Frequently Asked Questions From Clients:
Planning for your financial future comes with a lot of questions and we're here to help.
Whether you're preparing for retirement, considering a 401(k) rollover, exploring Social Security, planning your estate, or looking for guidance from a Financial Fiduciary, our FAQ page is designed to provide clear, straightforward answers. At AAA Life Solutions, we believe informed decisions lead to greater confidence, and we're committed to helping individuals, families, and business owners throughout the Mid-South navigate their financial journey with personalized guidance and trusted expertise.
Why Choose AAA Life Solutions?
1. What is a financial fiduciary?
A financial fiduciary is a professional who is legally and ethically obligated to act in their clients' best interests. That means recommendations should be based on what is most appropriate for your financial goals and circumstances and not based on commissions, sales quotas, or incentives.
At AAA Life Solutions, we believe trust is the foundation of every client relationship. Our goal is to educate you about your options, answer your questions, and help you make informed financial decisions that align with your long-term objectives.
2. Why should I work with a financial fiduciary instead of someone who only sells financial products?
Not every financial professional is held to the same standard. Some advisors are only required to recommend products that are considered "suitable," while fiduciaries are expected to put their clients' interests first.
Working with a fiduciary means you receive guidance that focuses on your overall financial picture and not just a single investment or insurance product. We take time to understand your retirement goals, tax concerns, estate planning needs, and income objectives before making recommendations.
3. Why should I choose AAA Life Solutions?
Choosing who to trust with your retirement is one of the most important decisions you'll make for your future. At AAA Life Solutions, we believe financial planning should be personal, educational, and centered on your goals.
Our team works with individuals, families, and business owners to create customized retirement and financial strategies. Whether you're preparing for retirement, rolling over a 401(k), planning your estate, or looking to reduce taxes in retirement, we're here to help simplify the process and provide guidance you can understand.
We believe every client deserves honest advice, clear communication, and a long-term relationship built on trust.
4. What makes AAA Life Solutions different?
At AAA Life Solutions, we believe the best financial decisions come from looking at the complete picture, and not just one piece of your financial life.
One of the things that sets us apart is our collaborative approach. Renee' Kennedy serves as a Financial Fiduciary, helping clients make informed decisions that are aligned with their best interests while providing education, retirement guidance, tax-efficient strategies, estate planning coordination, and wealth preservation solutions.
Working alongside her is Adam Blain, a Financial Advisor who helps clients develop personalized investment and retirement strategies designed to support their long-term financial goals. Together, Renee' and Adam combine their knowledge and experience to help clients create a well-rounded financial plan that balances growth, income, protection, and legacy planning.
Rather than focusing on a single product or investment, we take the time to understand your goals, answer your questions, and build a customized strategy that's designed around your unique needs.
At AAA Life Solutions, you're not just getting an advisor - you're gaining a team that's committed to helping you navigate life's financial decisions with confidence, clarity, and personalized guidance.
5. Do I have to be retired to work with AAA Life Solutions?
No. Many of our clients begin planning years before retirement. The earlier you start preparing, the more opportunities you may have to build savings, reduce future taxes, and create a retirement strategy that supports the lifestyle you envision.
Whether retirement is five years away or twenty-five, we can help you develop a plan that grows with you.
6. Who do you typically work with?
Individuals, families and business owners who are approaching retirement or already retired. Most of our clients are between 55 and 75. We are based in Germantown and serve Memphis, the Mid-South and clients across the United States.
7. Is there a charge for the first conversation?
No. Your first conversation with us is free, and there is no obligation to do anything afterward.
8. How long is the first visit, and how can we meet?
Most first conversations take 30 minutes to an hour. You can meet with Renee' in person at our Germantown office at 1942 Exeter Rd., by phone, or by Zoom. Pick a time on our online calendar or call 901-508-2433.
9. I already work with an advisor. Can I still talk with you?
Yes. Many people who come to us already work with someone. We are glad to look at what you have in place and explain what we see in plain language. What you do next is entirely your decision.
10. What does it cost to work with AAA Life Solutions?
We don't charge for people to ask all the questions they need answered to make legacy, retirement or estate planning decisions. The fees are competitive and usually less than what most people are currently paying with the blended strategies we employ. We are always transparent in showing you what those are before we implement anything.
