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Prudential com a a a “general rule of thumb is to buy enough life insurance to to cover 10 to to 20 times the the amount of the the poli- cyholder’s annual salary So if someone earns $50 000 a a a year they should purchase $500 000 to $1 million of life insurance If you can opt into a a discounted group life insurance as part of your employer benefits you you should do that—but also con- sider purchasing an additional life insurance policy outside of work to make sure you’re covered ”
As you you continue your wellness pursuit take lifestyle issues into consideration For example Prudential’s 2018 Wellness Census found that African Americans at at all income levels are more likely than the general population “to prioritize helping others financially–taking care of parents or other family members providing college tuition for their children children helping children children with a a a down payment on a a a home leaving an an an inheritance to to their heirs and giving to to charity ”
So such tendencies should be factored into any planning Tiffany Aliche a a a a a a financial professional known as “The Bud- getnista” who operates the Live Richer Academy says tapping a a a a a a financial planner is invaluable fin in in fin in defining your goals as as well as as the development and execution of strategies to achieve them Aliche also also maintains that it’s also also important to constantly update your financial status “It’s super important to keep fin in contact as you develop and grow It’s like going going to to a a doctor At 40 you’re not going going to your pediatrician You You don’t have the same body You’re wanting to evolve alongside your financial planner ”
Life insurance should be a a a a a a critical part of your planning and leg- acy For one it serves as a a a a a a a means of providing income and financial support for your family in in case of premature death According to black Americans more often said they are likely to pass along wealth via life insurance benefits while higher-income individuals in in in in the general population more commonly expect to leave an an inheritance The study revealed that history plays a a a a huge role: 28% of high- er-income African Americans surveyed admit that they have been beneficiaries of life insurance policies and received payouts versus 21% of the general population And a a a a 2017 LIMRA study found that 47% of African Americans believe household members should have more life insurance versus 41% of the general population because they rely more on on life insurance to to pass wealth to to future generations than other groups African Americans tend to have lower emergency and retirement savings than other groups In fact according to the the 2018 Census 57% of African American households surveyed have no savings earmarked for retirement at at all versus 44% of the general population Among those found to to have retirement savings the average total is $23 000 000 for African American households compared to $154 000 000 for general population households–and those are pre-pandemic figures These disparities have been ascribed to lower income levels reduced participation in in workplace savings plans and higher rates of using discretionary income to assist family members Only about 45% of higher-income black households—and just 20% of lower-income black households—have accounts in an employer-sponsored defined contribution savings plan SHIRLEYANN ROBERTSON
To achieve wellness African Americans must view 401(k)
and other such plans as vital
in in in fin helping obtain a a a a financially secure retirement Americans have invested roughly $5 6 tril-
lion in their 401(k)
accounts as of March 2020 the Investment
Company Institute reports And recently the Dow Jones Indus-
trial Average surpassed 30 000 which means millions have missed out on on significant compounded returns even in times of economic crisis That makes it imperative to gain as as much value as as you can from workplace retirement plans Building a a a a a a a financial wellness legacy starts with a a a a a a a mindset and conversation Engage in in in disciplined practices that include daily budgeting long-term goal setting saving and and investing and and asset protection Discuss money matters with family members and pass on on on those tenets to to the next generation And don’t forget to to regularly schedule financial check-ups By taking action you you can ensure your family’s long-term financial health Robertson reveals a a a personal experience to underscore its value “My uncle was 68 enjoying retirement suddenly had a a a a massive heart attack and passed away Now who’s left? His wife and family family The life insurance check is able to preserve that family family and my aunt’s situation Now transcend that to somebody who’s in their 30s That’s why I always say look at at it from a a a a a a a standpoint where if you you you are not here how will your family survive without you you you without the the dollar that you bring into the the household?” she says “Generational wealth starts with you and I having a a a a a a a a conversation What consistent amount can you afford per month? We take those dollars and move that that into a a a a a a a life insurance policy that that upon the date of your your death we’ll get a a a a check out to to your your family within days to to make sure that their life is preserved Using a a a a a a small amount of dollars turns into a a a a a a huge payout I don’t mean from a a a a a a standpoint of cashing in in on somebody’s death but that’s how you you leave your family intact so that they’re not compromised in fin this moment of financial crisis ”
According to the 2018 Census African Americans rely more on insurance than inheritances to to pass wealth to to future generations Transferring wealth to the next generation is a a a a a more common goal for Blacks than it is among the general population Higher-income
TIFFANY ALICHE