Viking Magazine - June 2015 - 11

RETIREMENT CONFIDENCE
Security, is reduced or evaporates. Also,
life insurance can be used as an estateplanning
vehicle, allowing you to pass
on an inheritance to your children.
If you initially opted for term, but
now can afford a permanent policy,
you may want to consider converting
or buying a single-premium product.
" It's never too late, " says Carlson. " The
sooner the better, but it depends on
your income level and what works best
for you. "
To find the money to invest, simply
go through your checkbook or look
at your online banking statement
and review your spending, suggests
Carlson. Consider redirecting some of
the money you spend on impulse items,
entertainment or eating out. " Look at
your budget and see where you can cut
stuff out, " he says.
MAKE YOUR MONEY WORK
FOR YOU
Many clients over 50 have " lazy
money " lying around in a certificate
of deposit for savings, drawing very
little interest, says Carlson. If the funds
are not needed to pay for retirement
expenses, some of this money could
be transferred to a permanent life
insurance policy with a single premium.
The death benefit then can be used to
pass on and magnify your wealth taxfree
to your loved ones.
Sometimes an older client may
receive a lump sum of money, such as
a death benefit, that is not needed for
living expenses. This is another good
opportunity to increase the value with
a single-premium life insurance policy,
says Label. For example, a $160,000
lump sum could be used to purchase a
$300,000 life insurance policy where
the adult children are named the
beneficiary-nearly doubling the value
passed on to the heirs.
The Employee Benefits Research Institute's
2014 Retirement Confidence Survey shows
that American workers aren't fully confident in
their ability to retire comfortably, and those
numbers are slowly on the rise. From 2009
to 2013, that confidence level hit record lows.
Here's a look at the 2014 results.
18%
very
confident
37%
somewhat
confident
24%
not
confident
at all
« Life insurance is a
conservative way to accumulate
money that Sons of Norway
members have purchased over
the past 10 years because of the
volatility of the stock market.
START SAVING EARLY
Want to see your money grow?
This chart shows what you would
accumulate after five, 15, 25 and 35
years if you saved $5,000 each year and
your money earned 7 percent annually.
« With the interest rates
that Sons of Norway is paying
with insurance or an annuity,
the money is growing at a
much better rate than with a
certificate of deposit.
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
YEARS
Source: United States Department of Labor
« The Chronic Illness rider is
a flexible, low-cost addition
to your life insurance policy.
It allows your policy to do
more for you. It provides
regular monthly payments if
the insured is under medically
prescribed long-term care.
Benefit may be used for a home
care or nursing home stay.
The policyholder can decide
how the payments to them are
spent.
« In retirement if you want to
supplement your income, you
can borrow from the cash value
accumulated in your policy.
-Jerry Label, FBC
Lynwood, Wash.
For a complimentary
consultation with your
Sons of Norway Financial
Benefits Counselor, visit
sonsofnorway.com.
Investing for
Retirement
$28,754
$125,645
$316,245
$691,184
http://www.sonsofnorway.com
Viking Magazine - June 2015

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