Protecting Your Living Standard

Harold Smith, age 66, and Maude Smith, age 64, have been planning their retirement for a while. They did very well with their investments and both made a very good living. They saw the train-wreck coming in the housing market, and while they didn’t sell at the peak, they did ok when they sold their home in Nashville and moved into a rental in Havana, Florida (just outside Tallahasse).

Mark and Becky are forty-five years old and have 7 year-old twins, Bertha and Beatrice. They want to make sure they have enough life insurance to maintain their survivors’ living standards should either of them die prematurely.

Parents are financial fiduciaries for their children. They have a responsibility to ensure their children a secure living standard no matter what transpires, including their own demise. ESPlanner helps parents fulfill this obligation by showing them how much life insurance is needed to preserve their survivors’ living standards.

Sixty years-old, single, with no children, and newly retired, Henry Potter has $1 million in regular assets and expects to collect $20,000 from Social Security starting at 62. He’s done well investing in large cap stocks. Since 1926 the S&P 500 has averaged 9.16 percent per year after inflation. If Henry could count on this return, he could spend $69,812 in today’s dollars for the rest of his life.