0 The Reality of Life: An Infographic

The Reality of Life: An Infographic

A new survey we did asked people what they planned to leave their loved ones if they were to pass away tomorrow, and more respondents said they would leave behind family photos (54%) than money from a life insurance policy (49%) for their loved ones.

So while we all value the memories that a photo brings us, it’s important to realize if there is no money for a family to survive on after the death of a breadwinner, it’s going to be really hard to make new memories that are worth capturing in a photo.

Here is more of what we found.

by Maggie Leyes

Maggie Leyes is VP of content strategy for Life Happens. She has been working in the insurance and financial services industry for more than 15 years.

Share: email twitter facebook googleplus pinterest linkedin

0 Are You Paying the Kiddie Tax?

Are You Paying the Kiddie Tax?

The kiddie tax is a tax rule that is levied on unearned income (interest, dividends and capital gains) earned by children under the age of 19 and full-time college students under the age of 24. For 2016, all of the child’s unearned income in excess of $2,100 is taxed at the parent’s tax rate.

In 2016, the only way that college students under age 24 will be able to avoid the kiddie tax is if they provide over half of their own support from their own earned income (i.e., wages and salaries, not income from selling stocks) in which case the child’s unearned income would be based on the child’s tax rates, not the parents rates under the kiddie tax rules.

So, is there a way to avoid paying this tax? Yes, there are several ways including using 529 plans and life insurance. Life insurance you say? Yes, and it works well.

Permanent life insurance allows you to put away funds in the cash-value portion of the policy, which accumulate tax deferred until they are withdrawn or borrowed from the policy. The rates of return over a 15 to 20 year period can be better than other safe money investments equivalents such as CDs and money markets and, there is no current taxation.

Want to learn more? Contact your agent or financial advisor for details.

Share: email twitter facebook googleplus pinterest linkedin

0 6 Reasons Single People May Need Life Insurance

6 Reasons Single People May Need Life Insurance

Many people make the assumption that life insurance is for married couples and those with kids. While it is true that not all single people need life insurance, there are a number of reasons when it can make (really) good sense.

1. You have student loan debt. Many people assume that your debt dies with you, but that’s not always the case. While the loans through the federal government are discharged (aka forgiven) if you were to die, personal loans that have a cosigner are generally not. That means if your parents, for example, co-signed your student loan through a bank, they would be responsible for paying the rest of the loan if something happened to you. There are instances when the bank has called for the loan to be paid in full immediately following a death. You don’t want to leave your parents dealing with grief and loan payments.

2. You’re living with your significant other. When you’re living together, a lot becomes shared financial responsibility. Consider this example: You need both your incomes to meet the mortgage or rent where you’re living. Have you thought about what happens if one of you dies prematurely? Would the other partner have to sell up? Find a new place to live immediately? And this is just one example of many shared financial responsibilities couple have. Adequate life insurance is an easy answer to those questions.

If your parents co-signed your student loan through a bank, they’d be responsible for paying the rest of the loan if something happened to you.

3. You plan on having kids … someday. It may not be now, but when kids do come, so do the expenses and bills. According the USDA, it costs $245,340 to raise a child to age 18, and that’s without factoring in the cost of college. Getting life insurance in place now means you have coverage in place for when you do have a child. Plus, you protect your insurability for the future. … and that leads us to the next reason.

4. You’re young and healthy. Age and health are two major drivers of how much you’ll be paying for life insurance. Why not lock in a low price if you have both of those working for you? Did you know that a health 30-year-old can get a 20-year $250,000 term life insurance policy for about $13 a month? Doable, right? Don’t wait until a health issue or age puts life insurance out of your reach.

5. You know you’ll be taking care of family members in the future. This may mean aging parents or perhaps you have a special-needs sibling that you help care for and support financially. What would happen to them if something happened to you and your support disappeared? Life insurance can ensure that there is money in place to fund those needs into the future. This is where it might be wise to consider a permanent life insurance policy (one that’s there for your lifetime, as long as you pay your premiums).

6. It will pay for your funeral. No one likes to think about such things, but the truth is if you die, someone will have to pay for your funeral. You wouldn’t want to leave your parents, partner or other family members struggling with grief as well as paying for a funeral and burial, which can cost an average of $7,100.

Getting life insurance doesn’t have to be a daunting task. A life insurance agent can walk you through your optionsâ€"free of charge. If you don’t have an agent to work with, click here for information on finding the right fit and one in your area.

0 5 Steps to Make Sure Your Family Is Protected Financially

5 Steps to Make Sure Your Family Is Protected Financially

Have you ever thought about what would happen to your family if something happened to you? All of us have at one point or another, even if it was in the form a frantic mental love note sent to family members during bad airplane turbulence. But concern for protecting your family financially doesn’t have to turn to worry if you follow these steps.

1. Take a look at what financial security means for you. Just as “rich” means different things to different people, so does financial security. Start by asking yourself what would happen if the primary breadwinner died prematurely (that could be you or your spouse or partner). You’d want your loved ones to be OK financially, but does that mean having enough income … for a lifetime? … so they wouldn’t need to move out of your home and neighborhood? … enough money for your spouse or partner to transition to a job if they are a stay-at-home parent? … to provide for your kids through college or maybe just a portion and have them pay the rest? Once you’ve established that, you can move on to making sure a plan is in place.

2. Determine needs versus wants. They are not the same thing. You may want 100% financial securityâ€"to provide for your spouse for their lifetime and your kids through college, but can you afford it? Most of us don’t have savings to achieve this, which is where life insurance comes in. You’ll want enough money or death benefit that if invested at the current market rates (2%-4%) that you can generate your (or your spouse’s) missing income. That means you may need more life insurance than in the past. Before, the invested proceeds of $500,000 life insurance benefit could have replaced, a $50,000/year salary. Now you might need $1 million of coverage to achieve the same goal.

3. Look at the full picture. This isn’t just about life insuranceâ€"that’s just one piece of the formula. You need to look at all your assets such as money in retirement plans, your benefits packages, investments you might have, what money your family would be getting from Social Security, the life insurance you already have in place, etc.

In addition, people often have multiple families to care for with economic requirements that may be laid out in a divorce decree. Or they may have special needs children who will never be able to work. In that situation, a trust should be set upâ€"funded with assets or death benefitsâ€"to create an income stream for as long as they live. Plus, many of us will have either adult children or our aging parents living with us now or in the future who we may be responsible for financially.

Once you have these numbers, you can figure out what the shortfall isâ€"which can be funded with life insurance or more life insurance that you currently have. This doesn’t have to be a particularly difficult task to start. Use this online Life Insurance Needs Calculator, which has inputs for this type of information and can help you get a working idea of how much life insurance you might need to cover any shortfall.

4. Get help if you need it. Sometimes our need for life insurance is straightforward. Often, though, when we need to factor in special circumstances it can become more complicated. Insurance agents are there to help. That’s their job. They will sit down with you, at no cost or obligation, and go through these steps with you and then help you come up with a solution you can afford. You may “want” a permanent life insurance policy to secure your family’s financial future, but an agent may show you that what you “need” is really a term life insurance policy that you can afford without straining your budget or perhaps it is a combination of the two. If you don’t currently have an agent to work with, you can start with tips on finding one and our Agent Locator.

5. Don’t forget about disability insurance. If you and your family depend on your income, then you need to make sure you have disability insurance. Ask yourself honestly if you were sick or injured and unable to work, how long could you survive financially without your paycheck? In a survey that Life Happens did we found that most Americans would feel the pinch in a month or less. Keep in mind that Social Security pays disability benefits that average around $1,100 a month, and it can take a yearâ€"often much longerâ€"to even get that payment.

Disability insurance pays you a portion of your income if you become sick or injured and unable to work. It may be offered as part of your benefits package through work, but be sure to double check with your HR department, and find out what percentage of your income is replaced (often 60% or less). You can also purchase an individual policy, which you own, and so isn’t dependent on your benefits package being reduced or even eliminated. To get a working idea of how much you might need, you can use this Disability Insurance Needs Calculator. Again, this is something that an insurance agent can help you figure out as well.

