You Have Options

Beware of
What if you could give your family income security
and relieve their need to consume existing resources?
Personal Financial
What if you could erase home debt and help ensure Hazards
family well-being in the event of your death? Part 1
What if you could set up a strategy to provide a Loss Lost Family Income from the Unexpected
large amount of cash for your family income tax free? Death of a Provider: Can Your Family Make It
Without Your Earnings?
What if you could use existing savings to fund this
arrangement and still benefit from long-term cash per-
formance? Family Income
What if you could eventually get all of your dollars The way of life and future financial goals of most indi-
back, plus added growth? viduals and families depends on the continuation of their
What if there was a way to create the dollars needed household income for many years. Without continued
in the future for pennies on the dollar today? income, not only would their lives change today, but the
security and comfort of their future could be drastically
Let’s Talk altered.
There are several powerful strategies that can help If something terrible or unexpected happened to you
you accomplish these, and many other, personal finan- would your spouse or children have to change their life-
cial goals. Let’s sit down and talk and you can decide if style? Would they still be able to make mortgage, car
any of these strategies might be of interest to you. loan, or other debt payments? How long could savings
and taxable retirement assets replace income before
Ardal Powell, MA, PhD your family would need to begin selling your assets or
New York Life/NYLife Securities your home? What assets would you want them to sell
460 Temple Hill Rd first (car, home, retirement accounts, etc.)?
New Windsor, NY 12553
(845) 202-9722
apowell03@ft.newyorklife.com
New York Life Insurance Company, its agents and employees may not provide legal, tax or accounting
advice. Consult your own professional advisors before implementing any planning strategies. © 2018
New York Life Insurance Company. All rights reserved.
SMRU 1778962 (exp. 06.30.2020)
Advanced Planning Group

Many families and individuals have not considered
how quickly their financial comfort and security would
change if a major source of family income was lost. How
long would your family be able to maintain financial sta-
bility and financial goals (like future retirement) if your
income disappeared unexpectedly?
Let’s look at a hypothetical example.
If something happened to you, how long
would your family have before their way of
life or future retirement were in jeopardy?
James and Darla are married with two children. James
is a technology engineer for a rapidly growing tech com-
pany. James earns $250,000/year (base + bonus). James
and Darla have $125,000 across multiple retirement ac-
counts with $100,000 in term life insurance coverage and
$15,000 in a checking account. They have $80,000 of eq-
uity in a $700,000 home.
If there was a sudden and permanent loss of James’
income, due to his unexpected death, this family could
have less than 8 months before consuming all of their
savings and retirement assets and possibly being forced
to sell their home!
Let’s Look at the Numbers
If James died unexpectedly, let’s look at how long
the family could make it before their retirement assets,
savings, and home would be at risk.
Income Needs:
$250,000 (James’ prior annual income)
-30% (assume expenses are less than income)
$175,000 (income needed by family)
÷12 (months in a year)
$14,583 (monthly income needed by family)
Available Assets:
$125,000 (retirement account assets)
-25% (assumed taxes on withdrawals)
$93,750 (after-tax retirement account assets)
+$115,000 (term insurance and checking)
$208,750 (total available assets)
÷$14,583 (monthly income needed by family)
14 months, (1.2 yrs) before they may need to sell
the house, move, and face running out of money!
In other words, without adequate income protec-
tion, if something happened to you, then liquid assets,
your home, and even your retirement accounts could
be at risk of loss!