Friday, July 2, 2010

unconventional financial advice

1. Buy small term life insurance to protect yourself against the early loss of a spouse's income.

2. Disability insurance is crucial to your safety net since you rely on your earned income for most of your life.

3. If you want to be able to use your money while you're alive, yet not outlive it, you've got to make sure that any catastrophic medical bills will be covered by someone else. That means maintaining good major medical coverage before and after you reach age sixty-five, through some combination of private insurance and eventually Medicare and Medigap.

4. Reverse mortgage your home while you're retiring - The income you receive is tax-free since it's actually a loan. All the fees and interest aren't paid until the loan is settled upon your death.

5. Instead of inheritance, give tax-free gifts during your retirement. Don't wait till you die - you won't benefit, only the IRS will.



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