Retirement Planning
1. When should I start planning for retirement?
The best time to start planning for retirement is as early as possible. The sooner you begin, the more time your savings and investments have to grow. However, it's never too late to create a retirement plan. Whether you're in your 30s, 50s, or already approaching retirement, a personalized strategy can help you maximize your income, reduce unnecessary taxes, and prepare for the future with confidence.
At AAA Life Solutions, we work with individuals and families at every stage of life to develop retirement strategies that fit their goals, lifestyle, and financial situation.
2. How much money do I need to retire comfortably?
There isn't a one-size-fits-all answer because everyone's retirement goals are different. The amount you'll need depends on factors such as your desired lifestyle, healthcare expenses, travel plans, inflation, Social Security benefits, pensions, and other sources of income.
Rather than relying on general rules or online calculators, we believe in creating a personalized retirement income plan. By evaluating your unique circumstances, we can help determine how much you'll need and develop a strategy designed to help your savings last throughout retirement.
3. What is retirement income planning?
Retirement income planning is the process of turning your accumulated savings into reliable income that supports your lifestyle throughout retirement. It involves coordinating investments, Social Security, pensions, retirement accounts, and other assets to create a sustainable income strategy.
A well-designed retirement income plan also considers inflation, taxes, healthcare expenses, market volatility, and the possibility of living longer than expected. The goal is to help you enjoy retirement with greater confidence while reducing financial uncertainty.
4. How can I avoid running out of money during retirement?
One of the biggest concerns retirees face is outliving their savings. A comprehensive retirement plan addresses this by creating a diversified income strategy, managing investment risk, planning for healthcare costs, and reducing unnecessary taxes whenever possible.
At AAA Life Solutions, we help clients build retirement income strategies that are designed to provide dependable income while protecting their long-term financial security. Every plan is tailored to the client's unique goals and comfort level with risk.
5. Can I retire early?
Early retirement may be possible, but it requires careful planning. You'll need to consider factors such as healthcare coverage before Medicare eligibility, when to begin Social Security benefits, income needs, taxes, investment withdrawals, and inflation.
Our advisors can help you evaluate whether early retirement is financially realistic and develop a strategy that supports your long-term goals while helping preserve your assets.
6. What happens during my first meeting with AAA Life Solutions?
Your first meeting is designed to be informative, comfortable, and pressure-free. We'll take the time to learn about your financial goals, current retirement savings, concerns, and future plans. We'll answer your questions, discuss potential strategies, and explain how our planning process works.
Our objective is to help you gain clarity about your financial future so you can make informed decisions with confidence. Every recommendation we make is based on your individual needs rather than a one-size-fits-all approach.
7. What should a retirement income plan cover?
More than investments. A thorough plan looks at how long you may live, health care, housing, long-term care, inflation, Social Security timing, taxes, and the order in which you draw from your accounts.
8. What is a retirement income analysis?
It is a review that estimates how much income you will need each month in retirement and shows how your existing accounts could produce it, so you can see gaps before you stop working.
9. Why does inflation matter more once I retire?
Retirees tend to spend more on things like health care, where prices often rise faster. A quick way to see the effect is the Rule of 72: divide 72 by the inflation rate to estimate how many years it takes prices to double.
10. Should I count on my home to fund retirement?
Home values can move up and down, so it is risky to treat home equity as your backup income. It helps to have a housing plan, and a second one in case your health or needs change.
11. Does Medicare pay for long-term care?
Generally no. Medicare may cover a limited stay in a skilled nursing facility after a qualifying hospital stay, but it does not cover ongoing help with daily living. Medicaid may help, but only after income and asset limits are met.
12. What counts as long-term care?
Ongoing help with everyday activities such as bathing, dressing, eating and moving around, whether at home, in assisted living or in a nursing home. Most long-term care is not provided in a nursing home.
13. What are the ways to pay for long-term care?
The main ones are paying from your own savings, Medicaid for those who meet its income and asset limits, traditional long-term care insurance, and life insurance or annuity products that include long-term care benefits. Each has trade-offs in cost, flexibility and what happens if you never need care.
14. What is the difference between a long-term care rider and a chronic illness rider?
Both can be added to a life insurance policy. A long-term care rider generally offers broader coverage. A chronic illness rider often requires that the condition be expected to last for life. Terms vary by insurance company, so read the contract.
