Basic Facts of Life Insurance

Thinking of a future without ourselves in it, is not the most pleasant of thoughts. . .however, it is necessary to do so for the financial security of your family. Life insurance may provide you with the opportunity to bequeath money to your survivors, while at the same time, provide the necessary liquidity to help pay estate taxes. This, in turn, may allow your assets to pass undiminished to your heirs. As a general rule of thumb when purchasing life insurance, it is usually thought that you would need eight to ten times your salary in order to take care of your family’s needs. A more accurate formula may be as follows: Determine the amount needed to help meet specific needs such as providing funds for college, paying off your mortgage, or giving money to an heir. Label this figure as [A]. Determine the amount necessary for the support of …

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401k Loans: Pros and Cons

You might be considering taking out a loan from your 401k. But before you do, you should know the rules and weigh the risks against the benefits. Because not knowing the rules and understanding the risks might hurt you and your retirement in the long-term. Consider this for a Second Most of us simply do not have enough in our 401k where we can afford to borrow. According to Fidelity Investments, the average 401k balance was approximately $91,000. And while that is a lot of money, it won’t cover the average retiree’s health-care costs. Fidelity projects that a 65-year-old couple retiring in 2014 will incur an average of $220,000 in retirement healthcare costs alone. Before you take out that 401k loan, know this: According to the IRS: the maximum amount that the plan can permit as a loan is (1) the greater of $10,000 or 50% of your vested account …

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The 6 Most Common Benefits Mistakes Long-Term Employees Make

If you’ve been with a company for a long time, it’s easy to get comfortable with your position there. This goes for your employee benefits, as well: You might fall into a routine and not realize the many options your employer offers that fit you better than your current coverage. Don’t miss out by making these benefits mistakes. 1. Ignoring Communications HR sends out all sorts of announcements about employee benefits — are you listening? If you’re not paying attention to employee communications, you could miss enrollment deadlines or valuable new benefits that you didn’t know you had. Chris Lokken, an employee benefits consultant with Johnson Insurance, says he often asks employees how many took advantage of the regular free eye exam their health insurance often covers. “Usually I get 3 or 4 hands to go up, and 5 or 10 people see me after the meeting and ask me …

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