Tips to Help you Protect (and increase) Your Retirement Income

July 28, 2015


When planning financially for retirement at any age, it must be considered, “How can I guarantee that my hard-earned, retirement assets will be there for me if an event occurs that causes a cash emergency or crisis?”  We can’t see everything on the horizon that is potentially a financial threat, but we can be prepared.

Are you prepared?  Most of us have insurance for automobiles, homes, boats, even jewelry; as well as health coverage for ourselves and our families.  We have policies for cancer, disability, long-term care, teeth, vision and on and on.

But many overlook the value of insuring their retirement, and most don’t really realize what a valuable role LIFE INSURANCE plays across ALL stages of an individual’s life.


Life Insurance is truly at the center of any sound financial plan for retirement.  If you don’t have a retirement plan, then there is no better time than the present.  Life insurance is the basic, tried-and-true financial solution to avert life’s risks because it provides security for your loved ones, and the ability to build up cash value.  In retirement, it can be used a tax-free source of income while you are alive.

How much life insurance does one need?  A simple formula is to carry a life insurance policy with a death benefit equal to the amount of your retirement assets.  Another approach is to determine how much income you would like to receive from the policy at some point in the future, and then design your plan around these goals.

Is there really a more important financial consideration than your retirement assets?  Isn’t the desire to retire the ultimate reason we work?  Yes, we work to put bread on the table and clothes on our backs, but also so that someday we will eventually be able to stop working.

If the protection of your retirement assets is at the top of your list of priorities, then a life insurance policy may be worth a look.  Contact L & A Services for custom retirement solutions that will give you peace of mind.


How Much Life Insurance Do You Really Need?

April 23, 2014

This article came to me from a colleague, and I found it to be very helpful.  I was asked to share with those I serve.  Enjoy!

Many people buy life insurance before conducting a financial needs analysis. They might choose a benefit amount that seems appropriate, without considering the potential expenses their families might face in the event of their untimely death. To make a comprehensive assessment of the possible economic impact, take the time to conduct a financial needs analysis.

To analyze your financial needs, consider the following simple steps: First, write down the total value of all assets that you and/or your spouse own. (Enter amounts in one column for yourself and in another column for your spouse.) When totaling your assets, be sure to include what you currently have in savings and retirement funds (such as IRAs, 401(k) plans, annuities, etc.), as well as real estate and life insurance. Next, list and evaluate all expenses you or your family might face if one spouse were to die. These are your potential liabilities.

In order to determine how much cash would be needed following the death of a spouse, take a look at these potential needs and assign an estimated amount to each:

  1. Immediate Money Fund. This includes the estimated cost of medical and hospital expenses, outstanding bills, burial costs, and attorney/executor fees.
  1. Debt Liquidation. Your debt, if any, may be in the form of credit card bills, school and auto loans, unpaid notes, outstanding bills, etc.
  1. Emergency Fund. Unexpected bills not readily payable from current income could include major home and car repairs, or even medical emergencies.
  1. Mortgage/Rent Payment Fund. How much would you need to pay off your mortgage or provide for house payments or rent?
  1. Child/Home Care Fund. Extra expenses may arise following the death of a stay-at-home spouse. Estimate the cost of hiring help to take over your spouse’s duties, such as child care, shopping, food preparation, laundry, and yard care.
  1. Education Fund. Be sure to include the cost of funding a four-year undergraduate education or comparable vocational training for your children.

The total of all of the above costs, less your liquid assets and life insurance, would provide your new financial needs. The numbers may be different for you and for your spouse, because assets and existing life insurance, as well as child/home care amounts, are likely to be different.

The steps above are one method for determining how much life insurance may be needed based on individual circumstances. Analyzing your financial needs is an important step toward ensuring the right coverage for you and your family.

Copyright © 2014 Liberty Publishing, Inc. All Rights Reserved.

>>>Republished with permission John Kenneally 4/22/2014