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Can I Invest in Cryptocurrency Through My Retirement Plan?

May 16, 2023

Cryptocurrency has made headlines in the past few years, and stories abound of regular people who struck gold by investing early in currencies like Bitcoin. So you might be wondering if the craze is over, and you missed your chance… Or if you can still invest in cryptocurrency. More importantly, can you dedicate some of your retirement plan funds to this type of investment? And should you? 


First, you should remember that all defined benefit plans (like 401k) are governed by standards set forth in the Employment Retiree Income Security Act of 1974 (ERISA). These funds must be managed by fiduciary standards, meaning plan managers must act in the best interests of their clients. Due to the risk of personal liability, many managers are wary of investments like Bitcoin. 


On the other hand, some plan managers have perked up to notice the potential of cryptocurrency investments. Bitcoin, in particular, has been around since 2010. When it began trading, the currency was valued at 8 cents per coin. By 2021, the value had risen to a whopping $65,000. 


Of course, crashes happen, too. As of April 28, 2023, Bitcoin is valued at about $29,000; still good news for those who bought low, but perhaps not so thrilling for anyone who invested during the highs of 2021. 


Clearly, Bitcoin and other cryptocurrencies are volatile investments; the potential for great rewards is balanced with the potential for significant losses. Therefore, timing can be essential with this type of investment. Not to mention luck!


For that reason, many financial professionals do advise caution when considering cryptocurrency investments. In most cases it is wise to devote only a small portion of your investments to something like Bitcoin, and to diversify into more reliable types of assets. But if you do want to take the plunge into cryptocurrency investing, contact your plan administrator to discuss your options. 


And of course, let’s discuss this idea at your next appointment before you make a big decision. We can help you decide if cryptocurrency investments fit into your portfolio, and how much of your funds you should devote to the endeavor. 

The Benefits of Hybrid Life and Long-Term Care Insurance Policies

March 18, 2025
Planning for both future healthcare needs and financial security can be challenging. A hybrid life and long-term care (LTC) insurance policy offers a unique solution by combining life insurance benefits with coverage for long-term care expenses. Depending on exact needs and circumstances, this type of policy might be a smart choice for retirees and their families. What Is Hybrid Life and Long-Term Care Insurance? Hybrid policies blend life insurance coverage with long-term care benefits, providing financial support whether you need extended care during your lifetime or leave behind a death benefit for your beneficiaries. Unlike traditional long-term care insurance, which operates on a "use it or lose it" basis, hybrid policies ensure that your investment isn’t wasted if you never need long-term care. Key Benefits of Hybrid Policies Dual Protection – These policies provide coverage for both long-term care costs and life insurance payouts, ensuring that funds are used efficiently. Guaranteed Benefits – If long-term care is not needed, your loved ones will still receive a death benefit payout. Premium Stability – Traditional LTC insurance premiums can rise unpredictably, but hybrid policies often have fixed or limited payment periods. Flexible Use of Funds – Policyholders can use long-term care benefits for various needs, including home care, assisted living, or nursing home care. Potential Tax Advantages – Benefits used for qualified long-term care expenses are often tax-free, providing additional financial relief. Is a Hybrid Policy Right for You? A hybrid life and LTC policy is ideal for those who: Want to ensure their long-term care needs are covered while still leaving an inheritance. Prefer predictable premiums without the risk of losing their investment if care isn’t needed. Are concerned about rising healthcare costs in retirement. Have funds available for a lump-sum or limited-time premium payment. Plan for Your Future Today Choosing the right insurance policy is crucial for securing your financial future and protecting your loved ones. If you’re interested in learning more about hybrid life and long-term care insurance, contact us for expert guidance on finding the best coverage for your needs.

Burial Insurance vs. Traditional Life Insurance: Which Do You Need?

March 11, 2025
When planning for the future, many people consider life insurance to ensure their loved ones are financially protected after they pass away. However, not all life insurance policies serve the same purpose. Two common types are burial insurance and traditional life insurance, and understanding the differences can help you make the right choice for your needs. What Is Burial Insurance? Burial insurance, also known as final expense insurance, is a type of insurance policy designed specifically to cover funeral and burial costs. Policies typically range from $5,000 to $25,000, ensuring that expenses such as cremation, a memorial service, or a casket are paid for without placing a financial burden on family members. While burial insurance provides peace of mind for covering end-of-life expenses, it has limited benefits and does not offer financial security beyond funeral costs. It won't help cover other expenses like: Medical bills left behind Living expenses for surviving family members Mortgage or debt payments Replacement income for dependents What Is Traditional Life Insurance? Traditional life insurance, which includes term life and whole life policies, offers a broader financial safety net for beneficiaries. These policies provide a larger death benefit, often starting at $100,000 or more, which can help with: Paying off outstanding medical and credit card debt Replacing lost income for surviving spouses or children Funding education costs for children or grandchildren Covering long-term living expenses Unlike burial insurance, traditional life insurance is meant to provide lasting financial protection for your family rather than just covering funeral costs. Which One Do You Need? The best option depends on your financial situation and what you want your insurance policy to accomplish. If your primary concern is ensuring your funeral and burial costs are covered without burdening your loved ones, burial insurance may be sufficient. If you want to protect your family’s financial future, cover major expenses, and replace lost income, a traditional life insurance policy is the better choice. In some cases, individuals choose to have both types of policies—burial insurance for final expenses and traditional life insurance for broader financial protection.
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