Planning for retirement is one of the most important financial decisions you can make. No matter your age, or the size of your nest-egg, it’s never too late to start prioritizing retirement.
If planning for retirement is something that you haven’t quite gotten around to, you’re not alone. According to a recent LIMRA survey, forty-nine percent of Americans said they weren’t contributing to any retirement plan. This alarming static speaks to a great need for consumer education around the importance of retirement planning. As a leading online life insurance agency we hear from consumers regularly who understand the need for a retirement plan but simply don’t know where to begin. Here’s what we tell them:
Where to Begin:
Like any major life decision, retirement planning requires due diligence and strategy. As you lay out your plan, consider each of the following:
Saving and Investing
Saving and investing during your career will set the stage for a comfortable retirement. It’s important to keep in mind that your investment portfolio should evolve with your career. As you near retirement and have less time to recuperate loses, your investments should become less risky. In fact, according to an article from U.S. News & World Report, retirement investing should be as ‘stable as possible’ and should include a diversified portfolio of ‘stocks, bonds, mutual funds, and other investments.’ Be sure and keep this in mind as you plan and invest in your retirement portfolio.
Preparing for the Unexpected
Not only do you need to consider how much you will need to save and invest prior to retirement; you will also need to consider what will happen if you pass away or become disabled before you reach that goal. This is where life insurance comes into play.
An example would be a couple who is working toward retirement with a goal of accumulating a $1 million nest-egg by the time they reach retirement age. Though they are well on their way, the couple still has several years to go and the loss of either income would severely derail their retirement savings efforts. Carrying adequate life insurance coverage should be part of the couple’s retirement strategy. If they in fact carry enough coverage, even an unexpected tragedy will not hinder their long-term goal.
Closing the Gap in Retirement Savings
As more and more baby boomers reach retirement age, in the wake of the recession that gripped the U.S. economy a few short years ago, many are facing tough financial situations. Purchasing life insurance to close gaps in retirement savings is becoming another common investment strategy.
An example would be the same couple, working toward a $1 million retirement nest-egg. With only a few years left before retirement the couple is not on pace to reach their retirement goal. The couple chooses to invest in a life insurance policy to cover the gap in their retirement plan until their assets have time to grow. This strategy allows the couple to accumulate additional assets with the peace of mind that they are protected should their partner pass away unexpectedly.
If you’re one of the millions of Americans who is not adequately prepared for retirement, we encourage you to start planning today. Visit our site and learn about your online life insurance options. Follow our online Life Insurance Blog for tips and information on protecting your assets and preparing for the future. While you’re here, read these recent, popular posts:
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