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Wise Financial Moves For Retirees

Wise Financial Moves For Retirees

Retiring can be the most exciting time in a person’s life.

You get to relax and do whatever you want, whenever you want, with whomever you want. But it’s important not to forget about your finances AFTER retirement; here are wise financial moves that retirees should consider once they decide to quit working for good.

Get your will in order. You’ll be ahead of the game if you do—68% of Americans have no estate plan in place!¹ The simple truth is that preparing a will can help ensure that your money goes where you want it to go and save your family a financial headache. If you’re retired and haven’t created a will, do it today!

Plan for long-term care expenses. Why? Because there’s a strong chance you’ll need it—60% of people will need some form of LTC in their lives.² And it can be costly, possibly running into the tens of thousands of dollars. If you’re about to retire or have already retired, consult with a licensed and qualified financial professional about your options for this critical line of financial defense.

Pay off your mortgage! And, if you’ve played your cards correctly, you should be close to paying off your mortgage by the time you retire. Eliminating your home payments may free up a considerable amount of cash for you to spend on your other bills and your retirement lifestyle.

Consider downsizing your home to a smaller property or RV. That is of course, unless you have a huge family you regularly plan on entertaining! But for many, retirement is a perfect opportunity to move into a smaller, easier to manage home.

And if you’re the adventurous type, why not buy an RV? It’s a great way to travel and explore the country now that you’re moving into a new phase of life.

If you’re retiring, it doesn’t mean there aren’t a few key money moves left to be made. Consider these suggestions to be the cherry on top of your years of diligent work and savvy saving!

¹ “68% of Americans do not have a will,” Reid Kress Weisbord, David Horton, The Conversation, May 19, 2020, https://theconversation.com/68-of-americans-do-not-have-a-will-137686

² “What is Long-Term Care (LTC) and Who Needs it?,” LongTermCare.gov, Jan 4, 2021, https://acl.gov/ltc


COVID-19 And The Largest Wealth Transfer In History

COVID-19 And The Largest Wealth Transfer In History

COVID-19 coincided with one of the most important events in modern times.

Millions of Baby Boomers were preparing for retirement and to pass their wealth to a new generation right as the virus and its fallout blindsided the world. Here are two ways that COVID-19 has transformed the largest wealth transfer in history and how this impacts you and your family.

The transfer has accelerated
COVID-19 seems to be more dangerous for people over the age of 65. Of the 231,197 mortalities recorded by the CDC, 183,324 have been 65+.¹ That’s nearly 80%!

Those numbers represent a staggering amount of tragedy on a personal level. But they also mean that the wealth transfer that’s been predicted for years is off to an early start. Money, resources, and assets that were supposed to last the 20 to 30 years of retirement for Baby Boomers are now being passed on to Gen-Xers and Millennials.

The transfer has been complicated
The simple fact of the matter is that 44% of Baby Boomers don’t have estate plans.² That means a potentially vast amount of wealth has wound up in the hands of grieving family members who have to make tough choices about how it’s distributed. There was never any doubt that the Great Wealth Transfer might get complicated. But the large number of transfers occurring earlier than expected and at the same time will mean that more families will need guidance and wisdom as they navigate these challenging times.

The transfer has been reduced
Perhaps the largest impact of COVID-19 will be a serious decrease in the size of the Great Wealth Transfer. Experts have estimated that around $68 trillion dollars would be transferred from retiring Baby Boomers to their children.³ But 2020 has been a year of economic upheaval. Shutdowns have transformed our economy and caused high unemployment among older workers. It’s not just employees: nearly 100,000 businesses have shuttered due to the lockdowns. That represents years of hard work suddenly evaporating.

People impacted by these events and who are also approaching retirement age have two choices. They can either work into their late 60s, 70s, and maybe 80s to generate a livable income, or settle for less from their retirement years. It seems reasonable to believe that: Fewer family businesses will pass down to younger generations The businesses will be worth less than anticipated Children of employees will have to financially support their aging parents Early retirees will have less to leave future generations

The future of the transfer
We still don’t fully understand the extent to which COVID-19 has impacted the Great Wealth Transfer. Only time will tell! But it’s clear that there’s a massive need to guide families through the challenges of estate planning in the midst of current events. There will also be a huge demand for opportunities and business models that allow Baby Boomers approaching retirement to build wealth and leave financial legacies. Let me know if either of those are of interest to you. We can discuss ways for you to start helping your family protect their financial future.

