Category: Tip of the Month

Summer’s here, school’s out and vacations are ahead. That’s why now might be the perfect opportunity to carve out some time to make some positive changes in your financial life. Here’s a few ideas to get you started that are are significant, not too big or too small, and well within your reach.

Set Up a Safety Net

Rising costs and an uncertain geopolitical landscape make this more important than ever. If you already have sturdy savings, great. Having a three-to-six-month surplus is super smart. You never know when your fridge might go out, or you might have unexpected medical expenses. That said, consider increasing your contribution amount. If you’re living paycheck to paycheck, look where you might cut costs and get started. Putting away a little each month goes a long way. One smart way to boost this money is to open a high-yield savings or checking account. You can make balance transfers from your brick-and-mortar bank and glean higher interest rates from online funding sources.

Save 10K a Year with the $27.40 Rule

Talk about doable, this rule takes a daunting task and boils it down to an easy equation: $27.40 (a day) x 365 = $10,001 a year. Now, if you’re not sure how to achieve the strategy, you might start smaller by saving this amount every few days. The point is, after employing this simple habit, you’ll accumulate a little nest egg, which relates to the first idea of setting up a safety net. But you could also be saving for a dream vacay. It’s up to you!

Rebalance and Diversify Your Portfolio

If the rise and fall of the market have affected your assets by creating an imbalance, causing you to over-index certain investments, you can straighten this out. One way is to rebalance, which involves buying and selling holdings to change the ratio of the amount you have in stocks, bonds, and cash. In essence, you’re righting the equilibrium of your assets. The other is to diversify – mix things up – which is admittedly not new news, but it bears looking into from time to time. Otherwise, you might miss out on some significant growth opportunities.

Use the Snowball Method for Debt

To whittle away at your balances, list your debts from the smallest to the largest. Then make small, minimum payments on every account. But focus on the smallest and move your way up the list. When you can eliminate low-hanging fruit and experience quick wins, you’ll create momentum to keep going and ultimately live debt-free.

Dig Around for Lost Retirement Accounts

According to Yahoo! Finance, there are about 32 million forgotten or left-behind retirement accounts in the United States. Crazy, right? If you’ve been employed for a substantial amount of time, take some time to find them and roll them over. There’s a huge chance that your current employer’s retirement account or a personal IRA will offer smarter investments and lower fees/expenses. It’s worth a look.

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When you keep current on market changes and become proactive, not just let your assets sit there and earn interest, you are better able to maximize your net worth. If you don’t know where to start, consult your tax professional. They’ll be able to point you in the right direction. Reviewing relevant sources while enjoying your morning coffee just might be the best thing you do all day.

These are just a few tactics you can pursue mid-year. So, take a beat and review your assets. Time is money, and using it wisely is one of the smartest investments you can make.

Sources

6 Financial Changes To Make in 2026

How to make your money work for you: 9 ways to grow money | Fidelity

How to Pay Off Debt Fast: 8 Smart Strategies | 1st Ed CU

It might be hard to believe, but yes, it’s almost the middle of the year and the perfect time to take a look at how you’re doing financially: are you fiscally fit or do you need a few adjustments? Whether it’s saving more, paying down debt, or prepping for retirement, you still have time to effect change. Here are a few ways to get started.

Review Your 2026 Financial Goals

Kind of a no-brainer, but ask yourself:

• Have I saved as much as I planned?
• How’s my progress at paying off debt?
• Have my priorities changed since the new year?

In addition to these things, other important goals might include building your emergency fund (broken dishwasher, for instance); saving for a vacation; and finally, the certainty no one can escape – tax preparation.

Go Over Your budget and Spending

Your habits might have shifted over the past few months, so places to put a lens on might be:

• Where have I increased spending?
• Do I really need all those subscriptions?
• Can I pay a little more on debt?

In the second half of the year, other things to consider include insurance renewals, back-to-school expenses, and year-end medical costs.

Revisit Your Retirement Contributions

This might be far away or near soon. No matter, it’s critical to keep an eye on the following things:

• Your 401(k) or employer retirement plan contributions
• Employer match opportunities
• IRA contributions

If you can increase funding for any of these, now’s the time to do so. Retirement comes along more quickly than you think.

Give Your Employee Benefits a Looksee

Take time to go over:

• HSA or FSA contributions
• Health insurance
• Life insurance and disability coverage

You might have other benefits, of course, to review. And while many people wait until open enrollment to give these a think, you don’t have to be one of them. Take action now to amend them so you’ll be better prepared for the rest of the year.

