Baby Boomers
by Dale L. Lazzarone, LUTCF
Financial Services Professional
New York Life
Today, baby boomers are at a unique juncture. The largest generation when they arrived, they now face rising healthcare costs and imminent retirement. Single boomers must often bear sole responsibility for managing their households and making life decisions; thus planning for the future often becomes a moving target. That is why it is important to plan for the unexpected, and prepare for a financially secure future.
The Importance of Life Insurance
Life insurance is crucial — regardless of whether you have dependents. Most boomers have debts — a mortgage, education or car loans. Final expenses can run into the thousands. If something were to happen to you, who would be responsible for such debts?
If you were a single parent, legal guardian or godparent, you may want to purchase life insurance, taking into consideration future costs such as college and childcare. For those financially assisting parents, you may also need to consider who will bear
Disability Income Insurance
As a single boomer, disability income insurance is crucial. If you were unable to work, could you meet basic expenses — mortgage or rent payments, food and clothing?
In the event of an injury or illness, you may not be able to rely on workman’s compensation or Social Security. Usually, workman’s compensation only covers work-related accidents, and Social Security disability insurance – which is minimal – is available only if you’ve worked long enough and your disability prevents you from working for at least a year.
Some employers offer disability income insurance, and you should probably take advantage of this. If you want to enhance your coverage – or don’t have the option through work – you may want to purchase an individual policy.
There are a variety of plans available offering different coverage options; choose one that replaces at least 50-70 percent of your income.
A Win/Win Will
As a single person, you may not immediately realize the importance of having a will. But you someday may want to leave possessions or assets to specific friends, charities or family members. A legal will naming your beneficiaries helps ensure that your legacy plan becomes reality, and can mitigate possible legal battles. Talk to your attorney about creating one.
Planning for Your Retirement
After you’ve ensured the financial protection you need today, it’s important to ensure your financial tomorrow by leveraging strategies that can help maximize growth. Tax deferral is one proven method. Your 401(k) or 403(b) plan at work may be the best place to start, especially if your company matches any part of your contributions. IRAs can also be an excellent choice — and your contributions may be tax deductible.
Establishing a Plan
By selectively choosing your financial products, you can create a plan that helps protect and fund today and tomorrow. By making those choices now, single boomers may be able to strengthen their financial links to a sound future.
(Dale Lazzarone, LUTCF, is located at 3716 Lakeside Dr., #200, Reno, NV 89509. He can be reached by calling (775) 673-4456, (775) 846-0044, or online at www.TheLazzaroneGroup.com)