We all know the saying, “Only two things are certain, death and taxes.” These may be true, but there is also a very high likelihood that individuals may need long-term care in their golden years. The aging population is living longer, but not necessarily healthier, and this is causing a significant rise in long-term health care and support. Many people are surprised at how costly long-term care actually is and their equally as surprised to find out that it’s not covered under Medicare. So, what are your options when planning for future health care needs?
Financial Advisor, Darcy Bergen says, “Long-term care comes with a hefty price tag. Private duty nursing assisted living facilities, and skilled nursing homes can cost upwards of $50,000 to $150,000 per year. If you’re a wealthy person, you may take your risks and pay cash if necessary, but what about those that don’t want to risk it or succumb to future price increases? Two of the most popular options are a traditional long-term care policy or a hybrid policy.”
With a traditional long-term care policy, if the person does not use long-term care, the money is lost. This is why even for those individuals that are well-off financially, hybrid plans are becoming the better alternative. With a hybrid long-term policy, there are many benefits, and the biggest one for most is that if it’s not used, the beneficiaries receive the invested funds. Also, with a hybrid plan, many times, the amount initially invested will significantly increase if long-term care is needed. For example, if it costs $100,000 for the hybrid policy and the person needs long-term care, the amount set aside can in many cases be $200,000 to $500,000 allotted for the actual care depending on the policy specifics.
Darcy Bergen explains, “In order to afford the expense of long-term health care, many retirees are looking into hybrid whole life, hybrid indexed universal life (IUL), and hybrid annuities as alternatives to stand-alone long-term care policies. Hybrid policies are less restrictive and don’t usually have a “use it or lose it” approach to benefits. In fact, some hybrid policies offer a death benefit if the policyholder does not use long-term care benefits.”
Darcy Bergen is a financial advisor and owner of Bergen Financial Group headquartered in Peoria, Arizona. He takes particular interest in helping individuals learn the best tactics to retire with optimal reward. His passion for assisting people in building sustainable wealth and in living their best life in their golden years is based on market analysis and finances, and also their highest quality of life.
When it comes to getting older, there are many decisions that should be made before the unknown happens, such as a healthcare proxy and a living will, but when it comes to retirement, the plans individuals have made leading up to that decision are just as important as their strategies and resolutions during retirement.
How do you know you’re making the right decisions for yearly withdraws, asset allocations, and being confident that money is not depleted before you or your spouse die? What if you retire early, or what if you’ve needed to withdraw from taxable investments over the years? How do you make sure you stay ahead of the deductions and avoid a deficit? These crucial investment decisions are imperative for peace of mind and quality of life.
Darcy Bergen is an Investment Advisor Representative that specializes in teaching people about retirement investing and how to maximize their assets and allocations for the golden years. “If possible, deferring retirement by a few years is sometimes more beneficial than saving at a higher percentage for those few years beforehand. Also, there is so much confusion concerning when to retire and how social security plays a role in the overall income that people need to budget into their retirement planning.” Mr. Bergen’s organization, Bergen Financial Group, aims to provide education, advice, and consulting to retirees and those planning for retirement.
Darcy Bergen holds classes that teach his clients how to live with annuity-based products to provide guaranteed income for life. Bergen Financial Group’s advisors have over a century of combined experience assisting individuals in retirement planning and investing. Bergen Financial Group tailors a plan specific to each client’s specific needs and transitioning from wealth accumulation to wealth preservation.
You deserve to have knowledgeable financial advisors in the financial industry who can show you how to create a better retirement. You deserve financial advisors who are well-versed in all of the financial services you need to plan for and live in retirement, including:
- Retirement Planning
- Tax Planning
- Wealth Management
- Estate Planning
- Life Insurance and Annuities
- Income Strategies and Planning
Bergen Financial Group is headquartered in Peoria, Arizona and has offices in Tucson and Mesa, Arizona. Darcy Bergen’s educational seminars and retirement courses are designed to take the guesswork out of planning and to give clients a clear path into their financial future. To find out more, please contact Bergen Financial Group.
Managing Partner and Financial Advisor, Darcy Bergen started Bergen Financial Group in 2003 and has been recognized as one of the top 20 advisors in sales with Midland National life annuity division year after year. In 2015, after many years of successful investment and financial development for his clients, Darcy Bergen became a fiduciary (Series 65 license), offering even further reliance between trustees and beneficiaries.
Bergen Financial Group offers conservative retirement planning strategies and products designed to provide guaranteed income for life while protecting their client’s principal from the fluctuations of the stock market with fixed index annuity options.