0 Life Happens

Life Happens Life Happens is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures.

0 The Reality of Life: An Infographic

The Reality of Life: An Infographic

A new survey we did asked people what they planned to leave their loved ones if they were to pass away tomorrow, and more respondents said they would leave behind family photos (54%) than money from a life insurance policy (49%) for their loved ones.

So while we all value the memories that a photo brings us, it’s important to realize if there is no money for a family to survive on after the death of a breadwinner, it’s going to be really hard to make new memories that are worth capturing in a photo.

Here is more of what we found.

by Maggie Leyes

Maggie Leyes is VP of content strategy for Life Happens. She has been working in the insurance and financial services industry for more than 15 years.

Share: email twitter facebook googleplus pinterest linkedin

0 Are You Paying the Kiddie Tax?

Are You Paying the Kiddie Tax?

The kiddie tax is a tax rule that is levied on unearned income (interest, dividends and capital gains) earned by children under the age of 19 and full-time college students under the age of 24. For 2016, all of the child’s unearned income in excess of $2,100 is taxed at the parent’s tax rate.

In 2016, the only way that college students under age 24 will be able to avoid the kiddie tax is if they provide over half of their own support from their own earned income (i.e., wages and salaries, not income from selling stocks) in which case the child’s unearned income would be based on the child’s tax rates, not the parents rates under the kiddie tax rules.

So, is there a way to avoid paying this tax? Yes, there are several ways including using 529 plans and life insurance. Life insurance you say? Yes, and it works well.

Permanent life insurance allows you to put away funds in the cash-value portion of the policy, which accumulate tax deferred until they are withdrawn or borrowed from the policy. The rates of return over a 15 to 20 year period can be better than other safe money investments equivalents such as CDs and money markets and, there is no current taxation.

Want to learn more? Contact your agent or financial advisor for details.

Share: email twitter facebook googleplus pinterest linkedin

0 5 Steps to Make Sure Your Family Is Protected Financially

5 Steps to Make Sure Your Family Is Protected Financially

Have you ever thought about what would happen to your family if something happened to you? All of us have at one point or another, even if it was in the form a frantic mental love note sent to family members during bad airplane turbulence. But concern for protecting your family financially doesn’t have to turn to worry if you follow these steps.

1. Take a look at what financial security means for you. Just as “rich” means different things to different people, so does financial security. Start by asking yourself what would happen if the primary breadwinner died prematurely (that could be you or your spouse or partner). You’d want your loved ones to be OK financially, but does that mean having enough income … for a lifetime? … so they wouldn’t need to move out of your home and neighborhood? … enough money for your spouse or partner to transition to a job if they are a stay-at-home parent? … to provide for your kids through college or maybe just a portion and have them pay the rest? Once you’ve established that, you can move on to making sure a plan is in place.

2. Determine needs versus wants. They are not the same thing. You may want 100% financial securityâ€"to provide for your spouse for their lifetime and your kids through college, but can you afford it? Most of us don’t have savings to achieve this, which is where life insurance comes in. You’ll want enough money or death benefit that if invested at the current market rates (2%-4%) that you can generate your (or your spouse’s) missing income. That means you may need more life insurance than in the past. Before, the invested proceeds of $500,000 life insurance benefit could have replaced, a $50,000/year salary. Now you might need $1 million of coverage to achieve the same goal.

3. Look at the full picture. This isn’t just about life insuranceâ€"that’s just one piece of the formula. You need to look at all your assets such as money in retirement plans, your benefits packages, investments you might have, what money your family would be getting from Social Security, the life insurance you already have in place, etc.

In addition, people often have multiple families to care for with economic requirements that may be laid out in a divorce decree. Or they may have special needs children who will never be able to work. In that situation, a trust should be set upâ€"funded with assets or death benefitsâ€"to create an income stream for as long as they live. Plus, many of us will have either adult children or our aging parents living with us now or in the future who we may be responsible for financially.

Once you have these numbers, you can figure out what the shortfall isâ€"which can be funded with life insurance or more life insurance that you currently have. This doesn’t have to be a particularly difficult task to start. Use this online Life Insurance Needs Calculator, which has inputs for this type of information and can help you get a working idea of how much life insurance you might need to cover any shortfall.

4. Get help if you need it. Sometimes our need for life insurance is straightforward. Often, though, when we need to factor in special circumstances it can become more complicated. Insurance agents are there to help. That’s their job. They will sit down with you, at no cost or obligation, and go through these steps with you and then help you come up with a solution you can afford. You may “want” a permanent life insurance policy to secure your family’s financial future, but an agent may show you that what you “need” is really a term life insurance policy that you can afford without straining your budget or perhaps it is a combination of the two. If you don’t currently have an agent to work with, you can start with tips on finding one and our Agent Locator.

5. Don’t forget about disability insurance. If you and your family depend on your income, then you need to make sure you have disability insurance. Ask yourself honestly if you were sick or injured and unable to work, how long could you survive financially without your paycheck? In a survey that Life Happens did we found that most Americans would feel the pinch in a month or less. Keep in mind that Social Security pays disability benefits that average around $1,100 a month, and it can take a yearâ€"often much longerâ€"to even get that payment.

Disability insurance pays you a portion of your income if you become sick or injured and unable to work. It may be offered as part of your benefits package through work, but be sure to double check with your HR department, and find out what percentage of your income is replaced (often 60% or less). You can also purchase an individual policy, which you own, and so isn’t dependent on your benefits package being reduced or even eliminated. To get a working idea of how much you might need, you can use this Disability Insurance Needs Calculator. Again, this is something that an insurance agent can help you figure out as well.

0 6 Reasons Single People May Need Life Insurance

6 Reasons Single People May Need Life Insurance

Many people make the assumption that life insurance is for married couples and those with kids. While it is true that not all single people need life insurance, there are a number of reasons when it can make (really) good sense.

1. You have student loan debt. Many people assume that your debt dies with you, but that’s not always the case. While the loans through the federal government are discharged (aka forgiven) if you were to die, personal loans that have a cosigner are generally not. That means if your parents, for example, co-signed your student loan through a bank, they would be responsible for paying the rest of the loan if something happened to you. There are instances when the bank has called for the loan to be paid in full immediately following a death. You don’t want to leave your parents dealing with grief and loan payments.

2. You’re living with your significant other. When you’re living together, a lot becomes shared financial responsibility. Consider this example: You need both your incomes to meet the mortgage or rent where you’re living. Have you thought about what happens if one of you dies prematurely? Would the other partner have to sell up? Find a new place to live immediately? And this is just one example of many shared financial responsibilities couple have. Adequate life insurance is an easy answer to those questions.

If your parents co-signed your student loan through a bank, they’d be responsible for paying the rest of the loan if something happened to you.

3. You plan on having kids … someday. It may not be now, but when kids do come, so do the expenses and bills. According the USDA, it costs $245,340 to raise a child to age 18, and that’s without factoring in the cost of college. Getting life insurance in place now means you have coverage in place for when you do have a child. Plus, you protect your insurability for the future. … and that leads us to the next reason.

4. You’re young and healthy. Age and health are two major drivers of how much you’ll be paying for life insurance. Why not lock in a low price if you have both of those working for you? Did you know that a health 30-year-old can get a 20-year $250,000 term life insurance policy for about $13 a month? Doable, right? Don’t wait until a health issue or age puts life insurance out of your reach.

5. You know you’ll be taking care of family members in the future. This may mean aging parents or perhaps you have a special-needs sibling that you help care for and support financially. What would happen to them if something happened to you and your support disappeared? Life insurance can ensure that there is money in place to fund those needs into the future. This is where it might be wise to consider a permanent life insurance policy (one that’s there for your lifetime, as long as you pay your premiums).

