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10 Ways to Make Your Retirement Savings Last Longer

February 8, 2022

Thanks to longer lifespans, some of us can look forward to 20 or even 30 years of retirement. That’s great news overall, but what about your financial longevity? These ten tips can inspire ways to make your retirement savings last longer. 


Download a budgeting app. We all say we’re following a budget, but most of us don’t actually do it very well. But technology can make budgeting so much easier. Download a budget app and train yourself to use it faithfully. Ideally you will do this before retirement, so that you become accustomed to your new lifestyle. 


Consolidate debts. In the ideal scenario, you will pay off debts before you retire. But life is often less than ideal. If you do carry debt into retirement, consider a consolidation loan that rolls everything into one, low-interest payment. 


Downsize your home. Not only will a smaller home usually equal a smaller or no monthly payment; you will likely experience lower maintenance and utility costs as well. 


Relocate. And if you’re moving anyway, why not consider a less expensive area? You’re no longer tied to one particular city for work and can live anywhere you want now!


Ask about senior discounts. More to the point, ask about discounts everywhere that you spend money. You will be surprised at how often you can score a better deal. 


Shop secondhand. From home decor to cars, new is rarely necessary. Shop thrift stores, yard sales, and even Facebook Marketplace for great deals on gently used items. You’ll avoid paying top dollar and stretch your budget much farther. 


Downsize your vehicles, too. Many retired couples can get by just fine with only one vehicle. You’ll eliminate one payment from your budget, along with the cost of maintaining multiple cars.


Travel during the off season.  Now that you’re not beholden to work or school holidays, you can travel whenever you want. And travel during the off seasons can be surprisingly cheap!


Fully research your Medicare options. Choosing the right plan is one way to save money on healthcare expenses. But then using your plan correctly is also wise. Take the time to fully research your options and truly understand the plan that you choose. Then remember that you can switch plans during open enrollment if you determine your plan isn’t working for you. 


Learn about sequence of returns risk. Withdrawing money from your retirement account when the market is low will mean you lose the opportunity for rebounds. There are several ways to avoid this mistake. Work closely with a financial advisor to learn how to take withdrawals the smart way. 


And on that note, give us a call as you plan for retirement, and we can help you determine how to make your retirement savings last. 

Using Life Insurance to Protect Your Business: Key Strategies for Business Owners

February 11, 2025
As a business owner, safeguarding your enterprise against unforeseen events is crucial for long-term success. Life insurance offers several strategies to protect your business, ensure continuity, and provide financial stability during challenging times. Two primary methods are buy-sell agreements and key person insurance. Buy-Sell Agreements A buy-sell agreement is a legally binding contract that outlines the procedure for transferring ownership if an owner departs due to death, disability, or retirement. Funding this agreement with life insurance ensures a smooth transition and financial security for the remaining owners and the departing owner's beneficiaries. Types of Buy-Sell Agreements Cross-Purchase Agreement: Each owner purchases a life insurance policy on the other owners. Upon an owner's death, the surviving owners use the policy proceeds to buy the deceased owner's share. This method is often suitable for businesses with a few owners. Entity Purchase Agreement: The business itself owns life insurance policies on each owner. If an owner passes away, the business uses the proceeds to buy back the deceased owner's share, redistributing it among the remaining owners. This approach is typically preferred for businesses with multiple owners. Key Person Insurance Key person insurance is a policy that a business takes out on essential employees whose loss could significantly impact operations. The business owns the policy, pays the premiums, and is the beneficiary. If a key person dies or becomes disabled, the policy proceeds can be used to: Cover the costs of finding and training a replacement. Offset lost revenue resulting from the key person's absence. Reassure clients, creditors, and investors of the business's stability. This strategy is vital for businesses where certain individuals are integral to success, such as top executives, lead developers, or primary sales personnel. Additional Strategies Beyond buy-sell agreements and key person insurance, consider these life insurance strategies: Collateral Assignment: Use a life insurance policy as collateral for business loans. In the event of the owner's death, the lender is paid from the policy proceeds, preventing financial strain on the business. Executive Bonus Plans: Provide key employees with life insurance policies as part of their compensation package. This not only offers them personal financial protection but also serves as an incentive for retention. Deferred Compensation Plans: Promise to pay key employees a certain amount at retirement, funded through life insurance policies. This ensures the business can meet its obligations without affecting cash flow. Implementing life insurance strategies is essential for business owners aiming to protect their enterprises from unforeseen events. Work with us to explore your life insurance options and we can help your business remain resilient and continue to thrive.

What Happens If You Outlive Your Term Life Insurance?

February 1, 2025
Term life insurance provides coverage for a specified period, such as 10, 20, or 30 years. If you outlive your term policy, the coverage ends, and no death benefit is paid to your beneficiaries. As you approach the end of your term, it's essential to evaluate your current financial situation and consider options to maintain life insurance coverage if needed. Options to Consider Annual Renewable Term: Some term policies offer an option to renew annually after the initial term expires. While this allows you to extend coverage without a medical exam, premiums typically increase each year based on your age, making it a potentially costly option over time. PROGRESSIVE.COM Policy Conversion: Term-to-Permanent Conversion: Many term policies include a conversion feature, allowing you to convert your term policy into a permanent life insurance policy, such as whole or universal life, without undergoing a medical examination. This option can provide lifelong coverage and build cash value, but premiums will be higher than those of the original term policy. NEWYORKLIFE.COM Purchasing a New Policy New Term Policy: Applying for a new term life insurance policy can be an option, especially if you're still in good health. However, premiums will be higher due to increased age, and you may need to undergo a medical exam. Permanent Life Insurance: Alternatively, you might consider purchasing a permanent life insurance policy, which provides lifelong coverage and accumulates cash value. This option is generally more expensive but offers additional benefits. Exploring Alternative Coverage: Final Expense Insurance: Designed to cover end-of-life expenses, such as funeral costs and medical bills, final expense insurance offers a smaller death benefit with more affordable premiums and may not require a medical exam. Guaranteed Universal Life Insurance: This type of policy provides coverage for a specified age (e.g., up to age 90 or 100) with lower premiums compared to whole life insurance, focusing primarily on the death benefit without significant cash value accumulation. Take Action Now As your term life insurance policy nears its expiration, assess your current financial needs and health status to determine the most suitable course of action. Consulting with an insurance professional can help you navigate your options and select the best solution to ensure continued financial protection for your loved ones.
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