Secure Your Future, “Buy Term and Invest The Rest?” – No!
I get tired of hearing from so called retirement planning experts that this is the way to go when you want to secure your future. They are so wrong. They obviously have not had any real life drama or experiences that caused emotional and physical distress in their family. Folks, the number one thing that can affect any financial plan is your health. How are you going to invest if you lose your job because you have come down with cancer or a heart issues? Now you are sick and cannot work. You file for disability with your job which is normally 50% or less of what you are used to earning. You now have to use your saved up investments to pay for the new necessities in your life that your health insurance probably does not pay for, like an electric chair to go up and down the steps, or a major change in diet and grocery expenses. These types of long term care issues and expenses will affect each and every one of us at some point in our lives.
During this tragic yet common medical situation, to make matters worse, with a term life insurance policy, you are now uninsurable by any normal means and your term policy is going to run out at the end of the term. How can you secure your future investing in term life insurance after the end of that term? The older you get, the harder it will be to find the health insurance and life insurance coverage that you need at a reasonable price. This means the most you would qualify for life insurance coverage would be just barely enough to bury you.
So I ask this question to all the people that hype up to “buy term and invest the rest.” What if you get sick and you cannot work and attend to your responsibilities? Let us assume the better scenario where you do not get sick. In this case, they say the logic is to have all your bills paid off in full and live on your investments. Tell me please, who actually does this? I meet with hundreds of people that are retired yearly and I have yet to see someone who has all their debt paid off in full and is living solely on their investments. At Fitzwiliams Financial, we are much more realistic with our financial strategies. Contact us for a complimentary consultation, or attend one of our free financial seminars to learn more about how to retire tax free.