Are you a business owner needing to Turbo-Charge your retirement plan?

TurboCharge your 401k Plan


Give my office a call at 215-886-2122 to have a conversation about the process.

2019 Important Numbers


Estate Planning for Everybody

If you think estate planning is only for the very rich, you’re wrong.

Taxes certainly are higher for large estates but they are not the only reason for estate planning. Here are seven more, some which may be just as important to you:

  1. To plan who receives what size share of your assets.
  2. To decide how and when your beneficiaries will receive their inheritance or income.
  3. To decide who will manage your estate (executor, trustee, etc.) and be responsible for distribution of the assets.
  4. To reduce estate administrative expenses and delays.
  5. To select a guardian for your children.
  6. To provide financial management for funds that may pass to grandchildren.
  7. To provide for the orderly continuance or sale of a family business or real estate investment property.

If you do not have a plan, state laws will determine who inherits your assets and when they receive them. The court will appoint a guardian for your children and the administrator for your estate. Your estate could wind up paying substantial – and unnecessary – taxes and administrative costs.

Most people feel strongly about who should inherit their assets and when. However, they are often less sure about what to consider as they select an executor and trustees. Your executor is your personal representative after your death and is responsible for such functions as:

*    Administering your estate and distributing assets to your beneficiaries.

*    Paying the estate expenses and any outstanding debts.

*    Ensuring that all life insurance, employee benefits and retirement plan proceeds are received.

*    Filing the necessary tax returns and paying the appropriate federal and state taxes.

In short, your executor administers your will. When these duties are met, the job ends. However, if your will creates trusts to accomplish more long-term goals, you need a trustee. Your trustee is responsible for managing the trust’s assets and ensuring the beneficiaries are provided for in accordance with provisions of the trust. Individuals are often torn between choosing an individual as the executor or trustee and naming a corporate entity, such as a bank. Many people name both as executors or co-trustees. Here are the advantages and disadvantages of each.

Corporate executor and/or trustee, advantages.

*    Specialist in handling estates and trusts.

*    No emotional bias. Impartial and usually free of conflicts of interest.

*    Never moves or goes on vacation.

*    Never dies or gets sick.


*    Usually has little familiarity with the family.

*    Administrative fees may be higher.

*    Rarely will continue any family-owned business.

*    Rarely maintains real estate requiring management.

Individual executor and/or trustee, advantages:

*    More familiar with the family.

*    Administrative fees may be lower.

*    May be familiar with family business interests.


*    Probably not experienced in handling estates and trusts.

*    Could have an emotional bias.

*    May not be impartial toward all heirs.

*    Could have schedule conflicts.

*    Could be incapacitated at times.

Consider a living trust

A living trust (also known as a self-declaration or revocable trust) is a legal document that resembles a will. It contains instructions for managing your assets should you become disabled and directions for the distribution of your assets upon death.

Living trusts have two major benefits. Assets in a living trust do not go through probate, which is the process of proving and administering a will under the jurisdiction of a court. It can be a time-consuming and potentially expensive process. It also subjects your private financial affairs to public scrutiny. All probate records are public documents!

A living trust provides a perfect vehicle for managing your assets in the event of a disability. While you are alive and well, you can act as your own trustee. In the event of disability or death, the successor trustee that you selected takes over.

Estate planning may include establishing a lifetime gifting program, making the most of the unified credit or considering charitable trusts.

Before you sit down with an estate planning attorney, take the time to get educated. One book that you will find very helpful is J.K. Lasser’s “New Rules for Estate and Tax Planning.”

If you are not confident all is in order, seek professional advice to alleviate potential problems down the road.

Chronic Illness Benefit – Does Your Life Insurance Offer This Benefit?

