Investing Insights

Why You Should Purchase Life, Disability and Long-Term Care Insurance - Early Spring 2014


It’s important to prepare for the unexpected, and life, disability and long-term care insurance can all help you ensure a secure financial future for yourself and your loved ones. Insurance plans can cover unexpected expenses, estate taxes and pay off debts. Consider the following benefits and guidelines when choosing the right plans for you and your family.

Life Insurance

Benefits: Life insurance can help you ensure financial security for your loved ones and help offset the impact of estate taxes upon death. Life insurance can help your family maintain their current lifestyle, continue paying the home mortgage, help pay off debts or estate taxes or go towards future education costs. As long as you pay premiums, permanent life insurance provides coverage throughout your life, regardless of whether your health or personal situations change.

Guidelines: To determine how much life insurance you need, consider what your beneficiaries would need to cover expenses in the event of your death, and also to live comfortably. Keep in mind education and retirement savings. Also, decide if you need permanent or term life insurance. Permanent life insurance offers protection for your entire lifetime while term life insurance offers coverage for a certain time period, from 10 to 30 years. Choose a longer-term policy if you have young children. If your children are adults supporting themselves, a short-term policy may be acceptable.

Disability Insurance

Benefits: If you are unable to work due to an illness or injury, disability insurance can help you maintain your standard of living. It can allow you to continue to pay your expenses, including car and mortgage payments and additional living expenses including food, gas and utilities. It will help replace any income lost while you recover from your illness or injury.

Guidelines: Check with your current employer to see if there is group disability coverage available to you. If you are considering purchasing your own policy, be sure to receive quotes and policies from at least three different insurance companies to compare pricing, coverage and whether the policy is noncancelable or guaranteed renewable. Noncancelable policies are the best option as the insurance company is not able to cancel your policy or change your premiums as long as you are paying your premiums on time. Also, purchasing a policy at a young age can save you money as insurance costs typically rise with age.

Long-Term Care Insurance

Benefits: Long-term care insurance differs from traditional health insurance and is available to help you cover long-term personal and custodial care services and support, whether its in your own home or another facility. Policies can be used to cover daily living expenses such as nursing home or assisted-living services, bathing, dressing or eating. It’s never too early to start planning for your long-term care.

Guidelines: Review the average costs for long-term care to estimate how much coverage you may need on your long-term care insurance policy. Keep in mind that any long-term care insurance policies have limits on how long or how much they will cover. You should designate an individual to be the decision-maker for your long-term care in the event that you are medically or mentally unable to make your own decisions. Consider consulting an eldercare attorney for advice and guidance on selecting the right policy for you and your family.

First National’s Investments and Planning Advisors can help you get started today on securing your financial stability for tomorrow and beyond. Learn more about our investment and planning options.

Setting Goals for Retirement - Winter 2013

By setting reasonable retirement goals, you can break your big-picture objectives into smaller, more manageable goals. An attainable retirement plan should be based on estimating how much to save and where to invest it, tracking your progress, monitoring your plan and adjusting as necessary.

Set a goal: By setting a retirement goal for yourself, you are more likely to become engaged in your retirement savings and be more motivated to stick to effective savings habits. Set a realistic goal for what you can afford out of your monthly budget, but also make sure you are aware of approximately how much you will need in retirement. Use our online calculator ‘Am I Saving Enough?’ to estimate how much you will need to save in order to cover expenses after you retire. Put aside a set contribution amount for each paycheck and have funds directly applied to a 401(k) or IRA. This will help you stick to your plan and continue working towards your goal.

Track your progress: You should continually track your progress to ensure you are accounting for any significant market changes or changes in your own finances. Retirement cost estimates will continuously change throughout your lifetime and will be influenced by multiple factors. Consider inflation, healthcare expenses, rise of cost of living and any other expenses you may possibly incur during retirement. Also ensure you are not withdrawing any funds out of your retirement fund before retirement. You will lose a significant portion of your investment and will be subject to tax penalties.

Adjust your plan: After setting your initial plan and choosing your investments, it’s still important to revisit your retirement funds on a yearly basis. You may find that you need to increase your savings or rethink your target retirement date. You also may want to consider diversifying your investments. While you may want to invest some funds in a 401(k) or the stock market, you also can utilize IRAs, Certificates of Deposits and money market accounts.

First National Bank is here to help you set goals and achieve financial security for your retirement. Contact us today to get started on planning for the future needs of you and your family.

Why Do I Need an Investment Planner? - Fall 2013

An investment planner can help you plan for a successful financial future, and help you prepare for retirement, education, protection and estate planning or for managing mutual funds, stocks & bonds or IRA’s. Whether you need help getting started or guidance on how to manage the investments you already have, a 3rd party evaluation of your situation can help you make the most suitable decisions to stay on track reaching financial independence.

Selecting an Investment Advisor
You may benefit from an investment planner if you have little experience with finances, don’t have an interest in learning the in’s and out’s of investments, or have a complex financial situation. It takes time to plan and manage investment accounts, but it’s important to make the time for it regardless if you seek out a professional planner or not. When selecting an investment advisor, you should ask for his/her main areas of expertise, professional designations, services offered and payment structure. It's important your goals align with the past experience of your planner. No two investment strategies are alike as every investor has his or her own unique goals and plans for the future. First National Investments and Planning advisors will work closely with you to develop a successful, customized investment plan.

Developing Your Plan
Once selecting an investments advisor, you will work closely with him or her to outline your current financial situation to better address your goals. You will need to share certain information; including net worth and earning statements, tax returns and your responsibilities, as well as with the level of risk you're comfortable. You will then discuss what barriers may exist to reaching your goals, such as inflation or taxes. First National Investments and Planning advisors will help you identify these obstacles and find a way to get past them and develop a comprehensive financial plan to reach your goals.

Benefits of an Investment Advisor
By working closely with an investments planner, your plan will be continually monitored as your personal and economic situations change. The best-laid plans can be thrown off course if not monitored on a regular basis. Having an advisor who is aware of your situation and your end goals can help you make revisions to your plan, when needed.

Securities products and advisory services provided by First National Capital Markets, Inc. (FNCM), a registered broker/dealer and registered investment advisor. Member FINRA & SIPC. Advisory services may only be offered by Investment Advisor Representatives in connection with an appropriate FNCM Advisory Services Agreement and disclosure brochure as provided. Investment products are: Not a Deposit • Not FDIC Insured • Not Insured by any Federal Government Agency • Not Guaranteed by the Bank • May Go Down in Value

Securities products and advisory services provided by First National Capital Markets, Inc. (FNCM), a registered broker/dealer and registered investment advisor. Member FINRA & SIPC. Advisory services may only be offered by Investment Advisor Representatives in connection with an appropriate FNCM Advisory Services Agreement and disclosure brochure as provided. Investment products are: Not a Deposit • Not FDIC Insured • Not Insured by any Federal Government Agency • Not Guaranteed by the Bank • May Go Down in Value