Risk Management, often overlooked in Retirement Planning

Why You Shouldn't Put the Cart Before The Horse

Whether your projected retirement date is 30 years from now or in the near future,it is
absolutely essential that  you protect yourself against all types  of  financial loss that could
possibly erase years of cash accumulation with  just one negative circumstance.

Key areas to address before investing for retirement:

Disability  income insurance  Insuring yourself against loss of income:  Disability  income insurance can supply income without interruption all the way to age 65 if you have the right insurance carrier and insurance contract. Ask your agent/advisor about an "own occupation definition of disability."

Pre-paid legal assistance:  One lost  civil suit or I.R.S. audit can erase years  of savings or destroy business assets. I use the monthly service provided by Legal Shield . Pricing & details here at www.legalshield.com/info/taylorr

Identity theft protection:  Several companies offer  continuous credit monitoring for about $10.00 per month. Identity Shield, one option, includes having professional people write the letters and make the  phone calls to also reinstate your credit to where it was 60 days before the invasion. Details at: www.legalshield.com/info/taylorr

Life insurance designed to replace income loss: The family of  a 30 year old  that died by natural causes or an accident; would lose around $1,000,000 !! even if that person only earned  $30,000 per year and would have otherwise been able to work until age 65. A broker can design an inexpensive solution to  this.

Protection against investment risk:  It is not enough to be  diversified since that does not protect against  loss; instead it just  spreads the risk. You can search for bank c.d. or money market rates if you want to have some money liquid at  www.bankrate.com . It you are nearing retirement you also haveover 1.200 companies in most states that will compete for your retirement money with annuity products that feature:  Safety of principal, tax deferral, and freedom from fees if held until the term end or if they are used for lifetime income payments. An "income rider" can be added to fixed indexed annuity accounts that will then add  a guaranteed crediting to the account combined  with guaranteed lifetime payments. See your advisor for specific  advice  that  relates to your situation.

None of the above comments are meant to  be income advice. Always consult with your financial advisor,and/or your insurance agent,tax man,or attorney before making financial decisions.
However, in this difficult  economy in particular; proctect yourself and your family by using basic risk management strategies.

Author: Randy Taylor Lic. #0643596 Creative Commons Copyright 10/15/2014
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Life insurance and I.R.A. Account Specialist
Serving clients and brokers since 1983