Frequently Asked Questions?
Do you have questions about annuities, life insurance or Long Term Care Insurance? Or maybe you're just curious as to how Sundin Financial operates? We've created this Sundin Financial FAQ page to answer some of the questions you may have and to provide insight into our retirement investing philosophy.
I want to move My IRA, but I don't want to pay the taxes.
So you don't want to pay taxes when you move your IRA? Good news - you don't have to pay taxes. At Sundin Financial, essentially what we'll do is set your index annuity up as an IRA. Then, we can take your current IRA and transfer the money from your current IRA to your index annuity that is an IRA without taxation and without fees. You don't have to pay taxes when you move your IRA.
I want to see something in writing, Will you send me a prospectus?
Is there a prospectus for a good index annuity? The answer to that is no. A prospectus is a document that is required to be given to you if you are about to buy an investment where you can lose money. A security, for example, requires a prospectus. Now, a good index annuity is not a security - it is a guaranteed insurance contract. Your principal is guaranteed against losses. So, no prospectus is needed here. The way it works is first you'll receive an application then once the money transfers you'll receive your policy book. All the terms are stated and known upfront and then you'll actually see them in writing on the contract. You have something called a free look period. The times vary depending on the state, but it is at least 10 days usually. During this time, you can look at your contract to make sure it is exactly what you thought, and if it's not, you can give it back?get your money back?without penalty and without fees. Folks take a lot of comfort and solace in knowing they have the free look period working to their advantage.
I have an IRA but I have to take the Required Minimum Distribution (RMD)
When you reach the age of 72 (under the new rules) you are required by the IRS to take out the required minimum distribution. If you don't take it out, they penalize you. You can always take your required minimum distributions out of your index annuity without penalty.
My broker says they can get me the same thing, why can't I use him/her?
Certainly you can get an index annuity from your local broker. But be aware: there are some 39 companies that offer you and I?the investing public?index annuities. That represents hundreds and hundreds of different products. Four or five of those insurance companies do it well. At Sundin Financial, we call them top tier insurance companies. Essentially, the very best companies and the very best products encompass about 15 products. With so many different permutations it can be hard to achieve what you're looking for. When someone needs an operation on their brain, they go to a brain surgeon. When someone seeks safety of principal, they come to us. The reason they choose us is because we are experts in this field. We know what we do, and we work hard to be the best at it. We live, eat, and breathe safety of principal and reasonable rate of return.
I have some IRA's that I would want you to look at, What do you charge for this analysis?
The answer is Nothing! We will simply ask you to provide us with any statements for your accounts. We then perform a comprehensive risk analysis based on what you have and your objectives. This will be available to you in a report. Most of the time we will make recommendations for you to consider investing a portion or all of you accounts with us. Its up to you if you want to proceed.
How does Sundin Financial make money if you don't charge a fee?
At Sundin Financial, we never charge you a fee. Here's how it works. The insurance company makes money by using your money over time. The insurance company then shares part of what they are making with us. So we never charge you a fee.
Is it smart to tie up my money for several years, and what if I die?
Should you make a time commitment of eight, 10 or 12 years? It depends on your own individual situation. If you're going to need the money a year from now, then obviously no. However, if you're not going to use the money, or if you're not going to use more than 10% per year, many people like to go a little bit longer. A longer time period is often accompanied with a bonus the very first day. If you will go eight years right now, you can get a 5% bonus. If you opt for 14, 15, or 16 years, some of those are paying 10% bonuses right now. So if you're not going to use the money, a longer time commitment may not be a bad idea. Let's say you put in $100,000, and you get a 10% bonus the first day. Now your account value is $110,000. If you die six months later, your beneficiary gets $110,000 paid to him or her in a lump sum with no waiting. That 16 years is for you while you're living?not for your beneficiary once you're gone. Your beneficiary can get the money and do anything he or she wants to with it without penalty. It is not a life insurance policy, but it is kind of like having one if you die prematurely.
How long do I have to get my money out?
Many people ask me that question. When can I get my money out? How long do I have to wait to get my money out? The truth is, you are in control. You choose the number of years that you want, whether you choose five years, or seven years, or 10, or 15?whatever you choose, that's up to you. After one year, you can take out 10% per year, every year, for any reason, with no penalty at all from the insurance company. Let's say you chose an eight year account. After those eight years are complete, you can take all of your money out with no penalty whatsoever. To review, you can take out 10% per year after the first year without penalty. Then, when the time commitment is complete, you can take all of your money with no penalty whatsoever from the insurance company.
Can I move my current IRA or 401k to an IRA with Sundin Financial without taxation?
Moving your money from your current IRA to a fixed index annuity that is an IRA is easy, and you can do it without taxation. At Sundin Financial, what we'll do for you is set your annuity up as an IRA. Then, we can transfer your current IRA into your index annuity that is an IRA. We can do it without taxation and with no fees on our end. You could also roll a 401(k) over to your index annuity that is an IRA: again, without taxation. So absolutely you can.
Should I purchase term insurance or permanent Insurance?
Both products fill an important role in asset protection. There is no simple answer, every family situation is different. In fact, many times we will design a "Combo" Product to accomplish the family goals. Permanent Insurance policies such as Universal Life have many more benefits than just the death benefit which life insurance provides.
Want type of policies can I get to cover my long-term care expenses?
There are several policies that you could consider; there are the traditional LTC policies which give you a certain amount of daily coverage for a specific number of years. There are also now Hybrid Life Insurance policies which offer a "LTC Rider". These have grown much more in popularity over the years.