Friday, August 24, 2018

Transferring Wealth the Smart Way

"We have $50,000 in a CD at the bank just for the kids.  You know, so that when we're gone, the 5 of them will get $10,000 each."

"Since my wife died, I've decided to name my kids as the beneficiaries of my IRA's and 401k.  I'm also leaving my life insurance death benefit to my Church."



These are just two examples of conversations I've had this summer with different clients.  Both ideas, both statements, seem like worthy and noble efforts.  However, they show me one of two things.  Either these clients don't, or at least didn't, understand the power of life insurance or they've been scared away from life insurance by the talking heads of financial genius on the radio or internet.

My goal as a life insurance agent is first and foremost education.  So let's take a look at each scenario and see what we could do better...

EXAMPLE ONE
In example number 1, the couple with $50,000 in a CD, there are a number of issues.
    a) The CD is probably not paying them very much in interest.
    b) What they are gaining is taxable each year unless it's in an IRA CD.
    c) If the money is needed for an emergency, there will be penalties for removing it from the CD.

So, how can life insurance help with example number 1?
   a) If used to purchase a single-premium policy on the life of husband or wife (age 65) it would provide somewhere between $97,000, if on the husband, and $106,000, if on the wife, of income tax free money for the kids.  So instead of $10k they may get nearly $20k.  By moving it from a CD to life insurance they were able to nearly double what they wanted to leave to their children.  In addition, that death benefit may grow each year.  In the case of the wife, in year 20 the benefit has grown to roughly $134,000
    b) The life insurance cash value grows at a guaranteed rate and the money is accessible, in the form of a loan, without penalty.


EXAMPLE TWO
Leaving money to your kids and your favorite charity are great ideas.  Why not pay forward the gifts you have received in this life?  However, the example listed above is simply backwards.

Leaving your IRA or 401k to a non-spouse like a child seems like you are leaving them a fortune, and you may be, but you may also be leaving them a massive headache where one false move can cost them much of what you meant to leave behind.

A better option is to leave the complicated items like the IRA or 401k to the charity and it's experts to process.  You may also qualify for a tax deduction.  Leaving life insurance to those you love is fairly clean and straight forward where in most cases they simply get a check free and clear.  You may also consider the various ways to transfer that taxable money into a life insurance product thus leaving both the charity and your family income tax free, and headache free, money!

If you're IRA or 401k is larger than your life insurance policy or vise versa, talk to your tax advisor and insurance agent about how to make sure your wishes are fulfilled for both your charity and your family and how to adjust those tools to fit your desires.

If you have questions about these examples or your own situation and would like some free, friendly advice from a Catholic perspective, reach out to me. Call or text 740-324-0702 or email hahnjamesm@gmail.com

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Tuesday, July 3, 2018

We Have A Winner!!!

I'd like to thank all of the parishes and photographers who participated in our Most Beautiful Parish in the Diocese of Columbus contest.  I'm just thankful that we didn't have to decide, but you did.

This year's winner is St. Paul the Apostle Parish in Westerville, OH.  St. Paul is the largest parish in the diocese and most certainly an absolutely beautiful parish.  St. Paul will receive $100 and the photographer a COF shirt and book & rosary from Real Life Rosary.

Below I will list all of the entrees and links to more parish information.  Take time this summer to pilgrimage to these beautiful parishes, you'll be glad you did!

WINNER - St. Paul the Apostle Parish, Westerville, OH


St. John the Evangelist, Logan, OH


Holy Trinity Parish, Somerset, OH


Sts. Peter and Paul Parish, Wellston, OH


St. Mary of the Assumption Parish, Lancaster, OH


St. Peter in Chains Parish, Chillicothe, OH

St. John Nuemann Parish, Sunbury, OH


St. Rose Parish, New Lexington, OH

Friday, June 1, 2018

Most Beautiful Catholic Church in the Diocese of Columbus: Contest

Our Lady of Lourdes - Park Hills, KY
The Diocese of Columbus is overflowing with truly beautiful parishes.  The architecture, design, and history of these many churches makes choosing one as the most beautiful a daunting task.  As a way of bringing to light the beauty of these parishes and encouraging the faithful to visit them throughout the summer months, I'm hosting a "Most Beautiful Parish 2018" contest.

