Where the heck did my net worth go? This has been one tough month on those of us who are actually middle class enough to care what happens to our retirement investments. For many it is a scramble to get your money to a safe place, with people scrambling to move money to T bills even as their investment counselors recommend riding it out.
I know for my wife and I it is a day to day bit of tension watching as the CEO’s, even temp CEO’s, on Wall St make monster salaries, and the bozo in chief lame duck keeps giving 5 minute speeches, it is a bit hard to rap our minds around the idea that we can ride it out and the whole thing will just be a distant memory in a few years and all will be OK.
The thing that I hang my confidence on that can see us through to better times is the life insurance I have in force, a thought that many may want to consider. It’s not that I don’t believe the markets and economy won’t come back, but rather the what happens if I die before it does and leave my wife with nothing but a badly mangled investment portfolio. For me that question is answered.
Life insurance has always been an effective estate preservation tool, usually looked at in the context of estate taxes, but I have to tell you that in the absence of portfolio value, hardly a beat will be missed if there is adequate life insurance in place. Your spouse and your family will be fine if you have planned for good and bad times.
Bottom line. Insurance is all about taking the risk out of the unknown. The peace of mind that your spouse will have in knowing that all of your work won’t be blown by Wall St and the Treasury secretary is worth the small cost of some additional term insurance.