15. Why do women often need a different retirement strategy?
On average women earn less over a career, are more likely to step away from work to care for family, and live longer. That can mean less saved, a smaller Social Security benefit, and more years of retirement to fund.
16. How does time out of the workforce affect Social Security?
Benefits are based on your highest 35 years of earnings. If you have fewer than 35 years of work, the missing years are counted as zeros, which lowers the average.
17. What should I look for in a financial professional?
Someone who listens more than they talk, speaks to you directly rather than only to your spouse, and respects your comfort with risk instead of pushing you past it.
18. What are the key ages to know as I plan for retirement?
Several ages matter under current federal rules. At 50 you can begin making catch-up contributions to retirement accounts. At 59½ withdrawals from IRAs and 401(k)s are generally no longer subject to the 10% early withdrawal penalty. At 62 you can first claim Social Security retirement benefits, at a reduced amount. At 65 most people become eligible for Medicare. Between 66 and 67, depending on your birth year, you reach full retirement age for Social Security. At 70 delayed retirement credits stop, so there is no benefit to waiting longer to claim. At 73 required minimum distributions generally begin, or at 75 if you were born in 1960 or later. Rules change, so confirm the details for your own situation.
19. What are the most common retirement planning mistakes?
Five come up again and again: having no written strategy (or one that has not been updated), spending more than you can sustain, underestimating health care costs, forgetting about inflation, and not planning for the possibility of long-term care.
20. How often should I review my retirement income strategy?
A good rule of thumb is at least every three years, and sooner after a major life change or a big change in the markets.
21. How long should I plan for my savings to last?
People are living longer than earlier generations did. Many plans now assume 20 to 30 years of retirement, and sometimes more.
These answers are general education, not advice for your situation. AAA Life Solutions does not provide tax or legal advice. Want more detail? Get our free retirement guides.
Social Security
1. When should I start collecting Social Security?
The right time to begin collecting Social Security depends on your unique financial situation, health, retirement goals, and other sources of retirement income. While you can begin receiving benefits as early as age 62, delaying benefits until your full retirement age, or even age 70, may increase your monthly benefit.
At AAA Life Solutions, we help clients evaluate the advantages and trade-offs of different claiming strategies so they can make an informed decision that supports their long-term retirement goals.
2. Will I have to pay taxes on my Social Security benefits?
Many people are surprised to learn that Social Security benefits may be taxable depending on your total retirement income. Withdrawals from retirement accounts, pensions, and other income sources can affect how much of your Social Security is subject to federal income taxes.
Our team helps clients create tax-efficient retirement income strategies that coordinate Social Security with other retirement assets whenever possible.
3. Can I work while receiving Social Security?
Yes. You can work while receiving Social Security benefits, but your age and earnings may affect how much you receive before reaching your full retirement age. Once you reach full retirement age, the earnings limits no longer apply.
Understanding how employment income impacts your benefits is an important part of retirement planning, and we're happy to help explain how it may apply to your situation.
4. Can my spouse receive Social Security benefits?
In many cases, yes. Married, divorced, and surviving spouses may qualify for benefits based on a spouse's work record if certain eligibility requirements are met.
Because every situation is different, it's important to review your options before making a claiming decision. Our team can help you understand the available strategies and how they fit into your overall retirement plan.
5. Can AAA Life Solutions help me maximize my Social Security benefits?
Absolutely. Social Security is one of the most important sources of retirement income for many Americans, and claiming benefits at the right time can have a lasting impact on your financial future.
At AAA Life Solutions, we consider your Social Security benefits as part of your complete retirement income strategy. We evaluate how your benefits work alongside your investments, retirement accounts, taxes, and long-term financial goals to help you make confident decisions.
6. How much does my benefit grow if I wait past full retirement age?
For people born in 1943 or later, benefits grow by about 8% for each year you delay, up to age 70. After 70 there is no further increase for waiting.
7. Can I claim Social Security on a former spouse's record?
Often, yes. In general the marriage must have lasted at least 10 years, you must be at least 62, and you must be currently unmarried.
8. Why might the higher earner in a couple wait to claim?
Because when one spouse dies, the survivor generally keeps the larger of the two benefits. If the higher earner claims early, that smaller check may be what the surviving spouse lives on.
These answers are general education, not advice for your situation. AAA Life Solutions does not provide tax or legal advice. Want more detail? Get our free retirement guides.
