Have you ever taken a loan against, or completely cash out your 401k because of a financial emergency? Trust me, I understand this dilemma, because I had to completely cash out my retirement accounts twice in my adult life.
Approximately, half of the women I work with on their finances indicated that they used their retirement account or 401k account for emergencies or to pay expenses related to a major life event. When we talk, they are concerned about having enough money to maintain their lifestyle in retirement when they are currently struggling to pay the bills!
How can you rebound and build retirement wealth when you are over 40? It is not easy, but I want to assure you, it is possible. Having experienced these same issues, I know there is a way to rebound from financial crisis and re-build retirement wealth. Below are three proven ways to do this simply.
Life Insurance. Most people view life insurance as death insurance. They view it as a death benefit for their loved ones. While this is accurate, it does not give a complete picture of the power of life insurance. For starters, this valuable coverage takes care of the ones you leave behind-allowing them to maintain their financial lifestyle in the event of the insured’s death.
Life insurance can build retirement income, provide emergency financial assistance, and offer the much needed long-term care and critical illness coverage that are most often too expensive. Life insurance can do all of that for the insured while they are living! Do not ignore the power that this coverage can offer.
Fixed Annuities. Annuities are insurance-type products that allow its owners to establish a lifetime income without risk, and in some cases a death benefit for their loved ones. The interest accumulates on the amount deposited tax-free. You can begin an annuity plan with as little as $5,000! Thereafter, you make monthly deposits until you reach the age you want to start receiving a check. You stop making the monthly contributions, and then the insurance company pays you an income for life, even if you exhausted the account!
Your Company’s 401k or Retirement Account. If you work for a company that offers these options, make sure you contribute. Don’t worry that you will not accumulate all the money for retirement using this option; the point is you are contributing. Try to contribute the amount needed to receive a company match. This is free money and you should take it. However, if you leave the company and are not vested, you will only have access to the money you contributed.
Determining the amount of money needed in retirement is nerve-wracking. Most admit that it is overwhelming and confusing. I would love to assist you in putting a simple plan in place using tools specific to your situation. Feel free to contact me to help you navigate this financial maze.