¹ “Weekly Updates by Select Demographic and Geographic Characteristics,” CDC, accessed Nov 25, 2020, https://www.cdc.gov/nchs/nvss/vsrr/covid_weekly/index.htm

² “Baby Boomers Aren’t Creating Estate Plans — What That Means for You,” Robert Kulas, Kulas Law Group, Apr 30, 2020, https://www.kulaslaw.com/baby-boomers-arent-creating-estate-plans-what-that-means-for-you/

³ “Here’s how to prepare your heirs for the $68 trillion ‘great wealth transfer,’” David Robinson, Feb 25, 2019, https://www.cnbc.com/2019/02/22/how-to-prepare-your-heirs-for-the-68-trillion-great-wealth-transfer.html

⁴ “COVID-19 and retirement: Impact and policy responses,” Martin Neil Baily, Benjamin H. Harris, and Siddhi Doshi, Brookings, Jul 28, 2020, https://www.brookings.edu/research/covid-19-and-retirement-impact-and-policy-responses/

⁵ “Yelp: Local Economic Impact Report,” Carl Bialik and Daniel Gole, Yelp, Sep 2020, https://www.yelpeconomicaverage.com/business-closures-update-sep-2020.html


The Many Roles Of A Financial Professional

The Many Roles Of A Financial Professional

The world is full of financial professionals.

Accountants, hedge fund managers, and even some attorneys fall under the umbrella of “financial professional”. But you don’t have to be a mega-corporation or global bank to use the services of a money expert. For any family, a financial professional can serve as an educator who assesses your financial health, a planner who can help you prepare for the future, and a trusted advisor who offers high-quality counsel as you navigate life.

Financial professionals as educators
Money management can be difficult. It’s full of confusing terminology, big numbers, and the constant fear that someone’s trying to take advantage of you. Financial professionals specialize in many different fields, but at the end of the day they’re all educators. An investment advisor has to teach you about different strategies and products so that you can make informed decisions about your future. A financial professional can show you how to make a budget and attack debt.

Don’t settle for a professional who just wants to manage your money. Look for someone with the patience and expertise to educate you about how money works.

Financial professionals as planners
There’s a significant debate in the financial service industry about the difference between a financial advisor and a financial planner. But the simple fact of the matter is that you should seek out a financial professional who will help you prepare for the future, regardless of their title. You want a professional who will help you map out a long term investment strategy. Someone who considers insurance, long term care, and estate planning. The best professionals, regardless of their speciality, help you gain some perspective and give you the tools to map out your retirement. Talk with your professional about your wealth and goals so you can draw up a financial blueprint for your retirement and beyond.

Financial professionals as advisors
The financial services industry used the term “advisor” in a specific way, but a high-quality financial professional has wisdom to offer you in any situation. Challenges like credit card debt and student loans can seem overwhelming, especially when unexpected expenses pop up. It’s easy to lose focus and have your debt strategy get derailed. But an advisor can give you the wisdom and insight you need to prepare for a crisis and stay the course of financial independence. They can encourage you to build an emergency fund that will protect your financial strategy from unexpected expenses. When the economy takes a dip, they can give you the perspective you need to not make hasty or emotional moves that could seriously impact your retirement timeline. The financial professional you want by your side is the one with the wisdom and expertise to advise you through all of life’s storms.

When your car breaks down, you turn to a car mechanic. When you’re planning an event, you turn to an event planner. The same should be true of your money. When you set out on the path of financial independence, be sure to look for a financial professional with the know-how to educate you, to help you prepare, and to advise you through the obstacles of life.


Is Survivorship Life Insurance Right For You?

Is Survivorship Life Insurance Right For You?

A survivorship life insurance policy is a type of joint insurance policy (a policy built for two).

You may not have thought much about that type of insurance before, or even knew it existed. But joint policies, especially survivorship policies, are important to consider because they can provide for heirs, settle estates, and pay for final expenses after both spouses have passed.

Most joint life insurance policies are what’s known as “first to die” policies. As the unambiguous nickname suggests, a first to die policy is designed to provide for the remaining spouse after the first passes.

A joint life insurance policy is a time-tested way of providing for a remaining spouse. But without careful planning, a typical joint life policy might leave a burden for surviving children or other family members.

A survivorship life insurance policy works differently than a first to die policy. Also called a “last to die” policy, a survivorship policy provides a death benefit only when both insured spouses have passed. A survivorship policy doesn’t pay a death benefit to either spouse but rather to a separate named beneficiary.

You’ll find survivorship life insurance referred to as:

  • Joint Survivor Life Insurance
  • Second-to-Die Life Insurance
  • Variable Survivorship Insurance

Survivorship life insurance policies are sometimes referred to by different names, but the structure is the same in that the policy only pays a benefit after both people insured by the policy have died.

