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The end of one’s life is never easy to talk about. However, many clients may not have an optimal plan to ensure their assets pass efficiently when they are gone. Outside of basic wills and POAs, many higher-net-worth families can take advantage of the higher estate tax exemption from the Tax Cuts and Jobs Act (TCJA). This current law is set to expire at the end of 2025.

The estate and gift limits are unified, meaning that gifting above the annual exemption amount ($18,000) counts towards the limit, as do certain assets passed to heirs at death. Before the passing of the TCJA, the lifetime exemption for estates and lifetime gifting went from 5.49 million to $11.18 million and currently sits at $13.61 million in 2024. That is the amount per person. Remember that for a married couple, each spouse gets a $13.61 million lifetime exemption, and any unused amount is portable to the surviving spouse, meaning if a spouse dies and has not used any of their lifetime exemption amounts, the surviving spouse's exemption amount would double to $27.22 million in 2024. Below are a few estate planning strategies you can utilize to help higher-net-worth families transfer their wealth more efficiently.

The comments in this article are inspired by the keynote address of Aaron Klein at the recent Fearless Investing Summit in Nashville, TN. For those in the advising community who know Aaron, he is incredibly passionate about the RIA space. He is the co-founder of Riskalyze, which has recently rebranded to Nitrogen. He presented five great ideas to help financial advisors be forward thinking, and they deserve repeating and sharing with a broader audience.

Medicare open enrollment is the annual period during which our clients eligible for Medicare can make changes or update their Medicare health and prescription drug plans. This period runs every year from October 15 to December 7, and any chosen changes will then take effect the following January 1. During this open enrollment period, clients can switch from Original Medicare (Part A and Part B) to a Medicare Advantage Plan (Part C) or vice versa. They can also change from one Medicare Advantage Plan to another, enroll in a switch, or drop a prescription drug plan (Medicare Part D). This period allows beneficiaries to ensure their current plans meet their needs, especially if their coverage, cost, or provider networks have changed. Reviewing and updating these coverages can help clients save money and ensure their healthcare needs will be covered for the following year. Choosing Original Medicare or a Medicare Advantage Plan depends on one’s healthcare needs, finances, and personal preference. In this article, I will present key points to be considered when making this decision.

Over the past decade, the financial landscape has witnessed significant shifts, one of which has gone unnoticed. Correlations. Notably, the correlations between equity and fixed income have increased, and domestic and international equities have become more highly correlated. These trends have profound implications for portfolio diversification and risk management. Important note: correlations change constantly over time.

We have entered a world where stakeholder capitalism is on full display, and it should be no wonder when investors call for investments in a social cause. Whether through the lens of ESG, sustainability, or green-specific investments, there has been an increase in understanding and demand. However, it is important to consider not just the investment but also the investor and their needs. After all, with the rise of social media, a company could find themselves in the middle of a culture war in no time and could be trending online with millions of impressions in mere minutes! If this could have a statistical significance on stock price, it is important to consider the risk companies pose when they speak out!

How workers’ need for lifetime-guaranteed income may drive more Americans to consider annuities

The goal of a successful retirement is to have enough guaranteed income to cover basic living expenses and not have to worry about running out of money for the rest of your life. According to recent LIMRA research, workers today do not feel that their households will receive enough lifetime-guaranteed income to cover basic living expenses throughout retirement.

The decision to buy an annuity or not can be a complex one. Understanding the factors that influence an investor’s decision to buy can help carriers design and market products and guide financial professionals’ approaches when speaking to their clients.

Life insurance and financial services companies faced a tough business climate over the last several years ― from the fallout of the pandemic, to rising interest rates and inflation, to the increased use of technology, to heightened customer expectations. LIMRA spoke with industry executives to see how their companies are handling these challenges and what they see for the future.

Financial literacy is one’s ability to understand the tools and concepts needed to make sound financial decisions. Often, this includes effective budgeting, saving, and investing but extends into income security. A lack of knowledge can inhibit consumers from protecting their income with products like life insurance and annuities.

LIMRA Research Head explains the growing market opportunity for in-plan guarantees and the role of education.

Following the recent passing of the SECURE Act 2.0, the financial services industry expects greater adoption of in-plan guarantees in late 2023 and 2024. In-plan guarantees are plan designs offered by employers that can convert retirement savings into a stream of guaranteed income payments during retirement. Designs of in-plan guarantees include annuities inside a target date fund (TDF), a stand-alone annuity product, and annuity options outside of the plan but linked to it. Educating advisors, plan sponsors, and employees on the value of in-plan annuities will affect their acceptance.