Debunking the industry myths of personal finances

A Life Insurance Policy can fulfill a primary financial goal.

Life Insurance is one of the most powerful financial instruments ever designed. About 60% of American adults have life insurance with 1 out of 5 saying it’s not ENOUGH! For an incredibly small amount of money, an individual can buy a considerable amount of security for his or her

family, business, or estate. Purchasing a life insurance policy is to fulfill 1 of 4 primary financial goals.

• For the Family    • Back a Business
• Leave a Legacy   • Estate Planning

If someone you love depends on you and your paycheck, you need to purchase a life insurance policy. From covering final expenses to eliminating debt. The financial wellness of those left behind is reliant on replacing your income.

Should a business owner suddenly pass away, would the business be able to recover? The right type of life insurance will play a critical role in the financial wellness of the business.

If leaving a legacy, life insurance is a great way to support your favorite cause.

Did you know without proper planning, the IRS will look to liquidate assets to pay estate tax, as soon as nine months after someone passes away. Life insurance can provide the funds to avoid having to sell any property.

You must know the reason/purpose why you are purchasing a life insurance policy. Be it for final expenses (Burial), income replacement or wealth building. Having the right advisor that will assess your particular situation, guide and educate you regarding your options is key.

If you’re being SOLD BASED on a life cash value illustration, understand that it only shows how it works, not what it’s going to do. Also be sure that you have the disposable income and not adding on more debt.

“Life Insurance is one of the most important tools in modern financial planning, but it is not always the most appreciate.”

-Robert .J Adler- CPA, DJ

Planning for retirement has been an ongoing dilemma for most in this country.

Most advisors offer the same advice as taught to them by Wall Street and our Education System. Invest your hard-earned dollars into Tax Delayed Accounts, like 401k, 403b, TSA and IRA’s, not realizing that you’ll be taxed at the highest tax rate when you withdraw during retirement. We’re told that we’ll be in a lower tax bracket then but who wants that… to have less money?

Once you run the numbers, you’ll find that you will get back less money than what you invested. Overtime, you could lose up to 45% or more of your 401k to fees and taxes, even with an employer match.

These accounts are presented to us as “SAVINGS” for retirement when you are actually “INVESTING”. When you invest, you have a greater chance of losing your money, than when you save. You could lose your principal, which is the amount you invested. (Securities and Exchange Commission). Does it make sense to rely on the stock market for all of your retirement income if you don’t have to…?

Another Question, what is your retirement number? How much income will you need to live the way you want during retirement? And will your money last?
Let’s run your numbers….

Debt is the single largest impeding factor that keeps most underwater.

There are four impeding factors that prevent you from successfully achieving your financial goals and dreams.

Three of which you can control:
1. Indebtedness: Compounding interest on your debt and making minimum payments.
2. Costs: Fees paid on investments that reduce your principal.
3. Taxes: Assets taxed at the highest rates. D. Inflation- Is a stealth tax.

You can control how your assets are taxed, how much debt you have and the fees you pay on your investments. However, you cannot control inflation.

We have found that debt is the single largest impeding factor that keeps most underwater. When interest paid out is more than your investment return. Borrowing to keep up, while
getting further behind, owing the debt, rather than owning the debt.

Put yourself in a position to eliminate/reduce non-mortgage debts (car loans, credit cards, personal loans, student loans) in sixty month or less, without taking out a loan consolidating,
debt relief or settlement, doing so, you give yourself a raise that will increases your cash-flow and household liquidity.

Some benefits to eliminating non-mortgage debt:
• Allow you to build assets to prevent a lifestyle downgrade.
• Having the ability to control the fees, taxes, and risk of your investment.
• Build liquidity to cover expenses in the event of an economic shock.

When you go into debt, you put a lien on your future income.

“Debt is taking money from the future and spending it today.”
– Tom Hegna

Long-Term Care Insurance is one of the least policies purchased today.

Only 7.5 million Americans or about 3.3% o the population, has long- term health care insurance, (JRC Inc Group 2020 survey). The biggest drawback of traditional Long-Term Care Insurance is in it’s cost. Traditional LTC coverage premiums can be high and increase over
time, however, other options exists, like Hybrid LTC Insurance and Life Insurance with LTC Rider. Each type of coverage has different pros & cons to consider.

Did you know that around 70% of people turning 65 today may need some type of long-term care during retirement. That 20% of those requiring care will need it for 5 or more and that 80% of care at home is provided by unpaid caregivers (Family).

When you retire, you should be able to enjoy your life, knowing that your income will last for the rest of your life. Preparing for an unforeseen long-term care event can help you live the life you want in retirement.

With long term-care insurance, you can control your care, preserve your assets, and protect your family.

What are your priorities for retirement?
• Spend more time with family
• Travel
• Spend more time on Hobbies or Volunteering
• Making sure your retirement income lasts

Depending on where you are in the country, in-home care can range from $48,000.00 to $55,000.00 annually. Community and Assisted Living from $15,000.00 to $51,000.00 annually and Nursing Home Facility from $82,000.00 to $112,200.00 annually.