Enough? How to Create Sufficient Protection, Wealth, and Retirement

Do You Have Enough?

It's a question most people think about often: "Do I have enough?" Enough what? Protection, wealth, retirement, assets, life insurance, time. And at what cost? Is there ever enough? How much is enough?

There are industry standards, yet the proper amount of "enough" is personally based on your living expenses, standard of living, and personal expectations. Having "enough" rarely comes all at once, and for most people having "enough" requires discipline, planning, adjustments, and time. At times "enough" requires some sacrifice. But "enough" can be created.

Two Obvious Ways to Create Enough

1. Increase income. Although it sounds obvious, identifying additional avenues for additional revenue may take some time and resources. Royalties, rents, and passive income make a difference. Business owners who manufacture products may consider offering a warranty. Warranties can generate significant income.
2. Reduce expenses. Reducing expenses can be even harder, yet regular review of expenses often reveals areas which can be addressed because of changes in priority, use, or advances in technology.

Four Additional Opportunities

1. Re-allocate. With a set amount of cash coming in, one way to create "enough" is through re-allocation of assets. A simple example includes taking a higher deductible on insurance costs, thus reducing the required premium, then preserving those dollars by investing them. The same amount of dollars coming in, yet now an additional asset has been created.
2. QSBS. For qualified small businesses, particularly young businesses, QSBS provides significant opportunities for growing businesses. Investing in yourself, your business with additional basis and growth has a 10 times multiplier.
3. Permanent life insurance. Life insurance serves multiple purposes, most importantly protection for family or business in the event of a premature death. Additionally, life insurance can and should be used for wealth transfer and estate tax planning. The cash value of permanent life insurance is quite flexible and efficient and can be used for multiple purposes including income.
4. Create your own insurance company. Directing insurance premiums to your own company utilizes your dollar in multiple ways, with multiple benefits as your new insurance company should be profitable and you now create new retained earnings.

Urgency Creates Action

Regardless of the method, the way to have "enough" is to take action. Today.

"A higher rate of urgency does not imply ever-present panic, anxiety, or fear. It means a state in which complacency is virtually absent." — Dr. John Kotter

Urgency creates action. Action creates "enough."