Using home equity for retirement income
Article Abstract:
Home equity has become a retirement income resource because of low personal savings and increases in real estate values. The equity can be accessed through a sale/leaseback arrangement with a relative, home equity loan or reverse mortgage. The sale/leaseback can be used in combination with the once-in-a-lifetime $125,000 sale income exclusion, but the provisions of the leaseback must be carefully considered to prevent a recharacterization of the transaction as an IRC 1031 exchange or loan transaction. Tax consequences and repayment requirements should be considered for the other alternatives.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1992
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Planning for retirement: defined benefit plans and planner due diligence
Article Abstract:
Financial planners are responsible for informing clients of risks to their retirement funds such as bankruptcy of their employer with an underfunded plan as well as actual planning for retirement. Planners need to be aware of the clients' benefit plans' funding status, the stability of their employers and the likelihood the client will or will not receive the expected benefits. Benefit projections are traditionally based on annual salary increases, return rates on plan assets and years with the company. However, planners must warn clients of stability risks or they could be liable.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
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Getting the job done: employer strategies for the retirement of baby boomers
Article Abstract:
It is vitally important that employer-provided retirement benefits remain a part of the mix of income sources that Americans rely on when they retire, and government efforts to reform entitlement programs and tax laws should not interfere with employer incentives to provide these benefits. Laws should provide certainty in benefits planning and recognize the needs of employers and employees. Retirement savings assets can also fuel the economy by providing ready capital.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1997
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- Abstracts: IRS issues Revenue Ruling on conversion of defined benefit plans to insurance contract plans. Treasury releases study on allocation of excess pension assets in the case of bridge banks
- Abstracts: Liability for injuries caused by the printed media. Looking at Europe for the difference between strict and fault-based liability
- Abstracts: Managing branch offices requires creative effort. Administrators have the needed managerial skills
- Abstracts: Designing deferred compensation plans for tax-exempt and governmental employers