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Life Insurance

talessi@ariesfoundation.org

5 THINGS ABOUT WHOLE LIFE INSURANCE

Are you struggling to figure out if whole life insurance is a good product for you to buy then here are five benefits to help you make that decision benefit 

#1 CONTROL - is control when you have a whole life insurance product you are signing a contract between yourself and the insurance company. Essentially this is a private contract between you and the insurance company which is a huge benefit for you, because that means you are in complete control. Which unlike other financial products out there you may, or may not have that level of direction of what happens with your account. That includes being able to access it and use it however, whenever you wish. One of our adages is that you don't lose money until you lose control of it, so a nice aspect of whole life insurance is that you maintain control throughout your entire life. 

#2 CASH VALUE -every single time that you make your premium payment cash value accumulates inside your policy. Now there are 2 ways for you to access this cash value; through a withdrawal or through a loan. If you decide to use the loan feature to access your cash value then you do not disturb the compounding inside this policy. This is kind of cool, if you think about it, it is kind of like being in two places at the same time. You can use the loan to accomplish many things; pay off debt, offset market volatility, pay down or eliminate outstanding debt. You are able to do all these things and not disturb the compounding when you take a loan. You can also do a withdrawal but through a withdrawal you reduce the cash value inside your policy.  

#3 DIVIDENDS -these are a non guaranteed portion of your contract premium. If your policy is provided by a mutual insurance company, then you could possibly be paid a dividend each year, Now a dividend is at the end of the year when the insurance company is profitable and they've paid all of their expenses whatever is left is returned back to the policy owners in the form of a dividend. For IRS reporting purposes these funds are classified as nontaxable, so you are not taxed on these dividends. Which is kind of amazing because you don't have to do anything, just own a policy and you are able to share in the profits of that company through the forms of a dividend benefit 

#4 RIDERS -are additional features and benefits that can be added to your policy for your specific needs. There is a terminal illness rider, if you elect this option with your whole life insurance policy and you're diagnosed with a terminal illness a portion of your death benefit can be utilized to take care of your medical expenses. This rider is similar to the chronic illness rider and if you are diagnosed with the chronic illness then a portion of your death benefit can be utilized to take care of your medical expenses while you're still living. Another one is disability waiver, if you get disabled then the company will continue to pay your premiums for the rest of your life. For comparison check and see if your 401(k) plan has this feature. The answer is Not!  

#5 TAXES - because you put in after-tax dollars into a whole life insurance policy the cash value grows at a tax-free rate now what did this mean for you all the years that you have your whole life insurance policy you are not going to be taxed on any of that growth nor the cash value that you utilize as long as you request a loan and the nice thing about adding after-tax dollars into your whole life insurance policy is the fact that you know where taxes are right now you have no idea what taxes are going to be in the future.

Now you know the five benefits of whole life insurance do you know how to use your policy because you can actually use it right now today while you're living by accessing the cash value inside your policy because the thing that you need to know is that you can use your policy right now today and you don't have to wait years in order to access your cash value.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!
Reach out to us at crichardson@ariesfoundation.org or visit our website www.ariesfoundation.org to learn more.

