Planning for the future goes beyond simply having financial stability. It’s more than owning an investment portfolio, emergency funds, retirement accounts and experiencing the incredible feeling of freedom from debt. A major part of the equation is building a legacy – and it involves having a plan in place to set the next generation up to succeed, how you wish to be cared for as you grow older, and knowing your family will navigate life with peace of mind after you pass away.
In fact, just 32% of Americans have an estate plan in 2024, according to the Wills and Estate Planning Study from Caring.com, which is just one example of how few families start planning today to be prepared for tomorrow. At Boyd Insurance & Investments, our advisors – including our Vice President of Financial & Retirement Planning, Nick Zec – can help you build your legacy, brick by brick, with options designed to give you and your loved ones a solid foundation for the future. Here are three investment strategies you can start considering now to prepare for life ahead for your entire family.
Planning to Set Your Kids Up for Success
Is college the right fit for your child? It’s a conversation that will certainly come up as they get older – and there’s plenty of persuasive information at your fingertips about the benefits of a degree. In fact, multiple studies have shown that earning a bachelor’s degree can provide more than $1 million in added income over a lifetime.
One smart way to be prepared for the expenses that come with your child’s possible college experience is through investing in a 529 Savings Plan – a tax-free program allowing families to prepay with a lump sum or on a monthly basis for the future cost of tuition, housing, meal plans, books, supplies, computers and graduate school. In Florida, these plans not only can offset the cost of attending state universities, but also many types of institutions nationwide, including out-of-state, private and trade schools. If you child chooses a different path, funds can even be transferred to another member of your family, as Florida Prepaid notes in its resourceful FAQ breaking down the typical 529 Savings Plan.
Why Life Insurance Matters… And It’s for You
If life insurance was a tool, it’d be considered the Swiss Army Knife of policies for the many ways it can be utilized in legacy building and ensuring your family is financially secure. Life insurance can be much more than a death benefit. Depending on the plan you select, which our family can tailor for yours, it may assist you with:
- Paying off debts, from mortgages to car loans, credit cards and student loans
- Creating an inheritance, as many plans have federal income tax exemption
- Building cash value to supplement retirement or use for major expenses, like weddings
- Paying medical bills, future costs for chronic illnesses and final expenses
With its many capabilities, life insurance is worth exploring. As an important rule of thumb, be sure to allot 10 times your annual income – plus a little extra – when creating a policy with your family’s future in mind.
Don’t Forget About Long-Term Care
Long-term care, including assisted living, nursing home and home health care, isn’t just about your future – it’s a major decision that will eventually involve family and friends. These are the people in your life that will ultimately play a role in the lifestyle you’re provided in your later years. With your loved ones is where the conversation of long-term care should begin, determining if any conditions run in your family, who will provide care, the level of care that may be needed and how much will need to be paid out-of-pocket for these services.
Roughly 7.2 million Americans have invested in long-term care insurance, which is a staggering number considering there are a number of significant expenses that Medicare may not pick up.
Here’s just one example – the national average cost for home health care is around $5,000 per month, according to Genworth. With the right long-term care coverage for your needs, you can look forward to a bright, worry-free future for your family!
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