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  • Home
  • About Us
    • Meet our Team
    • Client Testimonials
    • Refer a Friend
    • Insurance Carriers
  • Blog
  • Service
    • Policy Review
    • Update Contact Info
    • Life Insurance Application
    • Request a Free Consultation
  • Individual
    • Life Insurance >
      • Term Life Insurance
      • Whole Life Insurance
      • Final Expense Insurance
      • Individual Life Insurance
    • Medicare
    • 529 Plan Alternatives
    • Social Security
    • Disability Income Insurance
    • Annuities
  • Business
    • Life Insurance Options for Businesses
    • Disability Insurance Options for Businesses
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  • Contact Us
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our Blog

Six Important Things to Know About Financial Planning in NJ

8/31/2020

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It’s never too early to start planning for your future! A financial plan includes your current money situation, long-term monetary goals and strategies for meeting those goals. You can create a financial plan on your own, or you can create one by working with a financial advisor in NJ. The benefit to working with a financial advisor is that you can work together to develop a personalized plan that aligns with your long-term goals. 

As you consider putting together a financial plan, here are six important things to know. 

1. Your financial plan is built around your financial goals. 

You might think that your financial plan is based on the money you currently make, but it’s actually guided by your longer term goals. We recommend asking yourself what your money can do for you. Do you want it to pay off your mortgage? Help you retire early? Travel the world? By working toward the things that are important to you, your financial plan will feel intentional. 

2. You’ll need to track your money and where it’s going. 

Once you have a financial plan in place, you’ll need to keep track of your money. Our clients are often surprised to see how much money is spent on little things like Starbucks stops or lunches out. Seeing where your money goes can uncover ways to direct more money to your savings or paying down debt. 

3. Your employer might match your contributions.

One of the things your financial advisor in NJ will ask is if your employer will match your contributions. Sure, your 401K plan might take away some of your monthly earnings, but it’s worth putting into this account if your employer matches your contribution. This is essentially free money on the table. 

4. Emergency planning is necessary. 

Most Americans don’t have enough money in their accounts to pay for emergency situations. But, this changes with a financial plan. Your plan will force you to put away cash to handle unexpected problems so that you don’t have to turn to credit. 

You’ll start small - say $500 or so. Then your next goal will be $1,000 and so forth. Trust us, you’ll feel better having savings to fall back on if something happens! 

5. You’ll need to tackle high-interest debt. 

One of the first things your financial plan will include is paying down toxic debt, such as credit card balances, payday loans, title loans and rent-to-own payments. Interest rates are high on these loans and they can result in you paying two to three times more than what you borrowed. 

6. Investments will build your strategy. 

Finally, investments are an important part of financial planning in NJ. Some people think that investments are only for the rich, but they’re actually one of the best ways to build money no matter what you have in your savings. You can put money into a 401K plan or open a brokerage account. Your financial planner will help you determine what investments are best. 
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Looking to build a financial plan that makes sense for you and your family? Contact Leonard Financial Solutions to speak with a financial planner who will take the time to understand your needs and long-term financial goals. 



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Everything You Need to Know About Disability Income Insurance

8/27/2020

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When people think about their assets, they generally point in the direction of their homes, cars and retirement accounts. However, your true asset is the ability to make an income. Without it, you won’t be able to pay for your home or car or put money into your savings accounts. 

According to a survey by MagnifyMoney, 53 percent of Americans live paycheck to paycheck. Just one missed paycheck can cause the bills to pile up. How long could you go without a paycheck? If you’re like the majority of Americans, you couldn’t go any more than three months. 

Fortunately, you do have options when it comes to protecting your income. Disability income (DI) insurance in NJ provides supplemental income if you can’t work due to an illness or injury. You can get this insurance from your employer or from a private insurer. 

What is Disability Income Insurance? How Does it Work? 

