Building a retirement plan is a long-term project that requires a lot of discipline and patience since we all want to see results immediately. The lifestyle we lead drives us to do everything as quickly as possible, without considering the consequences of the decisions we make about our money and the future of our retirement.

Correct financial planning involves much more than just putting money in some instrument and hoping that the returns obtained according to the market will work, whether positive or negative, against our assets. For many people this process is exciting but for others it is worrying, since they are putting their entire assets at risk waiting to generate profits to cover basic needs for retirement.

To begin solid financial planning we must start with the following question.

How important is my income in my home if I were not there tomorrow?

You will most likely say that it would be devastating for your family to not be able to count on your income if you were absent tomorrow. This is one of the reasons why it is important to carry out financial planning thinking about the present and the future.

This is why it is extremely important that when developing your retirement plan you verify your need for income for the next 5 to 10 years in case you fail. It is also important to evaluate the life insurance you currently have to cover expenses in the event of death or an illness that causes partial or permanent disability. A Universal Life Insurance policy provides you with the benefit that with the same dollar you can accumulate values ​​according to the closing SP500 market, but without putting your money at risk since this market is used as a reference to credit interest to your life insurance policy. life.

This accumulation of interest can be accessed, as a withdrawal or loan, against the value of the policy without affecting the amount of insurance you have. On many occasions, people who are self-employed or work for W2, but do not have benefits, choose this alternative since it allows them to capitalize growth in values ​​according to the SP500 but without losses.

Universal life insurance is a mechanism where the client’s money is never invested in the stock market nor is the money exposed to market losses. Universal policies allow you to have protection throughout the life of the policy including accelerated benefits for chronic, critical or terminal conditions during life, while creating values ​​to be used for the best benefit of the client.