CornerStone Financial

IMPORTANT DISCLOSURES

The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

How Much is Enough?

How Much is Enough? (Life Insurance, That Is!)

It is actually quite easy to figure out how much life insurance is enough to protect your family.

Ask yourself, "When will I be able to comfortably stop working?" Let’s suppose that your answer is, "In 10 years." That means your family is relying upon you working and earning your income for the next 10 years. The amount of life insurance you need is your current paycheck, times the number of paychecks you receive each year, times 10 years.

Paycheck $________

x number of paychecks per year ________

x number of years you plan to work _______

= life insurance needed $________

When something happens to you, your family can invest that life insurance money to keep pace with inflation and withdraw cash as needed.

The good news is that longevity improvements and competition between carriers has made life insurance very affordable. Your family’s peace of mind is worth the modest amount you will pay for this important protection.

CornerStone Financial

Whether your nest-egg is worth millions or thousands,

You and your family deserve it more than the government....

Contact:

Eric Tuttobene

President/CEO

CornerStone Financial

(615) 427-8780

http://www.CornerStoneFinancialTN.com

IMPORTANT DISCLOSURES

The information presented here is not specific to any individual's personal circumstances.

Did You Know Life Insurance Can Do This?

Did You Know Life Insurance Can Do This?

So you think you know life insurance?

Yes, it still provides money for your family should you die unexpectedly.

But, did you know that there life insurance policies and riders that can do this:

At a certain duration, return all of the premiums you paid for the insurance – guaranteed?
Accumulate money for retirement or any other purpose, with interest credits based upon a domestic or international stock market index, with protection from index declines?
Provide a steady retirement income that is 100% free of income taxes?
Provide a monthly benefit to you should you become sick or injured and be unable to work for an extended period of time?
Pay a large lump sum benefit if you suffer a heart attack or stroke, or are diagnosed with cancer?Yes, life insurance has probably come a long way since you last looked at it. The life insurance industry has firmly entered the twenty-first century and is working hard to earn your business.

Fun Website – Check It Out!

Every once in a while, a company creates a really fun website where you can learn not just about them, but about yourself, and have a great time doing it.

If you have a high-speed internet connection, check out:

Then just click on the ING banner.

You will get to pick your traveling companions, travel down life’s road, and learn more about your insurance and planning needs along the way. It’s fun and educational, so check it out!

CornerStone Financial

Whether your nest-egg is worth millions or thousands,

You and your family deserve it more than the government....

Contact:

Eric Tuttobene

President/CEO

CornerStone Financial

(615) 427-8780

IMPORTANT DISCLOSURES

The information presented here is not specific to any individual's personal circumstances.

Review Your Beneficiary Designations

Review Your Beneficiary Designations

Having a will is certainly important, but did you know that your will only determines where a portion of your assets would go if you were to die?

It’s true – many assets have a “beneficiary designation,” which means that the financial institution’s records determine where the money goes. This is true of life insurance policies, annuities, IRAs, money in a 401(k) plan, accounts with a payable-on-death designation, and any jointly-owned accounts, just to name a few.

Chances are when you first opened any of these, you filled out a form that designated the beneficiaries. But, chances are a lot has changed in your life since then. Have you had more children? Have you divorced or married? Sadly, many people have died unexpectedly with former spouses listed as beneficiaries, and there is nothing the current spouse can do about it once you’re gone.

Alternatively, you may have filled out “none” or “my estate” as the beneficiary, and that can be a mistake. For example, life insurance benefits paid to your estate can be subject to the delays and expenses associated with the probate process and must be used to pay debts of the estate before the money can pass through to your heirs.

Common mistakes:

• No beneficiaries are listed

• Your estate is listed as the beneficiary

• Children born after the account was opened are not listed

• Former spouse is still listed

If a life insurance policy has designated beneficiaries, then in most cases, payment is quickly made to those beneficiaries regardless of your estate’s debts.

So, it makes sense to contact all of your financial providers and make sure your beneficiary designations are up-to-date.

CornerStone Financial

Whether your nest-egg is worth millions or thousands,

You and your family deserve it more than the government....

Contact:

Eric Tuttobene

President/CEO

CornerStone Financial

(615) 427-8780

IMPORTANT DISCLOSURES

The information presented here is not specific to any individual's personal circumstances.

Taxes and Your Retirement Plan

Taxes and Your Retirement Plan

"In this world nothing is certain except death and taxes.” -Benjamin Franklin

When it comes to taxes, however, at least you can alter the timing a bit!

If you are working in your career and believe that you will be paying a lower tax rate after you retire, it makes sense to delay taxes as much as you can. Participating in your employer’s 401(k) plan can be a great way to delay taxes. So can making a traditional IRA contribution or opening an annuity.

DELAY TAXES:

• 401(k)

• Traditional IRA

• Annuity

AVOID FUTURE TAX INCREASES:

• Roth 401(k)

• Roth IRA

• Life Insurance

On the other hand, if you see today’s government budget deficits and believe you will be paying a higher tax rate in the future, you should consider participating in your employer’s Roth 401(k) plan and converting your traditional IRAs to Roth IRAs.

Since January 1, 2010, anyone – regardless of income – has been eligible to do a Roth IRA conversion.

Such a conversion is basically a decision to pay taxes now to avoid paying potentially higher taxes later. Once your money is in a Roth IRA, you have the opportunity for it to grow completely free of any future income taxes.

What if you are retired, above age 70½, and don’t really like that you are forced to take required minimum distributions from your IRAs? If you plan to use your IRA to benefit your heirs, that may be best accomplished by using those unwanted distributions to buy life insurance. Since life insurance is paid free of income taxes, the life insurance would most likely provide a much higher after-tax payment to your children and grandchildren.

CornerStone Financial

Whether your nest-egg is worth millions or thousands,

You and your family deserve it more than the government....

Contact:

Eric Tuttobene

President/CEO

CornerStone Financial

(615) 427-8780