Build Your Financial Future

Making wise investment choices requires knowledge of tax laws*, current and pending legislation, market and bond trends, and a deep understanding of investing principles. For most people, dedicating that level of time to research simply is not realistic. That is where we come in. Through products available with Ameriprise Financial Services, LLC, an independent, registered broker-dealer, our experienced and registered team of financial advisors** will partner with you to develop a personalized financial strategy designed to help you reach your goals.

Fees may apply for financial planning services rendered. Please consult with your financial advisor to discuss applicable charges.

We work with you to build a retirement plan tailored to your life. From Social Security payouts to Individual Retirement Accounts (IRAs) that can help reduce the amount taxed from your taxable income, our advisors help you save strategically so you can enter retirement with confidence and peace of mind, knowing a solid plan is in place.

A Personalized Approach to Retirement Planning Retirement should be a time to enjoy the life you have worked so hard to build. But achieving lasting financial well-being in retirement requires thoughtful, careful planning. Our team guides you through the key decisions that matter most, including:

• Maximizing Social Security Benefits Knowing when to start claiming benefits can have a significant impact on your long-term financial well-being. We help you develop a strategy based on your unique circumstances and goals.

• Utilizing Tax-Advantaged Accounts From traditional and Roth IRAs to 401(k)s, 403bs, 457, DCPs, and other retirement savings vehicles, we help you identify the tax strategies that make the most sense for your individual situation.

• Managing Investment Strategies As you shift from building wealth to generating income, we help align your investments with your retirement timeline and risk tolerance to keep your portfolio working for you.

• Managing Taxes on Retirement Income Thoughtful tax planning may help reduce what you owe on withdrawals, allowing you to keep more of the savings you have spent a lifetime building.

• Creating a Sustainable Withdrawal Plan A carefully structured retirement income strategy may help ensure your savings support the lifestyle you want throughout your lifetime.

We offer a broad range of investment products, including stocks and bonds, government securities, annuities, and mutual funds, to help you work toward your financial goals. Our financial advisors are also available to guide you through every aspect of your financial planning journey.

Stocks, Bonds, and Money Market Instruments Buying a share of stock means buying a piece of a company. As the company grows in value over time, so can the value of your ownership stake, which you may eventually sell for a profit. Some companies also pay dividends to shareholders, providing an additional source of income during retirement. While individual stock values fluctuate daily, the market as a whole has historically trended upward over time.

Bonds, on the other hand, tend to offer investors a slower, steadier source of income. In simple terms, a bond is a formal debt instrument-similar in concept to an I.O.U.—that outlines specific terms for repayment, including interest and maturity.

When you invest in a bond, you are lending money to a business, government, or municipality. In return the issuer typically makes interest payments at specific intervals and agrees to pay the original investment (face value) at a set maturity date. Bond prices may fluctuate over time, generally moving inversely to changes in interest rates. Government securities are debt instruments issued by the government.

Mutual Funds Investing in a mutual fund is similar to having a professional invest your money on your behalf, while still earning returns. Mutual fund returns are directly tied to the performance of the stock portfolios that fund managers invest in. Rather than concentrating on a single stock or a handful of holdings, mutual fund managers typically spread investments across a diverse array of assets, helping to reduce risk and support potentially steadier long-term growth.

What Are Mutual Funds? When you have money to invest, the number of choices available can feel overwhelming. A mutual fund simplifies that decision by offering exposure to many investments at once.

A mutual fund is a n investment vehicle that pools money from many investors to buy a diversified portfolio of stocks, bonds, or other assets, managed by a professional fund manager. Mutual funds have become an important component of many individual investment portfolios.

Mutual Fund Basics Mutual funds offer several advantages, like diversification, affordability, and convenience, though fees, limited control, and potential tax inefficiencies are worth considering.

Diversification Diversification is one of the most important tools for managing investment risk. Achieving a truly diversified portfolio of individual stocks and bonds on your own could require several hundred thousand dollars. A mutual fund provides that same diversification instantly, with far lower amounts invested.

Liquidity Mutual fund shares can be bought or sold on a daily basis, giving investors ready access to their assets at any time.

Access Information on mutual funds is widely available through newspapers, national publications, and financial resources. Mutual funds may also provide access to investments that are typically out of reach for individual investors.

Fees and Expences Ongoing management fees and expense ratios.

Limited Control Investors cannot select or tailor individual holdings.