6. It will pay for your funeral. No one likes to think about such things, but the truth is if you die, someone will have to pay for your funeral. You wouldn’t want to leave your parents, partner or other family members struggling with grief as well as paying for a funeral and burial, which can cost an average of $7,100.

Getting life insurance doesn’t have to be a daunting task. A life insurance agent can walk you through your optionsâ€"free of charge. If you don’t have an agent to work with, click here for information on finding the right fit and one in your area.

0 Life Happens

Life Happens Life Happens is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures.

0 8 Financial Must-Dos for Newlyweds

8 Financial Must-Dos for Newlyweds

My wife and I went tandem bungee jumping together on our honeymoon. There’s something about an adrenaline rush like that that gets you thinking about the bigger picture. And as a newlywed financial planner, it prompted me to think about the planning we had in place and have a conversation about what our future goals looked like.

First, just talking about it is the biggest step. Open communication between you and your new spouse about your joint financial goals is one of the most important things you can do so you can avoid financial surprises down the road. Once you know where you stand and where you want to go you can take the proper steps to get there. Here is what we learned.

1. Set up a joint checking account: Even if you plan to keep your finances somewhat separate, it is very helpful to have a joint checking account that you both have access to.

2. Set a budget: Make sure you are on the same page about how much you are saving and spending on a monthly basis. You will also want to evaluate the debt you each have and set up plan in your monthly budget to pay off the highest interest rate debt first.

3. Coordinate benefits at work: Figure out if joining a spouse’s medical or dental insurance plan offers better coverage and/or pricing than what you currently have. Also make sure you are both taking advantage of company matches in your retirement plans.

4. Re-evaluate your overall investment allocation: Now that you have joint goals, you should make sure your investments aren’t counteracting each other. You want to make sure you are not unnecessarily taking risk by being too overweight in a certain area.

5. Protection plans: Someone else is now relying on you and your income. Make sure you have the proper amounts of disability insurance and life insurance in place so if something terrible does happen it won’t financially ruin the other.

6. Beneficiaries and titling of accounts: Most of your retirement accounts and insurance will never pass through a will if you die. This is the same with joint accounts. They go directly to the named beneficiary or joint account holder. Because of this, make sure they are all set up the way you want them.

7. Name change: If you change your name, make sure you update and notify the IRS, Social Security, credit card companies, DMV, banks, etc.

8. Emergency fund: Make sure you have enough cash readily available in case of an emergency. This could be three months to a year of your salary, depending on how secure your job is and how volatile your income is.

It can be a daunting task to coordinate finances with your new spouse, but it is very important. Once completed, all of these steps will help you smoothly move forward financially with your new spouse.

This article is intended for informational purposes only and should not be construed as a recommendation to purchase or sell any security or securities product. Matt Hoesly is an investment advisor with Resource 1, and a registered representative of Ceros Financial Services, Inc., Member FINRA/SIPC. (Resource 1 and Ceros are not affiliated entities). Securities offered through Ceros Financial Services, (Not affiliated with Resource 1, Inc.). 1445 Research Boulevard, Suite 530, Rockville, MD 20850. (866) 842-3356 Member FINRA/SIPC

0 Life Happens

Life Happens Life Happens is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures.

0 The Reality of Life: An Infographic

The Reality of Life: An Infographic

A new survey we did asked people what they planned to leave their loved ones if they were to pass away tomorrow, and more respondents said they would leave behind family photos (54%) than money from a life insurance policy (49%) for their loved ones.

So while we all value the memories that a photo brings us, it’s important to realize if there is no money for a family to survive on after the death of a breadwinner, it’s going to be really hard to make new memories that are worth capturing in a photo.

Here is more of what we found.

by Maggie Leyes

Maggie Leyes is VP of content strategy for Life Happens. She has been working in the insurance and financial services industry for more than 15 years.

Share: email twitter facebook googleplus pinterest linkedin

0 Are You Paying the Kiddie Tax?

Are You Paying the Kiddie Tax?

The kiddie tax is a tax rule that is levied on unearned income (interest, dividends and capital gains) earned by children under the age of 19 and full-time college students under the age of 24. For 2016, all of the child’s unearned income in excess of $2,100 is taxed at the parent’s tax rate.

In 2016, the only way that college students under age 24 will be able to avoid the kiddie tax is if they provide over half of their own support from their own earned income (i.e., wages and salaries, not income from selling stocks) in which case the child’s unearned income would be based on the child’s tax rates, not the parents rates under the kiddie tax rules.

So, is there a way to avoid paying this tax? Yes, there are several ways including using 529 plans and life insurance. Life insurance you say? Yes, and it works well.

Permanent life insurance allows you to put away funds in the cash-value portion of the policy, which accumulate tax deferred until they are withdrawn or borrowed from the policy. The rates of return over a 15 to 20 year period can be better than other safe money investments equivalents such as CDs and money markets and, there is no current taxation.

Want to learn more? Contact your agent or financial advisor for details.

Share: email twitter facebook googleplus pinterest linkedin

0 5 Steps to Make Sure Your Family Is Protected Financially

5 Steps to Make Sure Your Family Is Protected Financially

Have you ever thought about what would happen to your family if something happened to you? All of us have at one point or another, even if it was in the form a frantic mental love note sent to family members during bad airplane turbulence. But concern for protecting your family financially doesn’t have to turn to worry if you follow these steps.

1. Take a look at what financial security means for you. Just as “rich” means different things to different people, so does financial security. Start by asking yourself what would happen if the primary breadwinner died prematurely (that could be you or your spouse or partner). You’d want your loved ones to be OK financially, but does that mean having enough income … for a lifetime? … so they wouldn’t need to move out of your home and neighborhood? … enough money for your spouse or partner to transition to a job if they are a stay-at-home parent? … to provide for your kids through college or maybe just a portion and have them pay the rest? Once you’ve established that, you can move on to making sure a plan is in place.

2. Determine needs versus wants. They are not the same thing. You may want 100% financial securityâ€"to provide for your spouse for their lifetime and your kids through college, but can you afford it? Most of us don’t have savings to achieve this, which is where life insurance comes in. You’ll want enough money or death benefit that if invested at the current market rates (2%-4%) that you can generate your (or your spouse’s) missing income. That means you may need more life insurance than in the past. Before, the invested proceeds of $500,000 life insurance benefit could have replaced, a $50,000/year salary. Now you might need $1 million of coverage to achieve the same goal.

3. Look at the full picture. This isn’t just about life insuranceâ€"that’s just one piece of the formula. You need to look at all your assets such as money in retirement plans, your benefits packages, investments you might have, what money your family would be getting from Social Security, the life insurance you already have in place, etc.

In addition, people often have multiple families to care for with economic requirements that may be laid out in a divorce decree. Or they may have special needs children who will never be able to work. In that situation, a trust should be set upâ€"funded with assets or death benefitsâ€"to create an income stream for as long as they live. Plus, many of us will have either adult children or our aging parents living with us now or in the future who we may be responsible for financially.

Once you have these numbers, you can figure out what the shortfall isâ€"which can be funded with life insurance or more life insurance that you currently have. This doesn’t have to be a particularly difficult task to start. Use this online Life Insurance Needs Calculator, which has inputs for this type of information and can help you get a working idea of how much life insurance you might need to cover any shortfall.

4. Get help if you need it. Sometimes our need for life insurance is straightforward. Often, though, when we need to factor in special circumstances it can become more complicated. Insurance agents are there to help. That’s their job. They will sit down with you, at no cost or obligation, and go through these steps with you and then help you come up with a solution you can afford. You may “want” a permanent life insurance policy to secure your family’s financial future, but an agent may show you that what you “need” is really a term life insurance policy that you can afford without straining your budget or perhaps it is a combination of the two. If you don’t currently have an agent to work with, you can start with tips on finding one and our Agent Locator.

5. Don’t forget about disability insurance. If you and your family depend on your income, then you need to make sure you have disability insurance. Ask yourself honestly if you were sick or injured and unable to work, how long could you survive financially without your paycheck? In a survey that Life Happens did we found that most Americans would feel the pinch in a month or less. Keep in mind that Social Security pays disability benefits that average around $1,100 a month, and it can take a yearâ€"often much longerâ€"to even get that payment.