Start Your Taxes for Next Year

Between now and July, you can get a jumpstart by planning ahead – and you won’t be stressed when it’s actually tax time. Taking a look now can help you:

• Estimate your taxes
• Find ways to reduce your taxable income
• Plan retirement contributions before year-end.

Recalibrate Your Plan for the Rest of 2026

So now that you’ve taken inventory of your finances, you can adjust for the remaining months. Your new plan might include:

• Setting up an automatic transfer to savings – it’s so easy, and you’ll never miss it
• Increase retirement contributions – even 2 percent makes a difference
• Concentrate on one debt to pay off.

The idea is not to change everything all at once. Your goal should be to take small steps so you can move forward with confidence and finish the year strong. All it takes is a little time. And as we know, time is money. Make the last six months of 2026 count!

Sources

https://www.benefitandfinancial.com/blog/mid-year-financial-review-are-you-on-track-for-2026

You might have heard this saying, “A journey of a thousand miles begins with a single step,” which is from the Tao Te Ching by Lao Tzu. However, the principle of taking tiny steps along a path to achieve a larger financial goal is the much same. Here are a few things you can integrate into your daily life to hasten your journey.

Every Day, Invest in Yourself

It all starts with you and your mindset. Set aside a time and a place to each day to go over what your financial goals are for the day, not the year. What is your daily spending limit? What do you have to buy? Baby steps are your way to long-term goals. Remember, you are your most valuable asset.

Have a Monthly Budget Meeting

No matter if you’re married and have a family, or single and have a dog, this is key. A monthly touch base helps you stay focused. If you have older kids, it’s a great way to start the conversation about generational wealth.

Here are a few things to put on the agenda as you look back at the month:

• Did you stay within your budget? If you did, great. If not, make adjustments.
• How much did you save? Do you need to decrease? Can you increase?
• How much did you invest? How does it look? Does it need some tweaking?

Automate Savings

This is a no-brainer. Activate your direct deposit. The rule: If you don’t see it, you don’t miss it. Plus, this is a great way to create emergency reserves for when your fridge breaks or you need a new dryer, or for a larger goal like a down payment on a home. Further, only take money out if it’s a necessity, not a luxury. The treats can come later when you’ve planned for them. But ask yourself this: Is your savings account the best one? Can you find a better one? Here’s a list of high-yield savings accounts for you to review.

Track Your Progress

It might be tempting to look at how far you still have to go when you’re working toward a goal. Instead, celebrate your successes, no matter how small. During your monthly meeting, recognize your progress and, if you want to and can, increase your contribution. Little changes are what make the biggest difference.

Invest Incrementally

Start with what you can afford, big or small. Then increase the percentage each year. You might consider investing in stocks, bonds, or mutual funds within an IRA. You might also want to consult your accountant or financial advisor. And the key? Diversify. But also, set aside some money for your own development, i.e., learn a new computer skill or a new language. When you have experience investing in and for different things, you learn and grow. That not only makes you a better investor but also a better human.

Create Giving Rhythms

Choose a charitable organization that’s near and dear to your heart. One that feels like “you.” During your monthly meeting, carve out time to think about how and where to give. Then each month, revisit to see how you’re doing. Remember, when you give, you receive.

Dream Big

Having financial success is more than just about managing your money. It’s about having a vision for your life. Set ambitious goals. You’ve got one life in this iteration. So make a plan, take small steps and be persistent. You’ll get there sooner than you ever thought.

Sources

8 Small Money Habits for Big Financial Success | WealthBuilders

 

If you’re a high-income earner, generally defined as household incomes over $350,000, there are some key things you might want to keep in mind come tax season. Here are a few of the strategies to consider that not only maximize your financial benefits but also minimize tax liabilities.

Boost Retirement Contributions

By increasing savings in your 401(k) and IRA accounts, you can reduce your current tax liability while building your nest egg. Here’s a closer look:

• 401(k)s – In 2026, you can contribute up to $24,500. If you’re over 50, there’s a catch-up option of an extra $8,000, and better still, if you’re between 60-63, the catch-up contribution limit increases to $11,250. By doing these things, you lower your income and, thus, your tax bill.
• Traditional IRAs – You can contribute up to $7,500 in 2026 with an additional catch-up contribution of $1,100 for individuals age 50 and older. Note that while you can make traditional IRA contributions regardless of income levels, the tax deduction phases out at certain income thresholds.
• Roth IRAs – These products are popular because they let you sock away after-tax dollars. That said, your eligibility to contribute, capped at $7,500 in 2026, varies with income levels. Taxes are paid up front, but withdrawals, including earnings, are tax-free later. Woot! Beware, however, that the ability to directly contribute to a Roth IRA starts to phase out at $153,000 for single filers and $242,000 for those married filing jointly.

