Offering a Wide Range of Products and Services
Annuities
People are living longer, and that means more time and savings will be spent on retirement. If you need a tax-deferred investment to provide a guaranteed stream of income for life or a specified number of years in the future, an annuity may be worth considering.
What Is an Annuity?
An annuity is a contract between an insurance company and an annuity owner. In exchange for a purchase payment, or series of purchase payments, the insurance company guarantees to pay a stream of income that begins immediately or at some time in the future, generally after the annuitant reaches age 59½.
Many annuities offer tax-deferral advantages and beneficiary protection options. In addition, annuities can provide income for life for a specific period of time or a combination of both.
Who Needs an Annuity?
As life expectancy continues to increase for most Americans, it’s clear that many people will spend more of their time—and their savings—on retirement. An annuity can play an important role in your retirement income strategy by providing a guaranteed, predictable income stream you can’t outlive, and may offer tax-deferral advantages as well.
However, annuities are not right for everyone. It’s important to discuss any annuity options you are considering, including associated fees or expenses, with your financial professional.
However, annuities are not right for everyone. It’s important to discuss any annuity options you are considering, including associated fees or expenses, with your financial professional.
Business Succession Planning
It takes determination and a passion for your craft to succeed in business. Building an enterprise and navigating it through the ups and downs of today’s business climate is a heroic undertaking. So, when the time comes to protect your business from an unexpected event, HONG FINANCIAL can provide business succession planning solutions that can help ensure the continuity of your business on your terms.
Defined Benefit Plans
Defined benefit plans are employer-sponsored retirement plans where employee benefits are sorted out based on a formula using factors, such as salary history and duration of employment.
Investment risk and portfolio management are entirely under the control of the company. There are also restrictions on when and how you can withdraw these funds without penalties.
Disability Income Insurance
If you are like most people, you have insurance on your house, your car, and other items of value. But, you may have overlooked protecting what is often your most valuable asset—your ability to generate an income, the same income that allows you to accumulate and pay for the other assets you hold dear. Disability income insurance helps protect a portion of your income and provides a fundamental layer of security for your financial future.
Employee Benefits
Implementing an employee benefits program may seem expensive; however, the tax considerations can help offset the overall cost, and its impact on current and prospective employees could be rewarding. HONG FINANCIAL can help you provide attractive options in your employee benefits program.
Executive Deferred Compensation
Nonqualified deferred compensation plans are used by businesses to supplement existing qualified plans and provide an extra benefit to key personnel and highly compensated employees. In small businesses, this usually includes the owner and founder.
Broadly defined, a nonqualified deferred compensation plan (NDCP) is a contractual agreement in which a participant agrees to be paid in a future year for services rendered this year. Deferred compensation payments generally commence upon the termination of employment (e.g., retirement) or preretirement death or disability.
Nonqualified deferred compensation plans are often geared toward anticipated retirement, in order to provide cash payments to the retiree and defer taxation to a year when the recipient is in a lower tax bracket.
Key Person Insurance
Key man insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders, or perhaps a key employee or two. These are the people who are crucial to a business—the ones whose absence would sink the company. You definitely need to consider key person insurance on those people.
The reason this coverage is important is that the death of a key person in a small company can cause the immediate death of that company. The purpose of key person insurance is to help the company survive the blow of losing the person who makes the business work.
The company can use the insurance proceeds for expenses until it can find a replacement person, or, if necessary, pay off debts, distribute money to investors, pay severance to employees, and close the business down in an orderly manner. In a tragic situation, key person insurance gives the company some options rather than immediate bankruptcy.
Life Insurance
Life insurance is the foundation of your family’s financial security. Changes in your family, your employment, or the economy could leave you under-protected. HONG FINANCIAL offers a broad range of life insurance products and tools to help you evaluate your protection needs.
Using the Lifetime Economic Value calculator can help you identify your coverage needs. Having an appropriate amount of life insurance as part of your financial strategy can help give you peace of mind.
Long-Term Care Insurance
You spend a lifetime working hard and saving for the future to ensure your family’s financial security. And, while you can’t predict the future, you can continue to plan for it. As a result of people living longer, the chances of needing long-term care increase. As family demographics change, you may need to explore other long-term care options due to the following:
The increasing cost of long-term care now and in the future can be significant with home health care, assisted living facilities, and private rooms in nursing homes. By starting to consider options early in life while in good health, HONG FINANCIAL can help protect you against the unexpected need for care now and in the future.