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844-44PANIC | PanicProofRetirement.com | April 2025
ANNUITIES: A SAVVY ROUTE TO SAVINGS Slash Your Tax Bill
Taxes are top-of-mind for many of us this month. However, few investors understand the helpful ways annuities can be used to reduce their annual checks to the IRS. Tax-deferred retirement accounts, such as traditional IRAs, SEP IRAs, Simple IRAs, and Rollover IRAs, are common tax-saving vehicles for millions of Americans. The investment gains on assets in these accounts grow on a tax-deferred basis. You don’t need to pay Uncle Sam on your investment earnings until you withdraw them! In regular brokerage accounts that are not tax-deferred, however, taxes on investment gains may be due every year, depending on the type of income you receive within the account. (Capital gains are taxed differently depending on whether they are short- or long-term gains, and taxation on dividends varies based on whether they are ordinary or qualified dividends.) Whatever type of income builds up in those accounts, the Tax Man will likely show up, hand outstretched, on April 15.
The Pension Protection Act, enacted in 2006 under President George W. Bush, allows for the tax-free exchange of a nonqualified annuity for a qualified long-term care insurance policy. While the holder of that nonqualified annuity paid premiums in after-tax dollars, the income from that annuity can be transferred tax-free to a qualified long-term care plan. Few people are aware of this opportunity, but it is a great way to reduce taxes while gaining protection from the risk of soaring long-term care costs. A Roth IRA We have written about the opportunity to transfer money from an IRA into a qualified annuity tax-free. Many people assume that the money is locked up once they move assets into a qualified annuity. But it’s not: Inside that annuity, many insurance companies allow conversion of funds into a Roth IRA. The annuity holder must pay taxes on funds transferred into the Roth account, of course, but this flexibility is another welcome tax-planning tool for the savvy investor. We have helped numerous clients incorporate tax-saving features and benefits like these into a secure, customized retirement plan designed to meet their needs. Contact us today for a free retirement checkup!
Annuities are a handy tool for reducing taxes, and they can be used in a variety of ways. Here are three of my favorite strategies.
A Qualified Annuity Taxes on investment gains in regular brokerage accounts can be doubly painful because you may have to pay them regardless of whether you actually withdrew and spent any of those earnings. This is why you should avoid mutual funds inside brokerage accounts. Also, these investment gains can deliver a damaging blow to your disposable income from Social Security because Social Security benefit taxes are based on a formula that takes all your other income into account. In other words, those taxable earnings growing inside your brokerage account are like a cancer eating into the cash you have to spend every month. Annuities offer a great way to defer all those taxes. If you move all your funds from those investment accounts into a qualified annuity, your assets can continue to grow on a tax-deferred basis — and increase your take-home income from Social Security! A Long-Term Care Plan An annuity holder who withdraws earnings from a non-qualified annuity normally pays taxes at the ordinary income rate. Another little-known tax-saving strategy, however, is to invest those funds in a long-term care insurance policy.
We would love to help you plan the best path toward the fulfilling retirement you deserve!
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Protect Your Wallet and Your Pet’s Health Are You Missing Out on This Money-Saving Option? What kinds of strange things could be in your dog’s stomach? According to veterinarians, dogs find socks weirdly delicious, and at least one has swallowed an engagement ring! These stories sound funny — until it happens to you. All pet owners try to keep their dogs out of the holiday chocolate or their cats from nibbling on poisonous houseplants. Still, fewer than half have insurance to cushion the financial blow if an unexpected visit to the vet becomes necessary. Insurance is growing in popularity, with about 24% of U.S. pet owners opting for coverage, but that’s a small number given that nearly 70% of households have a pet. More people have pets than children these days! Like any family member, a pet’s medical needs should be part of the household budget. Average pet health insurance premiums are between $10 and $50 per month, with most people paying $354 annually. Additional options like dental coverage may make sense depending on your pet’s breed and habits. The cost is worthwhile compared to paying out of pocket for an unexpected surgery, up to $7,000.
