Saving for Beer or Retirement the Results Can be Delicious - Infographic

Here is a new way to look at saving for your retirement. It's funny how you can make a point by comparing something fun to something not to fun. Saving for retirement is boring and the payoff is so far away that you can get easily discouraged. 

If this info graphic doesn't drive home the power of saving even the smallest amount of money I don't know what will. Start today so when it's retirement time you'll have all the beer, I mean money you'll need for a secure retirement. 

Thanks to Erik at RothIRA.com for giving us a laugh and something to think about.  

From: RothIRA.com

Do Baby Boomers Still Need Life Insurance?

Universal Life Insurance Company (Photo credit: Thomas Hawk)

All through our lives we have had many different types of insurance. Whether it was car insurance, home insurance, or life insurance we know to protect ourselves and our families, it was a necessary expense. But in retirement is it still necessary to have life insurance? The kids are on their own and are self sufficient. We have less to protect and don't view the need for life insurance anymore.

Maybe you think life insurance for people over 50 isn't important. Think again. While people under fifty often get life insurance for financial protection for their spouse and children, people over 50 have even more ways to use life insurance.

If you have a spouse who will survive you, there is a need for some financial security for the rest of their life. Other needs for life insurance can be:

1. Taking care of your adult special needs child.
2. Paying off your mortgage and your debt.
3. Pension Maximization Strategy- letting you take the maximum dollars in retirement benefits.
4. Providing for your estate taxes.
5. Providing financially for your family business. 
6. Final expenses.
7. Charitable giving.
8. Providing for children or grandchildren for college and/or professional school.

I'm sure we've missed one or more reasons for life insurance in your senior years.  Whatever your reasons for needing life insurance are, the process is still the same. 

What keeps most Boomers from getting life insurance?

The answer for most people is cost. Seeing that large monthly payment makes people not purchase the insurance. But by doing that, everyday your making it worse. The price you will pay for your monthly premium on a 20 year term policy dramatically increases as you go from 50 to 60 and from 60 to 65.

Men have it worse when paying for life insurance. Women live longer than men so their insurance costs are less. Also as we age we have more health issues which will increase the premium we need to pay. Here are two examples of life insurance rates, compared for men and women. 

Female, Preferred risk,  $250,000 of insurance for 20 years, level face amount and premium

• Age 50 is $39 per month
• Age 60 is $94 per month
• Age 65 is $167 per month

Male, Preferred risk,  $250,000 of insurance for 20 years, level face amount and premium

• Age 50 is $50 per month
• Age 60 is $129 per month
• Age 65 is $258 per month

It pays to apply for your life insurance as early as possible so you can lock in low rates.

How much life insurance do you really need?

When shopping for life insurance deciding the amount of coverage depends on many factors. The insurance should only be as much as needed to fulfill a specific need. Support for the surviving spouse must be measured with the state of savings, pension, and other income. You may only need to just provide enough money to pay off a mortgage and provide burial expenses. 

Life happens and the best time to buy life insurance is today when your healthy and at your youngest. It will be at the most affordable price and only be more expensive if you wait.

3 Ways to Maximize your 401k

Finance (Photo credit: Tax Credits)It's easy to get the most out of your 401k, especially if you start planning early. A comfortable retirement is within the reach of anyone who takes their financial responsibilities seriously, and maximizes their 401k account. Here are some simple ways to do it:

Start Early

It is never too early to start thinking about the future, or to start learning about the fascinating world of finance. Pay attention to your investments, to your retirement, and to the economic world. Put as much as you can into your 401k, because if it is one the primary things you spend money on then you will take it seriously and tend it carefully. Although you cannot put more than $17,000 into a 401k in a year, if you can come anywhere close to that you will not regret it. Even one year of large contributions will pay well later. If you want to take the fullest possible advantage of the tax breaks, then you should contribute about $1,417 a month. That's about $327 a week. That seems like a lot, but it will be worth it. Be sure to take the fullest possible advantage of employer 401k matching to your account. That is a service that costs you nothing, but benefits you tremendously.

