William Penn Life, 1999 (34. évfolyam, 2-12. szám)
1999-05-01 / 5. szám
Q0 I will be 84 years old • this year. Why am I still paying premiums on my life insurance policy at this age? I thought at a certain age I didn’t have to pay premiums anymore. I’ve paid in more than the $ 1,000 face amount of the policy. So, I really didn’t gain anything, right? A0 How long you pay • premiums depends on the type of insurance policy you own. In this case, the policy is a $ 1,000 Endowment at Age 85. With such a policy, this member will pay premiums until age 85. This member has been paying premiums for 40 years and, indeed, has paid more into the policy than its actual face value. However, it is important to remember that, should this member die tomorrow, her beneficiary would receive not only the $ 1,000 face value but also any dividends the policy accumulated. In this case, the accumulated dividend equals slighly more than $500. So, the total pay out at this time would be more than $ 1,500, which is more than the total premiums paid to date. In addition, the policy in question has a cash surrender value of about $1,436. Again, this figure is more than the total premiums paid to date. Members do realize a gain by owning and maintaining WPA life insurance. Remember: your gain is more than financial as there are many fraternal benefits that come with a WPA policy you may not receive with any other type of investment. steps to a more retirement YOU'RE STUCK in morning rush hour traffic. Your boss wonders where you are. Your car needs new tires. The kids' grades are slipping. You have a meeting at nine o'clock. Or is it ten? Or is that tomorrow? Right now, retirement seems like a millennium away. But it's not too early to start planning for the time when your working days are over. Here are five important steps to take to help you build a more secure retirement: Visualize your retirement Some people look forward to stopping work while others look at retirement as the time to shift gears and launch a new endeavor. Will you continue working part time? Do you plan to move to a warmer climate? Does travel appeal to you? Answers to these questions will help you create an image of the life you want in retirement. Determine how much money you will need The lifestyle you visualize will help dictate the amount of retirement income you'll need. You've probably heard rules of thumb like 60-80% of current income is necessary to maintain your lifestyle in retirement. But today's active retirees who are living longer may need even more, at least in the first five to 10 years they are out of the workforce. Plan your sources of retirement income According to the Social Security Administration, it provides an average of only 40% of the income for people over age 65. And with the tentative Social Security situation, who knows what the future will bring? That's why it's important to: • Fund your 401 (k) or other employer-sponsored retirement plan and benefit from matching dollars when possible. • Make after-tax contributions to a Roth IRA—or, if you aren't eligible, make non-deductible contributions to a traditional IRA. • Understand the terms of your employer-funded pension plan. Control taxes with a three-pronged strategy Tax-deferred, tax-exempt and taxable investments all have unique benefits and limitations. Because tax laws and your situation are likely to change before you retire, it may be prudent to use a diversified strategy that benefits from each type of investment's advantages, but isn't dependent on any one of them. Keep your financial plan up to date Things change . . . and if retirement is a ways off it's important to keep your financial plan on track with your goals. This is where professional advice can be a big help. A certified financial planer can not only help you develop an investment strategy for your retirement, but also monitor your progress along the way. With a combination of careful planning, sound advice and periodic review, you can realize the retirement that's in your dreams. |\yp|J Reprinted from "Getting Ahead: Achieving More with Your Investments," published by American Express Financial Corp. 4 William I’enn Life, May 1999