Arbor Day, celebrated this year on April 25, is a chance to dig deep and nurture the environment while creating lasting memories with your kids. Rooted in the love of trees, Arbor Day is a perfect opportunity to teach your little ones the importance of caring for our planet while having fun outside. With wildfires destroying millions of acres of trees annually, the need for replanting has never been greater. Planting a tree is a hands-on way to make a difference; kids love getting their hands dirty. Plus, it’s more than just a lesson in environmental stewardship — it’s an activity that promotes exercise, teamwork, and pride in watching something grow. Start the adventure. Choose the perfect tree and location. Let your children take the lead in selecting a spot with the right amount of sunlight and plenty of room for growth. Once you’ve gathered your tools — a spade, mulch, soil, water bucket, and, of course, your tree — the real fun begins. Together, dig a hole just the right size for the root ball. While the adults may handle the more technical steps, like trimming roots that twist or grow in circles, kids can pitch in by scooping dirt and getting up close to nature. As you settle the tree into its new home, explain how the roots will anchor it and how its leaves will turn sunlight into energy. After planting, the work doesn’t stop! Teach your children how to water the tree properly — soaking the root ball without overwatering. Build a mulch ring together and explain its purpose in keeping the roots cool and moist. Then, it’s time to watch it grow! Chart the journey ahead. Planting a tree is just the beginning of a long-term adventure. Encourage your kids to measure the tree’s growth, sketch its leaves, and write about its progress in a journal. Snap photos together to document its transformation, and talk about trees’ vital role in providing oxygen, shade, and habitat for all of us. This Arbor Day, take a moment to plant more than a tree — plant a memory. Working together as a family teaches lessons in responsibility, environmental care, and the joy of nurturing life. Plus, the smiles and laughter along the way? Those are the real treasures. CREATE LASTING FAMILY MEMORIES THIS ARBOR DAY LEAF A LEGACY AND PLANT A TREE!
Pet insurance is just like many human health insurance plans. When you take your insured pet to the veterinarian, you pay the bill upfront and then file for reimbursement
with the insurer. Pet policies fall into three general areas — illness and wellness check-ups, only well check- ups, or accident-only coverage — but they can be combined.
You can save money by comparing the coverages of large insurance
carriers against pet- specific carriers. You can also ask your current insurer about bundling coverage
with your renter’s, auto, or homeowner’s policies. They may even have a discount for enrolling multiple pets. To ensure
you get the right policy, find out what is excluded from coverage, like preexisting conditions. It can be helpful to confer with your vet first about your pet’s medical needs for a good fit. Medical care is essential for pets. Budgeting insurance coverage for them can save your sanity and wallet if an emergency arises. Without it, a simple accident can really blow a hole in your finances.
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When Stress Takes a Toll on Your Skin
Why Stress Rashes Happen and How to Handle Them
remedies can be a lifesaver. Antihistamines like Benadryl or Zyrtec can help calm the histamine storm, while cortisone cream works to reduce inflammation. These treatments can soothe the itch and help you find relief until the rash fades away.
Ever noticed that itchy, splotchy skin patches pop up just when life feels most overwhelming? You’re not alone. Stress rashes , raised, red or pink patches on the skin, are your body’s way of waving a stress flag. Let’s dive into this peculiar skin response and uncover why your body might be itching to tell you to relax. When stress levels rise, your body activates a chemical chain reaction involving the hypothalamus-pituitary- adrenal (HPA) axis. This biological pathway triggers the release of cortisol and other stress hormones. At the same time, mast cells — a critical part of your immune system — jump into action, producing histamine, the pesky chemical behind that itchy, irritated skin. The result? A stress rash or hives that can leave your chest, neck, or stomach feeling uncomfortable and inflamed. These rashes are often temporary, disappearing within 24 hours. However, this doesn’t make them any less annoying, especially if they keep returning during high-pressure moments. So, what can you do when your stress shows up on your skin? Over-the-counter
Of course, addressing the root cause — stress itself — is key to keeping these rashes at bay. Whether you practice mindfulness, take
up yoga, or simply carve out a little “me time” in your busy schedule, finding ways to manage stress can do wonders for your mind and skin. The next time you spot a stress rash, remember that your body is giving you a nudge to slow down and breathe. A little TLC, both for your mind and your skin, can go a long way. After all, life’s challenges are easier when you feel comfortable in your own (rash-free) skin.
