Anis HAMDANI on LinkedIn: Shariah-compliant annuity contracts are financial arrangements that adhere… (2024)

1. Principal Protection: Indexed annuities offer a certain level of principal protection, meaning that your initial investment is guaranteed not to lose value, regardless of market fluctuations. In contrast, traditional IRAs and 401(k) plans are subject to market volatility and may result in the loss of principal.2. Guaranteed Minimum Interest Rate: Indexed annuities typically offer a guaranteed minimum interest rate, ensuring that your investment will grow over time, even if the market performs poorly. This provides a level of security that may not be available with traditional retirement accounts.3. Tax-Deferred Growth: Similar to traditional IRAs and 401(k) plans, indexed annuities offer tax-deferred growth, allowing your investment to grow without being subject to income taxes until you make withdrawals.4. Opportunity for Higher Returns: Indexed annuities offer the potential for higher returns compared to traditional fixed-rate investments, as they are linked to the performance of an underlying index, such as the S&P 500. This can provide the opportunity for greater growth over time.5. Flexibility in Payout Options: Indexed annuities offer a range of payout options, including lifetime income streams, which can provide a steady stream of income in retirement. This flexibility may not be available with traditional IRAs and 401(k) plans.6. Estate Planning Benefits: Indexed annuities can offer potential estate planning benefits, such as the ability to pass on assets to beneficiaries without going through probate. This can be advantageous for individuals looking to leave a financial legacy for their loved ones.

1

1 Comment

"Navigating Uncertain Times: The Importance of Savings in Today's World"In an era marked by economic volatility, global uncertainties, and unexpected challenges, the need for financial preparedness has never been more critical. As GPI Europe, a leading financial advisory firm, we understand the significance of having savings in our times. In this article, we'll explore why it is vital to prioritise savings as an essential component of your financial strategy.Emergency Fund: Your Financial Safety NetIn today's world, the unexpected can strike at any moment. Whether it's a medical emergency, sudden job loss, or unforeseen repairs, having an emergency fund can be a lifesaver. An emergency fund is a dedicated pool of money specifically set aside to cover unexpected expenses, providing you with peace of mind and financial stability during challenging times.Protecting Against InflationInflation erodes the purchasing power of your money over time. Prices for goods and services tend to rise gradually, and without adequate savings, your ability to maintain your standard of living can be compromised. Savings allow you to stay ahead of inflation by preserving your purchasing power and ensuring your financial well-being in the face of rising costs.Achieving Financial GoalsWhether it's buying a home, funding your children's education, or planning for retirement, achieving your financial goals requires diligent saving. Savings serve as the foundation upon which you can build your financial aspirations. By setting aside a portion of your income regularly, you create a pathway to realizing your dreams and aspirations.Opportunities and InvestmentsSavings not only provide security but also open the door to investment opportunities. When you have savings, you can explore investment options that have the potential to grow your wealth over time. From stocks and bonds to real estate and retirement accounts, having savings empowers you to make informed investment decisions and build a brighter financial future.Retirement PlanningAs life expectancy increases, planning for retirement becomes increasingly important. Government-funded retirement programs may not be sufficient to maintain your desired lifestyle during your golden years. Building a robust retirement nest egg through savings and investments is essential to secure a comfortable retirement.In a world characterised by uncertainty, having savings is a strategic move towards financial stability and peace of mind. GPI Europe, as your trusted financial advisors, encourages you to prioritise savings as a fundamental pillar of your financial plan. It serves as your financial safety net, protects against inflation, enables goal achievement, reduces stress, and paves the way for future opportunities. Start building your savings today to secure a more prosperous and confident tomorrow. Your financial future depends on it.#gpi #savings #inflation #money #finance #investment

