Blog

Updated: September 29, 2016 by Kara Downing, CFP®

The decision to buy life insurance can be a complicated one. Why? Because life insurance is a complex financial instrument with a lot of moving parts. The more perplexing aspect of the life insurance purchase is the fact that there are, quite literally, hundreds of different companies, and thousands of different products from which to choose. It’s no wonder that people have a tendency to procrastinate when it comes to actually purchasing a policy.

Solid guidance from a well-qualified life insurance professional can ease the process of buying a policy and instill the peace-of-mind that the right plan is in place. A life insurance purchase is a long term commitment, and because the financial security of your family is at stake, it is vitally important to know that you have the right type of product, the right amount of coverage and that you know exactly how your plan will work for you.

With the long financial nightmare of the recession and financial crisis shrinking in the memories of those who endured it, Americans are, once again, setting their sights on a shorter retirement time horizon.

This isn’t our parents’ or grandparents’ retirement anymore. Just a few decades ago, many retirees enjoyed the full benefits of the “three-legged stool” of retirement provide by guaranteed pension payments, savings, and Social Security.

The need for retirement planning didn’t really exist until well into the 1970s. Up to that point, people worked until age 65, spent a few years in leisure through their life expectancy which was about 69. Many retirees of that era were able to coast into retirement with a cushy pension plan.

If you listen to any of the world’s leading investors they will tell you that nothing is more important to long-term investment success than a clear investment philosophy. More important than a sound investment strategy? Yes, they will tell you, because strategy, while important, is nothing more than a manifestation of an investment philosophy.

One of the advantages of running your own business from your home is that you get to be yourself all of the time. But, it is important that you don’t lose sight of the fact that you are also a business. That fact is not lost on the IRS who takes a special interest in home-based businesses and their profits and losses.

401(k) plans were established by Congress to encourage individual savings towards retirement. Offered through employers, the plans are generally available to eligible employees who are allowed to contribute a percent of their salary to the plan.

While the current stock market boom has some people rejoicing it doesn’t appear as though their level of anxiety has abated much. Investors sometimes have short memories, but a stock market rally s is not likely to make people forget the carnage left behind in their 401(k) s and stock portfolios after one of the worst market declines in our history.

A will is the foundation of your estate plan and it is essential if your financial affairs are to be settled in accordance with your wishes. If you die without a will, or “intestate” as the law refers to it, essentially the state becomes your executor and your property will be distributed according to its laws.

The current economic environment has caused most everyone to reconsider their personal finances with many people having to drastically change their spending and savings habits. Out of this economic malaise may come an opportunity to finally instill the right habits in your teens that can carry them into adulthood on the right financial footing.