Episode 36: Insurance and Annuities as Part of a Financial Plan.

Bite Sized Finance

What if your financial plan could shield you from life's unexpected turns? On this episode of Bite Size Finance, I chat with John Lockwood, a seasoned advisor at CapTrust, who opens up about his personal journey into the world of financial and insurance planning. Inspired by a neighbor and propelled by family challenges, John shares how crafting his first financial plan during his father's health crisis laid the foundation for his career. His story underscores the profound impact of understanding and managing financial risks, making this episode both inspiring and informative. John's expertise shines as he breaks down the critical balance between offensive and defensive financial strategies. From the intricacies of insurance contracts to the tax implications of liquidating policies, he provides a clear roadmap on integrating insurance into a holistic financial plan. We explore the nuances of self-insuring versus purchasing insurance and stress the importance of regularly assessing your coverage to ensure it aligns with your evolving goals. This is important for anyone looking to fortify their financial future against unforeseen events. We also tackle the often-overlooked topic of underperforming annuities, providing actionable strategies for "annuity rescue." John discusses options like surrendering annuities, utilizing annuitization, and leveraging tax advantages through family gifting. The episode wraps up with a deep dive into estate planning and the current trend of Roth conversions, offering valuable insights on how to reduce future tax liabilities while maximizing tax-free asset growth. Whether you’re navigating complex annuity decisions or considering a Roth conversion, John’s practical advice will equip you with the knowledge to make informed financial choices. Connect with John Lockwood for personalized guidance and take control of your financial wellbeing today. For more information on what we provide at CAPTRUST visit www.captrust.com. You can reach John Lockwood via email at: [e-mail] You can contact me, Kelly Brothers, through the show at: [e-mail] To reach me at CAPTRUST visit www.captrust.com/locations/sacramento-ca/ Episode Highlight Timestamps(00:17 - 01:25) Insurance Matters With John Lockwood (07:04 - 08:38) Success in Insurance Sales Internship (14:45 - 17:58) Insurance Contract Repurposing and Self-Insurance" (17:59 - 20:21) Long-Term Care Insurance Options (22:22 - 23:03) Planning for Long-Term Care Protection (30:36 - 32:03) Lifetime Income Stream Gift Planning (36:09 - 38:47) Insurance and Estate Planning Advice Chapter Summaries(00:00) A Journey Into Financial Planning John Lockwood's journey into financial advisory began with a passion for finance and was solidified by his experience with his father's cancer diagnosis. (09:47) Insurance in Financial Risk Management Risk mitigation is crucial in financial planning, balancing investments and insurance to protect against death, loss of income, and long-term care needs. (25:47) Navigating Annuity Rescues and Alternatives Annuity rescue strategies include surrendering, annual distributions, annuitizing, gifting, and introducing for guaranteed income in retirement. (41:03) Estate Planning and Roth Conversions Strategies for managing estate growth and taxes, including Roth conversions and avoiding over-reliance on life insurance. (47:27) Contact Information for Financial Advisor John Lockwood, trusted advisor at CapTrust, can be contacted for financial advice or insurance queries via email or phone.