In this episode, they discuss financial planning for young families in their 20s and 30s, including credit scores, insurance, estate planning, and investments. They provide guidance on credit management and financial responsibility, emphasizing the importance of maintaining a good credit score. The conversation also covers financial preparedness through estate planning, insurance options, and trust in financial advisors. Additionally, they explore achieving financial stability through discipline, diversification, and long-term planning for a secure future.
Understanding the difference between term and permanent insurance is crucial for making informed decisions on life coverage.
Evaluating participating and non-participating insurance companies helps in choosing the best option for long-term growth and financial stability.
Maintaining a clear inventory of assets and debts aids in effective financial planning and estate management.
Selecting a reputable life insurance company with a strong financial standing and suitable policy options is essential for meeting your specific financial goals.
Deep dives
Understanding the Difference Between Term and Permanent Life Insurance
Term insurance is like renting while permanent insurance is like owning. Term insurance provides coverage for a specified period, typically 20 years, and the premiums and death benefit remain level. However, most term policies are not kept until the end, leading to overpayment. Permanent insurance, on the other hand, is designed to last a lifetime. It includes options like whole life insurance, which has guarantees, and universal life insurance, which does not have guarantees. Variable universal life insurance allows you to invest in sub-accounts tied to the stock market.
Considerations for Choosing Life Insurance Policies
When choosing life insurance, it's important to consider factors like participating versus non-participating companies. Participating or mutual companies distribute dividends to policyholders, while non-participating companies pay dividends to shareholders. Mutual companies often provide better long-term growth. Additionally, it's crucial to evaluate the financial strength and track record of insurance companies, as well as the terms and coverage options included in each policy. Having a clear understanding of your goals and priorities will help guide your decision-making process.
The Importance of Proper Asset and Debt Management
Having a comprehensive understanding of your assets and debts is essential for efficient financial planning. Make a list of all bank accounts, properties, retirement accounts, and investments. This knowledge helps ensure that you have a clear picture of your financial health and facilitates smoother estate planning. Additionally, it is crucial to manage debts responsibly and consider factors like credit scores, collateral, and interest rates. Proper asset and debt management allows for better financial stability and enables you to reach your long-term financial goals.
Tips for Choosing the Right Life Insurance Company
When selecting a life insurance company, it is important to evaluate key factors such as financial stability, dividend history, and claims payment track record. Look for companies with a strong financial standing and a reputation for honoring their obligations. Consider the ownership structure of the company, whether it is participating (mutual) or non-participating (stock-based). Additionally, review the different types of life insurance policies available, including term and permanent insurance, to find the best fit for your specific needs and goals.
Importance of Understanding Different Financial Tools
Understanding various financial tools is crucial as there is no one-size-fits-all solution. Strategies can include using funding sources for businesses, retirement planning, and protection against market volatility.
Considerations for Life Insurance and Estate Planning
When it comes to life insurance, there is no universal understanding of how much coverage you should get. It commonly involves paying debts, covering final expenses, and replacing income. Estate planning involves having a will, choosing physical and financial guardians for minors, and establishing powers of attorney.
Budgeting, Investments, and Prioritization
Proactive budgeting is recommended, where you pay yourself first and set aside money for the future. Prioritizing investments can include contributing to retirement plans, like 401(k)s and Roth IRAs, owning assets such as stocks and real estate, and being cautious with risky investments like cryptocurrency. It's important to diversify and start small in all these areas, gradually increasing contributions over time.
Welcome to Bright Hearth, a podcast devoted to recovering the lost arts of homemaking and the productive Christian household with Brian and Lexy Sauvé. In this episode, Brian sits down with Joe Garrisi of Backwards Planning Financial to talk about financial planning, estate considerations, and more.
Brian's new EP, Hearth Songs, is out and streaming everywhere! You'll find links to listen in here. We hope these songs bless you and yours. Hearth Songs, is devoted to demonstrating the glory and beauty of ordinary Christian life, marriage, family, and all the rest. If you love it, consider helping fund the next album he's working on by tapping this link.
Want premium, handmade soaps without the seed oils or other nasty hormone disrupters? Check out our partners at Indigo Sundries Soap Co., and use code BRIGHTHEARTH for ten percent off your order!
This episode is also brought to you by Joe Garrisi at Backwards Planning Financial. Head to https://backwardsplanningfinancial.com and reach out to Joe to get started planning your financial future today!
Our brand new limited edition coffee, GM Kings, is also available until they sell out! Check out this premium single-origin Brazilian coffee today!
New Christendom Press is putting on a conference this June... and there will be a special singles mixer on the first night! More details and ticket info can be found here.
Special thanks to our sponsor for this episode, Stonecrop Wealth Advisors! As a Christian, it’s common to feel uneasy about where your hard-earned money is invested, especially when the S&P 500 is full of companies that are actively supporting causes that go against your faith. Stonecrop Wealth Advisors is here to help. Stonecrop offers faith-based portfolios to help you direct your hard-earned investment dollars away from such companies and toward companies that are having a positive impact on society. They also offer comprehensive financial planning to help give you peace of mind about your future that these investment dollars support. Stop investing in companies that want to tear down the things you care about. Invest in building up God’s Kingdom while you grow your wealth. Contact Stonecrop Wealth Advisors today by clicking the link in the description or by calling 610-628-0035.
Be sure to subscribe to the show, and leave us a 5-Star review wherever you get your podcasts! Buy an item from our Feed the Patriarchy line and support the show at the same time at briansauve.com/bright-hearth.
Become a monthly patron at patreon.com/brighthearth and gain access to In the Kitchen, a special bonus show with each main episode!