THE 25X RULE TO EARLY RETIREMENT:

The rule states that people are financially prepared to retire if they have saved at least 25 times their annual expenses. For example, they should have $500,000 in retirement savings if their annual spending amounts to $20,000. An adjustment can be made to the computation if there are other sources of income in retirement, of course.

Although goals-based planning is increasingly getting support in the financial services industry, many financial advisers have doubts about the strategy’s effectiveness as a retirement planning strategy, according to an article in USA Today. “Goals-based planning presumes we know what our goals are in 20-30 years. Except we don’t. We really don’t. We don’t know how to envision our future until it’s almost upon us.”

Life insurance in retirement: Who needs it?
Some experts believe that incorporating life insurance into the retirement investment strategy can be a smart move. “It’s a defensible use in situations where the estate’s assets are not liquid–let’s say real estate or a business. If you don’t want to sell the assets in a fire sale, and the estate tax comes due–insurance can be used to fund the tax liability.” (USA Today)

If you are wondering how life insurance might fit into your retirement plans, please don’t hesitate to give us a call (406)388-7633 or email us at jblockey@swmtfinancial.com .  SEPTEMBER 2017

OUR MISSION IS SIMPLY TO HELP PROTECT OUR CLIENTS