Helping people reach their financial goals and designing the proper vehicles of saving, protection and growth is a rewarding process for both client and financial professional. To properly map the …
Helping people reach their financial goals and designing the proper vehicles of saving, protection and growth is a rewarding process for both client and financial professional. To properly map the financial success of a business, family, or individual, many aspects need to be carefully understood.
Working with people of varying social and financial makeups grants a certain level of clarity toward commonalities that help people like me guide clients toward success.
The largest and hardest hurdle we often must overcome when educating any client, despite their financial status, is to teach them how to save and what proper saving is. Many people are easily subscribed to saving in traditional instruments (pension, 401k, 403b, or a bank account) that we all know about but fewer of us seem to have.
But the lack of capacity for these tools to continue to maintain our standard of living is becoming more and more noticeable. There are many reasons behind this, including the simple fact that we are living longer. The tools we have were designed for a time when we were not expected to live as long as we do.
The sad truth that follows this fact is that many people run out of money before they run out of breath. What amount people have may not be enough to maintain the standard of living to which they have become accustomed later in life. The “golden years” have never shone so dimly for many.
The victims of this financial reality are not just Grandma and Grandpa. The collateral effect touches their children, and even more so, their children’s children. It appears that the concept of generational wealth has begun to evaporate along with many seniors’ savings, which were supposed to last them for their retirement.
So what is the financial vehicle that helps fill these gaps? One answer is a long-term savings and protection vehicle called Whole Life. A Whole Life policy provides a way to save for your future, protect your liabilities, to return significant dividends to supplement income, and which has significant tax benefits bestowed upon it.
Of the many types of vehicles we can design for our clients, Whole Life is both multipurpose and flexible. It is more efficient when designed for younger clients, to aid in saving and growth.
What are some of the aspects of a Whole Life policy that help avoid some of the problems we are talking about above? Whole Life policies get you to start saving with a level premium. This means that after you sit down with a financial professional, and a financial strategy is drawn out for you, you know how much you should be paying into your policy and that premium amount will not change.
Whole Life policies carry a guaranteed death benefit that grows as your policy does. This means it guarantees your beneficiaries will receive an income tax-free amount that may be used to replace your income or benefit in your estate.
Whole Life policies also have a growing guaranteed cash value. This cash value is liquid and accessible for you to use, whether it be for a life-changing event or just for lifestyle.
Like all financial vehicles and designs, they are better for some and are designed based on individual needs and goals of each client. My only regret is that I did not start saving earlier to help insure my future and the future of my family.
I am always happy to discuss and share more about any of the topics I discussed in this piece. Financial literacy is key to a safe and happy future.
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