Ask the expert week – this week only

radio microphoneI want to invite you to ask the question that is most on your mind when it comes to your financial future. I am hoping you will take advantage of this offer as it is only open for this week. If I use your question in my next blog post I will be sure to thank you personally. Please fill out the form below to ask your question today!

“Do without”. Three myths about life insurance that will make you tell your kids this.

begging, spare change, please help so I won't do without

Can you please spare some change so I don’t have to do without?

 

Do without. That’s what happens to the kids when you don’t have any life insurance.

Did you read that? If not, click on the link and read it. You need to hear it in his words.

Have you ever been in a convenience store and seen a jug or jar on the counter with someones picture on it with the words “Please help the family pay for the burial expenses”? I have, and let me tell you, it absolutely kills me when the family tells me they didn’t think they needed it or couldn’t afford it, and in most cases, they would be wrong on both counts.

A kid shouldn’t have to do without because his parents didn’t own life insurance, but it happens every day. For the price of a cold drink or a pack of cigarettes, your family could have at least enough to pay for the funeral.

Imagine the humility a child would feel when they went into that store and saw his mom or dad on the picture of that jar! One of the most humiliating things a kid could ever go through would be to know that his family had to beg just to pay for the burial.

As a parent, I think this should be a top priority. You have a personal responsibility to your children and while it may not be as glamorous as the latest smart phone, big t.v. or new car, a life insurance policy will have a much more important, longer lasting benefit. All those other things are nice, but for as little as the price of one soda a day, your kids could have some financial security and you would have the peace of mind knowing that if the unexpected were to happen today, at least they would still have their dignity.

So what are the 3 myths about life insurance? Here they are: [Read more…]

Ask the expert week – this week only

radio microphoneI want to invite you to ask the question that is most on your mind when it comes to your financial future. I am hoping you will take advantage of this offer as it is only open for this week. If I use your question in my next blog post I will be sure to thank you personally. Please fill out the form below to ask your question today!

These are the 5 most expensive medical conditions for life insurance shoppers | LifeHealthPro

Avoid these health conditions

Alert! These medical conditions can cause higher life insurance rates.

Which health conditions raise life insurance rates?

These are the 5 most expensive medical conditions for life insurance shoppers | LifeHealthPro.

Can you lower your life insurance costs? Absolutely!

Exercising, eating a healthy, well balanced diet, no tobacco, moderate drinking, etc… All these activities and choices will benefit you in multiple ways. Besides being healthier, you will have more money and live a longer more productive life.

What’s the best retirement advice you ever got?

“What’s the best retirement advice you ever got?” A good question from  Rodney Brooks, USA TODAY.

Here is an excerpt:

Roger Crandall, MassMutual CEO:

The best retirement advice I can think of came from none other than Albert Einstein. He called compound interest the most powerful force in the universe. Starting early and reinvesting what you earn on your investments is the single best thing you can do. Sit down and look at what happens when you compound interest for 30, 40 or 50 years. If people start young, no matter how small, and keep it up until they retire, the rest will take care of itself.

via What’s the best retirement advice you ever got?.

The_Tortoise_and_the_Hare_by_Katmomma

Advice on how slow and steady always wins the race

 

Personally, my best advice came from a childrens story book, The Tortoise and the Hare , and while I may not have put this together with money as a kid, the older I got, the more it made sense.

My parents were pretty frugal, having 5 kids to feed, clothe, and educate, and though we didn’t have the name brand items, we always had food on the table and decent clothes on our back. As I think back to those times, we never had a new car, but we had braces on our teeth; no airplane trips, but lot’s of camping; no vacations in the islands, but we all had the opportunity to go to college. So they had a good idea of what was important and invested their money in those things.

In the later years, mom and dad were able to travel abroad and everything was paid for, so I think they did it right.

So, I ask you the same question: what’s the best retirement advice you ever got?

Please share with us your experiences and advice you would give, knowing what you know now.

If you enjoy this, or know someone else who would, please like, tweet, favorite, share or just send them a link with this article.

Also, if you haven’t yet signed up for my newsletter, please do so now and I will send you a financial workbook that many people have used and gotten a lot of value from. Just click on the button to the right and I will get that right out to you.

