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When learning about annuities, it’s common to come across the terms “qualified” and “non-qualified accounts.” A qualified account is connected with an Individual Retirement Account (IRA) and Tax Sheltered Accounts such as 401(k) or 403(b). These accounts receive tax-sheltered status, meaning that the money invested in them has not yet been taxed and won’t be taxed until it’s withdrawn. However, when the money is withdrawn, it will count as ordinary income and will be taxed as such.

A non-qualified account, on the other hand, is an account where the principal monies invested have already been taxed and won’t be taxed again when the principal is withdrawn. The gains, however, on the account will generally be taxed as ordinary income when withdrawn.

Knowing the type of account you have is important not only for tax purposes but also for other reasons. For instance, qualified accounts usually have contribution limits and early withdrawal penalties. On the other hand, non-qualified accounts typically have no contribution limits or early withdrawal penalties.

It’s important to note that qualified retirement accounts offer some advantages that investors should consider when planning for retirement. These advantages include compound interest and the potential to lower one’s tax bill. Additionally, contributions to a qualified retirement account may be tax-deductible, which can help reduce taxable income. Overall, investors should be aware of the type of retirement account they have and make informed decisions about saving for their future. As always seek a qualified advisor.

As we grow older, planning and setting aside money for healthcare expenses become increasingly important. In fact, individuals who are 65 and over typically spend almost 10% of their annual income on healthcare. This is a significant portion of their income and something that should be considered when planning for retirement.

AARP reports that 10% of Medicare beneficiaries spend more than half of their income on healthcare expenses. While Medicare can help cover some of these costs, it does not cover everything. For example, Medicare does not begin paying until after the $1600 deductible amount for 2023 is met, which applies to each benefit period.

Dealing with benefit periods, deductible amounts, coinsurance, and other details can be complicated. Therefore, I recommend keeping it as simple as possible.

Another important factor to consider is how you will receive your Medicare benefits. You can choose between original Medicare and Medicare Advantage plans. Although Advantage plans may seem cheaper, they can end up being more expensive in the long run since insurance companies are constantly seeking ways to reduce costs at the expense of their clients.

It’s essential to seek qualified advice when considering Medicare benefits to ensure that you make informed decisions that will best suit your individual needs.

First, it’s unlikely any sane politician would let the Social Security office run out of money. They’ll continue funding it for as long as they can print money.

Secondly, these are projections only and continue to be adjusted. The previous year’s projection was that by 2035 social security would run out of money but still be able to fund 80% of it’s obligations. They moved the projection forward one year, 2034, due to the pandemic related issues.

Finally, studying the report you can see some of their basic underlying assumptions, all of which are up for debate and change year by year. Such as, the fertility rate, 1.69. Important number to keep in mind since the replacement fertility rate is 2.1.

The health of the trust fund is something to watch and creates a lot of interesting political games.

Saying goodbye to close friends.
Thanking God for good memories of my dad.
Seeing my daughter get married.
Moving from a house of great memories into the next house with great expectations.
Winding down a good church and becoming part of another good church.
Moving from one profession to another, knowing it’s in God’s plan for me and my family.

It’s all bitter sweet, but one day, one day, our Father will take me from this life to the next and it will be sweet, just plain sweet, no bitterness, no regrets, no remorse just beautiful sweetness and I wait for it with anticipation.

Isaiah 25:6 On this mountain the Lord Almighty will prepare a feast of rich food for all peoples, a banquet of aged wine— the best of meats and the finest of wines.

“Israel saw the great power that the LORD used against the Egyptians, so the people feared the LORD, and they believed in the LORD and in his servant Moses.” v31

Exodus 33:18-23	Are we going to recognize the great power of the LORD, his holiness and except that HE is majestic beyond our understanding? When Covid 19 started I remember thinking it was like when Moses wanted to see God and God told him that no man can see him and live. However, he put Moses in a cleft of a rock and covered with him with his hand until he passed by. Are we going to acknowledge his holiness in the midst of this pandemic or is it ‘just’ a pandemic?
Exodus 26 v 31	The people feared the Lord – they were utterly hopeless without the Lord
	They believed in the LORD – the beginning of wisdom
	They believed in his servant Moses – by our faith we can influence others to believe in God.

It’s a personal thing! The purpose of this blog is to first encourage others by sharing insights. Secondly, as a personal hobby to develop myself as a writer. Finally, to help me identify a vocation I can align my personal gifts and talents with a Kingdom Minded Purpose. I call this my “sweet spot”, I want to hear the bat hit the ball and know that I’m hitting a home run.