Most of us have a natural tendency to think of retirement planning as something that we don't need to really worry about until we are in our 50's.  Even though most of us realize that we should be preparing for it NOW, we are usually very passive about it and allow retirement planning to take a backseat to our other priorities.

However, allow me to point out a few staggering numbers that might ignite your urgency if you are in your 30's or 40's, or even younger.  

If a 45 year old female starts a life insurance policy funded as a retirement plan at $300 monthly, she would be projected to have $125,711 in her retirement account after paying in $75,600 at age 66, along with a death benefit all along the way of $250,000.  This would allow her to take out $14,464 annually in tax free income beginning at age 66.  

In contrast, another female at age 35, with the same contributions and death benefit, would be projected to have $266,726 in her account at age 66 after paying in $80,511, allowing for a tax free annual income of $31,283!!

As you can see, timing is everything in retirement planning!  The best time to plant a tree was 20 years ago, but the second best time is today!  Please contact us today for a free consultation at [email protected] or call 855-876-5252

What is it?

A pre-need plan is a dedicated funeral fund used to pay the predetermined expenses of a funeral, cremation or burial. Many people have chosen to make funeral or cremation arrangements prior to their death due to costs. These arrangements are commonly referred to as funeral preplanning, prearranging, pre-need, or a dedicated funeral fund.

Funeral preplanning can offer peace of mind - knowing that your wishes will be respected and that the family has fewer burdens during a time of grief.

Others find that by pre-funding their funeral and burial expenses, any additional life insurance they already have purchased may be used for its original purpose and not for funeral expenses.

Why should I get it or think about getting it?

No one likes to think about death, let alone plan for it. In many families, discussing one's mortality is an extremely uncomfortable topic. But it is a topic that should be discussed and planned for well in advance of your death.

By pre-planning your funeral, you relieve your family of having to make important financial decisions during a period of great stress and grief-a time when people aren't thinking very clearly and may not know what to do because you never made your wishes known.

It's easy to say, "Don't make a fuss. I don't want a ceremony. Just bury me and be done with it." But it is important to realize that the ritual of a funeral and/or memorial service isn't for the deceased but for the living. It is a time when friends and family can gather together to grieve openly and to provide support for one another.

Pre-planning your funeral can be very informal, and as simple as following a pre-planning checklist (Below) and sharing your wishes with a family member. More Formal arrangements in the form of a preneed contract can be set up with a funeral director and pre-funded through life insurance, bank trust agreement, or another method.

Pre-planning, when done properly, can give you peace of mind because you know that your arrangements are ready and pre-funded.

College is EXPENSIVE!!!! The best way for a parent to help their child pay for college, without either the parent or the child going into debt with loans, is to start saving early. Early means the younger the better. with compound interest the longer the period over which you save the more the savings grow. Also the longer the period in which you contribute the smaller the incremental payments.

Assuming no interest, if you were to calculate that $40,000 will be needed for college and you begin putting the money away monthly two years before the child begins college you will have to sock away $1,666.67 per month for 24 months. However, if you start 18 years before you only have to save $185.19. Remember this is without interest. If you factor in the interest that the savings will earn, the monthly payment will be less. Again, the longer the period, the greater the impact of the interest, so the sooner you start the less you will have to contribute each month to reach your goal.

There is always the dreadful fact that there is always a TAX when you have a savings account. This is where Life insurance on the child comes into play.

Life insurance on the child gives a parent both tax sheltering and flexibility in the use of the funds. There are three parties to a life insurance contract: the insures, the owner and the beneficiary. When the child is born the parents take out a policy on the child. Assuming the child is healthy, the parents can purchase a very large policy for a relatively low premium payment. The child is the insured but the parents are the owners and can make themselves the beneficiaries. As payments are made cash builds up in the cash portion of the policy. Under the current Tax laws, the investment income generated by an insurance policy are not subject to income tax. So the cash value grows tax free. When the child is ready for college the parents can cancel the policy and withdraw the cash value or keep the policy and borrow the sash value at a low interest rate. If the child decides not to go to college the parents as owners of the policy , can keep the money in the policy or withdraw it and use it for something else. At some point the parents may want to transfer ownership to the child but they are not required to do so.