 

Ask the expert week – this week only

radio microphoneI want to invite you to ask the question that is most on your mind when it comes to your financial future. I am hoping you will take advantage of this offer as it is only open for this week. If I use your question in my next blog post I will be sure to thank you personally. Please fill out the form below to ask your question today!

So, you think your 401(k)or IRA is the best way to save for retirement? Why the President’s new budget proposal should scare you!

The governments budget is out to get your money. Three reasons why you should look to tax free alternatives for building your retirement account. (and the IRS can’t do anything about it)

 

There goes the budget! Taxes are going to take all of our retirement!

If taxes keep going up like this, how can we budget for retirement?

According to the US Debt clock, the U.S.A. is about $ 18.2 TRILLION dollars in debt and going up faster than I can write this, and your personal debt as a tax payer is only $154,090. Can your budget afford to pay this now?

So, who is really out of money? The government is and they have to pay it back eventually. At this rate, the interest payment alone is about $238 BILLION dollars. Where is this going to come from?! I’ll tell you, from your retirement accounts. The president’s budget plan is to increase revenue by taxing your hard earned dollars to pay off this ridiculous amount of debt.

So let’s look at three ways you can save for retirement and not have to give some (or most) of it to the IRS.  Stay with me to the end and I will give you a bonus.

Jeffery Levine wrote an article about the president’s budget plans and how they could impact your retirement savings. I am going to highlight just a few of his points and give the reason for my alternatives.

One of the problems with the current plans is that you have limits on them:

  • limits of what age you can be to contribute or withdraw
  • limits of how much income you can earn
  • limits of how much you can contribute

Wouldn’t you like to be able to decide how much to contribute? and when? Why limit the amount you can save for YOUR retirement? Why be FORCED to take out money that you don’t want  just because you reached a certain age? Or get penalized if you take it out too soon?

With a Indexed Universal Life insurance policy, you can manage YOUR retirement the way YOU want too. You want to start building your retirement now? Great! Add a little or add a lot? Yes! you can because the premiums are flexible. Need some cash? Yes! Take it out with no penalties. (some restrictions may apply)

A second challenge with the new budget proposal is about your beneficiaries. The budget is wanting to limit the time frame that YOUR beneficiaries can take money out of your account when you pass away. Wouldn’t it be nice if your beneficiary could keep the money in the policy until they needed it or passed away themselves? Yes! With a certain type of insurance policy, both you and your spouse could be covered and both would have access to YOUR retirement account.

All of this sounds good, but what does this have to do with taxes? Great question.

The third reason is probably the most important:

A life insurance policy is paid with after tax income (like a Roth), it grows tax deferred and when you get ready to take money out, it comes out tax free. So why not just put all of your money in a Roth? Remember the limits? What about the risk of loss? Do you have the time to make up the loss? What if you die early?

An insurance policy has guaranteed growth and also the option to gain more. If you choose an Indexed Universal Life policy, you could make as much as 14%, although the average is between 5% and 8% and when the stock market ‘corrects itself’ (read CRASHES), you could only get 0%. This is of course, better than a negative 40%, wouldn’t you say?

Now, remember I said if you hang in there with me, there would be a bonus? Here it is:

A life insurance policy has an immediate death benefit that no other IRA or 401(k) has,  So let’s say you bought a $1,000,000 life insurance policy, made your first payment and then passed away unexpectedly. Your beneficiaries would receive the million dollar benefit tax free. Try that with an IRA or 401(k). With either of those, the most your beneficiaries would get would be the grand total of your contributions and may have to pay tax on it.

That’s what I call peace of mind.

Protect your family, grow YOUR retirement nest egg tax deferred, and when you get ready to retire, you can have an supplemental income that you don’t have to pay taxes on.

Of course, there are specifics to each life insurance policy and you should speak with a licensed agent about how this would benefit you. Also, I am not a tax professional and you should speak to yours about any and all tax advice or questions you have.

 

If you want to find out how a life insurance policy may benefit you and help you build your retirement income, please contact me for a no cost, no obligation discussion to see if this would be a good fit for you.

 

Special thanks to Jeffery Levine for the article on MarketWatch and continuing to educate us on the tax situation.

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