"Navigating Uncertain Times: The Importance of Savings in Today's World"In an era marked by economic volatility, global uncertainties, and unexpected challenges, the need for financial preparedness has never been more critical. As GPI Europe, a leading financial advisory firm, we understand the significance of having savings in our times. In this article, we'll explore why it is vital to prioritise savings as an essential component of your financial strategy.Emergency Fund: Your Financial Safety NetIn today's world, the unexpected can strike at any moment. Whether it's a medical emergency, sudden job loss, or unforeseen repairs, having an emergency fund can be a lifesaver. An emergency fund is a dedicated pool of money specifically set aside to cover unexpected expenses, providing you with peace of mind and financial stability during challenging times.Protecting Against InflationInflation erodes the purchasing power of your money over time. Prices for goods and services tend to rise gradually, and without adequate savings, your ability to maintain your standard of living can be compromised. Savings allow you to stay ahead of inflation by preserving your purchasing power and ensuring your financial well-being in the face of rising costs.Achieving Financial GoalsWhether it's buying a home, funding your children's education, or planning for retirement, achieving your financial goals requires diligent saving. Savings serve as the foundation upon which you can build your financial aspirations. By setting aside a portion of your income regularly, you create a pathway to realizing your dreams and aspirations.Opportunities and InvestmentsSavings not only provide security but also open the door to investment opportunities. When you have savings, you can explore investment options that have the potential to grow your wealth over time. From stocks and bonds to real estate and retirement accounts, having savings empowers you to make informed investment decisions and build a brighter financial future.Retirement PlanningAs life expectancy increases, planning for retirement becomes increasingly important. Government-funded retirement programs may not be sufficient to maintain your desired lifestyle during your golden years. Building a robust retirement nest egg through savings and investments is essential to secure a comfortable retirement.In a world characterised by uncertainty, having savings is a strategic move towards financial stability and peace of mind. GPI Europe, as your trusted financial advisors, encourages you to prioritise savings as a fundamental pillar of your financial plan. It serves as your financial safety net, protects against inflation, enables goal achievement, reduces stress, and paves the way for future opportunities. Start building your savings today to secure a more prosperous and confident tomorrow. Your financial future depends on it.#gpi #savings #inflation #money #finance #investment

3

Annuities - What You Need To Know: With financial and income uncertainty it may be time to dive into the pivotal role that annuities can play in your financial planning to secure a safer future.An annuitant, the one that receives income from an annuity, reaps the rewards of consistent payments from annuities and pension plans. These payments, often deemed supplements to retirement income, find their origins in diverse sources such as life insurance products or employee pensions. The magnitude of these payments hinges on factors like the annuitant's anticipated lifespan and the initial investment sum.Two distinct types of annuities await the discerning annuitant: deferred and immediate. The deferred annuity mirrors a long-term investment vehicle reminiscent of IRAs and 401(k)s. On the flip side, immediate annuities manifest as a swift payout following a lump sum investment, ushering in a dependable income stream spanning a specified period or a lifetime.Customization takes center stage, as annuitants mold the landscape of beneficiaries. The choices are abundant, from spouses to elderly parents and joint beneficiaries, ensuring a legacy of financial security. Additionally, provisions can secure payment transfers to surviving spouses when necessary. An intriguing facet: annuitants are exclusively individuals, sidelining corporate entities and trusts from this role.Payments to annuitants find their roots in a complex evaluation of age, life expectancy, and beneficiary dynamics. For instance, if a 65-year-old annuitant appoints a 60-year-old spouse as beneficiary, projections span roughly 24 years—the envisioned lifespan of a 60-year-old.The tax arena introduces ordinary income taxation for annuitants. Taxable portions encompass gains, distinct from the contract holder's basis. In scenarios involving employer pensions, the entire payment typically assumes the form of ordinary income for tax calculations.Embodied within annuitants lies the authority to sculpt financial destinies, wielding the capability to select fitting annuity types and beneficiaries. Their choices radiate impact beyond personal horizons, extending to the lives of beneficiaries. A profound comprehension of annuitant roles and annuity variations empowers individuals to orchestrate judicious decisions harmonizing with retirement ambitions and financial dreams. Amidst a dynamic financial milieu, the annuitant's significance remains steadfast—a guiding beacon anchoring financial well-being in a changing world.If an annuity strategy is for you, lets take some time to connect. For a complementary 1/2 hour conversation click: https://lnkd.in/gvr5a_4y - I can also be reached at peter@petermerrick.com#income #annuities #insurance #financialplanning #finance #investments

