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Women Outlast Men - The Financial Concerns
by: Patty Reiners FLMI, ACS
Discussing life insurance with your spouse is sometimes a difficult conversation. But it'’s a conversation that should happen. The average American woman is widowed by age 56 and nearly 85% of the elderly poor in the nation are female. Many women aren'’t prepared for this life event '– emotionally or financially.
Replacement of income is one of the primary reasons to purchase insurance and with the average American male making more than the average female '– this issue should drive the need for the conversation for women.
Wake up to the Facts
Seventy-five percent of American married women will become a widow someday.
To prepare for someday '– you need to have a serious discussion with your spouse. Sit down and have each person list the things they want for their family in the future. Larger home, college education for the children, early retirement, etc. Then compare those lists and determine how much you'’ll need to achieve those goals if your spouse'’s salary is lost.
Over our lifetime, a person'’s total income can add up to a sizeable sum. This amount would help protect the financial future of those left behind. For example:
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A 40-year old who earns $50,000 a year will earn $1.25 million if they work to age 65. Adding just a 2.5% annual inflation factor, the future earnings are nearly $1.7 million.
How Much Life Insurance?
Once you'’ve started the discussion, then you need to decide how much life insurance to purchase. How much will you need to replace your spouse'’s future income?
The United States Department of Justice distributed a formula to the surviving family members of those lost on September 11. As an example:
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The economic loss of a 30-year-old married individual with two children who was making $50,000 a year is nearly $2 million.
That calculation goes far beyond the two or three times income that many employers offer as group life insurance benefit.
Some Other Key Factors
Women have several other topics to factor into the equation.
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What are your other outstanding debts '– from mortgage to credit cards
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The future costs of your children'’s'’ education
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How much will you need to maintain your lifestyle into retirement
Other Income Sources
Once you have put together your profile, consider any additional income you currently have to help you determine if you need to increase or decrease the amount of insurance you'’ll need. Some of these include:
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Other life insurance policies
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Taxes that reduce take-home pay
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Savings and other assets
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Earning power of survivors
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Social security benefits for children
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Duration of the income need
These suggestions come from the experts at Ameritas Direct. You can learn more online at www.ameritasdirect.com.
Patty Reiners FLMI, ACS
AVP - Ameritas Direct
Statistics used in the story from www.womanslifeins.com
About The Author
Patty Reiners FLMI, ACS
AVP - Ameritas Direct
www.ameritasdirect.com
Wealth And Your Net Worth
by: C. C. Collins
Wealth and Your Net Worth by C.C. Collins http://networthpublishing.com
Most people know it's important to keep and organize all of your vital financial information. But knowing you should and knowing how are two different things!
Once you know the reasons for being very organized with your financial data (and keeping it all in a very safe place) I hope you will put organization on your net worth building to-do list (at or near the top).
You need to be able to see your financial strengths and weaknesses quickly. If you are an active investor, it's even more important that you do so. Time wasted on missing data and lost tracking information is money lost.
Also, keeping an accurate and up to date personal net worth statement (personal financial statement) can help you get loans or other financing more quickly.
It would be well worth the effort to be able to give your financial institutions information they need at a glance. And your needs for the same ability to query your net worth and data associated with accounts, investments, in and outgoing money, and other important data are very important.
Be sure and carefully consider all portions of your net worth. Often forgotten components of your net worth are listed below in a handy checklist to get your data system in order and on track.
Cash on Hand and In Bank Notes Payable Marketable Securities Non-Marketable Securities Securities Held by Brokers Restricted or Control Stocks Partial Real Estate Interests Owned Real Estate Loans Receivable Life Insurance Other Assets Accounts Payable Amount Due to Brokers Unpaid Income Taxes Other Unpaid Taxes/Interest Other Debts Debt on Real Estate Equities Real Estate Mortgages
Make sure you know what you're really worth. The only way to calculate your net worth accurately is if you track everything above.
On your road to a high net worth you can make fewer pit stops if you have a plan and the data to support your investment decisions and abilities close at hand.
Make use of spread sheet software and programs like Quicken to keep your net growth on track. The reports you can run are invaluable for seeing where you'’ve been and how far you'’ve come with your portfolios, mortgage, taxes, and other important information.
An investor who knows their history can better project growth and find weaknesses in their portfolio that they can improve upon.
Organization is the bedrock of those with strong net worth. It is a common thread that connects all successful investors, active or passive.
About The Author
C.C. Collins is a Financial Planning Advisor and Author of "Scientific Wealth Strategies" at http://wealthscientist.com. Find more information at http://networthpublishing.com
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