Month: July 2018

Many advisors decry the use of life insurance that lasts lifelong. This is especially so–but flat incorrect–in the replacement of a pension’s survivor benefit (SBP) or Social Security’s loss of the lowest pay at the first death among spouses. Many advisors recommend “permanent” coverage only for estate tax liquidity or the luxury of leaving a legacy. They often dismiss using lifelong coverage to replace a survivor payment from a pension or social security. The reasons that many advisors are wrong in the assertion that lifelong coverage is a bad idea are these:  1. Old mortality costs have come down, but many advisors have not crunched the numbers, 2. many advisors use the wrong assumptions in calculating SBP equivalency (please see my book The Secrets of Successful Financial Planning) and ignore two disadvantages of SBP from pension plans, 3. They shy away from the complexities and sensibilities involved in “incentive” trusts that can encourage adult children & grandchildren from “beyond the grave” and 4. They are unaware of the trend in low-load life insurance (see my book on how to use illustrations to identify long-lasting vs high-internal-cost policies). Here are a few sources of low-load policies:  Ameritas Life Insurance Co., North American Co. for Life and Health, Southland Life, and USAA Life Insurance Co.

Please enjoy these free financial tips, just two of many in The Secrets of Successful Financial Planning (SSFP). Consider pre-ordering copies for yourself, for clients and for loved ones at your favorite bookseller. SSFP can have a meaningfully positive impact on young and old alike. So, you are warmly invited to sample SSFP, new fiction, humor and other works free at AuthorDan.com. Here’s the Youtube video link:  https://youtu.be/5n_R927UOeE . Best to you & yours!

Certainly there are those who do not buy in to the concept of sin; holding such a belief does not make the belief correct. But failing to properly plan can indeed be a “sin of omission.” On the other hand, financial planning that has the goal of maximizing wealth for one’s own benefit is obviously selfish and a “sin of commission.” So what about planning itself? Some say, “God will provide” and so choose to not carefully steward their resources with professional help or DIY with similar detail. After all, aren’t we advised to avoid storing up treasure in this world, but do so for the next? We are. If we realize that financial resources (earnings potential, risk management, prudent investing) are like any other tool or earthly resource, then we must conclude that we have the same responsibility to bring efficiency to the stewarding of financial resources as the stewarding and maintenance of other worldly tools. Should a farmer say, “God will make all work out fine, so I don’t have to work hard or efficiently at my farming (or any other pursuit)?” If we have the opportunity to enhance our Acts of Kindness to others, then we have a moral obligation to preserve and expand that opportunity; enhance God’s return on the “talents” that He loans to us. The crucial point is that the tool should be used for others’ sake as well as our own. Examples of this include leaving a legacy, tithing, budgeting to create and preserve cash reserve tiers, avoiding financial disaster in event of a Long-term Care stay or a disability, and many other financial-related duties. Analyzing the long-term effects of financial decisions (or lack thereof) is a duty, an issue of conscience. I offer many tips for such stewardship, including how to wisely choose and utilize professionals, in my book The Secrets of Successful Financial Planning detailed at AuthorDan.com. Since I am retired and no longer licensed, this resource lacks any bias or client-acquisition agenda (not that helping clients is some bad thing; it’s just that my book is focused on helping others). Try it, and consider that recommending or gifting copies to others about whom you care is also an act of kindness.