Can I Invest in Cryptocurrency Through My Retirement Plan?

May 16, 2023

Cryptocurrency has made headlines in the past few years, and stories abound of regular people who struck gold by investing early in currencies like Bitcoin. So you might be wondering if the craze is over, and you missed your chance… Or if you can still invest in cryptocurrency. More importantly, can you dedicate some of your retirement plan funds to this type of investment? And should you? 


First, you should remember that all defined benefit plans (like 401k) are governed by standards set forth in the Employment Retiree Income Security Act of 1974 (ERISA). These funds must be managed by fiduciary standards, meaning plan managers must act in the best interests of their clients. Due to the risk of personal liability, many managers are wary of investments like Bitcoin. 


On the other hand, some plan managers have perked up to notice the potential of cryptocurrency investments. Bitcoin, in particular, has been around since 2010. When it began trading, the currency was valued at 8 cents per coin. By 2021, the value had risen to a whopping $65,000. 


Of course, crashes happen, too. As of April 28, 2023, Bitcoin is valued at about $29,000; still good news for those who bought low, but perhaps not so thrilling for anyone who invested during the highs of 2021. 


Clearly, Bitcoin and other cryptocurrencies are volatile investments; the potential for great rewards is balanced with the potential for significant losses. Therefore, timing can be essential with this type of investment. Not to mention luck!


For that reason, many financial professionals do advise caution when considering cryptocurrency investments. In most cases it is wise to devote only a small portion of your investments to something like Bitcoin, and to diversify into more reliable types of assets. But if you do want to take the plunge into cryptocurrency investing, contact your plan administrator to discuss your options. 


And of course, let’s discuss this idea at your next appointment before you make a big decision. We can help you decide if cryptocurrency investments fit into your portfolio, and how much of your funds you should devote to the endeavor. 

How to Ensure Your Spouse Is Financially Secure After You’re Gone

May 19, 2025
One of the most important and loving steps you can take in life is making sure your spouse will be financially secure if something happens to you. While it is not always easy to talk about, planning for the future is a meaningful way to provide peace of mind and protect your partner from unexpected financial hardship. Insurance plays a central role in that protection. With the right strategy in place, you can help ensure your spouse maintains their lifestyle, covers essential expenses, and remains financially independent long after you are gone. Life Insurance for Income Replacement Life insurance is often the cornerstone of a spouse protection plan. A term life or permanent life policy can provide a tax-free lump sum to your spouse upon your death. This payout can help cover the mortgage, pay off debts, cover everyday living expenses, or fund future goals such as travel or education for grandchildren. When choosing coverage, consider your spouse’s current and future needs. Will they still have a mortgage or other loans to manage? Do they rely on your income for day-to-day expenses? Will they need extra support for healthcare or long-term care later in life? A thoughtful review of these questions can help determine how much coverage is appropriate. Survivorship Life Insurance for Estate Planning Also known as second-to-die insurance, survivorship life insurance covers both spouses and pays out only after both have passed. This type of policy is often used in estate planning to cover estate taxes, preserve assets for heirs, or support charitable giving. While it does not provide immediate support for a surviving spouse, it can help ensure your combined legacy is preserved. Fixed Annuities for Lifetime Income* Annuities can offer a steady stream of income that continues for as long as you or your spouse lives. Certain annuity products can be structured to provide spousal benefits, meaning that if you pass away first, your spouse will continue receiving income. This is especially helpful in retirement planning and can provide a predictable foundation for monthly expenses. Long-Term Care Insurance for Future Health Needs One of the biggest financial threats to a surviving spouse is the cost of long-term care. If you use a significant portion of your shared assets to cover your own care, your spouse could be left with limited resources. Long-term care insurance helps offset these expenses and protects your financial plan from being derailed by medical or custodial care costs. Final Expense Insurance for Funeral and End-of-Life Costs Even a small life insurance policy designed to cover funeral costs and final expenses can relieve your spouse from financial stress during an already emotional time. These policies are typically easy to qualify for and provide quick access to funds when needed most. Review and Update Beneficiaries Regularly One of the simplest yet most important things you can do is keep your insurance policy beneficiaries up to date. Major life events such as a new marriage, the birth of a child, or the passing of a loved one can all affect your financial picture. Regular reviews ensure that the right people are protected and that your intentions are clear. Plan for the Future Today Taking time to plan ahead with the right insurance solutions can help your spouse feel secure, supported, and cared for no matter what the future holds. You have the power to provide financial stability that lasts beyond your lifetime. If you want to be certain your spouse is financially protected, we are here to help. Contact our office to schedule a consultation. We will help guide you in building a personalized insurance strategy. *Annuities contain limitations including withdrawal charges, fees and a market value adjustment which may affect contract values. Annuities are products of the insurance industry; guarantees are backed by the claims-paying ability of the issuing company. Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.

Smart Ways to Fund Long-Term Care Without Draining Your Assets

May 14, 2025
Long-term care is one of the most overlooked yet potentially costly aspects of aging. Whether it involves in-home assistance, assisted living, or nursing home care, the expenses can add up quickly. Without proper planning, these costs can eat away at your retirement savings and leave little behind for your spouse or loved ones. The good news is that there are smart ways to fund long-term care without draining your assets. Understand the True Cost of Long-Term Care According to Genworth’s 2023 Cost of Care Survey, the median annual cost of a private room in a nursing home is over one hundred thousand dollars. Even in-home care services can cost upwards of sixty thousand dollars a year, depending on the level of care needed. These numbers highlight the importance of planning ahead before a health crisis forces quick and expensive decisions. Explore Long-Term Care Insurance Long-term care insurance is a traditional option that helps cover the cost of care when you are no longer able to perform basic daily activities. These policies can help protect your retirement savings and give you more flexibility in choosing where and how you receive care. It is best to apply for coverage when you are in your fifties or early sixties since premiums tend to rise with age and health conditions can make you ineligible. Consider Hybrid Insurance Policies If you are concerned about paying premiums for something you may never use, hybrid policies offer an appealing alternative. These policies combine life insurance with long-term care benefits. If you end up needing care, a portion of the death benefit is used to cover those costs. If you never use the long-term care portion, your heirs still receive a life insurance payout. This can be a smart way to protect both your future and your legacy. Use a Health Savings Account (HSA) If you have an HSA, it can be a valuable tool for long-term care planning. Funds in an HSA grow tax free, and withdrawals used for qualified medical expenses are also tax free. While HSAs cannot pay for insurance premiums directly, they can help cover out-of-pocket care costs, including in-home services, adult day care, and even nursing home expenses. Create an Irrevocable Trust For those concerned about preserving assets for their heirs, setting up an irrevocable trust can be a powerful strategy. By transferring assets into this type of trust, you may protect them from being counted when applying for Medicaid. This type of planning must be done well in advance, as Medicaid has a look-back period that can disqualify you if assets are transferred too close to the time of application. Leverage Annuities for Long-Term Care Needs Certain annuities are designed to generate income while also providing enhanced payouts if long-term care becomes necessary. These products can offer a consistent income stream during retirement and a larger benefit if your health declines. They are especially appealing for individuals who want both growth potential and added protection against care costs. Consult with Your Insurance Professional The best approach to funding long-term care depends on your unique situation, including your health, financial goals, family structure, and available resources. Give us a call, and we can help you explore your options and build a personalized strategy to protect your wealth and your well-being. Long-term care planning is not just about money. It is about making sure you maintain your dignity and independence as you age. With the right plan in place, you can meet the challenges of aging without sacrificing everything you have worked so hard to build.
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