Starting investing, alt for bonds and slowing down a fire

Nate Crosby |

Alternative to Bond Funds

Do you find bond funds uninspiring? Vanguard’s Total Bond Market (BND) has a lower share price in 2023 than it did in 2007. If you held it outside of an IRA, you also got taxed along the way. In a recent video, we discussed an alternative to traditional bonds that: 1) provides tax advantage growth 2) provides consistent conservative growth that is not directly affected by the stock market 3) has cash that can be accessed without disrupting dividends 4) can be passed onto family members tax-free. You can watch the video here.

Investing: Where to Start? 

You or someone you know says, “I want to start an investment account, but I don’t know which kind of account is right for me.” That’s a common question, especially among new investors or parents who want to encourage their children to get a head start. "What type of investment account should I choose?" The answer will become clear when you answer the question, “What will the money be used for?” We recently walked a podcast listener through three basic options. You can watch the short video here.

Using a Tax Problem to Solve Long-Term Care Costs

The average monthly cost for long-term care is $7,750 according to the Department of Insurance. This cost can be mitigated by purchasing long-term care insurance. Individuals and spouses are often hesitant to do this because there is a 30% chance they may never need long-term care. There is now a way to prepare for long-term care costs and get your money back if you never need care. A common way this can be achieved is through excess income in required minimum distributions. What are required minimum distributions? 

Tax-deferred retirement plans are a great way to accumulate assets, but they can create excess taxation and income in retirement years for successful investors. Under the current tax law, investors with tax-deferred investment accounts like Traditional IRAs must start taking withdrawals at age 73 in specific amounts based on their age. These withdrawals are known as required minimum distributions, or RMDs. For some investors, the amount they are required to distribute is much greater than their actual income needs in retirement, causing excess taxation. If that is the case an investor can transfer portions of their qualified money to an asset-based long-term care annuity. We love One America’s version because it provides a 25% bonus and if the owner needs long-term care, the annuity will fund coverage for up to a 10-year period, and the funding counts as part of their RMD, which lowers or even eliminates their RMD requirement. However, if they never need long-term care the annuity can be reclaimed or passed onto a beneficiary. To learn more, contact our office

Slowing Down House Fires

According to firefighters, every second counts during a fire. In fact, house fires can double in size every minute that goes by. About half of home fire deaths happen between 11 p.m. and 7 a.m. when most people are sleeping. But here’s the good news: there’s a simple step you can add to your nighttime routine to keep you safe.

Research from Underwriters Laboratories Firefighter Safety Research Institute (FRSI) shows that closing your bedroom door helps to slow the rate at which fires spread, lessens smoke damage, and could even save lives. Just like having the right homeowners insurance, a little preparation can go a long way to help you rest easy. 

Around Town

My family and I were in Chardon this past weekend for a craft show in the square. Chardon in the Fall is a beautiful place. Throughout the year you can find craft shows, beer tasting events, maple syrup festivals, and more.


Disclaimer: This newsletter represents the opinions of Crosby Advisory Group, LLC and is not intended to replace individual planning advice. Crosby Advisory Group is a registered investment advisor with ownership interest in NMD Insurance and CAG Marketing. Investing involves risk including the potential loss of principal.