Disability income insurance provides extra income if you can’t work because of an accident or illness. Benefits are paid out so that you can maintain a comparable standard of living and cover your expenses. On average, disability insurance replaces 45-65 percent of your gross income on a tax-free basis. 

There are two main types of disability insurance:
  • Short-term disability insurance. Short-term disability insurance in NJ typically replaces 60-70 percent of your base salary and pays out for a few months to a year, depending on your policy. 

  • Long-term disability insurance. This insurance replaces 40-60 percent of your base salary, with benefits ending when the disability ends. This money is tax free! If the disability continues, the policy will end after a certain number of years or at retirement age. 

Each insurance policy is different, so be sure to ask your financial advisor in NJ questions. For example, what are the base salary caps? Does the policy cover additional services like training to return to your job? What is the waiting period before benefits are paid? How does the policy define “disabled?”

Who Needs Disability Income Insurance? What are the Benefits? 

If you rely on a paycheck to get by, you can benefit from NJ disability insurance. Even if you are young, disability insurance is still important. According to the Social Security Administration, 1 in 4 20-year-olds will experience a disability for 90+ days before they reach age 67. Some of the most disabilities include back injuries, heart attacks, cancer and diabetes. 

The benefits to having disability insurance are: 

  • Maintain your standard of living if you can’t work 
  • Reduce financial strain on your family
  • Keep current on your bills 
  • Preserve the money in your savings accounts
  • Comfortably take time off to receive treatment 
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If you are interested in taking out long- or short-term disability insurance in NJ, contact Leonard Financial Solutions today. We’ll explain your options and what policies are best for your circumstances. 
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529 Plans vs Whole Life Insurance: What is Better for my Child's Education?

8/7/2020

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​A college education is something that most parents want to provide for their children. In America, having a solid education is key to landing a better job. But saving for this education can be daunting. Fortunately, college savings tools like 529 plans and permanent life insurance make it easier to save for educational expenses. 

Below you’ll find more information about 529 plans and whole life insurance in NJ and which one is a better college savings plan. 

529 Plans vs Whole Life: What’s the Difference? 

529 plans in New Jersey are similar to a Roth 401K or RothIRA but are intended to help pay for college expenses rather than retirement. Through a 529 plan, you can invest in a variety of mutual funds and earnings will grow tax-deferred. As long as your child uses the money for educational expenses, the withdrawals are tax-free. 

While a 529 plan is the gold standard for saving for college, it’s not your only option. Permanent life insurance is also an excellent way to save money. When you pay into your policy each month, some of the money goes towards the premium and some goes into the cash value. The money in your cash value grows tax-deferred, similar to a 529 plan. 

Why Permanent Life Insurance is Better than a 529 Plan 

Each family is unique, so you’ll have to make the best decision for your circumstances. That said, Leonard Financial Solutions typically recommends whole life insurance as a college savings plan. Here are the reasons why. 
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  • No qualified expenses. Your child can only use the funds tax-free in your 529 plan if they are used for college. Whole life insurance, on the other hand, has no limitations. Your child can use the money to buy a home or pay for their wedding. 

  • No contribution cap. 529 plans have restrictive contribution limits. Whole life insurance does not. If a grandparent wants to make a generous contribution, they can. 

  • Not included in your financial picture. When applying to college, a 529 plan is considered in your overall financial picture. This can affect your ability to get financial aid. Life insurance does not. 

  • Includes a death benefit. 529 plans are a fine college savings tool, but they include nothing more. Permanent life insurance comes with a death benefit. We generally recommend insuring the parent, not the child. 
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  • Not correlated to the market. If the stock market declines, your life insurance policy remains untouched. This makes whole life insurance a recession-proof savings tool, unlike 529 plans.
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529 plans are not bad. They have many advantages, and we understand the appeal to them. However, they are not the only way to save for your child’s post-secondary education. Permanent life insurance is worth a look. If you would like a life insurance quote comparison in NJ, contact Leonard Financial Solutions. 

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