If you were sick, injured or died, would your family have the resources to achieve their goals?
Help cover unpredictable financial risks through insurance.
Life, disability, and long-term care insurance help cover risks that could disrupt your investment plan.

Insurance helps protect assets

You can’t avoid all risks in life. Insurance can play a key role in helping preserve your assets and achieve your financial goals.

It’s all about keeping an eye on both assets and liabilities. Insurance allows you to transfer a risk from your balance sheet to an insurer’s. Find out why we recommend insurance as part of your investment plan.

A different kind of risk

When it comes to your financial goals, there are more risks to consider than just market volatility. Insurance can help protect against life-changing events. It can help ensure the financial goals you have made can continue on.

We offer life, disability and long-term care insurance to help protect what matters most to you. Each type of coverage can help protect the key areas of your financial life: family, business, retirement, and legacy.

Life Insurance - Life insurance helps protect the financial security of your family. Each type of life insurance is designed for a specific purpose. There is no “one size fits all”. We offer a wide selection of life insurance products, all from highly rated insurance companies, to help meet your specific protection needs.

Life insurance falls into two main types; term or permanent. Term insurance covers a temporary need in your life, such as until your children are in college.

Permanent insurance provides lifelong coverage. A key feature of many permanent insurance policies is the potential for it to accumulate cash value. This, added with the unique tax treatment of life insurance, can help create a source of supplemental income during retirement or provide funds for other needs such as long-term care. Permanent life insurance can also be a powerful tool when it comes to funding your legacy or charitable giving plans.

Long-Term Care Insurance - This type of insurance can help pay for the costs of long-term care should you need it. It is important to know that Medicare does not pay the largest part of long-term care services or personal care—such as help with bathing, or for supervision often called custodial care.

Extended care planning is a key component in any retirement income plan. It can help provide a source of income tax-free funds to pay for care, helping protect your retirement savings from the rising cost of care.

Disability Insurance - Disability insurance is designed to replace a portion of your income if you're unable to work because of a sickness or injury. Even if you could weather a temporary gap in earnings, an extended disability can be financially devastating and put your other goals, such as retirement and college planning, at risk.

How much should I have?

When it comes to the amount of coverage needed to help protect your financial goals, the “right” answer is unique to you. Factors such as your age, who depends on you, and your income and assets, should be carefully reviewed.

It’s important to understand the amount may change over time and when major life events occur, making a regular review is critical.

Next Steps

Research the costs associated with skilled nursing care, adult day care, and other services.
Understand your annual expenses to help ensure you have the proper disability and life insurance coverage.
Evaluate how your needs may change over time.
Call us to see how insurance can play a role in your retirement planning.

Insurance products are offered through non-bank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.

Guarantees are based on the claims-paying ability of the issuing insurance company.

You can benefit from tax-advantaged investing in an IRA.
Consider contributing to an IRA even if you participate in a qualified employer sponsored-retirement plan (QRP).
Find out which type of IRA – Traditional or Roth – is right for you.

IRAs can help you meet your retirement goals

Even if you already participate in a qualified employer sponsored-retirement plan (QRP) such as a 401(k), 403(b) or governmental 457(b), an IRA can help supplement these savings. Similar to a 401(k), IRAs offer the potential for growth in a tax-advantaged account. Over time, that can make a significant difference in your retirement savings.

Types of IRAs

Both Traditional and Roth IRAs offer tax advantages, a wide variety of investment options, the flexibility to choose whether or not to invest annually, and the same contribution limits.

Traditional IRA - Offers tax-deferred growth potential. You pay no taxes on any investment earnings until you withdraw or “distribute” the money from your account, presumably in retirement.¹ Additionally, depending on whether you’re covered by a retirement plan with your employer and your income, your contribution may be tax deductible.¹
Roth IRA – Offers tax-free growth potential. Earnings are distributed tax-free in retirement, if a five-year waiting period has been met and you are at least age 59½, or as a result of your death, disability, or using the first time homebuyer exception. Since contributions to a Roth IRA are made with after-tax dollars, there is no tax deduction regardless of income.
Who can contribute to an IRA - You and your spouse, if filing jointly, can contribute to a Traditional IRA if you have earned income. You can make a non-deductible contribution to a Traditional IRA even if your income exceeds Modified Adjusted Gross Income (MAGI) deduction limits. You and your spouse, if filing jointly, can contribute to a Roth IRA at any age as long as you have earned income and are at or under MAGI phase-out limits.
Small business SIMPLE & SEP IRAs - SEP IRAs and SIMPLE IRAs are often offered by small businesses as a retirement plan for their employees. These plans can be ideal for small businesses with a few employees. A SEP IRA is a Traditional IRA that holds employer contributions under the SEP plan.²

IRA contribution limits and deadlines

IRS rules state how and by what date you can make your IRA contributions. IRA contributions must generally be made by April 15 for the prior tax year. If you are 50 or older, within a particular tax year, you can contribute an additional $1,000 catch-up amount each year.

