Act Now—Missed Opportunities Can be Costly
According to many financial advisors, the process for achieving financial security isn’t particularly complicated, but it does require consistent effort. Basic steps include:
- Establishing goals and developing a plan
- Taking stock of your current financial situation
- Creating a spending and savings plan, and always contributing at least enough to your employer's 401(k) plan to get the full matching contribution
- Establishing an emergency savings plan
- Diversifying investments
- Making sure you have the insurance protection you need, getting a will, and checking the beneficiaries you have listed on retirement accounts, life insurance and trust documents to ensure they are up-to-date
- Establishing a good credit history and checking credit reports at least annually for accuracy
- Eliminating debt
- Purchasing a home and striving to have the mortgage paid off by the time you retire
- Learning as much as you can about personal finance and seeking professional advice when needed
Wealth cannot be accumulated over night, caution most advisors. And the longer you wait, the more it will cost you in missed opportunities. To help illustrate this point, Mutual Trust recently created a personalized product concept (Form No. 353) that shows the cost of waiting just five years to purchase a Covenant II, whole life insurance policy. The concept illustrates that if a 40-year-old man named Joe purchases a Covenant II policy with a $10,000 annual premium, when he is 85 he will have $148,717 more cash value in his policy than if he waits to purchase the same policy when he is 45. In addition, if he purchases the policy at age 40, when he is 85 he will have a $180,472 larger tax-free death benefit for his beneficiaries than if he waits to purchase the policy at age 45.*
For more information on the cost of waiting, or to obtain a copy of this concept, contact your MTL insurance advisor today. If you currently do not have an MTL insurance advisor, please contact the home office at 800-323-7320, ext. 5060.
*The values in this concept are from version 4.75 of MTL's Century illustration software and are for illustration only. They are not a guarantee of future performance. They are based on MTL's Maximum Accumulation process on a male, non-tobacco, ages 40-45. Guaranteed values are based on a 4% interest rate offset by expenses and mortality charges. All policy and death values depicted are subject to all provisions within the policy and are not guaranteed amounts to be paid in the future. |
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