Low-Sugar, No-Bake Cheesecake
Take a break
Inspired by AllRecipes.com
Ingredients
• 3/4 cup graham cracker crumbs • 3 tbsp butter, melted • 1/4 tsp ground cinnamon • 1/4 tsp ground nutmeg • 8 oz cream cheese, softened
• 1 1/2 cup milk • 1 (1 oz package) sugar-free cheesecake-flavored instant pudding mix • 2 pints fresh strawberries, sliced
1. In a bowl, combine graham cracker crumbs, butter, cinnamon, and nutmeg. Press evenly into an 8-inch pie pan. Refrigerate until set. 2. In a large bowl, using an electric mixer on medium speed, beat cream cheese, then add milk and blend until smooth. 3. Add pudding mixture to cream mixture and blend on low speed until completely mixed. 4. Spoon half the filling over the crust, add a layer of strawberries, then spread the rest of the filling over them and top with remaining strawberries. 5. Cover and refrigerate for at least an hour before serving. Directions
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The information published in this newsletter is educational in nature and is not intended to be a recommendation to sell or purchase an annuity or any specific insurance or financial product. You are strongly urged to consult with financial planning, tax, and legal advisors to determine if an annuity is suitable in your financial situation.
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Smart Tax-Saving Strategies Every Retiree Should Know The Shocking (and Avoidable) Cost of Uninsured Veterinary Bills Planting Memories and Trees This Arbor Day Why Your Skin Reacts to Stress (and How to Calm It Down) Low-Sugar, No-Bake Cheesecake
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Mastering the Art of Nature Photography
QUICK TIPS FOR BETTER OUTDOOR PHOTOS Capture Nature’s Beauty Like a Pro
Consider Composition In photography, composition is key. When taking nature photographs, apply compositional rules such as the rule of thirds (placing subjects off-center), leading lines (guiding the eye with pathways or rivers), and framing (using natural elements to highlight the subject). Experimenting with different perspectives and angles can also add depth to your photos. Be Respectful Whenever you’re out in the field, respect the environment by following local guidelines, maintaining a safe distance from wildlife, and minimizing your impact on natural habitats. Always stay on designated paths and never remove any natural objects. Following a few simple rules protects wildlife and the landscape and maintains the integrity of your photography. With these tips in mind, you’re ready to enjoy the outdoors while capturing images that reflect the beauty of the natural world.
Nature photography offers a great way to get outside and capture the beauty of the natural world. Whether you’re new to this hobby or have been snapping photos for years, you can always enhance your skills with these four tips for producing compelling outdoor photos. Plan Ahead Before heading outside with your camera and other gear, research your chosen location and the subject you aim to photograph. Understanding the local wildlife, plant life, and weather conditions can inform your equipment selection. Timing is also key. Early morning and late afternoon, known as the “golden hours,” offer soft, diffused light that enhances natural scenes. Master Your Equipment Be sure to familiarize yourself with your camera’s settings. Some of the most important include aperture, shutter speed, and ISO, which control exposure and depth of field. For instance, a wide aperture (low f-stop) can help create a shallow
depth of field and isolate your subject from the background, which is particularly effective for wildlife photography. Conversely, a narrow aperture (high f-stop) is ideal for landscape shots because it increases the depth of field and helps keep more of the scene in focus.
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