Life insurance on a child is not for everyone. However, it is one option that can be considered when planning for your child's college education.

Life insurance is not only for Adults.  Several individuals have chosen to insure their children for a number of reasons.  Here are a few of the benefits providing Life Insurance for your children will create.

Death Benefit

None of us want to believe that we could possibly burry our children.  As sad of a thought that is, it does happen.  Funeral costs are expensive, and if the death of a child is not hard enough, the expenses could ruin your family financially.  Sometimes knowing that in case something does happen to your little ones, you will be able to provide them with the services they deserve and be able to mourn their loss without the worry of suffering financially.  Life insurance on a child pays for funeral expenses plus the cost of any medical treatments, particularly if the illness was extended.  Parents often require professional help after a loss that devastating and some funds can pay for bereavement counseling or in cases of severe depression, to replace their income until they come to grips with the loss. 

Rate & Insurability

Purchasing life insurance on a child guarantees that he will have insurance at a lower cost and the policy will remain in place, regardless of later health issues. Even if the child does not suffer any change in health, early purchase of life insurance locks in the cost and policy before he develops bad habits such as smoking, dangerous occupations or risky avocations such as racecar driving. The younger you are when you purchase insurance, the lower the annual cost of the policy. Parents often like to help their children get a good start in life by purchasing policies early for them in order to keep their children’s cost lower later in life.  Level premium whole life policies do this.  Also, term riders for children can be added to a parent’s policy.

Cash Value

Some parents like the idea of a tax-deferred savings in the insurance they purchase for their child. Whole life policies and universal life policies offer a cash reserve for later use. The parents may use the money to supplement college costs or turn the policy over to the child as a gift. If the child receives the life insurance as a gift, she can cash it in, borrow from it for a major purchase, take it as a paid up policy or continue to make payments on it.  Now, who wouldn’t want that for their child! 


For more information please contact us at [email protected].

To refinance or not to refinance, that is the question.  When you refinance your home mortgage, you are basically paying off your existing mortgage by taking out a new loan.  You may do this to lower your loan payment or reduce your interest rate.  You may even refinance to get some cash at closing.  The question is “is refinancing right for me?”

We at 52 Weeks to Prosperous Living are big fans of refinancing when it makes good financial sense.  So here are a few things to look at when trying to decide whether or not you should refinance.

1.      What is your purpose?  If your main aim is to get cash to purchase more toys or free up cash to spend more on a fancy car, DON’T DO IT!!!  If your goal is to reduce the amount of interest you will pay over your lifetime or free up cash to reduce debt, or possibly even use some cash at closing to consolidate your debt, refinancing very well may be right for you.  It can be a great way to free up cash flow to get out of debt more quickly, and possibly one of the easiest.

2.      If your purpose is going to be beneficial to your overall financial picture, then the next step is to gather information.  You may know what your monthly payment is, but you need to also look at your current interest rate and the terms of your loan, as well as the type of loan you have (our mortgage refinance worksheet is a great tool for this and makes it really easy).  Now that you have this information handy, you can compare your options and see if you can reach your goals by refinancing.

3.      Find a good mortgage professional.  Typically a bank can do your mortgage, but you’ll get a lot better offering from a good professional that has access to multiple lenders.  A good professional will walk you through every step of the process, including helping you understand the true costs of your mortgage, you know, the ones that don’t show up in the interest rate.  If your goal is saving interest over the long haul, make sure you plan on staying in your home for a while, since the way mortgages are amortized means yo pay mostly interest the first few years. 

4.      Be disciplined!!!  This is key to your financial success.  Be disciplined in using the money saved by refinancing your mortgage to better your financial situation.  Don’t get caught up in the keeping up with the Jones’s. 

Like any financial tool, refinancing your mortgage can be a great boon to your financial success, but only if used properly.  Be smart.  What more can I say?  If you’re unsure, use a trusted advisor to help guide you.  Remember, slow and steady wins the race!