3

ARE YOU A CPA THAT HAS BEEN IMPACTED BY YOUR FIRM'S MANDATORY RETIREMENT POLICY - BUT YOU ARE NOT READY TO CALL IT QUITS?Many CPA firms have elected to continue the traditional industry practice of mandatory retirement at ages 62 or 65. However, today, many partners are not ready to retire and leave the business world. Whether they wish to continue to build their nest egg and/or simply wish to stay in the game, they want to find a meaningful path to continue. If this happens to you, what do you do? Are there options available that allow you to stay in the game while not violating the firm's non-compete clauses?Wealth Management?Consulting?Something else?Is there a future position that can leverage the skills, experience, and network you developed over a multi-decade accounting career?Will it provide the job satisfaction that you used to obtain from providing creative financial advice and solutions to clients who need your help?Would you like to continue to leverage those skills, experience, and network?Would you like to be a part of a platform that delivers a broad range of specialized financing solutions?Solutions that clients need and are not available through their local commercial banker.Do you have an underlying desire to be a part of a dynamic entrepreneurial organization? RainStar Capital Group is a national debt advisory firm that assists businesses in procuring the capital necessary to support their operations.We are approaching our tenth year of operation and have passed the $2 billion threshold of financings arranged.Our platform includes over 250 funding sources.Many of these lenders provide very specialized niche credit solutions.Some provide clear replacement alternatives to conventional financings.Others provide supplemental credit availability - to work along with a client’s traditional bank or asset-based solutions.We are currently building out our core Middle Market Commercial and Industrial team across the US.We are actively seeking experienced and connected retired CPAs with a strong desire to have a more meaningful impact on the business world by delivering creative non-bank financing solutions. We are particularly interested in candidates with experience and connectivity in the following metro markets: Chicago, Minneapolis, Indianapolis, St. Louis, Nashville, Charlotte, Atlanta, and New York.If this sounds intriguing, reach out to me at tom.kessel@rainstarcapitalgroup.com or 248-798-9194 to learn more about us and explore whether it could be a great fit for you.

4

https://lnkd.in/gRiZD86DFinancial adviser professionalA financial adviser is a professional who provides expert guidance and advice to individuals and organizations regarding their money matters. They have extensive knowledge and expertise in areas such as investments, retirement planning, taxes, insurance, and estate planning. The main goal of a financial adviser is to help their clients make smart decisions about their finances and achieve their financial goals.One of the important roles of a financial adviser is to thoroughly understand their clients’ financial situation. They gather information about their clients’ income, expenses, assets, debts, and future financial aspirations. This helps them create a personalized financial plan that suits their clients’ specific needs and goals.Once the financial adviser understands their clients’ financial situation, they can provide recommendations on different financial aspects. They help clients manage their money effectively, suggest suitable investment options based on their clients’ goals and risk tolerance, and minimize potential risks.Retirement planning is another crucial area where financial advisers can help. They assist clients in determining how much money they will need for a comfortable retirement and help them create strategies to save and invest for their future. They provide guidance on retirement accounts, pension plans, and other investment options that can help clients build a solid financial foundation for their retirement years.Tax planning is an important part of financial advisory services. Advisers stay up-to-date with tax laws and regulations to help clients optimize their taxes while staying within the legal boundaries. They suggest strategies to minimize tax obligations through smart investment choices, deductions, and credits, ensuring clients keep more of their money. #future #help #investment #insurance #money #legal #planning #tax #taxes #investments #finances #financialadvisor #stockmarket

Using fixed annuities as a strategy to protect your IRA from market crashes can provide stability and a guaranteed income stream. Here's how:Guaranteed Interest Rate: Fixed annuities offer a guaranteed interest rate for a specified period, providing a predictable rate of return on your investment. This stability shields your IRA from market volatility, as the principal and interest earned are not subject to fluctuations in the stock market.Principal Protection: With fixed annuities, your principal investment is protected from market downturns. Regardless of how the stock market performs, the value of your annuity will not decrease due to market fluctuations.Steady Income Stream: Fixed annuities can be structured to provide a steady stream of income, either for a specified period or for the rest of your life. This predictable income can supplement other retirement savings and help cover essential expenses, regardless of market conditions.Tax-Deferred Growth: Similar to traditional IRAs, the earnings within a fixed annuity grow tax-deferred until withdrawals are made. This tax advantage allows your investment to compound over time, potentially increasing your retirement savings.No Contribution Limits: Unlike traditional and Roth IRAs, fixed annuities do not have contribution limits. You can invest as much as you'd like in a fixed annuity, providing an opportunity to diversify your retirement portfolio and allocate a portion of your IRA funds to a stable, income-generating asset.Death Benefit: Many fixed annuities offer a death benefit that ensures your beneficiaries receive a guaranteed minimum payout upon your death, protecting your legacy and providing financial security for your loved ones.Inflation Protection: Some fixed annuities offer inflation protection options, such as cost-of-living adjustments (COLAs) or indexed interest rates, which can help hedge against the eroding effects of inflation over time.

