INSIDE FINANCIAL ARCHITECTS
A major change has taken effect in the state of Michigan when it comes to the medical portion of your auto insurance. Here is what has changed: • Personal injury protection (PIP) options — With the new law, drivers will no longer be required to purchase unlimited no-fault PIP and can instead choose their coverage level. Qualifying drivers may also choose to opt out of PIP coverage. • Bodily injury (BI) minimum limits — BI minimum limits will increase from $20,000 per person/$40,000 per accident to $50,000/$100,000, with a default minimum of $250,000 per person/$500,000 per accident. • Driver savings — Drivers can save anywhere from 10%–100% on their PIP coverage, depending on their election and their health care coverage. • Rating prohibitions — Insurance carriers may no longer factor in gender, marital status, home ownership, education, occupation, credit score, and postal zone to premium rates. If you are not sure if your auto insurance has these proper provisions, please call our own Jake Heikkinen at 517-548-7059. Jake is an experienced professional who can help answer your questions. He also joined FAI's Matt Dery on the "Inside Financial Architects" podcast that can be found here: EmpoweringFuturesPodcastNetwork. libsyn.com/inside-financial-architects-episode-6.
THE CARES ACT, RMDS, AND WHAT YOU NEED TO KNOW
By Chavez Vincent
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a law intended to address the economic fallout of the COVID-19 pandemic in the United States. The CARES Act provides fast and direct economic assistance for American workers, families, and small businesses and preserves jobs for American industries. The CARES Act enabled any taxpayer with a required minimum distribution (RMD) due in 2020 from a defined-contribution retirement plan, including a 401(k), 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. Most recently, the Internal Revenue Service announced that anyone who already took an RMD in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020. For many Americans, forgoing their RMD is not a choice. However, there are those who might ask themselves, "Should I take my RMD or keep the funds in my IRA account?" Although RMDs are not mandatory in 2020, that does not direct our income planning with clients. Every household has a unique need, and other macro factors should be considered. Our planning process considers Roth conversion opportunities, market volatility, and lifestyle needs, to name a few. Our income plans are built on the premise that there will be events that are out of our control, and those events sometimes create opportunities we should be ready for. This year will be ingrained in the history books forever, and we are honored to walk this path with our clients.
WELCOME CHRIS! Financial Architects welcomed a couple new advisors to the team recently, including Chris Ball. The veteran financial planner comes to us from Michigan Financial, where he worked with clients on retirement planning and building a strategy for the future. Chris discovered FAI through our Leap Conference last fall and really was impressed with the team and the approach of the firm. Ball adds, "I am so honored to be a part of the team here. As a career changer, it was
very important for me to find the right fit and the right culture. FAI provides that and more." Outside of work, Chris enjoys classic Seinfeld episodes and watching his favorite soccer team, FC Bayern Munich. He is an avid golfer and enjoys classic movies, listing "The Godfather" as his all-time favorite.
The information contained in this newsletter is derived from sources believed to be accurate. You should discuss any legal, tax, or financial matters with the appropriate professional. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Registered Representatives offer Securities through The O.N. Equity Sales Company, Member FINRA/SIPC (www.FINRA.org/ and www.SIPC.org). Investment Advisory Services offered through O.N. Investment Management Company and FAI Advisors, Inc., Financial Architects, Inc., FAI Advisors, Inc., and The LifeMethod are not subsidiaries or affiliates of The O.N. Equity Sales Company or O.N. Investment Management Company. We have representatives currently registered in the following states: AL, AZ, CA, CO, DC, FL, GA, IL, IN, MA, MD, ME, MI, MN, MO, NC, NH, NV, NY, OH, OR, PA, SC, TX, VA, WA, and WI.
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