That the unexpected will happen.
Life happens...
and it becomes difficult to plan for all of our life’s events.
So what do Savvy Investors know that many of us just might be ignoring?
They’re comfortable with dealing and working with the unexpected. It won’t deter them from moving forward.
Life happens and the unexpected is part of life.
For many of us when the unexpected happens it’s not always easy to deal with.
Panic sometimes sets in and our normal logical composure is just gone.
Rather than panic, Savvy Investors turn the unexpected into the norm. They expect life to be dynamic; ever changing. So when faced with the unexpected it’s the norm and something to face head-on with confidence.
"Turning the Unexpected in Life into the Norm" needs to be our New Norm.
Savvy Investors plan for the unexpected; not waiting and reacting when faced with it.
That’s a major concept that can empower us.
It means not being so afraid to face our financial future.
Working along with our Financial Planner or Wealth Manager, we can plan for some of the unexpected that will happen in life.
Feeling empowered, we’ll have choices instead of just reacting.
Savvy Investors design a portion of their portfolio that creates some forms of guarantees.
Guarantees can help us better manage the fluctuations in the financial markets.
It also means to be mindful that while we may have decided on our risk tolerance for choosing investments, they can still go south on us.
Look at designating a portion of our assets to help:
better weather financial markets
grow tax free and
create & manage liquidity
Not all assets in our portfolio need to be superstars.
And last, Savvy Investors look at Insurance Products as financial tools and not just investments.
When Insurance is properly funded with highly rated Carriers we’ve created financial tools.
Savvy Investors think about Insurance Products in terms of the features and benefits they offer them.
Having Insurance Products in their portfolios gives them the tools and flexibility to better manage their cash flow.
Four Essential Benefits Insurance Can Provide in Planning for the unexpected:
1. Better Control of Your Cash Flow
Take control of your liquidity and become your own banker through owning a Participating Whole Life Policy that builds cash value over time. Have access to policy loans for:
unexpected expenses that weren't budgeted
smoothing out monthly income when you are dependent on commissions or a year-end bonus
an illness that prevents you from working for the short term
helping pay the mortgage on your first home because you just signed a contract on your dream home
starting a new business venture
2. Avoid Selling into Market losses
Owning a Participating Whole Life Policy that builds cash value over time allows you to make strategic withdrawals with policy loans in select years when the stock markets are creating losses.
This tactic helps you to preserve your portfolio and avoid selling into market losses, giving your assets time to recover.
3. Create Predictable Income for Retirement Life
Eliminate the fear of depleting your retirement savings by including Guaranteed Income Annuities in your retirement plan by:
creating predictable income streams that are guaranteed to last for as long as you live or for a period of time you choose
helping you meet future predictable expenses such as: housing, utilities, taxes, fuel, food, health care, etc.
taking control to determine what qualifies as necessary expenses you want covered
4. Secure Reliable Long Term Care
Leverage a portion of your savings and create a larger pool of funds to help pay for Long Term Care (LTC). There is no single "best way" to plan for the cost of your LTC; you have options.
As we grow older, we will most probably need some assistance to maintain the quality of life we want to live.
For myself, I have set up 2 LTC Insurance (LTCi) policies directed towards my LTC. I sleep better knowing that I have designed a plan that will help me age gracefully. I don't want to touch my retirement or brokerage accounts or other assets to pay for my LTC needs. By planning ahead I'll have options.
In Summary:
Savvy Investors:
plan for the unexpected; not waiting and reacting when faced with it
design a portion of their portfolio that creates some forms of guarantees and
look at Insurance Products as financial tools and not just Investments
Including Conservative Insurance Products in your portfolios gives you the flexibility to better manage your cash flows when life happens.
Recommended Insurance Products will include:
Term/Participating Whole Life Insurance
Guaranteed Universal Life Insurance
Long-Term Care Insurance
Hybrid Long-Term Care Insurance
Guaranteed Income Annuities
Fixed Indexed Annuities
Qualified Longevity Annuity Contract
Let’s plan for the unexpected.
Debra K. Bedell
Insurance - a great Hedge against Risk.