In an immediate gratification world, it’s hard to defer the on-the-spot desire and instead put aside for time ahead. Choosing not to buy that coffee each week (or day) could add up though, helping you acquire an account that could make retirement or traveling much easier. As you think about your choices, also decide how you want to help yourself and others down the road. Here are three things you might consider.
Life Insurance
While you may be focused on the present, it doesn’t hurt to consider the future. Do you have kids? Do you need to provide for someone’s care? By paying the premiums on a life insurance policy, you could offer your loved ones some additional protection. Upon your death, your benefactors receive the value of your policy. They can use this to pay off bills, funeral expenses and upcoming needs. Under some policies, people may be able to withdraw early, using the accrued funds to pay for medical needs or college tuition.
Annuities
Annuities, income and fixed deferred annuities, are a savings account used to earn income without paying taxes (at least until withdrawal). Considered a more conservative approach, the money is guaranteed over a certain amount of time, making it a tempting choice for investors. When you decide to quit your job, it’s hard to fathom that a check won’t hit the bank account every two weeks. Under this policy, checks would continue to come, providing some stability.
Long-Term Care
You can’t predict what will happen, including failing health. Sometimes, illnesses such as Alzheimer’s, stroke or heart attack could happen that may require insurance to pay for treatments, medicine and live-in care. Long-term care plans work to cover these expenses, allowing you to focus on healing or living rather than stressing over bills.
Take some time to think about how you want to live in twenty or thirty years. Then, ask yourself how you plan to achieve it. Start saving now.
