Mark Henry of Alloy Wealth on the Value of Insurance

Mark Henry started Alloy Wealth with the goal of helping his clients avoid financial pitfalls—like the 1987 stock market crash that impacted his father’s savings. In one day, Mark Henry saw his father lose a large portion of his retirement portfolio. At Alloy Wealth, he wants to make sure that no one else suffers the same fate.

Working with a diverse team of financial professionals, he creates written, personalized retirement plans for his clients, taking into account their income, savings, investments, debt, real estate, age, lifestyle costs, and retirement goals. Using this information, Mark Henry and Alloy Wealth create retirement plans that place assets into three “buckets”: one for long-term growth, one for short-term growth, and one that draws on existing funds to provide a guaranteed monthly income. This way, clients are better positioned to maintain their lifestyle even after they stop working.

Mark Henry is also a recognized authority on personal finance. He does frequent speaking engagements (both online and in person), appears as a guest on television, radio, and podcasts, and maintains a YouTube channel and blog called Living Large Retirement. His content promotes financial literacy and helps people learn the ins and outs of retirement planning.

Insurance: A Tool for a Secure Retirement

A recent article posted on Mr. Henry’s blog talks about the various forms of insurance, and how understanding and investing in insurance from a young age can set people up for a more secure retirement. Use this checklist to see how well you are covered.

Life insurance

There’s a difference between term and whole life insurance. Term insurance is temporary and has no dollar value, while whole life insurance provides permanent coverage as long as the premium is paid. Whole life insurance tends to be cheaper when you purchase it at a younger age.

Renters insurance

Here’s a great way to safeguard your belongings and personal effects when living in a rental property. Renters insurance covers theft and fire damage, as well as other incidental losses. Luckily, it tends to be cheap (about $150 per year, on average, according to NerdWallet) and can mean the difference between big losses and financial stability in the case of unexpected accidents.

Homeowners insurance

If you have a mortgage, homeowners insurance is mandatory. But even if you own your home outright, you would be foolish not to insure it against losses related to fires and other disasters. After all, for many people, their home is their most important asset. You stand to lose a large part of your nest egg if the equity you have in your home is burned up or otherwise lost with the structure. Note that homeowners insurance does not typically cover damage from floods or earthquakes; depending on where you live, it may be wise to invest in separate policies covering these disasters.

Health insurance

Health insurance protects people from unexpected medical expenses, which can be extremely high in the United States. Even a short visit to the ER can cost thousands of dollars, while an overnight stay or procedure can cost tens or hundreds of thousands. Without health coverage, the possibility of bankruptcy due to unforeseen health issues is very real. You can reduce the cost of health insurance premiums by selecting a high-deductible policy, which typically also includes eligibility for a Health Savings Account (HSA). Contributions to an HSA reduce your taxable income, while withdrawals for medical expenses are tax-free. The funds carry over and can be invested as well.

Long-term care insurance

This type of insurance can be essential to protect your assets when you’re over 50. Many people assume they will be able live independently well into their golden years, but this isn’t always the case. Long-term care is extremely expensive and can total as much as $15,000 per month for a nursing home. Remember, also, that Medicare generally does not cover long-term care. The premiums for long-term care insurance are cheapest if you purchase a policy before you hit 50. At 60, the cost increases substantially.

If you have questions about your insurance needs in retirement, contact Mark Henry at Alloy Wealth online.