Tax Planning
1. Why is tax planning important in retirement?
Many people assume their taxes will automatically decrease after they retire, but that's not always the case. Retirement income from pensions, retirement accounts, Social Security, and investments may all have different tax implications.
Thoughtful tax planning can help you keep more of what you've worked so hard to save while reducing unnecessary tax burdens throughout retirement.
2. How can I reduce taxes in retirement?
There are many strategies that may help reduce taxes, depending on your financial situation. Coordinating withdrawals from different retirement accounts, considering Roth conversion opportunities, managing Required Minimum Distributions (RMDs), and planning the timing of income are just a few examples.
At AAA Life Solutions, we work with clients to develop tax-conscious retirement strategies designed to support their long-term financial goals.
3. What are Required Minimum Distributions (RMDs)?
Required Minimum Distributions, or RMDs, are the minimum amounts that must generally be withdrawn from certain retirement accounts after reaching the required age established by federal law.
Failing to take the required distribution can result in significant penalties. We help clients understand when RMDs apply and incorporate them into a comprehensive retirement income strategy.
4. What is a Roth conversion?
A Roth conversion allows you to move funds from a traditional retirement account into a Roth IRA. While taxes are generally due on the amount converted, future qualified withdrawals from the Roth account may be tax-free.
A Roth conversion isn't right for everyone, which is why we help clients evaluate whether it makes sense based on their income, tax bracket, retirement timeline, and financial objectives.
5. How does AAA Life Solutions approach tax planning?
We believe tax planning is an important part of retirement planning—not a separate conversation. Our team looks at how investments, retirement income, Social Security, estate planning, and tax strategies work together to help create a more complete financial plan.
When appropriate, we also collaborate with trusted CPAs and other professionals to help ensure every aspect of your financial strategy is aligned.
6. At what age do RMDs start?
Under current rules, age 73. For people born in 1960 or later, the starting age is 75.
7. Do Roth IRAs have RMDs?
Not for the original owner. Roth IRAs are funded with after-tax money, so the owner is not required to take distributions. Different rules apply to inherited accounts.
8. I have more than one IRA. Do I take an RMD from each?
The amount is calculated separately for each IRA, but you can take the total from one IRA or spread it across several. Workplace plans such as 401(k)s are different: each plan's RMD must come from that plan.
9. What happens if I miss an RMD?
You could owe an IRS penalty on the amount you should have taken. If you realize you missed one, talk with a tax professional promptly.
10. Can I give my RMD to charity?
If you are 70½ or older and own an IRA, you can send money directly from the IRA to a qualified charity. This is called a qualified charitable distribution. It can count toward your RMD and, up to an annual limit, be left out of your taxable income.
11. Will my taxes go down when I retire?
Not necessarily. You still have income, from retirement accounts, Social Security and other sources, and you may have fewer deductions and credits than you did while working.
12. Which kinds of retirement income are taxable?
Withdrawals from tax-deferred accounts such as traditional IRAs and 401(k)s are generally taxed as ordinary income. Qualified Roth IRA withdrawals are generally free of federal income tax. Social Security may be partly taxable depending on your other income. Annuity income varies with the type of annuity and how it was funded.
13. What is a distribution strategy?
It is a plan for when to start drawing income and which accounts to draw from first, with taxes in mind, so more of what you saved is available to spend.
14. What does "filling up" a tax bracket mean?
It means choosing to recognize some income now, for example through a partial Roth conversion, up to the top of your current tax bracket, rather than risk paying a higher rate on it later. Whether it makes sense depends on your situation, so review it with a tax professional.
15. Why do more retirees pay tax on Social Security every year?
The income thresholds that decide whether benefits are taxed are not adjusted for inflation. As incomes rise over time, more people cross them, and up to 85% of benefits can become taxable.
16. What is the difference between a qualified charitable distribution and a donor-advised fund?
A qualified charitable distribution goes straight from your IRA to a charity. A donor-advised fund lets you contribute cash or appreciated assets now, take the deduction if you itemize, and decide later which charities receive the money.
These answers are general education, not advice for your situation. AAA Life Solutions does not provide tax or legal advice. Want more detail? Get our free retirement guides.
Estate Planning
1. Do I need a will or a trust?
Both wills and trusts can play important roles in an estate plan, but they serve different purposes. The right choice depends on your assets, family situation, and long-term goals.
At AAA Life Solutions, we help you understand your options and coordinate with trusted estate planning attorneys to help create a plan that reflects your wishes.
