Financial Conservatives – Sound Ways to Chart Your Financial Future

Financial Conservatives – Sound Ways to Chart Your Financial Future

Conservative, financially-minded seniors (those generally age 55 and above), as well as other financially conservative persons, have a unique set of financial concerns that primarily center on two areas; namely, not outliving assets, and being able to pass on a legacy to loved ones like children and grandchildren.

Accomplishing these goals requires that one get the most they can out of their retirement savings while reducing the payment of taxes on investments, as well as avoiding shrinkage in Social Security benefits due to taxation.

Look at this astonishing history of events surrounding Social “Security”:

  • “The Social Security Act” was signed into law in 1935.

  • 5 years later Social Security began making its first, non-taxable, benefit payments.

  • By 1983 a 50% tax was levied on Social Security benefits.

  • Then, only 10 years later, Congress increased the tax on Social Security to 85%!

The “SST” (Social Security Tax) is levied as you exceed a specified “threshold income”, which includes income from any and each of the following sources:

  • CD’s

  • Capital Gains

  • Credit Union Savings

  • Mortgage Rental Income

  • Passbook Savings

  • Pension Income

  • US Treasuries

  • Taxable Income sources

  • Etc.

If your threshold income exceeds the following limits, up to 85% of the amount received from Social Security could be subject to tax based upon current tax law:



Total Income Including Social Security

% of Social Security that is Taxable 2017-2018*


$25,000 – $34,000

on Excess over $25,000, and under $34,000



on Excess above $34,000

Married Filing Jointly

$32,000 – $44,000

50% on Excess over $32,000, and under $44,000



on Excess above $44,000

(*See Social Security Website For Current Year Figures:

The key to winning this “tax quagmire” is to be positioned in conservative financial programs that do not contribute to the above “threshold income” problems such as various types of annuities offer guaranteed principal protections and other features*.

“…as a senior, I’m more concerned about return of principle (safety), rather than return on my principle (risk).”

What follows is a useful basic “financial tip” that may be helpful to you as a kind of guideline in better-understanding ways of viewing your assets towards the goal of structuring financial programs that best limit your risk.

Subtract your age from 100, and what remains is the outermost percentage amount of your assets that some say they feel comfortable placing in more risky placements. We generally advise even less of an amount at risk than the amount this somewhat simplistic but useful formula produces, especially for seniors, although a personalized assessment of one’s risk tolerances, along with other factors, must always and first be taken into account:

EXAMPLE of a 74-year-old senior citizen: 100 minus their Age of 74 = 26%

I conduct my financial and insurance services around these kinds of conservative principles of asset preservation because I too believe in helping to protect one’s hard-earned assets so that such assets will stand a better chance of lasting one’s lifetime and/or providing a legacy to future generations.

If you are thinking retirement or preservation of assets (return of principal), and, like many you too have lost more than a few dollars in the financial markets, then we believe we may be of valuable service to you. If you are advanced in years who is dependent on CD or other fixed income sources that have been dramatically reduced due to rate cuts, actions by the Federal Reserve Board or general economic and financial conditions, then exploring other secure options makes sense.

Simply put, I don’t recommend unsuitable financial vehicles for others any more than I do for myself! Instead, I work with my clients to design financial programs where they can select assets that allow them to participate in broader financial sectors, while at the same time greatly reducing and containing undue risk. When you think about it, who needs unnecessary risk at age ranges of 65 and older?


Disclaimer: The material discussed herein is meant for general illustration or informational purposes only and is not to be construed as investment advice. Although the information has been gathered from sources believed to be reliable, it is not guaranteed. Please note that individual situations can vary; therefore, the information contained herein should be relied upon only when coordinated with individual professional advice. We are not licensed for and therefore do not provide tax or legal advice (lup-050610).

About the Author: Paul M. League, QFP—QUALIFIED FINANCIAL PLANNER, is the Founding Principal of League Financial & Insurance Services (, which is a privately held company, established in 1984, and located in Palm Desert, CA. Paul and his company specialize in assisting clients to create, expand & preserve assets “…in a league of our own.” Contact Information: Paul M. League, P.O. Box 11800, Palm Desert, CA 92255-1800; T: 800.482.5347; Email: © Paul M. League. All rights reserved.

Please call us today at 800.482.5347 so that we can also help you in getting better control over your financial security!

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