Implement Tax-Efficient Investments

Here are three more strategies to consider for reducing your tax burden:

• Buy municipal bonds. With these securities, you may gain tax-free income that reduces your taxable income.
• Buy dividend-paying stocks. Payouts from stocks give you lower-taxed income and wealth growth.
• Invest in opportunity zones. These zones, defined as underserved, low-income communities, not only offer tax deferral but also provide community investment. Paying it forward pays yourself – and others.

Leverage Charitable Giving

And being strategic about it is critical when trying to reduce your tax bill. For instance, you might set up a donor-advised fund (DAF), which is an efficient way to manage your giving while securing tax benefits. You can set one up through a financial institution or a community foundation. Once you contribute, you’ll get an immediate tax deduction. However, this deduction is subject to certain limitations based on your adjusted gross income (AGI) – 60 percent for cash contributions and 30 percent for contributions of appreciated securities. Still, it reduces your taxable income for the current year. And that’s a good thing.

Gift Assets to Your Family

This is another good strategic move. Both you and your relatives will love it. In fact, the IRS lets you give up to $19,000 per year (as of 2026) without triggering gift taxes. Think college tuition or home down payments. However, while gifting assets can reduce the size of your taxable estate, it does not reduce your taxable income for income tax purposes. But here’s the upside: By using the gift tax exclusion, you’ll avoid increasing your estate tax liability later on.

Utilize Qualified Charitable Distributions (QCDs)

If you’re retired and over 70 ½, QCDs offer a powerful tax advantage. Get this: you can transfer up to $111,000 annually (in 2026) directly from your IRA to qualified charities without counting that amount as taxable income.

These are just a few of the ways high-earners can strategize for taxes. But no matter what tools and strategies you harness, the goal is to put together a smart plan so you can keep more of what you earn.

 

Sources

https://www.farther.com/foundations/tax-planning-strategies-for-high-income-earners#:~:text=401(k)%20and%20IRA%20Contributions,situation%20and%20provide%20personalized%20advice

https://finance.yahoo.com/news/minimum-salary-required-considered-top-170108488.html?guccounter=1

For private equity investors, 2026 is going to be a good year. Financing conditions are stabilizing, interest rates are decreasing, and valuations are beginning to reset. Further, these firms are moving to growth-at-any-cost strategies, deeper diligence, and more disciplined risk underwriting. Here’s a high-level look at a few things you can expect.

PE firms thrive despite policy and market uncertainty. Driven by shifting tariffs, interest-rate cycles, and election-year fiscal debates, 2025 was certainly a challenge. This year, many firms will re-enter the market and hit the ground running with greater conviction, supported by stronger diligence, scenario modeling, and operational planning. A few tactics include doubling down on operational risk management at the outset; leveraging advanced technologies to improve transparency and accuracy, specifically in terms of finance, tax, and regulatory compliance; and diversifying portfolios across sectors, geographies, and business models.

In 2026, deal volume and value will appreciate. This prediction is based on declining borrowing costs and uncertainty around tariffs declining. Leading the acceleration are mega funds and middle-market managers with larger funds driving growth in deal value. But strategic buyers will also play a defining role in this escalation. According to a survey by BDO, 43 percent of fund managers say most competition for deals will come from strategic acquirers. Here’s why: Their ability to pay higher prices, driven by operational synergies and stronger balance sheets, will intensify pressure on PE funds on the buy side. Consequently, this creates more favorable exit conditions for PE funds looking to sell assets.

PE is betting on AI, big-time. Firms are making sizable investments in industries that are the backbone of AI transformation, including data centers, energy producersand network hardware suppliers. While these categories are capital-intensive and tap into measurable, long-term market demand, PE’s interest in AI expands beyond sector strategy and deal sourcing, as firms are looking at how to leverage AI not only for fund and portfolio company management, but also the investment life cycle (due diligence, fraud detection, standardized reporting), which improves the way decisions are made. Good news for investors, indeed.

Valuations will remain high for top-tier deals. Primarily, this isdriven by firms willing to pay premiums for companies considered resilient and/or strategically essential. Common features these businesses share are predictable cash flows, defensible business models, and a position in sectors with secular growth, such as AI, infrastructure, or technology-driven industries. Why? They’re better equipped to withstand macroeconomic volatility compared with other kinds of investments.

