What Every Young Mom Needs To Know About Building Wealth
Building wealth is a topic that most women think about especially once they start to build their families. But the key question is, "How??"
From the time we enter the workforce as teenagers, we are conditioned to contribute to 401k's and social security for retirement. But are those real assets to build generational wealth for our families? 401K's are meant for long-term retirement savings. However, according to CNBC, a majority of young workers have already tapped into their retirement savings!
In addition, 401k's experience market losses with the stock market, meaning that there is no guarantee that you will have a sufficient amount of retirement savings at the time that you're ready to stop working.
In another article by CNBC called, "Younger Americans aren’t investing in the stock market—researchers think this is why", they highlight one of the key points:
“After the crash of 2008, when the Dow Jones fell more than 50 percent from the end of 2007 to mid-March 2009, ” Gallup notes, “the ranks of those under 35 owning stock shrank steadily for the next several years.” Even “a decade after stockholders lost trillions of dollars, younger Americans are still leery of investing their money in stocks.”
So, if younger Americans know the high risk of stocks and not investing in them, what is a better alternative that provides growth, retirement savings, safety, able to transfer to generations and never decreasing in value with steady growth?? Life insurance.
Here are some key ways to build wealth with life insurance:
Permanent Life Insurance: Does not expire.
“Typically, permanent life insurance combines a death benefit with a savings portion, allowing policies to build a cash value, against which the policy owner can borrow funds or, in some instances, withdraw cash to help meet needs such as paying for a child's college education or covering medical expenses.
The two primary types of permanent life insurance are whole and universal life insurance policies. Whole life insurance offers coverage for the full lifetime of the insured and its savings can grow at a guaranteed rate. Universal life insurance also offers a savings element in addition to a death benefit, but offers different types of premium structures and earns based on market performance. (Investopedia)
Index Universal Life: Has cash accumulation.
“...ideal for those who need death benefit protection but are focused on cash value accumulation for lifetime needs such as supplementing retirement income.”
- Flexible death benefit
- Flexible premium
- Cash value grows based on an interest crediting strategy that is tied to changes in a market index such as the S&P 500.
- Downside protection through minimum guarantees to ensure that your cash value will not decline due to decreases in the Index.
(National Life Group)
Make More Money
Sounds simple enough but how? I’ve heard before that we don’t have a savings problem, we have an income problem. Many American families simply do not make enough income to pay for their basic needs and also afford necessary extras.
Are you searching for a new career or a professional industry to make extra income? Open your mind to the industry of finance and teaching other families just like yours these key yet simple concepts to help them gain security and wealth.