Great article from Michael Finke on the true value of annuities vs the conflict of interest against them.If you look at the actual math, insurance products like annuities provide significantly greater after-tax returns and reduced volatility to bond investments that significantly improve retirement outcomes.Run an annuity in any financial modeling software you have in place of bonds and you'll see it for yourself.The problem with annuities is that the ones that are most often being sold are the high-commissioned, high expense products that are bad for the clients.So clients desperately NEED fiduciary advisors who understand how to identify which products are good for the clients from which ones are bad for them.But when AUM-based advisors like Ken Fisher have a huge conflict of interest against using annuities that are in the best interests of the clients, it prevents adoption.And that forces clients to either accept less optimal retirement outcomes from their advisor or to purchase the bad, high-commission annuities because they want the protection annuities can provide that the advisor cannot.And then clients get burned and complain and everyone has a bias against annuities because the fiduciary advisors who are supposed to be educating clients on how to use them aren't doing so because of the conflict of interest.https://lnkd.in/gtmwPje9

2

2 Comments

SMSF Management: 8 Tips for Successful Self-Managed SuperfundsDiscover the keys to managing your Self-Managed Superfund (SMSF) with precision and compliance in our latest blog post. Explore our comprehensive guide, covering trust deed setup, insurance considerations, audit documentation, compliance rules, record-keeping, diversification, staying updated with regulations, and when to seek expert advice.Click the link below to read now and take charge of your financial future: https://loom.ly/3qCAvUIEquil Advisory's superannuation specialists are here to assist you in achieving your SMSF goals. Contact us today for expert guidance.#smsf #retirementplanning #financialmanagement #Retirement #Superannuation

9

📣 Attention self-directed IRA investors! If you're considering or already have a self-directed Individual Retirement Account (IRA), it's crucial to familiarize yourself with the transactions that are prohibited within these accounts. Understanding these restrictions will help you stay compliant with the Internal Revenue Service (IRS) guidelines. In this post, we'll highlight some common prohibited transactions in self-directed IRAs.1️⃣ Self-Dealing: Self-dealing refers to transactions that involve the IRA owner (or certain disqualified persons) using the IRA's assets for personal benefit. It includes activities such as:Using IRA funds to purchase personal assets, such as a primary residence, vacation home, or collectibles.Renting or leasing a property owned by the IRA to the IRA owner, their spouse, children, grandchildren, or other disqualified persons.2️⃣ Disqualified Persons: The IRS defines certain individuals and entities as disqualified persons who are prohibited from engaging in transactions with a self-directed IRA. Disqualified persons include:The IRA owner and their spouse.Lineal descendants and ascendants of the IRA owner (e.g., parents, children, grandchildren).Fiduciaries, such as the IRA custodian or administrator.Entities in which the IRA owner has a controlling interest (e.g., businesses, partnerships).3️⃣ Indirect Benefits: Self-directed IRAs should not provide indirect benefits to disqualified persons. This includes transactions that may indirectly benefit the IRA owner or a disqualified person, even if the benefit is not received directly. Examples of indirect benefits include using IRA-owned property for personal vacations or allowing disqualified persons to use or occupy IRA-owned assets rent-free.4️⃣ Prohibited Investments: While self-directed IRAs offer a wide range of investment options, there are restrictions on certain investments. Prohibited investments include:Life insurance contracts: Investing in life insurance policies within an IRA is generally not allowed.Collectibles: Acquiring collectibles, such as artwork, antiques, stamps, coins (with exceptions for certain types of coins), or alcoholic beverages, is prohibited.It's important to note that these restrictions apply specifically to self-directed IRAs and aim to maintain the tax-advantaged nature of retirement accounts. While self-directed IRAs provide flexibility, they come with the responsibility of adhering to the IRS guidelines.In conclusion, self-directed IRAs offer exciting investment opportunities, but it's important to understand and comply with the restrictions on prohibited transactions. By staying knowledgeable, seeking professional advice, and conducting transactions that align with the IRS guidelines, you can make informed investment decisions within your self-directed IRA. Happy investing and planning for your future! 🌱💼📈