Financial Resolutions for the New Year.

As another year comes to an end it is always a time for reflection.

Reflecting back on 2013 the lessons learned, and things achieved.

It has been a good year a great year in fact.

But it is almost time to welcome 2014, new lessons to be learned and new goals to be achieved for the year that lies ahead of us.

New Year’s resolutions to be made!

Honestly I am not a big fan of New Year resolutions.

Why?

Well resolutions are not supposed to be a wish list; they are not to be taken lightly like a shopping list.

So sometimes it is easier to avoid making them than make them and not be able to keep them.

New Year’s resolutions are decisions we make about what we want to achieve in the year ahead and then we need to follow through with them until we have achieved them.

The Importance of Life Insurance Within Your Financial Plan?

 So you know you should have life insurance. Right?

Is it something that you should only have for emergencies?

You know for your family in the event that something was to happen to you.

What can life insurance possibly have to do with your financial plan?

Even if it did, which life insurance would be of benefit to you financially long term?

Where do you even begin with so many types of life insurance out there?

Have you Reviewed your Beneficiaries Lately?

Have You reviewed your beneficiaries lately?

That’s not something that you think of doing very often. 

For some it may be something they ever really think about.

So maybe it just not that important.

Anyway I am just too busy to take care of that right now, and I thought I was done with all my ‘housekeeping’ chores when I opened my financial accounts.

Reviewing my beneficiaries, it doesn’t seem like an urgent task anyway, my money will all go to the right place in the end. Or will it? 

Reviewing our beneficiaries is more important than we think.

Actually it is something that should be considered a top priority on all your current investments, insurance policies and financial accounts.

How can this make that much of a difference, maybe the question you are asking yourself?

Here is why it needs to take top priority on our ‘to do list’.

Beneficiary Designation supersedes one’s will.

If your beneficiary information is not current, when you pass away your assets will more than likely be distributed to an unintended heir?  As the beneficiary that you have listed can and does it most cases supersede even an up to date will.

Tax Related Benefits.

Not naming a beneficiary or naming your estate can be as equally bad, as by doing this you could be giving up some tax strategy rights as well as control.  Having beneficiary designations can help extend tax related benefits and reduce the tax burden on your beneficiaries.

Take the Time to Review your Beneficiary Details.

Life transitions can change everything for us.  Recently been married, divorced, had a new baby or even a death in your family since you originally opened your accounts or got that life insurance policy?  Well it is time to review and get updated your beneficiary designations.  By taking the time to do this you will be ensuring your wishes are carried out and you will be preventing your loved ones from the added stress that comes with the legal complications at your time of death if not done.

It should not be one of those job’s you will get to later, call your advisor today, don’t be in doubt make sure you take care of this vitally important issue and give yourself the gift of peace of mind that your family will be taken care of in the event of your death.

Is Life Insurance Right for everybody?

 Should everybody have life insurance?

Does everybody even need life insurance?

No.  Not everyone has a need or will even benefit from having life insurance?

But for others it is vital that they have it.

I know my reasons for having life insurance.

What about you do you know why life insurance might be important for you and your loved ones?

The number one reason for not having life insurance is procrastination?                                 

Statistics tell us that 93% of Americans think that they need life insurance but only 41% of them actually have it.

Don’t let this be your reason for not having life insurance.

I know what you are thinking.  Having to discuss the need for life insurance means that I have to think about dying one day and well I am just not really comfortable talking about that.

Am I right?

Sorry but no matter how uncomfortable this subject makes you feel it is one that cannot be avoided, and needs to be addressed sooner rather than later.

Here are some of the stages in life when having life insurance is vitally important to ensure the best protection for your loved ones.

Getting married or already married.

Nowadays most families depend on two incomes to run their household.  In the event that one spouse were to die suddenly,  more than likely the spouse who was left would not have enough money to cover funeral costs, debt or any outstanding loans.

About to be a parent or already a parent.

As joyful as being a parent can be, it is also one of the most expensive things.  So you will want to make sure that if you were to die tomorrow, your spouse and children would be taken care of financially in your absence.  Your spouse will still need to pay the bills and your kids will still need to go to college.

A homeowner.

If like most people, your home is one of your biggest financial assets.  Have you thought how your spouse will manage to pay the mortgage without your income if left on their own?

Business owner.

For a business owner life insurance is a must have.  It can prevent a business from financial loss and liabilities.  Quite simply it can be invaluable for maintaining the business that you have worked so hard to build in the event of your death.

Planning for retirement or already retired.

This is when most people think there is no longer any need for them to have life insurance.  Think about what might happen if your spouse outlives you by another 10 to 30 years.  Is it your desire that they live out the rest of their retirement years now with financial burdens.

Once you have established whether or not you fit into any of the above life stages and find that you do have a need for life insurance the next most important step is to determine how much life insurance you actually need.  Not everyone’s financial needs are the same.

Call and schedule a free consultation with me today at 239-288-0977 and I will be happy to help you determine your life insurance needs.

Kids as Direct Beneficiaries! Is not a good Idea!

 When you buy a life insurance policy it is usually to protect and provide for your family after you die. So it seems to make sense to designate your children as beneficiaries , but this can have complications if you were to die while your children are still minors.

For the protection of minor children they cannot receive or control proceeds from assets until the age of 18 in most states. In such cases insurance companies can keep the funds until they reach 18. Eventually they will get the money, but do you know how a 18 year old would handle all that money? This is not how people intend for their children to benefit from life insurance!

So if not children as beneficiaries then what about the next most popular choice a Guardian for your minor children? This to can be a bad idea as here you are creating a moral obligation that the Guardian will use all the funds for the benefit of your children. Another problem that can be created by doing this is what if this person is incompetent at the time of your death ?

On the other hand if you create a Revocable Trust you can control when your children receive their inheritance. The insured establishes the Trust, chooses a Trustee and dictates under what terms the assets in the trust can be used therefore insuring the proceeds from a life insurance policy can be used for the benefit of your minor children.

You should always think twice before naming beneficiaries on your assets , if you have already don’t worry it is an easy fix! Do it right create a personalized Revocable Trust this will allow you to pass your financial assets to your family in the way that you intended and help you preserve your family values and family legacy.