Annuities tend to spark strong opinions — and a lot of confusion. But when you strip away the noise, annuities are simply insurance contracts designed to help create predictable income, often for life. A recent Kiplinger piece highlighted several common myths that keep people from evaluating annuities clearly. Here’s what Jacobs Financial Services wants you to know — and what to ask before you decide if an annuity belongs in your plan. Myth 1: “Annuities are too complicated” Reality: There are multiple types of annuities, which can make the category feel overwhelming. But the core concept is straightforward: you purchase an insurance contract that can provide income for a period of time or potentially for life. Jacobs Financial Services take: Complexity isn’t a reason to avoid an annuity — it’s a reason to slow down. If an annuity is being recommended, you should be able to explain (in plain English)

If you are turning 73 this year, this message is for you. The IRS may require you to take your first Required Minimum Distribution (RMD) from pre-tax retirement accounts, such as a Traditional IRA. Missing an RMD can lead to costly penalties—so it’s important to plan ahead. What Is a Required Minimum Distribution (RMD)? A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from certain retirement accounts once you reach the required age. RMDs apply because these accounts are generally funded with pre-tax dollars, meaning withdrawals are typically taxable income. Who Needs to Take an RMD at Age 73? If you’re turning 73 this year, you may need to start RMDs from pre-tax retirement accounts, including: Roth IRAs generally do not require RMDs for the original owner. First RMD Deadline: Don’t Get Caught Off Guard Your first RMD has a specific deadline,

Entering retirement is a major milestone. After years of saving and investing, your focus shifts from building wealth to protecting retirement savings and creating a reliable income. For many retirees, however, the early years of retirement introduce risks that are often underestimated—and can have lasting financial consequences. 1. Longevity Risk: Outliving Your Retirement Income One of the most significant retirement risks is longevity risk, or the possibility of living longer than your retirement savings were designed to last. According to the Social Security Administration, a 65-year-old today can expect to live, on average, to about age 84 or 85. Importantly, many retirees—especially couples and healthy individuals—will live well beyond that average, potentially into their 90s (SSA Actuarial Life Table, 2024). Research from the TIAA Institute shows that retirees often underestimate how long retirement may last, which can result in income strategies that fall short later in life. How to manage

The holiday season brings moments of reflection—gathering with family, sharing stories, and enjoying traditions that remind us what truly matters. Amid all the celebrations, there’s one meaningful gift many people overlook: Creating a plan to pass on your legacy. Legacy planning isn’t just financial—it’s emotional. It protects the people you love and ensures the life you’ve worked hard to build continues to support your family and reflect your values. For many in our community, where family connections and long-term stability matter deeply, legacy planning is one of the most impactful gifts you can give. Why Legacy Planning Matters for Local Families Whether you live along the Lakeshore, in the Grand Rapids area, or anywhere throughout our region, you’ve worked hard to build something meaningful. A thoughtful legacy plan ensures your wishes are honored and provides clarity for your loved ones by answering: The holidays naturally bring conversations about the future—retirement

At Jacobs Financial Services, we believe retirement should be a time of confidence — a stage of life where you enjoy the rewards of your hard work and feel secure about the future. Part of that security comes from knowing your legacy is protected and your wishes are clearly documented. That’s why having a thoughtful will or estate plan in place is so important. While it’s common to put off estate planning, the truth is that every family benefits from having a plan—and your retirement years are the ideal time to ensure everything is aligned with your goals and values. 1. Gain Peace of Mind Knowing Your Wishes Are Honored A will or estate plan allows you—not the state—to decide how your assets are distributed. Whether it’s your home, savings, investments, or personal keepsakes, you have complete control over who receives what. This clarity ensures that: Retirement gives you the