Do You Know the Top Financial Concern for Physicians?
by David Alemian
If you’re worried about running out of money in retirement, read on because you’re not alone. A Gallup poll of average Americans revealed that 59% of Americans are worried about having enough money for retirement. The most concerned group are middle-aged Americans between 30 and 64. Indeed, the concern isn’t limited to your average middle-class American. For six consecutive years, the American Medical Association (AMA) has published reports showing that all US physicians consider retirement their top financial concern. Contrary to popular opinion, it’s not just middle-class Americans who are concerned about having enough money in retirement. Instead, the problem extends to those in the mid-six-figure income range too.
The biggest mistake most people make when saving for retirement is relying solely on their 401k and Social Security. Contrary to popular opinion, a 401K is a supplemental retirement plan—however, most people error and use them as a primary retirement savings vehicle. Unfortunately, as a result, the average 401k runs out of money in 12 to 14 years.
Pssssst! The biggest secret to successfully funding your retirement isn’t a secret. It’s cash-value life insurance. That said, I’m not talking about variable life insurance policies because variable life insurance policies can lose money. You want to look at universal life, whole life, and equity-indexed universal life.
One of the most significant advantages of a cash-value life insurance policy is that it can provide a lifetime tax-free income stream. In addition to the tax-free income, many of these policies also come with very impressive bells and whistles. Critical and chronic illness riders can provide needed protection as we age and develop illnesses that can wipe out our savings. Having the financial security of these riders is an excellent thing to have.
If you’re between 25 and 55 years of age and have average to above-average health, invest a little time checking out life insurance to fund your retirement. Once you compare it to everything else, you’ll find that it was time well spent.
One company that has caught on to the value and importance of cash-value life insurance for retirement is Talent Retention Plans. Rather than offering employers ordinary employee 401K plans to its clients; Talent Retention Plan has a far more robust plan. The product is a group retirement benefit using cash-value life insurance. According to Talent Retention Plans Founder David Alemian, clients use the product as a highly effective way to retain their key employees. A video on the company website explains how the plan works.
The focus of the company is to help hospitals overcome skilled workforce shortages. Employees pay nothing to receive the highly desirable benefit. In exchange, the employees agree to stay with the company for a specified number of years. The arrangement instantly stops key employee turnover, thereby mitigating turnover costs for the employer.
To make the plan even more affordable for the employer, Talent Retention Plans arranges commercial bank financing for the program.
The company has a program that enables employers to provide the benefit to their key employees with commercial bank financing known as Life Insurance Premium Financing. The program allows employers to provide significant retirement benefits with no out-of-pocket expense to the company or the employees.
About the Writer - David Alemian is the author of “Talent Retention – How to Attract and Retain Highly Skilled Professionals.” You can get a complimentary copy of the e-book here. His passion is helping healthcare organizations build and retain the skilled workforce needed to provide quality healthcare. He lives in Oceanside, California, with his wife Hillary and their pug Taz. Connect with him on LinkedIn.