Here's how the contest will work.  From June 1st to June 15th parishioners are encouraged to email me pictures of your parish.  The pictures could be of the sanctuary, the grounds, the building from the ground or even an aerial photo from a drone!  Start taking pictures and send me your best.  Be sure to include the parish name and address as well as your own.  Please only send your best picture.

On June 15th (after 10 PM) I will post all of the parish photos received onto my Facebook Page and voting will begin.  The parish photo with the most "likes' will be declared the winner and receive $100. You are encouraged to get your parish involved in the voting.  Let them know about the contest and how to vote. Voting will continue until 10PM EST June 23rd.  At this time the winner will be announced and photographer given credit (if permitted).   The photographer will receive recognition and a COF t-shirt, a copy of A Visit to Church: A Picture Journey, and a handcrafted rosary.

Rules and Fine-print:
1) Parish must be part of the Diocese of Columbus.
2) Only one submitted photo per person will be eligible for the contest.
3) Photos may be submitted from June 1st, 2018 to June 15th, 2018 at 10PM EST.  No photos will be accepted after this time.
4) Voting will be open from June 15th (after the photos are posted) until June 23rd, 2018 at 10PM EST.
5) Photo submissions must include the parish name and address, photographer name and address.
6) By submitting photos to me via email you are giving me the right to post the photo on my Facebook page for the contest and to use it in any promotional materials.

If you have questions, please let me know - 740-324-0702 or hahnjamesm@gmail.com

Sponsored by: James M. Hahn, FIC and Real Life Rosary


Use 7 of 7 for Life Insurance - Estate Taxes

In this video we take a look at using Life Insurance to reduce estate or death taxes.  Although most do not need to be concerned about this at this time, you may in the future due to either your successes or changes in tax law. As always, please contact your agent and/or tax advisor for details.  

Have questions?  Let's start a conversation!  Contact me at 740-324-0702 or hahnjamesm@gmail.com or follow me on TwitterFacebook, and Instagram.



Get all of the videos here.

Tuesday, May 29, 2018

Use 6 of 7 for Life Insurance - Business Protection

In this video we take a look at using Life Insurance to either protect your business, replace a key employee, or add to your employee benefit plans.  A well designed buy-sell agreement can mean the difference between the life and death of a business.  A key-employee policy will insure that should a key employee be lost, his or her skills may be replaced by another quickly and efficiently.  It may also be used as a supplement to an employee benefit plan that ensures that the family of one partner is taken care of regardless of what may happen to that partner.  As always, please contact your agent and/or tax advisor for details.  

Have questions?  Let's start a conversation!  Contact me at 740-324-0702 or hahnjamesm@gmail.com or follow me on TwitterFacebook, and Instagram.



Get all of the videos here.

Tuesday, May 22, 2018

Use 5 of 7 for Life Insurance - Charitable Gifting

In this video we take a look at using Life Insurance to leave a legacy by a Charitable Gift.  This is a great way to make sure that your weekly contribution to the collection plate continues forever or your parish or school gets help to keep their doors open.  As always, please contact your agent and/or tax advisor for details.  

Many parishes in the Columbus diocese have endowment funds created for various needs.  Contact my good friends at The Catholic Foundation to leave your life insurance benefits to an existing endowment or to create your own.

Have questions?  Let's start a conversation!  Contact me at 740-324-0702 or hahnjamesm@gmail.com or follow me on TwitterFacebook, and Instagram.



Get all of the videos here.

Friday, May 18, 2018

Use 4 of 7 for Life Insurance - Supplementing Retirement

In this video we take a look at using Life Insurance to to supplement income during retirement.  There a number of ways to go about this.  Please contact your agent and/or tax advisor for details.  

Other great resources include Money. Wealth. Life Insurance: How the Wealthy use Life Insurance as a Tax-free Personal Bank to Supercharge their Savings* by Jake Thompson or The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement* by David McKnight.

Have questions?  Let's start a conversation!  Contact me at 740-324-0702 or hahnjamesm@gmail.com or follow me on TwitterFacebook, and Instagram.




Get all of the videos here.

* I never recommend anything I don't believe in or haven't used myself.  That being said, in full disclosure, these are considered affiliate links.  As such, if you purchase any of the items I may receive a small financial benefit.  Not enough to put 8 kids through college but I'll get something.  Thanks!