Disability insurance pays you a portion of your income if you become sick or injured and unable to work. It may be offered as part of your benefits package through work, but be sure to double check with your HR department, and find out what percentage of your income is replaced (often 60% or less). You can also purchase an individual policy, which you own, and so isn’t dependent on your benefits package being reduced or even eliminated. To get a working idea of how much you might need, you can use this Disability Insurance Needs Calculator. Again, this is something that an insurance agent can help you figure out as well.

0 6 Reasons Single People May Need Life Insurance

6 Reasons Single People May Need Life Insurance

Many people make the assumption that life insurance is for married couples and those with kids. While it is true that not all single people need life insurance, there are a number of reasons when it can make (really) good sense.

1. You have student loan debt. Many people assume that your debt dies with you, but that’s not always the case. While the loans through the federal government are discharged (aka forgiven) if you were to die, personal loans that have a cosigner are generally not. That means if your parents, for example, co-signed your student loan through a bank, they would be responsible for paying the rest of the loan if something happened to you. There are instances when the bank has called for the loan to be paid in full immediately following a death. You don’t want to leave your parents dealing with grief and loan payments.

2. You’re living with your significant other. When you’re living together, a lot becomes shared financial responsibility. Consider this example: You need both your incomes to meet the mortgage or rent where you’re living. Have you thought about what happens if one of you dies prematurely? Would the other partner have to sell up? Find a new place to live immediately? And this is just one example of many shared financial responsibilities couple have. Adequate life insurance is an easy answer to those questions.

If your parents co-signed your student loan through a bank, they’d be responsible for paying the rest of the loan if something happened to you.

3. You plan on having kids … someday. It may not be now, but when kids do come, so do the expenses and bills. According the USDA, it costs $245,340 to raise a child to age 18, and that’s without factoring in the cost of college. Getting life insurance in place now means you have coverage in place for when you do have a child. Plus, you protect your insurability for the future. … and that leads us to the next reason.

4. You’re young and healthy. Age and health are two major drivers of how much you’ll be paying for life insurance. Why not lock in a low price if you have both of those working for you? Did you know that a health 30-year-old can get a 20-year $250,000 term life insurance policy for about $13 a month? Doable, right? Don’t wait until a health issue or age puts life insurance out of your reach.

5. You know you’ll be taking care of family members in the future. This may mean aging parents or perhaps you have a special-needs sibling that you help care for and support financially. What would happen to them if something happened to you and your support disappeared? Life insurance can ensure that there is money in place to fund those needs into the future. This is where it might be wise to consider a permanent life insurance policy (one that’s there for your lifetime, as long as you pay your premiums).

6. It will pay for your funeral. No one likes to think about such things, but the truth is if you die, someone will have to pay for your funeral. You wouldn’t want to leave your parents, partner or other family members struggling with grief as well as paying for a funeral and burial, which can cost an average of $7,100.

Getting life insurance doesn’t have to be a daunting task. A life insurance agent can walk you through your optionsâ€"free of charge. If you don’t have an agent to work with, click here for information on finding the right fit and one in your area.

0 8 Financial Must-Dos for Newlyweds

8 Financial Must-Dos for Newlyweds

My wife and I went tandem bungee jumping together on our honeymoon. There’s something about an adrenaline rush like that that gets you thinking about the bigger picture. And as a newlywed financial planner, it prompted me to think about the planning we had in place and have a conversation about what our future goals looked like.

First, just talking about it is the biggest step. Open communication between you and your new spouse about your joint financial goals is one of the most important things you can do so you can avoid financial surprises down the road. Once you know where you stand and where you want to go you can take the proper steps to get there. Here is what we learned.

1. Set up a joint checking account: Even if you plan to keep your finances somewhat separate, it is very helpful to have a joint checking account that you both have access to.

2. Set a budget: Make sure you are on the same page about how much you are saving and spending on a monthly basis. You will also want to evaluate the debt you each have and set up plan in your monthly budget to pay off the highest interest rate debt first.

3. Coordinate benefits at work: Figure out if joining a spouse’s medical or dental insurance plan offers better coverage and/or pricing than what you currently have. Also make sure you are both taking advantage of company matches in your retirement plans.

4. Re-evaluate your overall investment allocation: Now that you have joint goals, you should make sure your investments aren’t counteracting each other. You want to make sure you are not unnecessarily taking risk by being too overweight in a certain area.

5. Protection plans: Someone else is now relying on you and your income. Make sure you have the proper amounts of disability insurance and life insurance in place so if something terrible does happen it won’t financially ruin the other.

6. Beneficiaries and titling of accounts: Most of your retirement accounts and insurance will never pass through a will if you die. This is the same with joint accounts. They go directly to the named beneficiary or joint account holder. Because of this, make sure they are all set up the way you want them.

7. Name change: If you change your name, make sure you update and notify the IRS, Social Security, credit card companies, DMV, banks, etc.

8. Emergency fund: Make sure you have enough cash readily available in case of an emergency. This could be three months to a year of your salary, depending on how secure your job is and how volatile your income is.

It can be a daunting task to coordinate finances with your new spouse, but it is very important. Once completed, all of these steps will help you smoothly move forward financially with your new spouse.

This article is intended for informational purposes only and should not be construed as a recommendation to purchase or sell any security or securities product. Matt Hoesly is an investment advisor with Resource 1, and a registered representative of Ceros Financial Services, Inc., Member FINRA/SIPC. (Resource 1 and Ceros are not affiliated entities). Securities offered through Ceros Financial Services, (Not affiliated with Resource 1, Inc.). 1445 Research Boulevard, Suite 530, Rockville, MD 20850. (866) 842-3356 Member FINRA/SIPC

0 5 Steps to Make Sure Your Family Is Protected Financially

5 Steps to Make Sure Your Family Is Protected Financially

Have you ever thought about what would happen to your family if something happened to you? All of us have at one point or another, even if it was in the form a frantic mental love note sent to family members during bad airplane turbulence. But concern for protecting your family financially doesn’t have to turn to worry if you follow these steps.

1. Take a look at what financial security means for you. Just as “rich” means different things to different people, so does financial security. Start by asking yourself what would happen if the primary breadwinner died prematurely (that could be you or your spouse or partner). You’d want your loved ones to be OK financially, but does that mean having enough income … for a lifetime? … so they wouldn’t need to move out of your home and neighborhood? … enough money for your spouse or partner to transition to a job if they are a stay-at-home parent? … to provide for your kids through college or maybe just a portion and have them pay the rest? Once you’ve established that, you can move on to making sure a plan is in place.

2. Determine needs versus wants. They are not the same thing. You may want 100% financial securityâ€"to provide for your spouse for their lifetime and your kids through college, but can you afford it? Most of us don’t have savings to achieve this, which is where life insurance comes in. You’ll want enough money or death benefit that if invested at the current market rates (2%-4%) that you can generate your (or your spouse’s) missing income. That means you may need more life insurance than in the past. Before, the invested proceeds of $500,000 life insurance benefit could have replaced, a $50,000/year salary. Now you might need $1 million of coverage to achieve the same goal.

3. Look at the full picture. This isn’t just about life insuranceâ€"that’s just one piece of the formula. You need to look at all your assets such as money in retirement plans, your benefits packages, investments you might have, what money your family would be getting from Social Security, the life insurance you already have in place, etc.

In addition, people often have multiple families to care for with economic requirements that may be laid out in a divorce decree. Or they may have special needs children who will never be able to work. In that situation, a trust should be set upâ€"funded with assets or death benefitsâ€"to create an income stream for as long as they live. Plus, many of us will have either adult children or our aging parents living with us now or in the future who we may be responsible for financially.

Once you have these numbers, you can figure out what the shortfall isâ€"which can be funded with life insurance or more life insurance that you currently have. This doesn’t have to be a particularly difficult task to start. Use this online Life Insurance Needs Calculator, which has inputs for this type of information and can help you get a working idea of how much life insurance you might need to cover any shortfall.

4. Get help if you need it. Sometimes our need for life insurance is straightforward. Often, though, when we need to factor in special circumstances it can become more complicated. Insurance agents are there to help. That’s their job. They will sit down with you, at no cost or obligation, and go through these steps with you and then help you come up with a solution you can afford. You may “want” a permanent life insurance policy to secure your family’s financial future, but an agent may show you that what you “need” is really a term life insurance policy that you can afford without straining your budget or perhaps it is a combination of the two. If you don’t currently have an agent to work with, you can start with tips on finding one and our Agent Locator.

5. Don’t forget about disability insurance. If you and your family depend on your income, then you need to make sure you have disability insurance. Ask yourself honestly if you were sick or injured and unable to work, how long could you survive financially without your paycheck? In a survey that Life Happens did we found that most Americans would feel the pinch in a month or less. Keep in mind that Social Security pays disability benefits that average around $1,100 a month, and it can take a yearâ€"often much longerâ€"to even get that payment.

Disability insurance pays you a portion of your income if you become sick or injured and unable to work. It may be offered as part of your benefits package through work, but be sure to double check with your HR department, and find out what percentage of your income is replaced (often 60% or less). You can also purchase an individual policy, which you own, and so isn’t dependent on your benefits package being reduced or even eliminated. To get a working idea of how much you might need, you can use this Disability Insurance Needs Calculator. Again, this is something that an insurance agent can help you figure out as well.

0 The Reality of Life: An Infographic

The Reality of Life: An Infographic

A new survey we did asked people what they planned to leave their loved ones if they were to pass away tomorrow, and more respondents said they would leave behind family photos (54%) than money from a life insurance policy (49%) for their loved ones.

So while we all value the memories that a photo brings us, it’s important to realize if there is no money for a family to survive on after the death of a breadwinner, it’s going to be really hard to make new memories that are worth capturing in a photo.

Here is more of what we found.

by Maggie Leyes

Maggie Leyes is VP of content strategy for Life Happens. She has been working in the insurance and financial services industry for more than 15 years.

Share: email twitter facebook googleplus pinterest linkedin

0 6 Reasons Single People May Need Life Insurance

6 Reasons Single People May Need Life Insurance

Many people make the assumption that life insurance is for married couples and those with kids. While it is true that not all single people need life insurance, there are a number of reasons when it can make (really) good sense.

1. You have student loan debt. Many people assume that your debt dies with you, but that’s not always the case. While the loans through the federal government are discharged (aka forgiven) if you were to die, personal loans that have a cosigner are generally not. That means if your parents, for example, co-signed your student loan through a bank, they would be responsible for paying the rest of the loan if something happened to you. There are instances when the bank has called for the loan to be paid in full immediately following a death. You don’t want to leave your parents dealing with grief and loan payments.

2. You’re living with your significant other. When you’re living together, a lot becomes shared financial responsibility. Consider this example: You need both your incomes to meet the mortgage or rent where you’re living. Have you thought about what happens if one of you dies prematurely? Would the other partner have to sell up? Find a new place to live immediately? And this is just one example of many shared financial responsibilities couple have. Adequate life insurance is an easy answer to those questions.

If your parents co-signed your student loan through a bank, they’d be responsible for paying the rest of the loan if something happened to you.

3. You plan on having kids … someday. It may not be now, but when kids do come, so do the expenses and bills. According the USDA, it costs $245,340 to raise a child to age 18, and that’s without factoring in the cost of college. Getting life insurance in place now means you have coverage in place for when you do have a child. Plus, you protect your insurability for the future. … and that leads us to the next reason.

4. You’re young and healthy. Age and health are two major drivers of how much you’ll be paying for life insurance. Why not lock in a low price if you have both of those working for you? Did you know that a health 30-year-old can get a 20-year $250,000 term life insurance policy for about $13 a month? Doable, right? Don’t wait until a health issue or age puts life insurance out of your reach.

5. You know you’ll be taking care of family members in the future. This may mean aging parents or perhaps you have a special-needs sibling that you help care for and support financially. What would happen to them if something happened to you and your support disappeared? Life insurance can ensure that there is money in place to fund those needs into the future. This is where it might be wise to consider a permanent life insurance policy (one that’s there for your lifetime, as long as you pay your premiums).

6. It will pay for your funeral. No one likes to think about such things, but the truth is if you die, someone will have to pay for your funeral. You wouldn’t want to leave your parents, partner or other family members struggling with grief as well as paying for a funeral and burial, which can cost an average of $7,100.

Getting life insurance doesn’t have to be a daunting task. A life insurance agent can walk you through your optionsâ€"free of charge. If you don’t have an agent to work with, click here for information on finding the right fit and one in your area.

0 Are You Paying the Kiddie Tax?

Are You Paying the Kiddie Tax?

The kiddie tax is a tax rule that is levied on unearned income (interest, dividends and capital gains) earned by children under the age of 19 and full-time college students under the age of 24. For 2016, all of the child’s unearned income in excess of $2,100 is taxed at the parent’s tax rate.

In 2016, the only way that college students under age 24 will be able to avoid the kiddie tax is if they provide over half of their own support from their own earned income (i.e., wages and salaries, not income from selling stocks) in which case the child’s unearned income would be based on the child’s tax rates, not the parents rates under the kiddie tax rules.

So, is there a way to avoid paying this tax? Yes, there are several ways including using 529 plans and life insurance. Life insurance you say? Yes, and it works well.

Permanent life insurance allows you to put away funds in the cash-value portion of the policy, which accumulate tax deferred until they are withdrawn or borrowed from the policy. The rates of return over a 15 to 20 year period can be better than other safe money investments equivalents such as CDs and money markets and, there is no current taxation.

Want to learn more? Contact your agent or financial advisor for details.

Share: email twitter facebook googleplus pinterest linkedin

0 Life Happens

Life Happens Life Happens is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures.

0 8 Financial Must-Dos for Newlyweds

8 Financial Must-Dos for Newlyweds

My wife and I went tandem bungee jumping together on our honeymoon. There’s something about an adrenaline rush like that that gets you thinking about the bigger picture. And as a newlywed financial planner, it prompted me to think about the planning we had in place and have a conversation about what our future goals looked like.

First, just talking about it is the biggest step. Open communication between you and your new spouse about your joint financial goals is one of the most important things you can do so you can avoid financial surprises down the road. Once you know where you stand and where you want to go you can take the proper steps to get there. Here is what we learned.

1. Set up a joint checking account: Even if you plan to keep your finances somewhat separate, it is very helpful to have a joint checking account that you both have access to.

2. Set a budget: Make sure you are on the same page about how much you are saving and spending on a monthly basis. You will also want to evaluate the debt you each have and set up plan in your monthly budget to pay off the highest interest rate debt first.

3. Coordinate benefits at work: Figure out if joining a spouse’s medical or dental insurance plan offers better coverage and/or pricing than what you currently have. Also make sure you are both taking advantage of company matches in your retirement plans.

4. Re-evaluate your overall investment allocation: Now that you have joint goals, you should make sure your investments aren’t counteracting each other. You want to make sure you are not unnecessarily taking risk by being too overweight in a certain area.

5. Protection plans: Someone else is now relying on you and your income. Make sure you have the proper amounts of disability insurance and life insurance in place so if something terrible does happen it won’t financially ruin the other.

6. Beneficiaries and titling of accounts: Most of your retirement accounts and insurance will never pass through a will if you die. This is the same with joint accounts. They go directly to the named beneficiary or joint account holder. Because of this, make sure they are all set up the way you want them.

7. Name change: If you change your name, make sure you update and notify the IRS, Social Security, credit card companies, DMV, banks, etc.

8. Emergency fund: Make sure you have enough cash readily available in case of an emergency. This could be three months to a year of your salary, depending on how secure your job is and how volatile your income is.

