The Best of Both Worlds: The holistic approach to finance and insurance

Pictured: Mike Morrell, Shawn Cook, Chris Yokley, Chris McMath, Nick Yokley

Often times, financial professionals have a business structure that is geared towards helping clients create a portfolio with one "simple solve". While providing advice and information on only one product can make the process easier on both parties, it can also lead to major gaps. We are in the business of providing a holistic approach to your financial plan by exploring all options available in the insurance and financial market. That way, no matter where life may take you, there will always be multiple layers of protection. ​

"Everyone needs someone to be an Advocate for them,
​and that is what we aim to be"

Shawn Cook, the Wealth Adviser at Advocate Financial Partners, shares his experiences and expertise in the financial industry & the insurance industry. His background as an educator has played a vital role in developing his approach and how he serves clients each and every day.

By:
Emma Bradford
Social Media Manager

The Perfect Mix

"Take advantage of the benefits your
employer offer you, but marry those with other products that will stay with you for life"

Most business owners provide their employees with a retirement savings plan, like a 401(k). However, using this strategy exclusively can significantly limit the benefits to the employer and the employee. Using a little-known technique to add an additional layer of protection and compensation, employers can give employees another option for retirement savings. Fueling a deferred compensation plan through cash value building life insurance would give the business owner significant tax deductions, while providing employees protection and a source of supplemental retirement income.

Pictured: Shawn Cook

Pictured: Shawn Cook, Justin Allen, Chris McMath

Included in most benefits packages is health insurance, a retirement savings plan, and life insurance. Group life insurance policies are usually around $50,000. Most employees opt in for the $50,000 and consider that well insured. Realistically for the average Americans $50,000 will not cover a family when one spouse's income disappears. Although you will pay pennies for this coverage, it won't stay with you if you change jobs. So looking into options that make the money you are spending work for you in a way that is sustainable is key. 

"Business owners can deduct contributions up to 20% of the company's gross annual income, through funding a life insurance policy."

Taxable Impact

"Using a cash value building life insurance policy can provide you will an immediate death benefit, and supplemental retirement income"

Pictured: Chris Yokley, Shawn Cook

There are two taxation options when saving for money for retirement:
1. Pay the taxes now
2. Pay the taxes later

Traditional Individual Retirement Accounts, are tax qualified accounts meaning the government allows you to defer your tax payment on that income until the day that you take it out of the account. On the other hand, using a Roth IRA to help fund your retirement allows you to pay taxes on your money now. Whether you have a traditional IRA, a Roth IRA, or use both, the maximum individuals are able to contribute under the age of 50 is $6,000. ​

Depending on the situation individuals in a higher income tax bracket may favor utilizing the benefits of a tax deferred vehicle, while those  in a lower tax bracket might find the benefits of a Roth IRA more attractive. The beliefs about whether tax rates going up, down, or staying the same vary across the financial landscape- but the truth is that no one really knows what the future holds. 

Pictured: Martha and Shawn Cook

"It is 100% about when you want to be taxed
and when you think taxes will be higher"​

Income For Life

"It is vital to have an income stream when it is unknown ​what will happen with interest rates. "

Having some sort of dependable income during retirement is important for most retirees. Often times you will see this through a pension or an annuity. 

Pensions will provide income for life, but you give up your cash value causing you to lose the buying power of what your money could have provided in a time of need. 

Pictured: Shawn Cook

Pictured: Julie McElwee, Shawn Cook

Those who hold positions without the option to select a pension, and still wish to create an income stream for themselves are able to. One way to do this is though purchasing an annuity. 

Specifically, certain fixed indexed annuities can allow individuals to create their own "pension plan"  that gives you a special bonus when purchasing. These plans allow individuals to protect themselves from any chance of market loss, while still participating in the gains of the market. 

"Each situation, plan, annuity company, and individual is unique"

This article is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Advocate and their affiliated companies, and their representatives and employees do not give legal, or tax advice. You are encouraged to consult with your tax adviser, attorney or financial adviser.