Retirement plan distribution options

When you change jobs or retire, you generally have four options for your retirement plan assets:

Roll assets to an IRA
Leave assets in your former employer’s plan, if the plan allows
Move assets to your new/existing employer’s plan, if the plan allows
Cash out through what’s called a “lump sum distribution,” pay taxes and perhaps a 10% IRS tax penalty

There are advantages and disadvantages to each option. The best one for you depends on your individual circumstances.3 Since your retirement plan savings may represent a substantial source of income in retirement it’s important to think about all of the following:

The difference in fees and expenses between the QRP and IRA
When penalty-free distributions are available
Your need for help making investment decisions and other services offered
Any special considerations regarding your employer stock
Timing of required minimum distributions (RMDs)
Protection of assets from creditors and bankruptcy

We can sit down and look at your choices together so you can decide which one makes the most sense for you. Before you make any decision or take any action, speak with your current retirement plan administrator and tax professional.

Next steps

Make an appointment with us to go over your IRA choices.
Fund your IRA.
Find out if you can deduct your Traditional IRA contribution.

¹Traditional IRA distributions are generally taxed as ordinary income. Qualified Roth IRA distributions are federally tax-free provided a Roth account has been open for more than five years and the owner has reached age 59-1/2 or meets other requirements. Qualified Roth IRA distributions are not subject to state and local taxation in most states. Both may be subject to a 10% IRS tax penalty if distributions are taken prior to age 59-1/2.

²Withdrawals are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59-1/2. For SIMPLE IRAs, the federal penalty increases to 25% if a distribution is taken prior to two years from the first deposit made into a participant’s account if under age 59-1/2.

³Please keep in mind that rolling over assets to an IRA is just one of multiple options for your retirement plan. Each of the following options is different and may have distinct advantages and disadvantages.

Roll assets to an IRA
Leave assets in your former employer’s plan, if plan allows
Move assets to your new/existing employer’s plan, if plan allows
Cash out or take a lump sum distribution

When considering rolling over assets from an employer plan to an IRA, factors that should be considered and compared between the employer plan and the IRA include fees and expenses, services offered, investment options, when penalty free withdrawals are available, treatment of employer stock, when required minimum distributions begin and protection of assets from creditors and bankruptcy. Investing and maintaining assets in an IRA will generally involve higher costs than those associated with employer-sponsored retirement plans. You should consult with the plan administrator and a professional tax advisor before making any decisions regarding your retirement assets.

Developing your retirement income strategy is part of the Envision® process.
We can help you analyze possible expenses and sources of income.
Checking on your strategy annually can help you maintain course.

It starts with a plan

Creating a plan can help you stay focused, plan for challenges ahead, and make choices that work for you.

Our Envision® planning process is the foundation we use to develop your retirement income plan. It can help you make choices and tackle the following topics:

When and how can I retire with confidence?
How can I help make my money last as long as I’m retired?
Where will my income come from?
How do I prepare for and respond to events throughout retirement?
When and how should I address my legacy goals?

7 common retirement planning moves

Will the money in your investment accounts last through retirement? Here are some steps that go beyond the basics of using tax-advantaged funds and making regular contributions.

Review your portfolio - Conduct regular investment checkups on your own and with us.
Maintain emergency savings - Wells Fargo Advisors Financial Network recommends keeping an emergency fund with enough money to cover living expenses for three to six months. Keep emergency funds in a liquid account you can easily access if needed.
Set an appropriate asset allocation - Investments are fluid. Some are more volatile, but all can be affected by market fluctuations. Adjust your assets to align with your current goals and tolerance for risk.
Itemize your income plan - Understand where your retirement funds will come from. List out all sources, such as Social Security and pensions. For each item, list how it might generate income for your portfolio.
Clean up your accounts - Consider consolidating accounts. You’ll not only have less paperwork, you can help keep an eye on your asset allocation and overall investment strategy. We can talk about your choices and what might make the most sense for you. Before taking any action, speak with your current retirement plan administrator and tax professional.
Sell assets strategically - Selling assets can have tax implications. Proceeds could nudge you into a higher tax bracket. Balance the concern of minimizing taxes when you’re selling assets with your portfolio’s allocation strategy. Talk with us about the choices you have in this situation.
Talk with family - Partners and spouses should be on the same page regarding your financial portfolio. Cover some key financial details:

Current total assets
How much you have saved right now
How much is in each account
Where the funds are located
Your budget

Part of your plan is how you spend your money – now and when you retire. Talk about it.

Common risks to address

While we develop your retirement plan, you’ll want to look at risks such as inflation, market events, health needs, withdrawal strategy, and how long you’re likely to live. Understanding the impact these challenges may have on your savings and planning for them can help you stay the course.

Have an ongoing process

Planning for retirement is not a “one and done” kind of activity. A good plan should be checked regularly and adjusted, as necessary. Keep an eye on your portfolio, talk about your expectations, and prepare for the unexpected.

Schedule an annual checkup with us to review your plans, your current circumstances, and your portfolio. We’ll work together to discuss your choices and what works for you.

Next steps

Think about what you hope your retirement will be.
Write down all your possible sources of income and expenses in retirement.
Take a look at your portfolio and call us if you have any questions about changing your asset allocation.
Call us to start on your personalized retirement income plan.

Wells Fargo Advisors Financial Network does not provide tax or legal advice.

Investing involves risk including the possible loss of principal. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations. Dividends are not guaranteed and are subject to change or elimination.