Why You Shouldn’t Put the Cart Before The Horse
Whether your projected retirement date is 30 years from now or in the near future,it is
absolutely essential that you protect yourself against all types of financial loss that could
possibly erase years of cash accumulation with just one negative circumstance.
Key areas to address before investing for retirement:
Disability income insurance Insuring yourself against loss of income: Disability income insurance can supply income without interruption all the way to age 65 if you have the right insurance carrier and insurance contract. Ask your agent/advisor about an “own occupation definition of disability.”
Pre-paid legal assistance: One lost civil suit or I.R.S. audit can erase years of savings or destroy business assets. I use the monthly service provided by Legal Shield . Pricing & details here at www.legalshield.com/info/taylorr
Identity theft protection: Several companies offer continuous credit monitoring for about $10.00 per month. Identity Shield, one option, includes having professional people write the letters and make the phone calls to also reinstate your credit to where it was 60 days before the invasion. Details at: www.legalshield.com/info/taylorr
Life insurance designed to replace income loss: The family of a 30 year old that died by natural causes or an accident; would lose around $1,000,000 !! even if that person only earned $30,000 per year and would have otherwise been able to work until age 65. A broker can design an inexpensive solution to this.
Protection against investment risk: It is not enough to be diversified since that does not protect against loss; instead it just spreads the risk. You can search for bank c.d. or money market rates if you want to have some money liquid at www.bankrate.com . It you are nearing retirement you also haveover 1.200 companies in most states that will compete for your retirement money with annuity products that feature: Safety of principal, tax deferral, and freedom from fees if held until the term end or if they are used for lifetime income payments. An “income rider” can be added to fixed indexed annuity accounts that will then add a guaranteed crediting to the account combined with guaranteed lifetime payments. See your advisor for specific advice that relates to your situation.
None of the above comments are meant to be income advice. Always consult with your financial advisor,and/or your insurance agent,tax man,or attorney before making financial decisions.
However, in this difficult economy in particular; proctect yourself and your family by using basic risk management strategies.
Author: Randy Taylor Lic. #0643596 Creative Commons Copyright 10/15/2014
Linked in Recommendations:http://www.linkedin.com/in/randytaylorlifeandannuities
Serving clients and brokers since 1983