Tax inefficiency Mutual funds can distribute capital gains to shareholders, creating tax liabilities even if the investor has not sold shares.

Regulatory Oversight Mutual funds must be registered with the Securities and Exchange Commission (SEC) and are regulated under the Investment Company Act of 1940. Professional portfolio managers are responsible for managing the funds, investments in accordance with its stated objectives.

Investing in education is one of the most valuable financial decisions you can make. Whether you are saving for a child's college tuition or considering furthering your own education, understanding the costs and available financial strategies can help you prepare with confidence.

Key Considerations for Education Expenses

Understanding the Cost of Education Tuition, books, housing, and other related expenses can add up quickly. Planning ahead can help ease financial stress and reduce reliance on loans when the time comes.

Education Savings Accounts Tax-advantaged accounts allow your savings to grow tax-free when used for qualified education expenses, making them a powerful tool for long-term education planning.

Financial Aid and Scholarships Grants, scholarships, and federal aid programs can significantly reduce out-of-pocket costs. Researching your available options early is key to maximizing the support available to you.

Life insurance is one of the most effective ways to protect the people you love from unexpected hardship. It can help cover your family's daily expenses, serve as a means to build wealth, fund a child's education, or provide a source of emergency cash when you need it most.

Finding the right coverage does not have to be complicated. Our advisors are here to help you identify the protection that fits your life and your goals.

Long-Term Care Finding the right long-term care coverage does not have to be confusing or overwhelming. Our advisors will work with you to find a plan suited to your needs.

What Is Long-Term Care and Who Needs It? Long-term care refers to care needed over an extended period of time due to a chronic illness or disability. It does not cover short-term hospital stays or illnesses. LTC insurance covers medical services such as nursing care and therapies, assisted living facility care, and daily living activities, whether in a nursing home or in an individual's home. Couples with children are likely candidates for LTC insurance, as coverage can help protect both an inheritance and beneficiaries. Adults may also want to consider LTC coverage for their parents, given the significant cost of nursing home care.

Reasons to Consider Your Coverage Options Today Your good health today may allow you to qualify for coverage now. If you wait, health problems could disqualify you from obtaining it later. Rates are also based on your age and other factors, such as benefit size and length of benefit period. The younger you are, the lower your long-term care insurance premium will be. Additional discounts may also be available to you and your family. There has never been a better time to make long-term care insurance part of your financial plan.

What Is Life Insurance? What happens to your family if something happens to you? Life insurance is a mechanism designed to help prevent a personal and emotional loss from becoming a financial catastrophe as well.

The most important function of life insurance is to replace income for your dependents. The need is clear for couples with young children, but it can be equally important for adults who rely on another person for financial support. Other common uses for life insurance include paying funeral, burial, and final medical expenses, providing an inheritance for heirs, covering federal estate taxes and state death taxes, making a meaningful gift to charity, and with some policies, building cash value that can be accessed as income during retirement when properly structured.[1] 

Accessing policy cash value through loans and surrenders may cause a permanent reduction of policy cash values and death benefit and negate any guarantees against lapse.

Determining Adequate Coverage Someone with no dependents and sufficient funds to cover final expenses may not need life insurance at all, though that is not the typical situation. Determining the right amount of coverage is not a simple matter. Replacing lost income alone may not be sufficient if a death also means the loss of the family's health insurance. The cost of replacing that coverage must be factored in, as must the cost of college education if minor children are involved.

Offsetting these expenses are other income sources such as Social Security, available assets, and the possibility that surviving family members may find employment. The cost and availability of life insurance depend on factors including age, health, and the type and amount of insurance purchased. Before implementing any life insurance strategy, it is prudent to confirm insurability by having the policy approved. As with most financial decisions, there are expenses involved, including mortality and expense charges. If a policy is surrendered prematurely, surrender charges and income tax implications may also apply.

Term Insurance There are two broad categories of life insurance: term insurance and permanent insurance. Term insurance provides temporary coverage with a stated death benefit for a specific number of years. The premium is set at the time of purchase and remains level throughout the term in most policies. The younger the insured is at the outset, the lower the premiums will be. The term may be for a single year, five, ten, or more years, or until a specific age, typically 65.

At the end of the term, the policy may be renewed at a higher premium. Some policies are guaranteed renewable regardless of the insured's health at that time, which can be especially valuable for older policyholders. Some term policies are also convertible, giving the owner the right to convert to permanent life insurance without providing proof of insurability.

