The Life Insurance Debate: Forget Everyone Else and Go with Your Guts

The Life Insurance Debate: Forget Everyone Else and Go with Your Guts

It’s my tradition during September, Life Insurance Awareness Month, to dedicate one of my columns to that subject. So let's talk about it from the standpoint of asking, “Is it really necessary for you to purchase life insurance?” and also address some of the reasons that folks who should purchase life insurance give for not doing so.

First, do you even need it? I know that there are several consumer schools of thought out there on this very issue, but throughout my years as an advisor in professional practice, I have arrived at what I like to refer to as the common-sense approach to money management.

In this particular instance, here’s how I’d put it: Life insurance simply pays money, upon your death, to someone you designate. Period. So, do you have someone or several folks who will still need the financial support you are presently providing, in case the unthinkable were to happen to you?

Yeah, yeah, yeah. Am I telling you to go spend money on some life insurance which, in all likelihood, you might never end up using? Of course, you're probably going to live a good long life, but it's not as simple as that, is it? Personally, I think we should see life insurance premiums as not being about us, but as a representation of our commitment and responsibility to take care of our dependents financially. Just so we are crystal clear, I am not advocating running out to buy life insurance. Not at all. Instead, I want you to do what you feel in your gut is right for your family.

Now here's the thing I like to point out. Unfortunately, just as with many other things in life, there are some unscrupulous life insurance agents who are more focused on selling only whatever they have to offer so they can get paid, without regard for whether it's really appropriate to your specific need. However, the good news is there are also some decent, honest agents out there who can help you get exactly what you need to take care of your responsibility to your loved ones, so don't let the unscrupulous ones hold you back.

I wish you the very best of luck and a healthy long life with your family.

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If you'd like help to be sure your portfolio is properly diversified,  visit LaserFG.com or call 877.656.9111 right now to book your complimentary, confidential consultation. You'll be paired with an experienced financial professional who can help you plan for a secure future, regardless of your current financial situation. Retirement planning means planning for ALL aspects of your life after retirement. If you're ready, we're here to help. 

The Stock Market Probably Isn’t Going to Destroy Your Wealth – But This Certainly Will

The Stock Market Probably Isn’t Going to Destroy Your Wealth – But This Certainly Will

Let me admit right off the bat, the headline may sound a little out of the norm from what you may have heard, read about, and probably even come to accept about the stock market, especially in recent days. But take a deep breath and consider these fundamental truths.

First of all, it’s important for those of us who choose to invest in the stock market to remind ourselves of the reason that we made that decision, instead of investing in, say, a CD at our local bank or some sort of fixed annuity or any other alternative investment. At the very core of that decision must be the fact that the stock market is, by far, the greatest known wealth creation tool in the history of mankind, bar none. Nothing else legitimate even comes close.

But that is not all. We also know, without any shadow of a doubt, that the stock market – since its inception – has never moved in a vertical straight line. Things would be pretty nice and much, much easier if that were how it worked, wouldn’t you say? However, that’s not how it works. In fact, did you know that your financial advisor would face regulatory penalties if he/she were to give you the impression that your stock market portfolio could only go up? The simple reason for that being that such a suggestion would be misleading and set unrealistic expectations.

Here’s the normal thing about the stock market: sometimes it goes up and sometimes it dips. The other crucial thing to understand is that no financial advisor – or anyone you’ll see in the media, or anywhere on this planet, for that matter – can tell you exactly what the market is going to do next. Yes, no one knows!

The problem, in my humble opinion, is that most investors do not have prudent stock portfolios. They just buy something that sounds, looks, or feels good, without really making sure that it’s properly diversified to help them weather the storms that may come along. Although no one on the face of this planet can predict the future movements of the stock market, there is such a thing as an efficiently diversified portfolio that is custom-built to your investment temperament so to speak.

Here’re some recommendations to think about. If you don’t think you’re up to all these ups and downs, you should probably not be investing in the stock market at all. And I’m not trying to be sarcastic or anything here. If, on the other hand, you believe that over the long haul you’d be better off investing some of your money in the market, please make sure you talk with a financial professional who can help you to build an efficiently diversified portfolio with a standard deviation (amount of volatility) you can live with, and don't be surprised when the down moments come, because more likely than not they will.

And the most crucial thing of all is to make sure your advisor is someone who’ll keep you on your toes to stay the course with discipline. What does that mean? When the market tumbles, as it did in recent days, and panic sets in, does your advisor cave and do whatever you want done? Or does he/she remind you about the basics and see it as an opportunity to re-balance your portfolio?

Finally, whatever you decide to do, I hope you don't take your investing advice from Jim Cramer.

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If you'd like help to be sure your portfolio is properly diversified,  visit LaserFG.com or call 877.656.9111 right now to book your complimentary, confidential consultation. You'll be paired with an experienced financial professional who can help you plan for a secure future, regardless of your current financial situation. Retirement planning means planning for ALL aspects of your life after retirement. If you're ready, we're here to help.