Lessons were learned from the 2021 buying frenzy. This eventful year was comprised of abundant liquidity, low interest rates, and pent-up post-pandemic demand, which led to aggressive dealmaking. Now that macro-conditions have shifted, those 2021 deals are struggling to perform. This year, fund managers are expected to learn from the dynamics of years past and recalibrate their strategies, looking more closely at valuations and focusing on fewer but high-quality deals. This builds greater flexibility for exit planning, whether it’s traditional sponsor-to-sponsor, strategic sales, or IPO pathways. For the private equity investors, 2026 might well supersede the revenue-rich dynamic of 2021.

These are a few of the variables that will affect the private equity market. That said, success will most likely depend less on timing markets and more on being operationally prepared to seize the lucrative, high-quality opportunities when they arise.

Sources

https://www.bdo.com/insights/industries/private-equity/2026-private-equity-predictions#:~:text=In%202026%2C%20many%20firms%20will,elevated%20relative%20to%20historical%20norms

If you’re tired of the 9-to-5 grind, then passive income could be for you. While not a get-rich-quick scheme, it’s a way to build systems that contribute to financial stability and extra money. It can even support long-term goals like early retirement. Here’s a high-level look at what it is and how it works.

Types of Passive Income Sources

1. Investment Income
   This includes individual stocks or mutual funds, interest payments from corporate bonds, or capital gains from selling securities at a profit. While they all involve risk, these types of investments can compound and grow over time.
2. Rental Income
   Depending on where your property is, this could be a cash cow. The money you earn can cover the mortgage, taxes, maintenance, and other miscellaneous expenses. The best part? You could earn a sweet sum of money.
3. REITs and Crowdfunded Real Estate
   REITs (real estate investment trusts) and crowdfunded real estate platforms allow you to invest in properties without having to buy them yourself. You earn net rental income in the form of dividends without the headache of managing the property. Not bad, right?
4. Business Income
   You earn this money by not actually participating in the operations. For example, you might invest in a restaurant. Others run the daily business while you receive a percentage of the profits. Sweet.
5. Intellectual Property Royalties
   Pen a book. Write a song. Create an online course. You’ll reap the rewards long after the work is completed.
6. High-Yield Savings Accounts
   Yes, this might yield small returns, but it’s a great way to put your money to work.

What are the benefits? There are many.

• Wealth Building
  When you reinvest your dividends, save and invest your rental profits and royalties, you’ll steadily create a nest egg that will compound and grow, grow, grow.
• Financial Freedom
  While this type of capital building takes time, it can supplement, if not replace, your day job.
• Time Flexibility
  You don’t have to work on this revenue stream every day, which is the beauty of it. It clears up time for you to live your life.
• Diversification
  When you have more than one income source, it can act as somewhat of a safety net, should your main way of earning a living dry up.

Risks and Taxes

While passive income can and does build wealth, it’s not without risks. Markets may fluctuate. Property values might decrease. Companies that are part of third-party crowdfunding could shut down. You’ll also have to pay taxes, as you must report your earnings. Selling stocks or properties can trigger capital gains.

Passive income has pros and cons. Only you can decide how risk-averse or tolerant you are. If this type of investing is for you, the sooner you start, the sooner you’ll create financial security – and freedom.

Sources

https://www.crediful.com/what-is-passive-income/

 

Giving to charity is good for a couple of reasons. First, giving to organizations you believe in is intrinsically good – for them and for you. When we give, the “love hormone” oxytocin is released. Second, giving can reduce your taxable income, which also might make you feel pretty good. But here are a few things to know before you start doling out your cash.

Make sure you give to an IRS-recognized charity. More specifically, it must be a tax-exempt organization that is defined by section 501(c)(3) of the Internal Revenue Code, which includes entities like religious organizations, the Red Cross, nonprofit educational agencies, museums, volunteer fire companies, and organizations that maintain public parks. Most importantly, you must not have received anything in return for your gift. So before you give, make sure you verify your organization with this handy IRS tool. It’s super important to do this before you donate, and be sure to ask how much of your contribution will be tax-deductible. This is key.

Gifts to family and friends don’t count. As much as you’d like to gift perhaps a worthy nephew, these amounts are not tax-deductible. In fact, if they exceed a certain amount, they could be subject to a gift tax.

