You don’t have to be a financial expert to manage your investments yourself. All you need is a bit of education and a clear outline of your financial goals. These are the three questions you need to ask yourself before you take on investment management:
- What would you do if money were no object?
- At what age do you hope to retire? (And what does retirement look like to you?)
- Who directly influences your finances (spouse, children, business partner, etc.)
What would you do if money were no object?
Your goals are unique to you, which is why it makes sense to manage your investments yourself. You know what you’re hoping to achieve better than anyone. It’s personal.
When you trust your hard-earned income to someone else you also have to trust they have your best interest in mind. But when it comes to a 401(k), the IRS is putting their best interest above yours. This is evident in the fact that they put limits on your contributions, penalize you for early withdrawals, and mandate when you must begin receiving distributions (and paying taxes).
At what age do you hope to retire, and what does retirement look like to you?
Derived from the Middle French word retirer, retirement means “to retreat, withdraw, remove from active service, or to leave a company and go to bed.”1
Chances are your idea of retirement is a lot more exciting than leaving your career and going to bed. Perhaps you want to travel, build your dream house, spend more time with your family, or pick up a new hobby. Maybe you don’t want to entirely leave the workforce; freelancing and consulting are attractive options for generating income while setting your own work hours.
When you manage your investments yourself, you have more control over your retirement goals and can tailor them to fit your lifestyle. A properly structured whole life insurance policy is one way to generate cash flow on your terms and offers a stream of retirement income unaffected by the stock market, so you’re not stuck having to take distributions during a market downturn.
Who directly affects your finances?
Most investments offer little protection against risk. But insuring people who directly affect your finances is an ideal way to safeguard against the unpredictable. Whole life insurance policies can be taken out on anyone with which you have insurable interest, like your spouse, business partner, your children, or your parents.
Because whole life insurance pays dividends and earns interest, the more policies you have, the more cash value you have. This cash value can be used for policy loans to pay for anything from real estate to business expenses, college tuition to family vacations. These loans are on your terms and not subject to creditor approval. Meanwhile, you continue to earn interest on your policy, making life insurance one of the few investments that offers perpetual growth, regardless of a withdrawal.
Manage Your Investments Yourself
Once you’ve answered these three questions, it’s time to schedule a free consultation with a Wealth Strategist. Consultations are done virtually via phone and online. Our goal is to educate you on how to use whole life insurance to grow and protect your investment. We shop top-rated mutual insurance companies to find the best policy to fit your goals and financial needs.
Once your policy is approved, policy loans are available to you as you need them. We’ll continue to offer you education via email on ways to use your policy and tips on how to manage your investment. In addition, we have a client services team dedicated to your success, free of charge.
Because financial goals and needs change, we recommend an annual review with your Wealth Strategist. Again, this appointment is free. During your review, you can opt to change the amount of your policy, add new policies, or discuss insurance riders to help you meet your goals. If you have additional questions, you can contact your Wealth Strategist at any time for free advice.
At Paradigm Life, we encourage you to invest in yourself and take control of your wealth. Our team prides ourselves on providing you with the education to do so. You’re in the driver’s seat. Your financial goals are our goals, and our Wealth Strategists are with you every step of the way.
1 “Retire (v.).” Index. Accessed February 10, 2020. https://www.etymonline.com/word/retire.