How much #money will you need in #retirement?

What is Lifetime Income? What is Guaranteed Income? Do you need it in #retirement?

With the numbers of baby boomers having reached, nearly reaching, and will reach in the near future, the need for guaranteed lifetime income is growing into a necessity. Factors contributing to the need of guaranteed lifetime income are so vital and increasing in importance and role in retirement planning.

A couple of those major factors are human beings are living longer. If humans are living longer, then the need for adequate funds is of even greater significance. Another factor, the cost of living is increasing, our lives are becoming more expensive and lifestyles are more expensive to maintain. Quality of living will increase too. 

Statistics show, healthcare costs will be a major concern in retirement. Another factor, which we will visit later, what happens if you need Long Term Care? What if you need Long Term Care in a Long Term Care facility? 

Social security benefits (SSI) are consistently, a hot topic. The SSI system, as we know it, will probably not be around by the time our children are retiring. I am not into scare tactics, but what would you do, if SSI benefit was not around for your retirement? This could be a change in your retirement planning. You need more than one or two sources of income in retirement.

Your needs will probably change throughout your lifetime, and possibly into your retirement. Needing more than one source of retirement income, to help prepare for the length of your retirement, is smart planning. 

Your investments may not grow, as anticipated, prior to retirement and possibly into retirement. Statistics show that every 20 years, the stock market averages 6.25% growth, but there are down-cycles along the way. As you approach retirement, the funds in your 401(k) may not grow, as expected. You may experience a down-cycle, right before your retirement, without enough time for the 401(k) to recover. 

Again, you need more than one source of retirement funds. So, what is guaranteed lifetime income? A sum of funds, that have grown tax-deferred, that are guaranteed and upon retirement at a set age, paid out in a monthly payment to you throughout retirement. The days of pensions, and possibly SSI (as we know it), and even some 401(k)s have made retirement a stressful experience, rather than pleasure, leisure, and enjoyment. 

You will need guidance for retirement planning, allow us to assist!

What is Lifetime Income? What is Guaranteed Income? Do you need it in #retirement?

With the numbers of baby boomers having reached, nearly reaching, and will reach in the near future, the need for guaranteed lifetime income is growing into a necessity. Factors contributing to the need of guaranteed lifetime income are so vital and increasing in importance and role in retirement planning.

A couple of those major factors are human beings are living longer. If humans are living longer, then the need for adequate funds is of even greater significance. Another factor, the cost of living is increasing, our lives are becoming more expensive and lifestyles are more expensive to maintain. Quality of living will increase too. 

Statistics show, healthcare costs will be a major concern in retirement. Another factor, which we will visit later, what happens if you need Long Term Care? What if you need Long Term Care in a Long Term Care facility? 

Social security benefits (SSI) are consistently, a hot topic. The SSI system, as we know it, will probably not be around by the time our children are retiring. I am not into scare tactics, but what would you do, if SSI benefit was not around for your retirement? This could be a change in your retirement planning. You need more than one or two sources of income in retirement.

Your needs will probably change throughout your lifetime, and possibly into your retirement. Needing more than one source of retirement income, to help prepare for the length of your retirement, is smart planning. 

Your investments may not grow, as anticipated, prior to retirement and possibly into retirement. Statistics show that every 20 years, the stock market averages 6.25% growth, but there are down-cycles along the way. As you approach retirement, the funds in your 401(k) may not grow, as expected. You may experience a down-cycle, right before your retirement, without enough time for the 401(k) to recover. 

Again, you need more than one source of retirement funds. So, what is guaranteed lifetime income? A sum of funds, that have grown tax-deferred, that are guaranteed and upon retirement at a set age, paid out in a monthly payment to you throughout retirement. The days of pensions, and possibly SSI (as we know it), and even some 401(k)s have made retirement a stressful experience, rather than pleasure, leisure, and enjoyment. 

You need retirement planning in 2019 and moving forward!

To learn more, read the Motley Fool article below:

3 Reasons You Can't "Set and Forget" Your Retirement Plan (click here):

You Need A Will #NationalMakeAWillMonth

August is #NationalMakeAWillMonth and although every day and month" is some "day or month, but this month is an awesome reminder to us all. WE NEED WILLS! And, our dependents need for you to have a will.

Many do not have a will, and that is not good. Those that depend on you and what you intend to leave them, upon your passing, will more than likely suffer, as a result. Your heirs will probably have to sit in a court room, as probate court will decide where and to whom gets what!

Probate court, lawyers, and other fees will eat at the funds, that may be also in place. Hopefully life insurance is in place, that passes to the beneficiaries without the requirement of probate court. While most life insurance policies pass to beneficiaries tax-free, going through probate court and dealing with lawyers and governmental fees is also like a tax!

There are items in this article below, that could help you plan. Although, a large majority of Americans do not need estate plans, there are items within estate planning, that all Americans do need! Wills are one of those items.

7 #EstatePlanning Tasks That You Should Not Put Off!

Also, check out this article from Protective Life, a company that we utilize, commonly, in planning on a monthly basis. This is for preparing a will, as a parent:

Creating Your Will

Take advantage of this month's reminder, begin your preparation this week. Your dependents will thank you later, you will thank yourself later. 

Inside your auto policy, do you really know what Accident Forgiveness means?

Accident Forgiveness

For many, accident forgiveness can be a wonderful thing. Usually, a forgiving, one-time benefit with insurance companies, accident forgiveness can partly erase a bad memory. For the most part, the companies that offer accident forgiveness do a good job. But, for even those companies that do a good job, do they explain everything involved in the policy? 

