Harbor Light Planning
Owner, Senior Advisor
After acquiring eight years of experience in tax compliance and planning, Kelly Adams changed her focus to comprehensive financial planning after consistently seeing a need for this type of service among the clients she serviced.
Kelly began practicing life-centered financial planning after completing the Success training program in 1998 offered through the Alliance of Comprehensive Planners. She spent over five years working with nationally recognized advisor, Bert Whitehead, JD, MBA, founder of Cambridge Advisors (now known as Alliance of Comprehensive Planners) and President of Cambridge Connection, Inc., as an advisor and eventually partner.
Kelly holds a Bachelor of Arts from Michigan State University’s College of Business. She has earned the professional designation of CERTIFIED FINANCIAL PLANNER™ practitioner from the Certified Financial Planner Board of Standards. Kelly has also earned the designation of Enrolled Agent from the Internal Revenue Service.
Kelly is an active member and educator for the Alliance of Comprehensive Planners. She is a member of the National Association of Personal Financial Planners (NAPFA), Financial Planning Association (FPA), and the National Association of Tax Practitioners (NATP).
Harbor Light Planning, LLC was founded in December of 2003 upon principles that place the utmost value on our clients’ financial goals and objectives.
BA, Business, Michigan State University
A permanent life policy should not be used as a savings account for future planned purposes. If your goal is to have future savings and life insurance, consider a 30 year term policy. Often employer insurance is more expensive than purchasing a policy on your own. Plus, if you have your own policy, it doesn't go away if you switch employers. Term insurance costs are typically inexpensive and have fixed premiums. You can think ahead and might want to consider around 5-10x your salary. Then save the rest in a brokerage or savings account where your assets are liquid and easily obtained for when you are ready to use them for a house, wedding, etc.
I don't sell any products in my financial planning practice so I cannot say what is normal. However, what you describe sounds really suspect to me. It might be in your best interest to have this policy reviewed by a fiduciary, fee-only planner or a low cost annuity company such as vanguard. If this is a new policy, you might consider looking into undoing the policy (without fees and surrender charges taken out) and getting your money returned.
If you are itemizing deductions, your mortgage is providing you some tax benefit and therefore, your "real" interest rate is less than you are paying. Also, assuming you have a resonable mortgage interest rate, it is likely that you will earn more investing your extra money than you will save by not paying interest on your mortgage. The earlier you invest for your retirement, the greater the long term value. I would consider paying yourself first and fund your long term goal of retirement planning. If paying off your home is a non-negotiable goal, consider making additional payments, but not in lieu of funding your retirement.