Blog Layout

How Much Do You Need in an Emergency Fund?

April 18, 2023

We tend to focus quite a bit on saving assets within a retirement account. Along with other sources of income, such as Social Security or a pension, withdrawals from that account will represent your income once you retire. But establishing an emergency fund, or “rainy day” account, is also important for many reasons. 


In the event that you experience financial setbacks, like the need for a major home repair or a family emergency, you will need access to quick cash. And tapping your retirement fund for an additional withdrawal can throw off your retirement budget for years. 


On the other hand, every penny you save within a low-yield but easily accessible account, such as a savings account, is a penny that can’t be invested. So you would be right to wonder whether you’re playing it too safe and potentially costing yourself investment returns. 


So, how much do you need to stash in an emergency fund?


The common rule is six months’ worth of living expenses. But that figure can vary based upon your situation. For example, if you’re a dual-earning income, you might not need as much savings as a single-income household. If you carry robust insurance policies, like those with low or zero deductible, you also face less risk during events like a homeowners insurance or auto insurance claim. The same goes for unexpected medical expenses, if you’ve addressed your needs with supplemental insurance. 


On the other hand, having too much money in a savings account rarely hurts anyone. If your retirement account feels healthy enough to provide a dependable retirement income, there is probably no harm in saving “too much” in a rainy day fund. 


The bottom line is that there is no answer that is right for everyone. But we should discuss this issue in more detail at our next appointment, so that you can make the best use of the assets available to you. 

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.
More Posts
Share by: