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The first step to retirement is of course,
Wealth Accumulation. (take to Wealth Accumulation page). The second
step, Wealth Preservation and Protection is just as important, if not
more important that the first. Without adequate protection in your
portfolio, the accumulation you have earned can just as easily be
depleted.
Our initial measure toward creating safety in your financial
portfolio, incorporates the use of low risk, zero principal loss,
Fixed Indexed Products. (take to Risk Vs. No Risk page) By taking this
action, we can be sure you are sleeping soundly at night, knowing that
the principal dollars being accumulated for your retirement, will not
be affected by the downside risk of the investment market.
To illustrate this point further, below is a chart describing the
feature of three major places that you may invest you money.
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Certificate of Deposit or CD
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Fixed Indexed Product
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Stock Market
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CERTIFICATE OF DEPOSIT vs. FIXED INDEX PRODUCT vs. STOCK
INVESTMENT |
|
Features |
Certificate of Deposit |
Fixed Index Product |
Stock Market Investment |
|
1. Principal free from risk or
market/price fluctuations |
Y |
Y |
N |
|
2. Interest earnings free from current
taxation |
N |
Y |
N |
|
3. Interest earnings reinvested
automatically with no current income taxation |
N |
Y |
N |
|
4. Able to make small additional
investments |
N |
Y |
Y |
|
5. Avoid the expense and delay of probate |
N |
Y |
N |
|
6. Guaranteed lifetime income with tax
advantages |
N |
Y |
N |
|
7. Provides additional money in case of
death |
N |
N |
N |
|
8. Initial investment bonus available |
N |
Y |
N |
As you can see, the Fixed Indexed Product,
has safety features much like a CD, but also has more benefits and
options. In addition, the Fixed Indexed Product is much more safe than
the Stock Market Investment, yet it also has more benefits and
options.
Another way to provide wealth protection is to use life insurance.
Life insurance can plan two essential roles:
1. Protect loved ones and retirement goals.
o The death benefit of life insurance can
ensure that your loved ones will have the means necessary to pay for
costs associated with living expenses, maintaining their current
lifestyle and living arrangements, and even with funding education for
children or grandchildren. It can also help alleviate the worries of
the remaining spouse, when it comes to losing the person that
contributes to the retirement plan, along with their retirement goals.
2. Provide additional retirement income.
o If each spouse is able to fulfill a full
retirement, permanent life insurance can serve a many purposes. It can
help replace lost, or greatly reduced death benefits of group
insurance. It can also provide a way to supplement retirement income
if there are cash values. Withdrawals and loans can be taken from the
cash values of life insurance and used in whatever direction you deem
appropriate or necessary. Withdrawals and loans will reduce the policy
values and the death benefit may have tax consequences. You should
consult your attorney or tax advisor for advice regarding your
personal situation.
Other ways The Financial Exchange can provide
protection for you and your family include:
o Life insurance
o Term life insurance
o Mortgage protection insurance
o Disability income insurance
o Long term care insurance
For more information on any types of
protection please contact us.
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