By Thomas Alessi January 5, 2025
Have you ever noticed how New Year's resolutions seem to lose their sparkle by the second or third week of January? If so, you’re not alone. Statistics show that most people abandon their resolutions within a few weeks of setting them. But why does this happen? The reasons often lie in how we approach our goals and the mindset we carry into the new year. One of the biggest culprits is setting unrealistic goals. Many of us feel a surge of motivation on January 1st and decide to aim for major life changes all at once—like losing 30 pounds in a month or working out every single day without fail. While ambition is admirable, these types of goals are often unattainable in such a short period, leading to frustration and eventual burnout. Another common issue is the lack of a clear plan. Resolutions often start as vague statements like “I want to get fit” or “I’ll save money this year.” Without actionable steps or measurable milestones, it’s easy to lose track of progress or get overwhelmed by the enormity of the goal. Without structure, even the best intentions can falter. Motivation fades quickly after the excitement of the new year dies down. Motivation is often fueled by novelty, but real change requires discipline and consistency—two traits that are harder to maintain over time. By mid-January, the initial enthusiasm often gives way to old habits, especially if we don’t have systems in place to reinforce new ones. Social and environmental pressures also play a role. Life gets busy, and as the demands of work, school, or family creep back in after the holiday lull, resolutions take a backseat. Pair this with temptations like junk food or the comfort of skipping the gym, and it’s no surprise that many people give up. Finally, many people don’t account for setbacks. Whether it’s missing a workout, overspending on a shopping trip, or indulging in an unhealthy meal, one slip-up can feel like a failure. This "all-or-nothing" mindset often leads to abandoning the resolution entirely instead of adjusting the plan. ________________________________________ Strategies to Overcome Quitters Day Breaking the cycle of quitting isn’t just possible—it’s entirely within your reach with the right mindset and strategies. Let’s dive into how you can overcome the challenges of Quitters Day and stick to your resolutions long-term. 1. Set Realistic and Measurable Goals The key to success lies in creating goals that are specific, measurable, achievable, relevant, and time-bound (SMART). For example, instead of saying, “I’ll get fit this year,” try “I’ll exercise for 30 minutes three times a week.” By breaking big aspirations into smaller, manageable steps, you’re less likely to feel overwhelmed and more likely to stay on track. 2. Build Consistent Habits, Not Just Motivation Motivation is fleeting, but habits are sustainable. Focus on creating daily or weekly routines that make progress automatic. For instance, if you want to eat healthier, prep your meals in advance or stock your kitchen with nutritious options. Building habits takes time, but once established, they become second nature. 3. Accountability and Support Systems Having someone to hold you accountable can make all the difference. Share your goals with a trusted friend, family member, or even a coach. Better yet, join a community or group with similar objectives. Knowing that someone is rooting for you—or counting on you—can keep you motivated during tough moments. 4. Reframe Setbacks as Learning Opportunities Setbacks are inevitable, but they don’t have to derail your progress. Instead of viewing a missed workout or a bad day as failure, see it as a chance to learn. What triggered the setback? How can you adjust your approach to prevent it in the future? Remember, growth isn’t linear—it’s a journey filled with ups and downs. 5. Celebrate Small Wins Big goals take time, so it’s important to recognize and celebrate progress along the way. Did you stick to your exercise routine for two weeks? Treat yourself to something meaningful, like new workout gear. Celebrating small milestones helps reinforce positive behavior and keeps you motivated for the long haul. 6. Focus on the Process, Not Just the Outcome Instead of fixating on the end goal, shift your mindset to enjoy the journey. For example, if your goal is to write a book, celebrate the act of writing every day rather than stressing about completing the manuscript. When you focus on the process, progress feels more achievable, and the outcome will naturally follow. 7. Leverage Technology and Tools Apps and tools can help you stay organized and motivated. Habit trackers, fitness apps, and budgeting tools make it easier to monitor progress and stay accountable. Life happens, and sometimes your resolutions need to evolve. Check in with yourself weekly or monthly to assess progress. Are your goals still realistic? Do you need to adjust your timeline or strategy? Being flexible ensures that your resolutions remain relevant and achievable. ________________________________________ With these strategies, you can break free from the Quitters Day trap and turn your resolutions into lasting change. The key is to approach your goals with patience, self-compassion, and a focus on progress rather than perfection. Change doesn’t happen overnight, but with consistent effort, you’ll be surprised at what you can accomplish.
By Thomas Alessi December 9, 2024
Budgeting and dieting are two of the most common self-improvement goals people set for themselves. Both aim to bring about positive changes—whether it's financial stability or better health. However, many find that sticking to a budget is just as challenging as sticking to a diet. Here’s why: 1. Restrictive Nature Both budgeting and dieting often start with a restrictive mindset. Just as a diet might cut out all your favorite foods, a budget might eliminate all your discretionary spending. This restriction can lead to feelings of deprivation, making it harder to stick to the plan. Over time, the temptation to "cheat" becomes stronger, whether it's indulging in a dessert or splurging on an unplanned purchase. 2. Unrealistic Expectations Many people set themselves up for failure by setting unrealistic goals. In dieting, this might mean expecting to lose a significant amount of weight in a short period. In budgeting, it could mean expecting to save a large portion of income without considering necessary expenses. When these high expectations aren't met, it can lead to discouragement and abandonment of the plan altogether. 3. Lack of Flexibility Life is unpredictable, and both diets and budgets need to be flexible to accommodate unexpected changes. A rigid diet plan doesn't account for social events or cravings, just as a strict budget doesn't account for emergencies or spontaneous opportunities. Flexibility is key to maintaining long-term success in both areas. 4. Emotional Factors Emotions play a significant role in both eating and spending habits. Stress, boredom, and happiness can all trigger overeating or overspending. Without addressing the underlying emotional triggers, it's challenging to maintain a diet or budget. Emotional awareness and coping strategies are essential for long-term success. 5. Short-Term vs. Long-Term Mindset Both dieting and budgeting often focus on short-term results rather than long-term sustainability. Crash diets and extreme budgeting can lead to quick results, but they are rarely sustainable. A more balanced approach that focuses on gradual, consistent changes is more likely to lead to lasting success. 6. Lack of Support Having a support system can make a significant difference in achieving goals. Just as people might join a weight loss group or hire a personal trainer, having a financial advisor or joining a budgeting community can provide the encouragement and accountability needed to stay on track. Making It Work To make both budgeting and dieting work, consider the following tips: • Set Realistic Goals: Aim for gradual progress rather than drastic changes. • Allow Flexibility: Build in some room for treats and unexpected expenses. • Address Emotional Triggers: Be mindful of how emotions affect your habits and develop healthy coping mechanisms. • Seek Support: Surround yourself with people who encourage and support your goals. • Focus on Long-Term Changes: Develop habits that you can maintain for life, rather than quick fixes. By understanding the similarities between budgeting and dieting, you can approach both with a more balanced and sustainable mindset. Remember, it's about progress, not perfection. Watch our Think With A Drink episode for ways to be better at handling your expenses: The Dreaded B Word
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