When high earning individuals retire, they can use their life insurance as a means of income. For business owners, it’s a way to make sure the company can move forward successfully. Concerning financial planning into retirement, purchasing a policy that will build cash value over the years with the principal protection while having stock market linked returns is a valid retirement plan, as the client can withdraw cash loans tax-free.
Darcy Bergen focuses on key retirement planning areas, including social security and risk management. Darcy Bergen teaches several retirement planning classes at local colleges designed for those who are retiring soon. Topics included are who to use Life Insurance as a retirement tool.
Universal life insurance premiums are used to cover the costs associated with the death benefit, and any excess goes toward the cash value. If a policy is purchased early enough in life, the cash may grow large enough to cover the costs, making the policy self-sustaining. The cash portion can be used for large purchases or to supplement retirement income.
Darcy Bergen explains, “The best kind of cash value life insurance plans are “index universal life because there is no stock market risk and the returns can be linked to earning interest based on an index like the S&P 500. Indexed plans can earn double-digit returns with no risk to the principal in good stock market years.
Darcy Bergen, owner of Bergen Financial Group offers conservative retirement planning strategies and products designed to provide guaranteed income for life while protecting their client’s principal from the fluctuations of the stock market with fixed annuity options. Did you know that every month, 59 million people receive a Social Security Benefit? More often than not, Darcy Bergen sees some confusion from his clients when it comes to Social Security, and he sheds light on the basics of the plan and benefits.
The Social Security benefits act was established in 1935. Back then a lump sum was allocated to recipients until the law was changed in 1940. A lot of things have changed over the last 84 years, and many individuals are not as up to date on the basics of Social Security as they might need to be.
The Social Security trust fund reserves are 2.9 trillion. Most workers are eligible for Social Security benefits, but not all. For example, until 1984, federal government employees were part of the Civil Service Retirement System and were not covered by Social Security.²
For a retiree, at their full retirement age, the maximum yearly benefit is upwards of $33,000, which is around $2,780 per month, but this depends on how much you made and contributed over the years of your employment.
Benefits are based on an individual’s average earnings during a lifetime of work under the Social Security system. The calculation is based on the 35 highest years of earnings. If an individual has years of low earnings or no earnings, Social Security may count those years to bring the total years to 35.⁴ Eligibility is contingent upon your work length and history. If you were born after 1929, you’d need to have worked for at least ten years to be eligible.
There haven’t always been cost-of-living adjustments (COLA) in Social Security benefits. Before 1975, increasing benefits required an act of Congress; now increases happen automatically, based on the Consumer Price Index. There was a COLA increase of 2.0% in 2018, but there was only an increase of 0.3% in 2017.⁵
For more information, you can check your Social Security earnings and see an estimate of your benefits on the website, www.ssa.gov.
Social Security Administration Sources:
2-5, 7-9. Social Security Administration, 2018
Darcy Bergen, CRFA
AZ License #: 7714485
The Bergen Financial Group Headquarters
20542 N. Lake Pleasant Rd. Suite 111
Peoria, AZ 85382
Financial advisor Darcy Bergen holds more than two decades of experience in financial planning. He sheds light on the rules of IRA contributions and withdrawals.
“The rate of return on investments will vary over time, particularly for longer-term investments. Investments that offer the potential for high returns also carry a high degree of risk, and actual returns will fluctuate.”
Darcy Bergen further explains, “The types of securities and strategies illustrated may not be suitable for everyone. Contributions to a Traditional IRA may be fully or partially deductible, depending on your individual circumstance. Distributions from traditional IRA and most other employer-sponsored retirement plans are taxed as ordinary income Roth IRA contributions cannot be made by taxpayers with high incomes. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and distribution must take place after age 59½.”
If your modified adjusted gross income is less than $122,000, you can make a full contribution. If your modified adjusted gross income is more than 122,000, but less than 137,000, a partial contribution can be made.
If your joint modified adjusted gross income is less than $193,000, you can make a full contribution. If your joint modified adjusted gross income is more than $193,000, but less than $203,000, you can make a partial contribution.
A full contribution is $6,000 for anyone under the age of 50. For those 50 and over, an increase of 1,000 is allowed for a contribution in order to enable those individuals to put away more for retirement at an accelerated rate.
Roth vs. Traditional
Roth Ira contributions have no tax deductions or breaks; however, the earnings and withdraw are typically tax-free. With Traditional IRAs, federal and state tax deductions can be made. When an individual is retired, withdrawals are taxed at ordinary rates.
Darcy Bergen understands that many individuals are confused by the tax exemptions and tax penalties regarding withdrawing contributions. Traditional IRA withdrawals before the age of 59½ may incur a 10% penalty on top of federal and state taxes. At age 59½, you can withdraw funds from an IRA without penalty.