Deductions have a cap. Generally, you can deduct up to 60 percent of your adjusted gross income via charitable donations (for cash donations). That said, you may be limited to 20 percent, 30 percent or 50 percent, depending on the type of contribution and the organization. Examples of limited contributions include non-cash gifts, private-foundation gifts, etc. This deduction limit applies to all the donations you make during the year, no matter how many organizations you give to.

Exceeding your limit. If you go over the 60 percent limit of your adjusted gross income, the amount can be deducted from your tax returns over the next five years, or when the money’s gone. This process is known as a carryover. Good news for those who are generous.

Deductions for non-itemizers & itemizers. Specifically, for the 2025 tax year (taxes that are due by April 15, 2026), you’ll have to pivot and itemize to deduct your charitable contributions and get the tax break.

But for the 2026 tax year (taxes due April 15, 2027), the rules change for both types:

• If you don’t itemize on your tax return, you can deduct up to $1,000 (single) or $2,000 (married filing jointly) in charitable contributions. This means you can take an above-the-line deduction for the 2026 tax year on the tax return that you’ll file in 2027.
• If you do itemize on your tax return, you must donate an aggregate total of at least 0.5 percent of your adjusted gross income to charity to claim the deduction. Only the portion of your total charitable donations that exceeds 0.5 percent is deductible.

Making sure you follow these guidelines will ensure that you can realize your well-deserved deductions and tax breaks. If you have other questions about charitable giving, consult your tax professional. They’ll know all the ins and outs of charitable giving and keep you secure moving forward.

Sources

Tax-Deductible Donations: 2025-2026 Rules for Giving to Charity – NerdWallet

For some of us, last-minute holiday shopping is just what we do. That said, it’s probably never fun, and two things invariably seem to happen: The gifts you want aren’t available, and you end up paying too much. That’s why shopping in November to get the best savings on what you want just might be the right thing to do this year. Here are a few sales dates to put on your calendar.

Singles Day, November 11. Originally started in China as a humorous “anti-Valentine’s Day” event, it’s become one of the biggest shopping days of the year, surpassing Black Friday and Cyber Monday. To top it off, the date, 11/11, was chosen because it symbolizes, you guessed it, four ones – aka singles. On this day, you can find huge discounts at a lot of high-end clothing stores like Athleta, Nordstrom, Lululemon, Abercrombie & Fitch, Madewell, Neiman-Marcus, and J. Crew, to name a few.

Pre-Black Friday, November 20-27. Yes, there is such a thing, as if Black Friday isn’t enough in and of itself. Nevertheless, lots of retailers get in on this. This year, you’ll want to check out early access on holiday deals at Costco, Lowe’s, Best Buy, as well as Kohl’s, GameStop, and PetSmart. You can find other merchants who offer deep discounts here.

Black Friday, November 28. It’s probably the most famous shopping day of the year, where you’ll find huge price cuts across all categories. If you’re into tech stuff, head to Apple, AT&T Wireless, Dell, Google, HP, Lenovo, or Micro Center to start. The big box places to hit are Walmart, Target, and Sam’s Club. For home goods, you’ll find savings at Bed, Bath & Beyond, Ashley Furniture, and Crate & Barrel. If you want a comprehensive list, go to blackfriday.com. (See? There’s even a website dedicated to this day!) But get ready to scroll because there’s a lot there.

Small Business Saturday, November 29. Originally launched in 2010 by American Express, this day is all about shopping at your local stores. So hit your neighborhood shops, markets, coffee shops, and boutiques to support your friends and neighbors. If you don’t know where to start and don’t have a lot of time, just Google “small business Saturday sales near me” and you’ll be good to go.

Cyber Monday, December 1. To cap off all the November savings, you can’t forget this day. And yes, it’s not technically in November, but that’s OK. This date is great because you can let your fingers do the shopping. Online-only offers are king, so hunker down and start searching. Some places with the biggest deals are, again, (and not surprisingly) Amazon, Target, and Walmart – the big three. For more price-cutting goodness, go here.

Life gets busy around this time of year, but if you take a moment, get your list and hit a few of the aforementioned stores, you’ll be way ahead come the holidays. And that just might be the best gift of all.

 

Sources

Holiday Shopping Calendar: Key Discount Dates 2025 | GiftList Blog | GiftList

https://giftlist.com/blog/holiday-shopping-calendar-key-discount-dates-2025

What if you could lower your grocery bill without giving up the things you love, fight inflation, and have some money left at the end of the month? Sounds too good to be true? It’s not. It’s the Half Rule. This means cutting the amount of product you use in half and seeing what happens.