Reasons to Buy Survivorship Life Insurance

We all have our reasons for buying a life insurance policy, and often have someone in mind who we want to protect and provide for. Those reasons often dictate the best type of policy – or the best combination of policies – that can meet our goals.

A survivorship policy is well-suited to any of the following considerations, perhaps in combination with other policies:

  • Final expenses
  • Estate taxes
  • Lingering medical expenses
  • Payment of debt
  • Transfer of wealth

It’s also most common for a survivorship life insurance policy to be a permanent life insurance policy. This is because the reasons for using a survivorship policy, including transfer of wealth, are usually better served by a permanent life policy than by a term insurance policy. (A term life insurance policy is only in force for a limited time and doesn’t build any cash value.)

Benefits of Survivorship Life Insurance

  • A survivorship life policy can be an effective way to transfer wealth as part of a financial strategy.
  • Life insurance can be difficult to purchase for individuals with certain health conditions. Because a survivorship life insurance policy is underwriting coverage based on two individuals, it may be possible to purchase coverage for someone who couldn’t easily be insured otherwise.
  • As a permanent life insurance policy, a survivorship life policy builds cash value that can be accessed if needed in certain situations.
  • Costs can be lower for a survivorship life policy than insuring two spouses individually.

The good news is that life insurance rates are more affordable now than in the past. That’s great! But keep in mind, your life insurance policy – of any type – will probably cost less now than if you wait for another birthday to pass for either spouse insured by the policy.


World Financial Group, Inc., its affiliated companies and its independent associates do not offer tax and legal advice. Please consult with your personal tax and/or legal professional for further guidance.


The top 8 reasons to consider life insurance

The top 8 reasons to consider life insurance

Life will often seem to present signals about financial moves to make.

Starting your first job babysitting or mowing lawns? Probably a good idea to begin saving some of those earnings. Need to pay for college? You’ll want to apply for scholarships. Have a friend who’s asking you to invest in his latest business scheme? Maybe you’ll pass.

As for life insurance, there are certain events that herald when it’s an appropriate time to think about purchasing a policy.

Following are a few of those key times…

Tying the knot or taking the plunge
Whatever you call it, if you’re getting ready to walk down the aisle, now is a good time to think about life insurance. A life insurance policy will protect your spouse by replacing your income if something were to happen to you. Many couples rely on two incomes to sustain their lifestyle. It’s important to make sure your spouse can continue to pay the bills, make a mortgage payment, and provide for any children you might have, etc.

Buying a home
If you’re in the market for a home, life insurance should also be a consideration. There are particular types of life insurance policies that will pay off the remaining mortgage if something happens to you. This type of life insurance can help provide a safety net for you and your spouse if you are planning on taking on a mortgage.

Someone becomes dependent on you financially
Another life event that signals a need for life insurance is if someone were to become dependent upon you financially. We might think our only dependents would be our children, but there are other situations to consider. Do you have a relative that depends on you for support? It could be a sibling, parent, elderly aunt. It’s prudent to help protect them with a life insurance policy.

You’ve got a business partner
Life insurance can be invaluable if you’re starting a business and have a business partner. A life insurance policy on your partner or the key leaders in your company can help protect the business if something happens to one of the main players. While the payout on a life insurance policy won’t replace the individual, it can help see the company through financial repercussions from the loss.

You have debt that you don’t want to leave behind
If you’re like most Americans – you probably have some debt. There are two problems with carrying debt. One, it costs you money and isn’t good for your financial health. Second, it can be a problem for your loved ones if you pass away unexpectedly. A life insurance policy is helpful to those who are left behind and are taking on the responsibility of your debt and estate.

You have become aware of “the someday”
Sooner or later we all have to consider our last stage of life. A life insurance policy can help you plan for those last days. A life insurance policy can help cover funeral costs and medical bills or other debts you may have at the end of your life. The payout can also help your beneficiary with any final expenses while settling your estate.

You fell in love with a cause
If you are attached to a certain charity or cause, consider a life insurance policy that can offer a payout as a charitable gift when you pass away. If you are unattached or don’t have any children, naming a charity as your life insurance beneficiary is a great way to leave a legacy.

You just got your first “grown-up” job
Cutting your teeth on your first “grown-up” job is a great time to consider your life insurance options. If you have an employer, they may offer you a small life insurance policy as a perk. But you likely will need more coverage than that. Consider purchasing a life insurance policy now. The younger you are, the less you may pay for it.

Life gives us clues about financial moves
If we know what to look for, life seems to give us clues about when to make certain financial moves. If you’re going through any of these times of life, it’s time to consider purchasing a life insurance policy.


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