It can be a daunting task to coordinate finances with your new spouse, but it is very important. Once completed, all of these steps will help you smoothly move forward financially with your new spouse.

This article is intended for informational purposes only and should not be construed as a recommendation to purchase or sell any security or securities product. Matt Hoesly is an investment advisor with Resource 1, and a registered representative of Ceros Financial Services, Inc., Member FINRA/SIPC. (Resource 1 and Ceros are not affiliated entities). Securities offered through Ceros Financial Services, (Not affiliated with Resource 1, Inc.). 1445 Research Boulevard, Suite 530, Rockville, MD 20850. (866) 842-3356 Member FINRA/SIPC

0 6 Reasons Single People May Need Life Insurance

6 Reasons Single People May Need Life Insurance

Many people make the assumption that life insurance is for married couples and those with kids. While it is true that not all single people need life insurance, there are a number of reasons when it can make (really) good sense.

1. You have student loan debt. Many people assume that your debt dies with you, but that’s not always the case. While the loans through the federal government are discharged (aka forgiven) if you were to die, personal loans that have a cosigner are generally not. That means if your parents, for example, co-signed your student loan through a bank, they would be responsible for paying the rest of the loan if something happened to you. There are instances when the bank has called for the loan to be paid in full immediately following a death. You don’t want to leave your parents dealing with grief and loan payments.

2. You’re living with your significant other. When you’re living together, a lot becomes shared financial responsibility. Consider this example: You need both your incomes to meet the mortgage or rent where you’re living. Have you thought about what happens if one of you dies prematurely? Would the other partner have to sell up? Find a new place to live immediately? And this is just one example of many shared financial responsibilities couple have. Adequate life insurance is an easy answer to those questions.

If your parents co-signed your student loan through a bank, they’d be responsible for paying the rest of the loan if something happened to you.

3. You plan on having kids … someday. It may not be now, but when kids do come, so do the expenses and bills. According the USDA, it costs $245,340 to raise a child to age 18, and that’s without factoring in the cost of college. Getting life insurance in place now means you have coverage in place for when you do have a child. Plus, you protect your insurability for the future. … and that leads us to the next reason.

4. You’re young and healthy. Age and health are two major drivers of how much you’ll be paying for life insurance. Why not lock in a low price if you have both of those working for you? Did you know that a health 30-year-old can get a 20-year $250,000 term life insurance policy for about $13 a month? Doable, right? Don’t wait until a health issue or age puts life insurance out of your reach.

5. You know you’ll be taking care of family members in the future. This may mean aging parents or perhaps you have a special-needs sibling that you help care for and support financially. What would happen to them if something happened to you and your support disappeared? Life insurance can ensure that there is money in place to fund those needs into the future. This is where it might be wise to consider a permanent life insurance policy (one that’s there for your lifetime, as long as you pay your premiums).

6. It will pay for your funeral. No one likes to think about such things, but the truth is if you die, someone will have to pay for your funeral. You wouldn’t want to leave your parents, partner or other family members struggling with grief as well as paying for a funeral and burial, which can cost an average of $7,100.

Getting life insurance doesn’t have to be a daunting task. A life insurance agent can walk you through your optionsâ€"free of charge. If you don’t have an agent to work with, click here for information on finding the right fit and one in your area.

0 The Reality of Life: An Infographic

The Reality of Life: An Infographic

A new survey we did asked people what they planned to leave their loved ones if they were to pass away tomorrow, and more respondents said they would leave behind family photos (54%) than money from a life insurance policy (49%) for their loved ones.

So while we all value the memories that a photo brings us, it’s important to realize if there is no money for a family to survive on after the death of a breadwinner, it’s going to be really hard to make new memories that are worth capturing in a photo.

Here is more of what we found.

by Maggie Leyes

Maggie Leyes is VP of content strategy for Life Happens. She has been working in the insurance and financial services industry for more than 15 years.

Share: email twitter facebook googleplus pinterest linkedin

0 Are You Paying the Kiddie Tax?

Are You Paying the Kiddie Tax?

The kiddie tax is a tax rule that is levied on unearned income (interest, dividends and capital gains) earned by children under the age of 19 and full-time college students under the age of 24. For 2016, all of the child’s unearned income in excess of $2,100 is taxed at the parent’s tax rate.

In 2016, the only way that college students under age 24 will be able to avoid the kiddie tax is if they provide over half of their own support from their own earned income (i.e., wages and salaries, not income from selling stocks) in which case the child’s unearned income would be based on the child’s tax rates, not the parents rates under the kiddie tax rules.

So, is there a way to avoid paying this tax? Yes, there are several ways including using 529 plans and life insurance. Life insurance you say? Yes, and it works well.

Permanent life insurance allows you to put away funds in the cash-value portion of the policy, which accumulate tax deferred until they are withdrawn or borrowed from the policy. The rates of return over a 15 to 20 year period can be better than other safe money investments equivalents such as CDs and money markets and, there is no current taxation.

Want to learn more? Contact your agent or financial advisor for details.

Share: email twitter facebook googleplus pinterest linkedin

0 5 Steps to Make Sure Your Family Is Protected Financially

5 Steps to Make Sure Your Family Is Protected Financially

Have you ever thought about what would happen to your family if something happened to you? All of us have at one point or another, even if it was in the form a frantic mental love note sent to family members during bad airplane turbulence. But concern for protecting your family financially doesn’t have to turn to worry if you follow these steps.

1. Take a look at what financial security means for you. Just as “rich” means different things to different people, so does financial security. Start by asking yourself what would happen if the primary breadwinner died prematurely (that could be you or your spouse or partner). You’d want your loved ones to be OK financially, but does that mean having enough income … for a lifetime? … so they wouldn’t need to move out of your home and neighborhood? … enough money for your spouse or partner to transition to a job if they are a stay-at-home parent? … to provide for your kids through college or maybe just a portion and have them pay the rest? Once you’ve established that, you can move on to making sure a plan is in place.

2. Determine needs versus wants. They are not the same thing. You may want 100% financial securityâ€"to provide for your spouse for their lifetime and your kids through college, but can you afford it? Most of us don’t have savings to achieve this, which is where life insurance comes in. You’ll want enough money or death benefit that if invested at the current market rates (2%-4%) that you can generate your (or your spouse’s) missing income. That means you may need more life insurance than in the past. Before, the invested proceeds of $500,000 life insurance benefit could have replaced, a $50,000/year salary. Now you might need $1 million of coverage to achieve the same goal.

3. Look at the full picture. This isn’t just about life insuranceâ€"that’s just one piece of the formula. You need to look at all your assets such as money in retirement plans, your benefits packages, investments you might have, what money your family would be getting from Social Security, the life insurance you already have in place, etc.

In addition, people often have multiple families to care for with economic requirements that may be laid out in a divorce decree. Or they may have special needs children who will never be able to work. In that situation, a trust should be set upâ€"funded with assets or death benefitsâ€"to create an income stream for as long as they live. Plus, many of us will have either adult children or our aging parents living with us now or in the future who we may be responsible for financially.

Once you have these numbers, you can figure out what the shortfall isâ€"which can be funded with life insurance or more life insurance that you currently have. This doesn’t have to be a particularly difficult task to start. Use this online Life Insurance Needs Calculator, which has inputs for this type of information and can help you get a working idea of how much life insurance you might need to cover any shortfall.

4. Get help if you need it. Sometimes our need for life insurance is straightforward. Often, though, when we need to factor in special circumstances it can become more complicated. Insurance agents are there to help. That’s their job. They will sit down with you, at no cost or obligation, and go through these steps with you and then help you come up with a solution you can afford. You may “want” a permanent life insurance policy to secure your family’s financial future, but an agent may show you that what you “need” is really a term life insurance policy that you can afford without straining your budget or perhaps it is a combination of the two. If you don’t currently have an agent to work with, you can start with tips on finding one and our Agent Locator.

