One of the challenges of investing for retirement is trying to anticipate how much you need to accumulate. That’s the case in part because you can’t predict investment returns or future tax and inflation rates—which affect everyone— or more personal things like how long you’ll live. Watch part 1 The Retirement Marathon from the series Saving for Retirement in Your Working Years with syndicated financial columnist and talk show host Steve Savant.  Content: In 1900, retirement wasn’t a hot topic. Employers didn’t offer pensions, there was no Social Security, and the average life expectancy was 50. More than a century later, everything’s changed. More than 44 million people collect retirement benefits, and that number is expected to reach 72 million by 2030. And people are living much longer: Current estimates suggest that a million or more people now in their 40s can expect to live to be 100 or more. If you’d like more direction than “save as much as you can,” you might use the rule of thumb that says you’ll ideally have savings equal to 25 times the amount you’ll need to withdraw from your accounts the first year you’re retired to supplement the Social Security and pension   Read more…

INSURABLE INTEREST – To buy an insurance policy on some- one’s life, you must have an insurable interest in that person, which means that you would suffer a financial loss if he or she died. The law assumes you have an insurable interest in your own life and the lives of your spouse and dependents. Others must prove they have an insurable interest if they want to buy a policy on your life. The buyer only needs to prove
an insurable interest at purchase. If circumstances change—such as through divorce or the dissolution of a business partnership—the person named as beneficiary, even if he or she is also the policyholder, can usually still collect a claim at the death of the insured. When you buy life insurance, you must make two important decisions—who will own the policy and who the beneficiary or beneficiaries will be. The customary approach is for
the owner and the insured to be the same person, but it’s not the only alternative. It’s a good idea to check with your tax or legal adviser to see if it makes more financial sense for someone else to be the owner.
You can choose any beneficiary you wish—and if you
own the   Read more…

First, you should determine what expenses the policy should cover. For most people, the death benefit should pay immediate costs related to your death, help meet your dependents’ daily living expenses, and set aside money for future needs, such as education. Of course, your dependents may need more or less, based on your existing assets, their own income and assets, and whether they’ll receive income from Social Security or other sources. Keep in mind, though, that the life insurance policy that’s right for you at one stage of your life may not provide the coverage you need at another. For example, you may decide to convert a term insurance policy to a permanent policy to lock in lower premiums. If you have universal life, you may want to take advantage of the option of increasing your death benefit. When an insurance review is a regular part of evaluating
your financial plan,
you’ll be more likely to make changes when they’re appropriate rather than risk waiting too long to update. A life insurance calculator can help you come up with a ballpark figure as you begin exploring your life insurance needs. But it can’t take you as an individual into account. You should   Read more…

As your life goes through different stages, your life insurance needs will change. Everyone’s experience is different, but here are some of the key concerns you might face. Young couple, new homeowners – Buying a home together is exciting. But it’s also
a major financial commitment that may depend on two incomes. If one of you were to die un- expectedly, you want to be sure that the surviving spouse is able to keep the home you love. If both of you have life insurance, you’re protecting each other and your investment. Young working parent – Since your kids depend on you to support them,
if you were to die, their financial security might
be at risk. Even if your spouse or relatives will be there to raise your children, they may not have the financial resources to provide the things for your children that you wanted them to have. Life insurance can help you make sure that whoever raises your children after you’re gone can maintain the standard of living you want for them. Supporting kids and parents – These days, more and more people find them- selves raising children while at the same time supporting their parents in their old age.   Read more…