2. What is probate, and can it be avoided?
Probate is the legal process of administering a person's estate after they pass away. Depending on the circumstances, it can take time and may involve additional costs.
Certain estate planning strategies may help simplify or avoid probate for some assets. We can help you explore these options as part of your overall financial plan.
3. How often should I update my estate plan?
Your estate plan should be reviewed whenever significant life changes occur, such as marriage, divorce, the birth of a child or grandchild, retirement, or the purchase or sale of major assets.
Even if nothing has changed, reviewing your estate plan every few years helps ensure it continues to reflect your wishes and current laws.
4. Can estate planning help protect my family?
Yes. A thoughtful estate plan can help provide clear instructions, reduce confusion, and support a smoother transfer of assets to your loved ones. It can also help ensure your healthcare and financial wishes are honored if you become unable to make decisions yourself.
Estate planning is about more than distributing assets, it's about providing peace of mind for you and your family.
5. Does AAA Life Solutions prepare legal documents?
While we do not draft legal documents, we work closely with trusted estate planning attorneys and other professionals to help ensure your financial strategy and estate plan work together.
By coordinating with your legal and tax professionals, we strive to create a comprehensive plan that supports your goals today and leaves a meaningful legacy for tomorrow.
6. What is the difference between a revocable and an irrevocable trust?
A revocable trust can be changed while the person who created it is alive, and its assets are still counted in their estate. An irrevocable trust generally cannot be changed without the beneficiaries' agreement, and the assets are removed from the creator's estate.
7. Does my will control who receives my life insurance and retirement accounts?
Usually not. Beneficiary designations on those accounts, and the way assets are titled, generally override what a will says. That is why it is important to review your beneficiaries after any major life change.
8. What is a durable power of attorney?
It is a legal document that names someone to handle financial and legal matters for you if you cannot. Without one, your family may have to go through a court process to manage your affairs.
9. What is an advance health care directive?
It records your wishes for medical care and names a person to make medical decisions for you if you are unable to speak for yourself.
10. How do I choose an executor or trustee?
Look for someone responsible, organized and financially stable, who can handle paperwork and family dynamics. Name a backup, and consider whether a professional trustee would be a better fit than a family member.
These answers are general education, not advice for your situation. AAA Life Solutions does not provide tax or legal advice. Want more detail? Get our free retirement guides.
To Those in the Memphis/Germantown Area:
1. Why should I choose a local team of RIAs and a Certified Financial Fiduciary?
Working with a local team of Registered Investment Advisors and a Certified Financial Fiduciary gives you the opportunity to build a personal relationship with people who understand your goals and are available when you need guidance. Face-to-face conversations can provide greater clarity and confidence as you make important financial decisions.
At AAA Life Solutions, we believe relationships matter. We're committed to serving individuals, families, and business owners with personalized financial guidance and long-term support.
2. Where is AAA Life Solutions located?
AAA Life Solutions proudly serves clients throughout the Mid-South from our office in Germantown, Tennessee. We also work with individuals and families in surrounding communities and can meet virtually with clients in many locations.
Whether you prefer an in-person meeting or a virtual appointment, we're here to make the planning process convenient and comfortable.
3. Do you only work with clients in Tennessee?
No. While many of our clients are located throughout the Memphis area and surrounding communities, we are able to work with clients in other locations when appropriate.
If you're interested in learning more about our services, contact our office to discuss how we may be able to help.
4. What should I bring to my first appointment?
Your first meeting is simply a conversation about your goals and where you are financially today. Depending on your situation, it may be helpful to bring recent retirement account statements, investment information, Social Security estimates, insurance policies, and any questions you'd like to discuss.
The more we understand about your goals, the better we can provide personalized guidance.
5. How do I schedule a consultation with AAA Life Solutions?
Scheduling a consultation is easy. Simply call our office or complete the contact form on our website to request an appointment. During your consultation, we'll take time to understand your goals, answer your questions, and discuss strategies that may help you pursue a more confident financial future. We look forward to getting to know you and helping you take the next step toward your financial goals.
Some of the companies we utilize for various client needs include:
Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor and an affiliate of Brookstone Capital Management, LLC. BWA and AAA Life Solutions are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.
The content of this website is provided for informational purposes only and is not a solicitation or recommendation of any investment strategy. Investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives.
