3 Things 5-16

05/16/2022 Although MAS is a financial services company, not everything published herein will be about numbers or investing. But no matter the topic, we hope for three things: 1) That you find the time you spend engaged worthwhile. 2) That you’ll reach out to us for help in any of our areas of expertise if something we discuss creates an urging in you to do so. 3) That you’ll share this with somebody new each time you read it. Thing One “...If you can make one heap of all your winnings And risk it on one turn of pitch-and-toss, And lose, and start again at your beginnings And never breathe a word about your loss...” That's the fifth stanza (out of eight that all start with the word, “If”) of the famous poem by Rudyard Kipling. It’s not about investing or risk-taking so much as it is about deciding on a course of action for yourself and taking full accountability for the results. What follows are some “ifs” more relevant to this newsletter’s general theme. If you had put $1,000 in the market (as represented by the S&P 500 index) at the beginning of the trading session on October 15, 2008 (the date of the largest one-day decline of the “financial crisis”, your investment would have been worth $909 at the end of that day. Six months later, it would have been worth $852. But a year later, it would have been worth $1,096. And almost 14 years later (present-day) it would have been worth $4,023. If you would have invested $1,000 at the peak price of the market on March 29, 2022, almost two months later (present-day) you would have had $870. Because the future is unknowable, we can’t predict with any certainty what you’ll have six months from now, one year from now, or fourteen years from now. But absent that certainty, we do know, because history tells us, that the market goes up over time, sorts out good companies from bad, and rewards patient investors. Still, that may not provide the clarity you need to be comfortable in the current environment. So here’s one more if: If you need the money today, tomorrow, six months from now, next year, or even the next couple of years, you probably shouldn’t have it in the stock market. You decide.

Thing Two Why People 50 and Older Should Have Life Insurance. Many Americans have not taken critical steps toward protecting their family’s financial future if the unexpected happens. If someone relies on your income for their well-being, you need life insurance. Here are some additional reasons you may need life insurance if you are 50 years old or older:

  • You have financially dependent children or grandchildren

  • You are paying off debts, like a mortgage or credit card balance

  • You are worried about covering your final expenses

  • You want to protect your existing assets

  • You want to supplement your retirement income with the cash value component of a permanent life insurance policy

  • You want assistance with estate or legacy planning

Best types of life insurance for people 50 and older. Term life insurance is a good fit for people who are looking for coverage for a set period. For example, you may feel that you need coverage until your kids are finished with school or until your mortgage is paid off. Permanent life insurance is a good option for people who want the security of lifelong coverage (as long as payments are made). It can be helpful with final expenses and legacy planning, and the cash value component can be beneficial to retirees. Due to the cash value component and the coverage duration, permanent life insurance policies are more expensive than term. Therefore, it is essential to ensure the premiums are within your current and future budget. If you're interested in a quick quote, click here or contact us.

Thing Three Just A Thought "An architect's most useful tools are an eraser at the drafting board and a wrecking ball at the site." - Frank Lloyd Wright