A Pew Research Center survey, recently reported by the Associated Press indicates that Americans in their late 30s have the most anxiety about retirement. In 2009, baby boomers ages 51 to 55 were the most concerned about their nest eggs.
Pamela Yellen, New York Times best selling author of BANK ON YOURSELF: The Life-Changing Secret to Growing and Protecting Your Financial Future, confirms “Building savings — not an easy task in the best of times — has become even more of a challenge during economic downturns.” However, the savings expert “boosts your confidence” with these tips about whole life insurance policies.
Look for an investment that guarantees a return. These policies pay and reinvest their dividends, and are guaranteed to grow in value, every year, while providing your new family financial security for the future, both planned and unplanned.
Look beyond traditional saving and investing methods. This is also a proven and time-tested way to grow a substantial nest egg without the risk or volatility of stocks, mutual funds, real estate, and other investments. One asset class that has increased in value during every period of economic boom and bust for more than a century is dividend-paying whole life insurance which grows by a guaranteed and pre-set amount annually. The growth is exponential, meaning it gets more efficient every year the policy is held. This gives some protection against inflation and provides peak growth at the time most people need it most—retirement.
Such policies can even include options that turbo-charge the growth of equity (cash value). Once credited to the policy, both guaranteed annual increases plus any dividends paid are locked in. They don't vanish due to a market correction. These policies also provide peace of mind for retirement planning because they specify the minimum guaranteed income a person can draw in retirement.
Realize saving doesn't have to mean sacrificing. Saving with this kind of specially designed dividend-paying whole life policy allows the holder to borrow equity and use it for necessary major purchases. Some companies even offer policies that continue to grow as if no money had been withdrawn. This can open up all kinds of new possibilities for responsible savers.
One couple had not taken a vacation since their honeymoon eight years earlier because they felt they should save the money. They hated the idea of putting it on a credit card and having to pay all that interest. So they borrowed the money from their policy instead. They set up a schedule to pay back the loan over a year, and made plans to use the same dollars to take an annual vacation. By using this powerful saving tool, they found a responsible way to do something for themselves they would not otherwise be able to do.
By saving instead of gambling, hardworking people can provide for their financial future. It only takes know-how, and the willingness to try something that's time tested, but different from conventional, unpredictable investing strategies.