stress and hassles of property management
- Create an easily dividable asset for your heirs
Do you own highly appreciated investment property?
- Many people who own highly appreciated investment property feel trapped from cashing out due to the high tax bills they face on their gains. A DST qualifies as a 1031 like-kind exchange. That means you may be able to defer your tax bill AND still be invested in an income producing property without any property management responsibilities.
Are you interested in investing in income producing properties?
- If suitable in light of your other holdings and risk tolerance, a DST can be a great addition to your portfolio whether you are a seasoned real estate investor or new to investing in real estate. The sponsoring firms make it easy to choose from a portfolio of properties to find one that best suits your investment strategy. There are also opportunities to invest in properties that are currently producing income.
Are you a current landlord tired of the responsibilities and dealing with the Terrible Ts?
- A DST can be a great way to enjoy the benefits of real estate ownership without dealing with the Terrible Ts of being a landlord: Tenants, Trash, and Toilets. As an investor in a DST, you are not responsible for the property management. In fact, many of the properties have professional property management companies already in place so you no longer need to be involved in the upkeep and maintenance.
Are you looking for an easily divisible asset to leave your heirs?
- Owning property can be a wonderful investment but challenging to split up amongst loved ones. A DST is a real estate investment where you buy a fractional ownership interest that can be easily divided amongst your heirs avoiding potential family squabbles.
Did you just sell your highly appreciated investment property and can’t find a like-kind replacement?
- A DST qualifies as a like-kind 1031 exchange, so if you have sold your property and are almost out of time to find a suitable replacement, you can invest in a DST and defer your taxes on the gains. When it comes to investing in real estate, finding the right property is crucial. Don’t rush into it just because you may be running out of time. Invest in an income producing property that qualifies as a 1031 like-kind exchange.
What would be a reason not to do a DST?
- Liquidity – You are not in control of the decision as to when the assets will be sold. If you need liquidity in less than 10 years from your real estate investments, The DST may not be a good alternative for you. Many investors however wish to keep their 1031 exchanges going until there is eventually a step up in basis. Also, you may not be ready to retire from building your real estate empire. For instance, if you are younger and a successful real estate developer, you may have a much higher potential investment return continuing your building of real estate equity as an active investor rather than as a passive investor using the DST.
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Investment advisory and financial planning services are offered through Alphastar Capital Management LLC (“Alphastar”), a SEC registered investment adviser. Hollifield Financial Group and Alphastar Capital Management, LLC are separate and independent entities. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Hollifield Financial Group offers insurance products through individuals licensed to sell insurance. Comments regarding guaranteed returns or income streams refer only to fixed insurance products offered by Hollifield Financial Group and, unless specifically stated, do not refer in any way to securities or investment advisory products offered.