Generally, once you reach age 70½, you must begin taking required minimum distributions. A tax professional can help assess your specific situation. Tax-free and penalty-free withdrawal also can be taken under certain other circumstances, such as a result of the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.
An inherited or Stretch IRA is allocated to a beneficiary by a parent, grandparent, spouse or others to hand down their IRA to a benefactor. The benefits of a stretch IRA are numerous. Some advantages include avoiding sizable tax brackets, paying taxes on a deferred basis, and that the preliminary decisions can be altered if needed.
Financial Advisor, Darcy Bergen states, “Investing should be easy – just buy low and sell high – but most of us have trouble following that simple advice.
There are principles and strategies that may enable you to put together an investment portfolio that reflects your risk tolerance, time horizon, and goals. Understanding these principles and strategies can help you avoid some of the pitfalls that snare some investors.”
An investment strategy that advocates holding securities for the long term and ignoring short-term price fluctuations in the market is not always a leisurely feat to interpret or achieve.
Knowing where the market is heading is not always easy to figure out and it certainly takes an expert to know what’s next in line for the financial markets. Darcy Bergen has over two decades of financial expertise. He further explains, “Bergen Financial Group Strives To Help You Achieve Financial Peace Of Mind.
In today’s uncertain economic conditions, you need financial advisors who strive to look beyond current paradigms for strategies that will help guide you toward your retirement dreams. Don’t go into retirement alone and uncertain.
With over 100 years of combined experience, our financial advisors can help you rest easy in the knowledge that we strive to keep your financial well-being safe. We are always working hard to help you with the future you desire.”
Tactical Money Management
By vacillating allocations in between asset classes, tactical allocation portfolios attempt to prepare and achieve capital appreciation by regularly shifting in between bond sectors and regions. Tactical allocations must adhere to and meet specific protocols to be considered in this class of portfolios.
Some of these protocols require either long-term or short-term shifts. For example, cumulative changes must exceed 10% over the given period of time, and
material shifts must be made on a quarterly basis or through a series of gradual shifts over a three-year period.
On the heels of founding Clear Solutions for Seniors, LLC, Darcy Bergen started Bergen Financial Group in 2003, and was recognized as one of the top 20 advisors in sales with Midland National life annuity division year after year. In 2015, after many years of successful investment and financial development for his clients, Darcy Bergen became a fiduciary (licenses 65), offering even further reliance between trustees and beneficiaries.
Bergen Financial Group offers conservative retirement planning strategies and products designed to provide guaranteed income for life while protecting their client’s principal from the fluctuations of the stock market with fixed annuity options. To find out more, contact them today.
Financial advisor Darcy Bergen holds more than two decades of experience in financial planning. On the heels of founding Clear Solutions for Seniors, LLC, he started Bergen Financial Group in 2003, and was recognized as one of the top 20 advisors in sales with Midland National life annuity division year after year. In 2015, after many years of successful investment and financial development for his clients, Darcy Bergen became a fiduciary (licenses 65), offering even further reliance between trustees and beneficiaries.
Bergen Financial Group offers conservative retirement planning strategies and products designed to provide guaranteed income for life while protecting their client’s principal from the fluctuations of the stock market with fixed annuity options.
Saving For Retirement & Living The Life You Deserve
Darcy Bergen founded Bergen Financial Group based on a simple philosophy; to teach their clients how to employ strategies to help protect them from incurring losses on their savings. Losing money in the stock market is not the way to save or live in retirement. His group aims to provide education, advice, and consulting to retirees and those planning for retirement.
Bergen Financial Group shows clients that there is a way to save and live with guaranteed income for the rest of their lives with annuity-based products. Darcy Bergen’s team of advisors has over 100 years of experience assisting clients. There is no longer a need to guess; they will set up a customized plan and help you implement a personalized strategy depending on your specific needs.
Personalized Retirement Planning is Critical
At Bergen Financial Group, they build long-term client relationships that span generations. They understand that financial products are often complicated and confusing, and that’s why Darcy Bergen’s team only implement strategies that their clients fully understand. Since they are an independent firm, they can present several different strategies, and not merely a one-size-fits-all approach. Bergen Financial Group can customize your plan based on your needs, not the needs of one company.
With headquarters located in Peoria, Arizona, as well as offices in Tucson, Phoenix, Glendale, Arizona, and Spokane Washington, their expertise is on a wide-ranging level. They offer educational seminars throughout the valley to help guide individuals through their financial journey and into a vibrant retirement.
To find out more about their educational retirement classes, please contact them today. them today.
Darcy Bergen, CRFA
AZ License #: 7714485
The Bergen Financial Group Headquarters
20542 N. Lake Pleasant Rd. Suite 111
Peoria, AZ 85382