Truth is, most of us probably use too much of the things we love. Here are several reasons why:

• Manufacturers often ask you to use more of the product than you need.
• You’ve probably gotten used to using a certain amount of a product;
• And finally, product inflation. Specifically, you might think that if you get pleasure out of something, you might need to use more of it. For instance, why get a tall vanilla latte when you can get a grande, right? But ask yourself: Is it really that much better?

To this end, here are some things you can easily use half of and never miss the other half:

• Shampoo. Try using half the amount and adding more water, especially if it’s concentrated.
• Laundry detergent. Try a half cup. A little goes a long way, especially if it’s a small load.
• Dryer sheets. These are so easy to tear in half.
• Cooking oil. Use an oil mister instead of pouring it into your pan or skillet.  
• Restaurant meals. Eat half or a third and save the rest for another meal. Or better yet, split a meal with your partner, friend or work colleague. Bonus: you’ll also save calories.
• Bagels. Just eat half! Save the other half for your next snack or breakfast.
• Starbucks order. Try a tall. Or if you get a vente, try a grande. Give it a whirl. See what happens.
• Glass stovetop cleaner. If you use less, you might have fewer streaks.
• Tape. When you’re wrapping gifts, give string a try.

When you change a few things here and there, over time, you’ll really see the difference in your bank account. Also, imagine how nice it’ll feel not to have to buy these items so often. That’s a big change in spending.

The Half Rule is not for everything. While it works on so many things, there are some things you cannot to apply it to – like filling up your gas tank or cutting a prescription in half. Never do that.

Overall, it’s a good rule. And when you’re persistent over time, you’ll start to develop a habit – one that will help you see a difference quickly and save you money in the long run. It’s a ripple effect that might expand into other areas of your life. In sum, the Half Rule is so effective, you just might go all in – and stay there.

Sources

“The Half Rule” – A Frugal Hack I Live By

Life insurance is something most of us don’t want to talk about. But the truth is, no one gets out of life alive. So, it might make sense to face it now so that when you really need it, it’s there. Before you start looking for a life insurance policy, let’s dispel some of the untruths you might have heard.

Myth #1: It’s too expensive. According to a recent survey by Life Insurance Marketing and Research Association (LIMRA), 52 percent of people thought it was too expensive to have or get more of. And how did they come to this conclusion? They based this on their “gut instinct,” or a “wild guess.” Truth is, it’s more affordable than you think and varies from person to person. In fact, the estimated yearly cost of a $500,000, 30-year term insurance policy for a healthy 30-year-old, non-smoking female is $316.

Myth #2: It’s a pain to apply. Not true. Thanks to the pandemic, which caused us to eliminate or reduce human interactions (like getting a doctor’s exam for term policies), you can apply online. These days, all you have to do is answer a few questions on your phone. Easy peasy.

Myth #3: My company’s policy is enough. Maybe. The coverage you have might not be enough for your family. Here are some facts. The median workplace life insurance coverage is either just a flat sum of $20,000 or one year’s salary.Of U.S. households that rely on workplace life insurance coverage, 44 percent say their families would struggle financially in less than six months should a wage earner die unexpectedly. So, what to do? A simple guideline is this: Aim for 10 to 12 times your annual salary and bonus, but people who are younger (farther away from retirement) might need more. Folks closer to retirement might need less.

Myth #4: I only need coverage if I’m working. If you’re not employed outside the home – like if you’re a stay-at-home mom – it’s still important to consider life insurance. Typically, life insurance is considered a replacement for lost income. If something happens to the non-breadwinner, it could also be necessary to pay for childcare and household work in your absence. The most important thing is to plan your coverage together with your family in mind so that you’re both in the best position possible should one of you pass away.

Myth #5: I don’t need life insurance until I’m older or become a parent. Nope. In fact, not only do you not have to be a parent, but your beneficiary could also be your partner or anyone else who relies on you. And you can change your beneficiaries (you can have more than one), should things change. Plus, if you apply for life insurance earlier in life, you’ll save money on premiums. Why? Because one thing that factors into how much you pay – or qualify for coverage at all – is your health. As you get older, your risk for developing health issues increases. According to LIMRA, 40 percent of those who have policies wish they’d bought them when they were younger.

In the end, you’ll want to take care of those who depend on you – and those you love. That’s why knowing the truth about life insurance matters.

Sources

Myths about life insurance | Fidelity