Financial Beacon Winter 2021

Brought to you by Trey Welker, FICF The Pierce Agency, Kevin Pierce, General Agent Knights of Columbus Financial Beacon Winter 2021

In this issue: ✦ The Beatification of Father McGivney ✦ Survivorship Universal Life for family business ✦ What you can do now to lower your 2020 taxes ✦ Managing your own risk as a business owner Survivorship Universal Life is an ideal protection for the family business Survivorship Universal Life (SUL), also known as joint and second-to-die coverage, typically insures both spouses with a death benefit paid after the death of the last insured. A MESSAGE If you are part of a family business, especially if the business relies from your agent heavily on income producing assets, Survivorship Universal Life (SUL) Dear Brother Knight: insurance may be right for you. St. Joseph’s Cathedral in Hartford, High net worth couples’ heirs may Connecticut, erupted in applause use this death benefit to pay your estate and church bells rang as Father taxes and other final expenses. Depending on your circumstances, there may be many things to deal with Michael J. McGivney, founder of Succession planning is essential in a timely manner, and many may the Knights of Columbus, was There may be complex legal and require cash. officially declared “blessed” at his financial issues to resolve when a family beatification Mass held on Oct. 31, business passes from one generation to Equity between your heirs 2020. the next. To avoid liquidating the assets If you own a family business, do you In a decree from the Vatican of a family business in order to: know how you’ll leave ownership that was read at the Mass, Pope • equitably distribute your legacy to interest to your kids who are involved Francis credited now-Blessed your heirs, and children who aren’t?2 Michael McGivney for his “zeal for • cover estate settlement expenses, Many family businesses involve some the proclamation of the Gospel • pay any estate taxes that may be due, adult children as active participants, and generous concern for his SUL insurance pays a death benefit while others are not involved. You brothers and sisters” that “made typically free of tax obligations for your may also need to plan for the care of him an outstanding witness of beneficiaries. a special needs child, including their Christian solidarity and fraternal What is estate tax? future custodian(s). assistance.” The federal government has set a The funds provided by an SUL death During the event, Supreme valuation limit on estates subject to benefit may be a useful tool in the Knight Carl Anderson read a brief estate tax. If your estate’s value is below equitable distribution of your legacy to biography of the K of C founder, this exemption limit, there will be no your heirs. stating that Blessed Michael federal estate tax. For the amounts over Foresight rather than hindsight McGivney remains a witness and the exemption limit, the estate tax is The charm and challenge of family inspiring example for the more assessed.1 There are a number of states business is well understood by those than 2 million members of the that also levy estate or inheritance taxes, involved. The time spent planning Knights of Columbus around the at various value limits. and discussing the transition from one world. generation to the next can be critical All Knights and their families, as Affordable option for couples By insuring both spouses under one to the ongoing success of an enterprise. well as all those devoted to Father policy, the premium paid is almost Your heirs may benefit greatly from your McGivney, are asked to pray for his always less than the premiums on foresight, rather than regretful for what intercession in their daily needs, separate policies with an equal might have been. especially in cases of serious illness, Contact me today to learn more combined death benefit. The difference and to report any favors and about the affordable options available is of course, the death benefit is paid healings to the Guild. with Knights of Columbus Survivorship out only after the last insured has ✦ Learn more about the Universal Life insurance. passed. 1https://www.insuranceandestates.com/survivorship- Beatification of Father McGivney second-to-die-life-insurance/ at KofC.org Ready cash at a critical time 2https://www.forbes.com/advisor/life-insurance/ survivorship-life-insurance/ While a death benefit is helpful in Fraternally yours, This material has been prepared for informational settling your estate, it may also be purposes only, and is not intended to provide, and Trey Welker should not be relied on for tax, legal or accounting critically important to the smooth advice. You should consult with your own qualified tax, operation of a family business. legal and accounting advisors before engaging in any transaction. What you can do now to lower your 2020 taxes 2020 is behind us. After that Tax credits due to COVID-19 extraordinary year, we still must file tax After the COVID-19 pandemic hit...the returns. There are a number of ways U.S. government announced a number you may be able to reduce your tax of measures to help small and mid-sized obligation for 2020 in this new year. businesses ride out the downturn.3 Contribute to retirement accounts If you are a small business owner, One of the easiest ways to lower your educate yourself on the many credits, taxes for 2020 is to maximize your deductions and deferrals available to contributions to retirement accounts reduce your tax liability now. (up to April 15, 2021). Tax deferred Make estimated tax payments deductions. However, you may have account contributions lower your taxes According to IRS rules, you must pay unusual deductions for 2020 that now, but tax will be due in the future.1 100% of last year’s tax liability or 90% may make itemizing your deductions Maximize your health savings account of this year’s tax or you will owe an sensible.1 underpayment penalty. If you’re eligible to participate in an Get organized and file on time Health Savings Account (HSA), you can If your adjusted gross income for A sure way to lower your tax obligation contribute right up until April 15, 2021, 2019 was more than $150,000, you have is to not pay more than required. Start the expected deadline for filing and to pay more than 110% of your 2019 tax now to get your paperwork organized paying your 2020 federal income taxes. liability to be protected from a tax year and to learn about changes in the law Putting money into this account over 2020 underpayment penalty. that may now apply to you.1 the next few months can count toward If you make an estimated payment by your 2020 federal income tax return.2 January 15, you can erase any penalty Decide if you need assistance Home office deductions for the fourth quarter, but you still will Understanding tax law, especially when it owe a penalty for earlier quarters if you has changed recently, can be confusing The eligibility rules for claiming a home did not send in any estimated payments and time consuming. If you suspect you office deduction have been loosened to back then. need assistance, get ready and make that allow more self-employed filers to claim But, if your income windfall arrived appointment early. ✦ this break. People who have no fixed after August 31, 2020, you can file Form 1https://turbotax.intuit.com/tax-tips/tax-planning-and- location for their businesses can claim checklists/tax-tips-after-january-1st/L8fY6OyFl 2210: Underpayment of Estimated Tax 2https://www.creditkarma.com/tax/i/hsa-contribution- a home office deduction if they use the deadline to annualize your estimated tax liability, 3 space for administrative or management https://www.eastwestbank.com/ReachFurther/en/News/ and possibly reduce any extra charges.1 Article/COVID-19-Tax-Relief-How-to-Maximize-Your- activities, even if they don’t meet clients 2020-Credits there.1 Itemize your tax deductions This material has been prepared for informational purposes only, and is not intended to provide, and should With the change in the standard not be relied on for tax, legal or accounting advice. You deduction, fewer taxpayers itemize should consult with your own qualified tax, legal and YOUR AGENT accounting advisors before engaging in any transaction.