5. Don’t forget about disability insurance. If you and your family depend on your income, then you need to make sure you have disability insurance. Ask yourself honestly if you were sick or injured and unable to work, how long could you survive financially without your paycheck? In a survey that Life Happens did we found that most Americans would feel the pinch in a month or less. Keep in mind that Social Security pays disability benefits that average around $1,100 a month, and it can take a yearâ€"often much longerâ€"to even get that payment.

Disability insurance pays you a portion of your income if you become sick or injured and unable to work. It may be offered as part of your benefits package through work, but be sure to double check with your HR department, and find out what percentage of your income is replaced (often 60% or less). You can also purchase an individual policy, which you own, and so isn’t dependent on your benefits package being reduced or even eliminated. To get a working idea of how much you might need, you can use this Disability Insurance Needs Calculator. Again, this is something that an insurance agent can help you figure out as well.

0 Life Happens

Life Happens Life Happens is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures.

0 Are You Paying the Kiddie Tax?

Are You Paying the Kiddie Tax?

The kiddie tax is a tax rule that is levied on unearned income (interest, dividends and capital gains) earned by children under the age of 19 and full-time college students under the age of 24. For 2016, all of the child’s unearned income in excess of $2,100 is taxed at the parent’s tax rate.

In 2016, the only way that college students under age 24 will be able to avoid the kiddie tax is if they provide over half of their own support from their own earned income (i.e., wages and salaries, not income from selling stocks) in which case the child’s unearned income would be based on the child’s tax rates, not the parents rates under the kiddie tax rules.

So, is there a way to avoid paying this tax? Yes, there are several ways including using 529 plans and life insurance. Life insurance you say? Yes, and it works well.

Permanent life insurance allows you to put away funds in the cash-value portion of the policy, which accumulate tax deferred until they are withdrawn or borrowed from the policy. The rates of return over a 15 to 20 year period can be better than other safe money investments equivalents such as CDs and money markets and, there is no current taxation.

Want to learn more? Contact your agent or financial advisor for details.

Share: email twitter facebook googleplus pinterest linkedin

0 The Reality of Life: An Infographic

The Reality of Life: An Infographic

A new survey we did asked people what they planned to leave their loved ones if they were to pass away tomorrow, and more respondents said they would leave behind family photos (54%) than money from a life insurance policy (49%) for their loved ones.

So while we all value the memories that a photo brings us, it’s important to realize if there is no money for a family to survive on after the death of a breadwinner, it’s going to be really hard to make new memories that are worth capturing in a photo.

Here is more of what we found.

by Maggie Leyes

Maggie Leyes is VP of content strategy for Life Happens. She has been working in the insurance and financial services industry for more than 15 years.

Share: email twitter facebook googleplus pinterest linkedin

0 8 Financial Must-Dos for Newlyweds

8 Financial Must-Dos for Newlyweds

My wife and I went tandem bungee jumping together on our honeymoon. There’s something about an adrenaline rush like that that gets you thinking about the bigger picture. And as a newlywed financial planner, it prompted me to think about the planning we had in place and have a conversation about what our future goals looked like.

First, just talking about it is the biggest step. Open communication between you and your new spouse about your joint financial goals is one of the most important things you can do so you can avoid financial surprises down the road. Once you know where you stand and where you want to go you can take the proper steps to get there. Here is what we learned.

1. Set up a joint checking account: Even if you plan to keep your finances somewhat separate, it is very helpful to have a joint checking account that you both have access to.

2. Set a budget: Make sure you are on the same page about how much you are saving and spending on a monthly basis. You will also want to evaluate the debt you each have and set up plan in your monthly budget to pay off the highest interest rate debt first.

3. Coordinate benefits at work: Figure out if joining a spouse’s medical or dental insurance plan offers better coverage and/or pricing than what you currently have. Also make sure you are both taking advantage of company matches in your retirement plans.

4. Re-evaluate your overall investment allocation: Now that you have joint goals, you should make sure your investments aren’t counteracting each other. You want to make sure you are not unnecessarily taking risk by being too overweight in a certain area.

5. Protection plans: Someone else is now relying on you and your income. Make sure you have the proper amounts of disability insurance and life insurance in place so if something terrible does happen it won’t financially ruin the other.

6. Beneficiaries and titling of accounts: Most of your retirement accounts and insurance will never pass through a will if you die. This is the same with joint accounts. They go directly to the named beneficiary or joint account holder. Because of this, make sure they are all set up the way you want them.

7. Name change: If you change your name, make sure you update and notify the IRS, Social Security, credit card companies, DMV, banks, etc.

8. Emergency fund: Make sure you have enough cash readily available in case of an emergency. This could be three months to a year of your salary, depending on how secure your job is and how volatile your income is.

It can be a daunting task to coordinate finances with your new spouse, but it is very important. Once completed, all of these steps will help you smoothly move forward financially with your new spouse.

This article is intended for informational purposes only and should not be construed as a recommendation to purchase or sell any security or securities product. Matt Hoesly is an investment advisor with Resource 1, and a registered representative of Ceros Financial Services, Inc., Member FINRA/SIPC. (Resource 1 and Ceros are not affiliated entities). Securities offered through Ceros Financial Services, (Not affiliated with Resource 1, Inc.). 1445 Research Boulevard, Suite 530, Rockville, MD 20850. (866) 842-3356 Member FINRA/SIPC

0 5 Steps to Make Sure Your Family Is Protected Financially

5 Steps to Make Sure Your Family Is Protected Financially

Have you ever thought about what would happen to your family if something happened to you? All of us have at one point or another, even if it was in the form a frantic mental love note sent to family members during bad airplane turbulence. But concern for protecting your family financially doesn’t have to turn to worry if you follow these steps.

1. Take a look at what financial security means for you. Just as “rich” means different things to different people, so does financial security. Start by asking yourself what would happen if the primary breadwinner died prematurely (that could be you or your spouse or partner). You’d want your loved ones to be OK financially, but does that mean having enough income … for a lifetime? … so they wouldn’t need to move out of your home and neighborhood? … enough money for your spouse or partner to transition to a job if they are a stay-at-home parent? … to provide for your kids through college or maybe just a portion and have them pay the rest? Once you’ve established that, you can move on to making sure a plan is in place.

2. Determine needs versus wants. They are not the same thing. You may want 100% financial securityâ€"to provide for your spouse for their lifetime and your kids through college, but can you afford it? Most of us don’t have savings to achieve this, which is where life insurance comes in. You’ll want enough money or death benefit that if invested at the current market rates (2%-4%) that you can generate your (or your spouse’s) missing income. That means you may need more life insurance than in the past. Before, the invested proceeds of $500,000 life insurance benefit could have replaced, a $50,000/year salary. Now you might need $1 million of coverage to achieve the same goal.

3. Look at the full picture. This isn’t just about life insuranceâ€"that’s just one piece of the formula. You need to look at all your assets such as money in retirement plans, your benefits packages, investments you might have, what money your family would be getting from Social Security, the life insurance you already have in place, etc.

In addition, people often have multiple families to care for with economic requirements that may be laid out in a divorce decree. Or they may have special needs children who will never be able to work. In that situation, a trust should be set upâ€"funded with assets or death benefitsâ€"to create an income stream for as long as they live. Plus, many of us will have either adult children or our aging parents living with us now or in the future who we may be responsible for financially.

Once you have these numbers, you can figure out what the shortfall isâ€"which can be funded with life insurance or more life insurance that you currently have. This doesn’t have to be a particularly difficult task to start. Use this online Life Insurance Needs Calculator, which has inputs for this type of information and can help you get a working idea of how much life insurance you might need to cover any shortfall.

4. Get help if you need it. Sometimes our need for life insurance is straightforward. Often, though, when we need to factor in special circumstances it can become more complicated. Insurance agents are there to help. That’s their job. They will sit down with you, at no cost or obligation, and go through these steps with you and then help you come up with a solution you can afford. You may “want” a permanent life insurance policy to secure your family’s financial future, but an agent may show you that what you “need” is really a term life insurance policy that you can afford without straining your budget or perhaps it is a combination of the two. If you don’t currently have an agent to work with, you can start with tips on finding one and our Agent Locator.

