Strickland Risk Advisors
Nate started his career in the insurance and financial services industry in 2015 as a comprehensive financial planner. After gaining that experience he decided to get into the “family trade” and become an insurance specialist instead of a financial generalist. As a fourth generation funeral service and life insurance agent he seeks to be an advocate for the life insurance industry.
Nate has found a niche working with small business pension plans, life insurance, and funeral expense planning.
As a Texas A&M graduate he supports Aggie Athletics and the Corps of Cadets. He enjoys spending time with his wife Mara and his sons Lucas, Patrick, and Simon. Nate also likes following Astros baseball.
Nate is licensed in Life, Accident, Health and HMO and General Lines Property & Casualty by the Texas Department of Insurance.
BA, Administration, Texas A&M University
Graduate Courses, Finance, Texas A&M University-Commerce
This website profile is provided for informational purposes only and should not be considered tax or legal advice. You should consult your tax, legal, or accounting professional regarding your individual situation. The website profile should not be considered financial planning or investment advice.
Planning for their retirement should involve more than optimizing investments. This is part of it but there is way more involved. I don't know their income level, debt, employer info such as 401k or pension, or current life insurance. But I'll share with you some ideas:
1. If married, whole life insurance. Are they in decent health? This will be the most practical thing you can do assuming they have no or minimal coverage in force. Term life won't work here because you need something that will pay out not if they pass away but when. The policy shouldn't be structured for cash value accumulation but rather the death benefit. Not to be negative here but they have missed the 30-40 year window for exponential growth. It is time to realize that if they are married the surving spouse will not have much money if they live into 70s and 80s. Consider purchasing a limited pay whole life policy on each so that the death benefit can provide some supplemental money once in retirement. At 55 the premiums for a modest policy should still be reasonable but will continue to increase drastically with each year. If they are not married you want to make sure they will have their burial expenses covered at a minimum unless you want to be responsible for that.
2. The good news is the IRS allows catch up contributions. They can increase the amount they can save based on their age. If they are employed and their employer offers a 401k they should take advantage especially if there is an employer match. The same catch up contribution rule is true for both traditional and Roth IRAs
3. Are they in debt? Retiring higher interest debt will be crucial.
4. Can they work longer and delay Social Security to maximize monthly benefit?
1. With the investment and financial planning industry's relentess and almost propagandic effort to push every dollar into qualified retirement plans I find that most people are woefully underinsured. This goes for insurance that can have a huge impact on your family's financial future including life, disability, critical illness, and liability insurance. Insuring against these events protects your family's dignity in the event of death, cancer, heart disease or lawsuits. However, it looks like you have taken responsibility and have several life insurance programs in force. What are those amounts? Whole life insurance can be great tool for your family especially to cover your final expenses or for an inheritance. By purchasing it younger your coverage will be more affordable over your lifetime especially when your term life insurance expires or becomes annually renewable term with premium increases. It only costs more to insure you as you age.
2. As a single parent you should STRONGLY consider looking at some other insurances such as disability and critical illness. Since you are a one income household your family's financial future is in a much riskier position than a household with dual incomes. Really consider utilizing your dollars to both insure and save for your retirement.
First of all, congrats on the big engagement and decision to purcahse a home. As a side note you should carefeully consider your mortgage options carefully to allow for ample room in your monthly cashflow for things like insurance and home repairs.
Remember, your risk of death is 100%...I don't know of any person that got out of here alive.
It is perfectly prudent to buy permanent life insurance at your age and don't let anyone tell you otherwise. A good advisor, whether a fiduciary or not, (whether fee only or not), should be addressing this with you. No one has a crystal ball into the future including myself (and including a fee only advisor) and to not have any permanent life insurance in place ever is not prudent. It's even foolish if you have a family in my opinion. You do not know your time of death and therefore it is impossible to predict your financial situation or obligations at the time of your death. In just the past 10 years how much has your financial situation changed? Now imagine the changes in 40, 50, 60 years? For a relatively small premium at your age you can hedge against this and also build some wealth (although much more slowly and conservatively) in the process. But thats ok, you want safe money here.
Remember, life insurance should be financial certainty for an uncertain future.
The main question becomes which type and what amount? That is hard to say as there are many different flavors of permanent life including indexed universal life. As a general rule in my practice I do not utilize IUL very often (in fact almost never). IUL is extremely complex. Have you looked at the product guide for these things? Between index selection options, caps, participation rates, floors, and the fact that the insurer can change some of these items makes IUL a beast with many moving parts. They are generally principal protected products meaning you will not be directly invested in the financial markets so you will not experience market loss. Is that what you want to achieve here?
So to answer your question it is not necessarily a bad thing to be considering life insurance. I think you might find much simpler products in the market that could fit your situation more pragmatically. Also, term life insurance could also be appropriate once your life insurance need becomes much larger if you were to have children.
When you say present value are you referring to the cash value or the death benefit? When you say estate are you referring to a trust or an individual?
The way life insurance works is that any policy loans and interest due are subtracted from the death benefit when it pays out. For example, If a client had a loan out for $100,000 on a life insurance policy and the death benefit was $500,000 then if the client passed away the insurance company would pay out $400,000 to the beneficiary. This is a general concept but how the life insurane policy is structured with regard to ownership is crucial information with regard to taxation. Always consult a tax professional
I'm not exactly clear on the terminology you are using and so I have to be careful that I don't mislead you. Trust owned life insurance can be complex so you should consult with an attorney but I am not sure if that is what you are referring to in this case.
When you say minimal what does that mean to you?
I am not sure of the term 'accerlation life insurance'. Most of the time an acceleration rider can be added on to a life insurance policy (or it is sometimes included) and allows for the death benefit to be paid in advance of the insured dying if they are diagnosed with a terminal illness. Is this what you are referring to?
For $50/month you should check into a final expense plan that would help cover your funeral expenses so your relatives will not be responsible to pay them. The face amounts are usually small and you might be able to find one in that budget but it would depend on the carrier and your health history. Although you may have money set aside for this there could be a delay before the executor of your estate can actually use this money for your burial. The insurance policy can provide much needed liquidity for your family to plan and conduct the funeral while your estate is settled. By the way you should make sure your will is updated.
If you do not have someone dependent on your income then replacement of income is not needed. If you want to continue your tithing or charitable giving to an organizanization after your death then you may want to include some life insurance to account for that.
Check your lease paperwork. For instance, in a lease that I have the dealership included a policy to cover the lease balance if I were to pass away. But leases often can be negotiated and are different from person to person so consult with your paperwork