Permanent Insurance While term insurance provides financial protection during periods of vulnerability, such as when children are young, permanent insurance is designed to continue until the insured passes away. Permanent life insurance combines a death benefit with a savings feature that carries growth potential during accumulation. There are many types of permanent life insurance available.

Whole life insurance is the original form of permanent coverage. Premiums remain level for life, providing predictability for financial planning and budgeting. A cash value builds up inside the policy, which is why premiums do not increase as the insured ages and mortality risk rises. Should the insured decide the policy is no longer needed, he or she may surrender it to receive the cash value, though that amount will be considerably less than the death benefit.

What Is Long-Term Care Insurance? Many people assume Medicare will cover the full range of medical costs associated with aging. However, Medicare is designed for acute care and does not cover the slow, chronic challenges that often accompany old age. Alternatives range from in-home assistance during the early stages of impairment to full admission to a nursing home for comprehensive supervision. Whatever path is chosen, it requires both money and planning. A year in a private nursing home can represent an enormous expense, making long-term care insurance an important consideration for many families' retirement plans.

Understanding Policy Variables Standards for long-term care insurance were established by the Health Insurance Portability and Accountability Act of 1996. Policies meeting those standards are considered tax qualified, defining the situations for paying benefits and the terms for tax deductibility of premium payments. That said, significant variation remains among policies, even among different policies at the same company. Key factors to consider include:

Services Covered Many policies now include features designed to help delay admission to a long-term care facility. In-home care by a licensed aide or nurse may be covered, and some policies also cover the cost of assistance with routine daily tasks.

Elimination Period Most policies require the insured to cover all costs when incapacity first begins, functioning similarly to a deductible. The elimination period, also known as the waiting period, can range from 30 to 90 days or more. The longer the elimination period, the lower the premium.

Amount of Coverage Benefits are typically expressed as a daily dollar amount. Inflation protection may also be available, though it will increase the premium accordingly.

Length of Coverage While lifetime coverage is considered the gold standard, limiting coverage to a set number of years, such as three or four, is a common strategy for managing costs.

You have worked hard to build your wealth and deserve full control over what happens to it. A critical part of that is ensuring your assets are managed and distributed according to your wishes after you pass away.

Last Will and Testament A Last Will and Testament allows you to specify how your assets are to be distributed after your passing. By establishing a clear and comprehensive plan, you can provide for your loved ones and outline any specific requests or instructions you want carried out.

General Power of Attorney A Power of Attorney is a vital legal document that allows you to appoint a trusted individual to make financial and legal decisions on your behalf in the event of incapacity. By designating an agent, you can ensure the seamless management of your affairs and maintain control over important matters related to your estate, providing greater peace of mind for both you and your loved ones.

More About Estate Planning You already have an estate plan in place, whether you know it or not. Even if you have not yet taken the step of drafting a will, every state has a property management plan that applies when someone dies without a will or trust. It is called the law of intestacy. Most people find the state's default plan unsatisfactory and prefer to exercise control over the final disposition of their property. Wills and trusts are the primary tools for doing so. It is important to be familiar with the broad outlines of your estate planning documents, or with the law of intestacy if you do not yet have any.

What would happen to your assets if you passed away today? Is that what you want? Does your estate plan provide adequate income for your surviving spouse? Does it meet the education needs of your children or grandchildren? Does it support your favored charities and reflect your philanthropic goals?

Inventory Your Assets Understanding what you own, and how you own it, is a foundational step in estate planning. Three categories of ownership each carry different implications:

Assets owned jointly with right of survivorship. Married couples often use this approach to title their property. At the death of any owner, the property passes directly to the survivor and is not affected by the terms of a will. Note that assets owned as a tenant in common do not automatically pass to surviving co-owners; instead a deceased owner's interest becomes part their estate and is distributed according to their will or applicable law.

Assets with a named beneficiary. Life insurance policies, retirement plan assets, IRAs, and annuity plans typically include beneficiary designations naming one or more beneficiaries. If no valid beneficiary is available (for example, if a beneficiary is deceased or cannot be located), the assets may be paid to the owner's estate and distributed in accordance with the terms of the will or applicable law.

Solely owned assets. Property owned individually presents both the greatest challenge and the greatest flexibility in planning. Such assets are typically the source of funds for covering estate administration expenses and any death tax obligations.

Assess Your Distribution Plan Your asset distribution plan must account for everything you own and the beneficiary designations already in place. Beneficiaries may be identified specifically or generally, for example by name or simply as "my children." Wills and trusts typically provide for the possibility of a beneficiary's premature death, though these provisions can sometimes lead to unexpected outcomes.