Diversify

Most 401ks have generous options for investing in stocks, bonds, mutual funds, and more. A diverse portfolio distributes risk and ensures that no single disaster can completely undo the fund. The beauty of the modern market is that, no matter what happens, some sector of the economy benefits. The harder it rains, the more umbrellas somebody can sell. If your 401k is used for intelligent selections from the entire financial spectrum then it will truly be an ill wind that blows no part of your portfolio any good. Please be sure to not put too much money into investing in your own company. That is counter to the principles of risk management, which are at the heart of any great investment plan. Your fortunes are already tied to your employers. Maximize your freedom, and diversify.

Take It Seriously

Assiduous attention to the financial market is the surest guarantee of a long and productive economic life. The market changes, constantly, and the only constant is change. There is no way to know what the top stocks will be in many years, when you are ready to retire. The only way to know is to pay attention from now on until then. Make your economic life part of your everyday life. Read the financial news. Not only will this give you ideas for investments, but regular contact with the financial world will keep you aware of the usual conditions and the way that major events tend to play out. This can really help you keep your sanity when strange moments find the financial market and the less-informed investors panic, lose their heads, and make emotional decisions with terrible consequences. The truly iron-willed can even find ways to make a profit in this situation.

Dan is a financial blogger and a writer for a company that provides useful information and guide here on life insurance.

Related articles

• Can I Withdraw Funds from a 401k Before Retirement? (savealittlemoney.com)

Insurance Tips for Soon-To-Be Retirees

(Photo credit: Wikipedia)

Over the many years, you have probably paid your homeowners insurance just by routine. Today, experts with the AARP have begun to warn people that this routine continued without a lot of thought can be a huge financial mistake. All homeowners policies aren’t the same and not all companies charge the same costs and premiums. Retirees need to think about the fact that the coverage they bought many years ago may not be what they need today.

What Is Covered
Of course we all know that homeowners insurance is a type of coverage for homes in case some damage happens. The policy you bought many years ago on your home may have been complex or simple. The variations are going to be in what types of damage are covered. There is fire damage, theft, flood, and earthquake damage. Then you have the policy chose that offers a cash value, discounting the depreciation, or the one that offers complete replacement coverage with no depreciation taken out. Then, you have to take into consideration the value of what’s inside your home. For retirees, that may have changed a lot today from what you had years ago.

Retirement Needs Change
When we reach the age of retirement, our needs may change quite a bit. You may scale back on the items you have in your home. This is when you have to think about your homeowner’s policy and the need to ensure that what you have worked so hard over the years to accumulate. You want to be sure those assets are protected and covered. While so many retirees are focusing on their health insurance, they let their homeowner’s insurance slip through their minds.

Value of Home
Most retirees don’t even remember what was covered or not covered years ago when they took out their policies. Start to ask yourself some questions. Do you know what is covered and what’s excluded? Do you have coverage for being burglarized or for an act of God that could occur? Dig out your policy and start crunching some numbers. You have to think about what your home is worth now. Check out the values of homes in your neighborhood that sold recently and compare. Come up with a pretty good figure and ask your insurance agent to have an analysis done on what the cost would be if you had to rebuild your house.

Retirees Accumulate Stuff
Make a list of all the items in your home. It’s going to take a while but go one room at a time and account for everything. Some people like to use a camcorder to go through the house and record by voice what is in each room. Regular cameras can work as well. When you come across things that are very valuable, take a close up photo and write a description of the item with the date on the back. Be as specific as you can be and note the condition of your items as well. Model numbers or serial numbers should be written down as well as all your art, antiques and jewelry. Give your kids a copy of your information or put a copy in a safe deposit box. By now you should have a pretty good estimate of the value of items in your home. Remember as well that most homeowner’s insurance policies cover up to a specified amount of the home’s contents. You may need to look into a separate insurance policy for items of great value.

Always be sure to notify your insurance agent when you retire. They can assist retirees in determining any types of discounts they may be eligible for. Living on a fixed income may cause you to think about how to cut down on items and insurance can be one of them. Keeping your home safe with burglar alarms and smoke detectors can reduce rates as well. Think about everything when you are retiring and don’t forget about your homeowner’s. You can probably save a lot of money and protect your assets as well.


Kelly Clarion writes about finance, economics & homeowners insurance quotes.