In Service to Fellow Knights Trey Welker, FICF Family benefits & services Assistant General Agent Knights of Columbus consistently ranks at the top of the PHONE: (405) 850-4092 industry in financial stability and ethics. Please call to EMAIL: [email protected] discuss these services: WEB: treywelker.com • Financial needs analysis LINKEDIN: treywelker • Life insurance FACEBOOK:KofCAgentTreyWelker • Tax deferred fixed-rate annuities INSTAGRAM: kofc.agent.treywelker • Long-term care insurance • Disability income insurance • Retirement account rollovers THE PIERCE AGENCY • Estate preservation Kevin Pierce, General Agent • Scholarships 1019 Waterwood Pkwy Suite E • Family fraternal benefits Edmond, OK 73034 (877) 707-70752 Contact me today for information on [email protected] long-term care insurance Knights of Columbus Financial Beacon Knights of Columbus Supreme Office Trey Welker, FICFAssistant General Agent The Pierce Agency 1019 Waterwood Pkwy Suite E Edmond, OK 73034

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The document your family Face to face will be glad you left behind can still be face to face. In one place, you can assemble all the information your family would need to take care of basic financial matters in your absence. Your complimentary Knights of Columbus Personal Planning Workbook helps you compile details about key contacts (attorneys, insurance agents, etc.), financial accounts, bills, passwords, the location of important documents, and more.

Contact me today for your complimentary Workbook. Just because we’re apart doesn’t mean we can’t meet together.

LIFE INSURANCE • DISABILITY INCOME INSURANCE • LONG-TERM CARE INSURANCE • RETIREMENT ANNUITIES

Contact me today to find out how. Contact me today for information on long-term care insurance K OF C AGENT (123) 456-7890 [email protected] Managing your own risk as a small business owner After the year we have just been a key person in your business. If you through, you may be one of many who become ill or are injured and cannot find themselves trying to salvage a small work, financial pressures are not far business you worked hard to build or, behind. What would it cost to replace you may one of many who are now self- you? What do you need to provide for employed due to a job loss. your family? There are unique challenges in Disability Income insurance provides managing personal finances when a benefit that can help you pay the bills self-employed or the owner of a small when you may be facing months of business. recovery. You do not have to work without a net Managing risk must include you LTC insurance covers your care Knights of Columbus Insurance can Not only are you responsible for At no age is the risk of death greater be a partner in your personal financial 1 managing the risks to your business, you than the risk of becoming disabled. plan. There are few ways to spend your need to protect your personal income With a significant disability, you may money that provide a greater potential and ensure you can ride out downturns. require professional and custodial care benefit and peace of mind for you and Disability Income (DI) insurance that your family simply cannot provide. your family than DI and LTC insurance and Long-term Care (LTC) insurance A Comprehensive LTC policy for the possibility of you being disabled through Knights of Columbus are two through Knights of Columbus will by illness or injury, short- or long-term. ways to minimize your risk of income provide a benefit for the professional Contact me today to learn more and instability due to illness or injury. and custodial care you may need, discuss your options to add Disability DI insurance works when you cannot including home care when you are able Income insurance and Long-term Care Even if you have saved wisely and run to be home. You may also benefit from insurance to your financial plan. ✦ rehabilitation and home modification your business prudently, you are likely 1 https://www.affordableinsuranceprotection.com/ options included in your coverage. death_vs_disability

This publication is written to provide accurate and authoritative information with respect to the subjects covered. However, the information contained in this publi cation is not intended as a substitute for direct financial and legal advice. For such assistance, please contact a qualified professional. Reproduction of any part without written permission is strictly prohibited. Published in conjunction with the Knights of Columbus by Silver Planet LLC; distributed in the United States and Canada. Copyright © 2021 Silver Planet LLC 4120 Paunack Avenue, Madison, WI 53711 (800) 419-5203.