5. Don’t forget about disability insurance. If you and your family depend on your income, then you need to make sure you have disability insurance. Ask yourself honestly if you were sick or injured and unable to work, how long could you survive financially without your paycheck? In a survey that Life Happens did we found that most Americans would feel the pinch in a month or less. Keep in mind that Social Security pays disability benefits that average around $1,100 a month, and it can take a yearâ€"often much longerâ€"to even get that payment.

Disability insurance pays you a portion of your income if you become sick or injured and unable to work. It may be offered as part of your benefits package through work, but be sure to double check with your HR department, and find out what percentage of your income is replaced (often 60% or less). You can also purchase an individual policy, which you own, and so isn’t dependent on your benefits package being reduced or even eliminated. To get a working idea of how much you might need, you can use this Disability Insurance Needs Calculator. Again, this is something that an insurance agent can help you figure out as well.

0 6 Reasons Single People May Need Life Insurance

6 Reasons Single People May Need Life Insurance

Many people make the assumption that life insurance is for married couples and those with kids. While it is true that not all single people need life insurance, there are a number of reasons when it can make (really) good sense.

1. You have student loan debt. Many people assume that your debt dies with you, but that’s not always the case. While the loans through the federal government are discharged (aka forgiven) if you were to die, personal loans that have a cosigner are generally not. That means if your parents, for example, co-signed your student loan through a bank, they would be responsible for paying the rest of the loan if something happened to you. There are instances when the bank has called for the loan to be paid in full immediately following a death. You don’t want to leave your parents dealing with grief and loan payments.

2. You’re living with your significant other. When you’re living together, a lot becomes shared financial responsibility. Consider this example: You need both your incomes to meet the mortgage or rent where you’re living. Have you thought about what happens if one of you dies prematurely? Would the other partner have to sell up? Find a new place to live immediately? And this is just one example of many shared financial responsibilities couple have. Adequate life insurance is an easy answer to those questions.

If your parents co-signed your student loan through a bank, they’d be responsible for paying the rest of the loan if something happened to you.

3. You plan on having kids … someday. It may not be now, but when kids do come, so do the expenses and bills. According the USDA, it costs $245,340 to raise a child to age 18, and that’s without factoring in the cost of college. Getting life insurance in place now means you have coverage in place for when you do have a child. Plus, you protect your insurability for the future. … and that leads us to the next reason.

4. You’re young and healthy. Age and health are two major drivers of how much you’ll be paying for life insurance. Why not lock in a low price if you have both of those working for you? Did you know that a health 30-year-old can get a 20-year $250,000 term life insurance policy for about $13 a month? Doable, right? Don’t wait until a health issue or age puts life insurance out of your reach.

5. You know you’ll be taking care of family members in the future. This may mean aging parents or perhaps you have a special-needs sibling that you help care for and support financially. What would happen to them if something happened to you and your support disappeared? Life insurance can ensure that there is money in place to fund those needs into the future. This is where it might be wise to consider a permanent life insurance policy (one that’s there for your lifetime, as long as you pay your premiums).

6. It will pay for your funeral. No one likes to think about such things, but the truth is if you die, someone will have to pay for your funeral. You wouldn’t want to leave your parents, partner or other family members struggling with grief as well as paying for a funeral and burial, which can cost an average of $7,100.

Getting life insurance doesn’t have to be a daunting task. A life insurance agent can walk you through your optionsâ€"free of charge. If you don’t have an agent to work with, click here for information on finding the right fit and one in your area.

0 Life Happens

Life Happens Life Happens is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures.

0 5 Steps to Make Sure Your Family Is Protected Financially

5 Steps to Make Sure Your Family Is Protected Financially

Have you ever thought about what would happen to your family if something happened to you? All of us have at one point or another, even if it was in the form a frantic mental love note sent to family members during bad airplane turbulence. But concern for protecting your family financially doesn’t have to turn to worry if you follow these steps.

1. Take a look at what financial security means for you. Just as “rich” means different things to different people, so does financial security. Start by asking yourself what would happen if the primary breadwinner died prematurely (that could be you or your spouse or partner). You’d want your loved ones to be OK financially, but does that mean having enough income … for a lifetime? … so they wouldn’t need to move out of your home and neighborhood? … enough money for your spouse or partner to transition to a job if they are a stay-at-home parent? … to provide for your kids through college or maybe just a portion and have them pay the rest? Once you’ve established that, you can move on to making sure a plan is in place.

2. Determine needs versus wants. They are not the same thing. You may want 100% financial securityâ€"to provide for your spouse for their lifetime and your kids through college, but can you afford it? Most of us don’t have savings to achieve this, which is where life insurance comes in. You’ll want enough money or death benefit that if invested at the current market rates (2%-4%) that you can generate your (or your spouse’s) missing income. That means you may need more life insurance than in the past. Before, the invested proceeds of $500,000 life insurance benefit could have replaced, a $50,000/year salary. Now you might need $1 million of coverage to achieve the same goal.

3. Look at the full picture. This isn’t just about life insuranceâ€"that’s just one piece of the formula. You need to look at all your assets such as money in retirement plans, your benefits packages, investments you might have, what money your family would be getting from Social Security, the life insurance you already have in place, etc.

In addition, people often have multiple families to care for with economic requirements that may be laid out in a divorce decree. Or they may have special needs children who will never be able to work. In that situation, a trust should be set upâ€"funded with assets or death benefitsâ€"to create an income stream for as long as they live. Plus, many of us will have either adult children or our aging parents living with us now or in the future who we may be responsible for financially.

Once you have these numbers, you can figure out what the shortfall isâ€"which can be funded with life insurance or more life insurance that you currently have. This doesn’t have to be a particularly difficult task to start. Use this online Life Insurance Needs Calculator, which has inputs for this type of information and can help you get a working idea of how much life insurance you might need to cover any shortfall.

4. Get help if you need it. Sometimes our need for life insurance is straightforward. Often, though, when we need to factor in special circumstances it can become more complicated. Insurance agents are there to help. That’s their job. They will sit down with you, at no cost or obligation, and go through these steps with you and then help you come up with a solution you can afford. You may “want” a permanent life insurance policy to secure your family’s financial future, but an agent may show you that what you “need” is really a term life insurance policy that you can afford without straining your budget or perhaps it is a combination of the two. If you don’t currently have an agent to work with, you can start with tips on finding one and our Agent Locator.

5. Don’t forget about disability insurance. If you and your family depend on your income, then you need to make sure you have disability insurance. Ask yourself honestly if you were sick or injured and unable to work, how long could you survive financially without your paycheck? In a survey that Life Happens did we found that most Americans would feel the pinch in a month or less. Keep in mind that Social Security pays disability benefits that average around $1,100 a month, and it can take a yearâ€"often much longerâ€"to even get that payment.

Disability insurance pays you a portion of your income if you become sick or injured and unable to work. It may be offered as part of your benefits package through work, but be sure to double check with your HR department, and find out what percentage of your income is replaced (often 60% or less). You can also purchase an individual policy, which you own, and so isn’t dependent on your benefits package being reduced or even eliminated. To get a working idea of how much you might need, you can use this Disability Insurance Needs Calculator. Again, this is something that an insurance agent can help you figure out as well.

0 The Reality of Life: An Infographic

The Reality of Life: An Infographic

A new survey we did asked people what they planned to leave their loved ones if they were to pass away tomorrow, and more respondents said they would leave behind family photos (54%) than money from a life insurance policy (49%) for their loved ones.

So while we all value the memories that a photo brings us, it’s important to realize if there is no money for a family to survive on after the death of a breadwinner, it’s going to be really hard to make new memories that are worth capturing in a photo.

Here is more of what we found.

by Maggie Leyes

Maggie Leyes is VP of content strategy for Life Happens. She has been working in the insurance and financial services industry for more than 15 years.

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