You’ve worked hard to save for you and your family’s future. Don’t underestimate the importance of protecting those financial assets.

A way many people protect their assets is by diversifying them. By using multiple financial assets—stocks, bonds, cash and more—risk is better managed.

You can also start a trust to hold, manage and distribute your assets according to your wishes. It can protect your finances now and provide for those you love long after you are gone.

Another way to protect your family’s financial future is life insurance. Life insurance helps protect your loved ones, no matter what, and there are options to fit your specific needs. Whether you choose term life, whole life or universal life, life insurance can give your family financial safety in a time of uncertainty.

Term life insurance is coverage that lasts for a limited amount of time, typically 10, 15, 20, 25 or 30 years. During your term, payments and coverage remain the same, making term policies an affordable life insurance option. As a VFW member, you have access to term life insurance from AGIA.

Universal life insurance is a flexible coverage option that lasts a lifetime. Universal life insurance policies can have tax deferred cash value, giving you the power to increase or decrease your coverage or payments.

Taxes and Your Financial Assets

When tax season rolls around, it’s worth reevaluating your financial portfolio. Talk with your financial advisor about creating a tax-diversified portfolio. A tax-diversified portfolio can help reduce your tax liability, so you can make the most of your investments.

There are three account types – taxable, tax-deferred and tax-exempt.

  • Taxable accounts include income that is taxable in the year it is received, such as individual accounts and trusts.
  • Tax-deferred accounts may allow for immediate tax deductions on the contribution, but future withdrawals will generally be taxed. These accounts include traditional IRAs and 401(k)s.
  • Tax-exempt accounts may provide future tax benefits, as withdrawals at retirement are potentially tax-free. Tax-exempt accounts include Roth IRAs and Roth 401(k)s.

To make the most of these different account types, consider holding certain investments in certain accounts.

Tax-deferred/tax-exempt accounts should include:

  • Money market funds
  • Precious coins and metals
  • Income funds and real estate investment trusts
  • Taxable bonds/ bond funds/ bond exchange traded funds

Taxable accounts should include:

  • Deferred annuities
  • Growth stocks and growth stock mutual funds
  • Municipal bonds and municipal bond mutual funds
  • Stock index funds, stock exchange-traded funds
  • Dividend-producing stocks

While tax efficiency should be used, it should not commandeer your investment strategy. Continue using your long-term goals, investment time frames and risk tolerance, but consult with your investment advisor to create a tax-diversified portfolio.

Program is administered by Lockton Affinity, LLC. d/b/a Lockton Affinity Insurance Brokers, LLC in California #0795478. Coverage may not be available in all states and is subject to actual policy terms and conditions.  Coverage may be provided by an excess/surplus lines insurer which is not licensed by or subject to the supervision of the insurance department of your state of residence. Policy coverage forms and rates may not be subject to regulation by the insurance department of your state of residence. Excess/surplus lines insurers do not generally participate in state guaranty funds and therefore insureds are not protected by such funds in the event of the insurer’s insolvency.