Tax Issues Planning for estate and inheritance taxes remains one of the most important and often overlooked aspects of estate planning.

Trust Issues For long-term family financial well-being, estate professionals may recommend using a trust for asset management. A trust can offer flexibility in managing and distributing assets across multiple generations, along with access to professional investment management.

Important related questions include who you should entrust with settling your financial affairs, who will supervise the implementation of your will, and if you choose trust-based wealth management, who will serve as trustee. These are critical decisions that are easy to postpone but important to address. For the sake of your beneficiaries and your own peace of mind, take care of your estate planning soon.

What Are Annuities? One of the most pressing concerns for retirees is the possibility of outliving their savings. Social Security benefits and many pensions continue throughout retirement, but whether personal savings will last depends on investment returns and expenses. Increasingly, retirees are turning to annuities as part of the solution. An annuity is a promise by a person or organization to make a series of payments over time. During retirement, an annuity can serve as an additional income source that cannot be outlived. A deferred annuity is one that is still in an accumulation phase, while an immediate annuity begins making payments shortly after purchase —typically within a month to a year.

Annuity Benefits The value of a guaranteed income stream for life is clear. Today's annuities also offer additional benefits that may be less obvious.

Tax Deferral During the accumulation phase, there are no income or capital gains taxes on investment growth. The same is true of traditional IRAs and 401(k) accounts, but unlike those vehicles, non-qualified annuities (annuities held outside a retirement account) have no dollar limit on contributions. It is worth noting that when gains are eventually distributed, they will be taxed as ordinary income, just as they are from traditional IRAs and 401(k)s.

A Wide Range of Investment Choices Annuity providers offer a broad array of investment strategies to choose from during the accumulation phase. Options may range from stock and bond funds, which carry the usual market risk and reward characteristics, to guaranteed interest rates based on the claims-paying ability of the issuer. The guarantees do not apply to the performance of variable subaccounts, which fluctuate with market conditions. Some providers also offer floors under the value of the annuity to help limit downside risk.

Tax-Free Transfers Among Investment Choices When rebalancing a taxable investment portfolio by selling investments that have performed well or reached their targets, taxes may apply. In contrast, changing the underlying investments within an annuity is generally not subject to income tax.

Types of Annuities During the savings years, there are broadly two types of annuities to consider:

Deferred variable annuities invest in the financial markets and offer the possibility of substantial growth, but also carry the risk of loss. These annuities are generally better suited for investors with longer time horizons who can tolerate market fluctuations.

Deferred fixed annuities provide a fixed rate of return guaranteed by the issuer, making them a better fit for the more conservative investor who prioritizes stability over market exposure. With both product types, earnings compound on a tax-deferred basis. Tax penalties apply to withdrawals taken before age 59½.

During retirement, when income distribution becomes the priority, there are also two primary approaches:

Immediate variable income annuities are linked to the financial markets. While payments are made for life, the amount of each payment will vary based on the performance of the underlying investment strategy. Because payments have the potential to grow over time, this approach may offer some protection against inflation, though there is no guarantee it will keep pace, as payments may decrease if markets decline.

Immediate fixed income annuities commonly offer a monthly payment schedule, with quarterly and annual options generally available as well. With this approach, market volatility becomes someone else's concern, at least as it relates to this portion of your retirement income.

An intermediate option, the deferred fixed income annuity, begins payments at a future date. The delay in payments increases the size of the income received when distributions begin.

Tax planning is a proactive approach to managing your financial future. It involves making thoughtful, strategic decisions throughout the year to help manage tax liability and stay ahead of ever-changing tax laws. Effective tax planning can help you preserve wealth, optimize deductions, and avoid unnecessary tax burdens.

Key Aspects of Tax Planning

Understanding Tax Brackets Knowing where your income falls within federal and state tax brackets helps you make more informed decisions about earnings, investments, and deductions, putting you in a stronger position year-round.

Maximizing Retirement Contributions Contributing to tax-advantaged retirement accounts such as 401(k)s and IRAs can reduce your taxable income while strengthening your long-term financial well-being.

Capital Gains Management Being intentional about when and how you sell investments can play an important role in managing capital gains taxes and improving after-tax returns.

Deductions and Credits Staying informed about available deductions, including mortgage interest, charitable donations, and medical expenses, can help meaningfully reduce your taxable income.