The answer to an insurance company explaining a benefit, and all that is entailed, is almost certainly not. You probably have a higher chance of winning a cake at a Catholic fundraising picnic, or at least a better chance than I do!

In all seriousness, the chances of being explained everything in the accident forgiveness benefit, in your policy, are low. And, if you are given an explanation about accident forgiveness, what are the chances the explanation was correct? 

I would go as far as to predict, many sales managers at highly recognizable companies cannot explain to a consumer what all is entailed in an accident forgiveness benefit of your policy. Truth is, accident forgiveness is relatively new to insurance companies, and agents.

One thing you may not know about accident forgiveness, as it pertains to who qualifies on a policy...teenage drivers and even adults, who have not been on the policy for a specified amount of time (as much as one year), do not qualify to receive the benefit of accident forgiveness.

What is sad for auto policyowners, many discover this, after the fact of having the accident. Even sadder, it is these policyowners who believed in the company, the benefit, and probably the agent but it is also the time they need the benefit the most. Who wins? The insurance company!

Bottomline? Ask questions, and do not accept 1/2 of an answer, do not stop until you have the complete and factual answer from the agent and insurance company.

"I have life insurance with my employer..."

Often times, insurance agents and brokers hear, "I have coverage, or a policy, through my employer." And, I am quite sure that these people are telling the truth and 100% accurate. It is what they do not know, I am troubled about.

The first cause for concern is, does he or she have enough coverage? Industry research points to top policies at employers totaling around $50,000 and I can assure you, that is not enough. The average employer is far below the $50,000 and that is definitely not enough. Many will say, this is a way an insurance salesperson is trying to get you to buy a policy.

For some agents and brokers, this is another opportunity to 'push a policy' or 'make a sale!' But for professionals, employer-provided life insurance policies cause a great deal of confusion in the average person's thought process, when it comes to having adequate amounts of life insurance for necessary estate planning or planning in general.

Estimates in the insurance industry estimate between 7-10 times the person's salary. For us, it is hard to put a number into an equation without knowing the whole story. That is why an evaluation, consultation, and thorough review is completely necessary. Often times, 7-10 times the salary is sufficient, but each plan and person is different.

Everyone is unique, and their planning is just as unique! Many people do not realize the parameters and rules of the employer-provided policy change, after he or she leaves, either from retirement, to take another job, or termination. If we assume the average employer is no greater than $50,000, we could also assume that final expenses alone would exhaust most of the available death benefit, when it is needed most.

And, if $50,000 death benefit has been mostly exhausted when needed most, what does that leave for the family and dependents? The answer is, very little death benefit remains after the final expenses, and for those that say, "I have life insurance with my employer," it is a harsh reminder that obtaining another $100,000 in 2019, it super easy and can be inexpensive.

Oh by the way, I never recommend to leave your insurance planning in the hands of a corporation, that is focused on profits. In 2019, companies are cutting costs anyway imaginable. True, companies are offering more lucrative benefit packages to attract new talent, more qualified employees. But never underestimate an entity, that sole purpose to generate revenue, at the lowest cost.

Peace of mind is well worth pennies on the dollar! Pennies on the dollar is the equation between what a consumer pays for a policy, in return for death benefit from a policy. Hard to place a dollar figure on peace of mind.

You need peace of mind!

There should be a large premium on peace of mind. Personally, achieving peace of mind and happiness are large personal and financial goals, of mine too. What can help you obtain peace of mind, in your everyday life?

Proper estate planning, budgeting, retirement planning can help produce financial wellness and build a legacy for your family. Peace of mind generates from the accumulation of those factors and those factors consist of numerous variables that are the sum of daily and lifestyle financial habits and goals.

Clients should work with an experienced and professional team, that begin with the end in mind and will work towards the ultimate goal, peace of mind. Professionals should do what is best for the client, above all else.

We have established proper insurance planning, investments, tax preparation, all are necessary components in the decisions of the team of experienced professionals, you choose to partner with, in the future. Of course, these components based on decisions, must be good, wise, and fiscal decisions for those clients.

Do I have adequate insurance levels? Do I need a revocable or irrevocable trust? When do I take and what do I do with Required Minimum Distributions (RMDs), from my retirement account? What items do I need in an estate plan? Do I need an estate plan? If not, do I need proper planning?

These all are legitimate questions, all must be answered. The need for a team, to help create peace of mind, is extraordinary! Everyday you delay, you are gambling with your financial future and the future of those you love and depend on you. That is not a scare tactic, that is reality! Please do not delay, another day.

Perform a Personal Audit: 3 Spending Habits That Could Save You Money Towards #retirement! #FinancialLiteracyMonth

 

-Paying for subscriptions to streaming, gyms, etc:

Too often, as consumers, we subscribe, give authorization to our bank accounts and forget about them and probably don't utilize the service, entertainment, etc. We need to grab our bank account statement and do a "personal audit!" Find those $5.99, $11.99 & $13.99 subscription obligations, and terminate them. Find alternatives to those streaming choices, cable bills, and other subtractions to money we could use towards our retirement.

-Purchasing things just because they are on sale:

Trips to the mall or outlet malls, might not always be a great idea. We see the word, "Sale" and think, why not? After all, it is on sale! Forgoing sale items and things we really do not need, and putting that money towards our retirement is another way to assist our retirement goals and watch compounding interest work to our advantage. 

-UTILIZE AUTOMATION (positively) & forget about it:

This is major! Normally, we can set automation for savings with our employer or banking institution, adjust our budget, and forget about the deduction. We can use that automated amount of money to be deducted and placed into savings, to help our retirement goals. Automation works to our advantage, as well to our disadvantage. Set it today!