Does your life insurance policy offer this benefit at no additional cost:

How the Rider Works

A portion of your policy death benefit may be paid to help you and your family cope with the strain of a chronic illness if a U.S. licensed healthcare practitioner who is not the insured, policyholder, beneficiary or relative thereof, has certified in the last 12 months that the insured:

  • is unable to perform two of the six recognized activities of daily living (bathing, continence, dressing, eating, toileting, and transferring)without substantial assistance for a period of at least 90 consecutive days, or;
  • has a severe cognitive impairment that requires substantial supervision by another person to protect the insured from threats to health and safety for a period of at least 90 consecutive days

To receive benefits under the rider, the healthcare practitioner must also certify that continuous care in an eligible facility or at home is expected to be required for the remainder of the insured’s life.

Want to do a Life Insurance Review give our office a call at 215-886-2122.


Longevity Risk: Have you planned for living too long?

You have heard of Market Risk, Inflation Risk, Interest Rate Risk and a few others but have you made plans for just living way too long?

The question of how much money is needed in retirement leads to another question which is perhaps the most difficult and the most central issue you as the advisor face when helping your clients prepare for retirement: How long should you expect clients to live? What is their longevity risk? Getting this variable exactly right is virtually impossible. Getting it wrong can have a profound impact on a client’s quality of life, lifestyle, and legacy.

Will you live to age 85? 90? 95? 105?

Longevity Risk Defined

So what is longevity risk? Longevity risk is the risk that people on average will live longer than expected. Due to improvements in medical technology, nutrition, disease control, public health, and environment, human life spans have improved very rapidly and very significantly. The National Center of Heath Statistics reports that between 1975 and 2016, life expectancy at birth increased from 72.6 to 78.8 years for the total U.S. population. For males, life expectancy increased from 68.8 years in 1975 to 76.3 years in 2016, and for females, life expectancy increased from 76.6 years in 1975 to 81.2 years in 2016. You can view the report at:

The problem is that many individuals underestimate their “average” life expectancy. In fact, according to a study conducted by the Society of Actuaries (SOA), titled Risks and Process of Retirement Survey, they reported that almost half of retirees and pre-retirees in the U.S. under estimate average life expectancy. The study asked respondents about their views respecting longevity risk. Here are some of the results:

  • Approximately four in 10 respondents (43% of retirees and 38% of pre-retirees) underestimate average life expectancy by five years or more, the report Another two in 10 underestimate it by two to four years;
  • Four in 10 retirees (42%) and pre-retirees (41%) correctly respond that about half of 65-year-old men and women can expect to live until median life expectancy (age 83 for men and age 86 for women). Two in 10 (21% of retirees and 20% of pre-retirees), believe that fewer than half will live at least until that age, while approximately one-third (31%), and 36%, respectively believe about 75% or more will live until then;
  • Typical retirees and pre-retirees see themselves living until age 84 (median for retirees) or 85 (median for pre-retirees). The report notes, however, that one- quarter of retirees (24%) and almost three in 10 pre-retirees (28%, up from 15% in 2005) think they will live until age 90 or later; and
  • At the other extreme, one in 10 retirees (9%) and pre-retirees (10%, down from 16% in 2005) do not think they will reach age 75.

Of course, averages alone don’t tell the entire story since once we reach our retirement years, the chances of surviving for another 20 to 30 years are substantial. In fact, as we survive each stage of life and the associated risks, the odds of us surviving to higher ages increase.

Figure 3.1 shows the life expectancies of 65-year-old Americans. According to the Social Security Administration mortality tables, a 65 year-old man has a 22% probability he will live to age 90, while a 65 year-old female will have a 34% probability she will live to age 90.

Figure 3.1

Probability of Today’s 65-Year-Old Living to Various Ages

65 Year-Old Male 65-Year-Old Female 65 Year-Old Survivor
Age Probability Age Probability Age Probability
80 61% 80 71% 80 88%
85 41% 85 54% 85 73%
90 22% 90 34% 90 49%
95 8% 95 6% 95 23%

Source: Social Security 2010 Mortality Tables with 1% mortality improvement.

Why not give our office a call and let us explain how to get ready for Longevity Risk.  Call 215-886-2122 and we can show you how to plan for life.