Supplemental Retirement Planning
Things That Set Us Apart
August 9, 2020
IUL vs. 529 Education Savings Plans
August 9, 2020
THE CHALLENGE
Sonny and Maureen were in their early 50’s and both planned to work until age 67 so they could receive full social security benefits. Additionally, Sonny had been contributing to his 401(k) and Maureen to her IRA.
Although they were happy about the money they had saved over the years, the college tuition they had paid for their three children left their financial resources substantially depleted. They believed that if they wanted to pursue an active retirement, they would need additional financial resources.
Young couple lived a comfortable life until the tragedy that ensued 9 months after their baby was born. Jake died in a construction accident that involved working on a wall of a new home when the winds were 45 mph. The wall collapsed and a piece of cinder block landed right on his chest and obstructed his aorta. The coroner said he died instantly. As you can imagine, Sarah’s heart sank into despair as she heard the news.
The life insurance her husband persuaded her to get allowed her to support her and the baby as she adjusted to her new life. She was able survive off what their plan offered while she worked part time to take care of her child and look for a more flexible job. Sarah couldn’t imagine the difficulty of dealing with emotional and financial distress if it wasn’t for the security blanket called life insurance.
