Unfortunately, there’s no easy answer, but that shouldn’t be surprising, since there are many variables to consider before you find that number.  First among them is how much your lifestyle in retirement is going to cost.  Other variables you’ll have to pin down include what your health will be like, how much more expensive things will be, what your tax rate will be, and so forth.

The best way to go about determining those variables and answering the “How much do I need to retire?” question is to work with a professional to create the retirement chapter of a comprehensive financial plan.  The truth is, however, that even after your plan is done, your number will always be a moving target as conditions in the economy, financial markets, and your life change.  Uncertainly is greatest the farther away from retirement you are; but once you reach retirement, even the best of plans needs to be revisited about once a year.

While we obviously can’t address your individual case here, we can review the steps involved in preparing a personalized retirement plan:

Step 1: Identify your retirement goals. How much will the retirement lifestyle you want cost?  When do you want to retire? At this point, it’s okay to dream. Give the numbers a run – the financial planning process usually tosses out unrealistic expectations fairly quickly.

Choosing when to retire is the easy part – and the variable that’s easiest to change if you’re not being realistic. When it comes to pricing your future lifestyle, though, it’s best to base it on your current lifestyle. If you don’t know what that costs, you need to create a budget that line-by-line accounts for monthly expenses in all categories. Multiply those monthly expenses by 12, and take that number as a good benchmark for how much you’ll need to spend in retirement.

Then you can adjust that number up or down – down for expenses you may no longer have, like mortgage payments or the cost of commuting to work; or up for things you’d like to have or do, like travel more or maintain a vacation home.  A rule of thumb that works for many for planning purposes is 70% to 80% of your current household income.

Step 2: Identify your known income streams. Start with a projection for Social Security. Don’t know what it is? Go to the SSA’s website (ssa.gov.) and use their “Retirement Estimator” to estimate your monthly check for yourself and partner, then annualize that number. Next, add any annual cash streams you might get, such as from a pension plan, rents, royalties, or trust funds.

Step 3: Calculate your income gap. Subtract your combined retirement income stream total (Step 2) from your annual retirement lifestyle cost (Step 1). The difference is how much you have to make up with withdrawals from your nest egg: taxable savings and investments, IRAs, and annuities.

Step 4: Calculate the nest egg you’ll need. Divide any negative income gap by 4%. The result gives you a rough idea of how much in personal liquid assets, in today’s dollars, you need to accumulate in order to afford to retire. Why divide by 4%?  Because that’s the approximate rate of annual withdrawal you should take from your retirement savings to make your money last for as long as you live.

Determining how much you need to accumulate in savings is just the first step in drawing up a retirement plan. The next step is to compare that to how much you’ve already accumulated and determine what you need to do to accumulate the rest. It could mean adjusting how much you save per year, how you invest your money, or changing the year you retire.

If you’re uncertain about how much you need to retire or whether you can reach that amount, you owe it to yourself to create or revisit your retirement plan. Please call if you’d like to discuss this in more detail.

Copyright © Integrated Concepts 2012. Some articles in this newsletter were prepared by Integrated Concepts, a separate, nonaffiliated business entity. This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. The appropriate professional advisers should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

Even if you have a traditional pension plan, those benefits can change. Your employer can’t take away benefits you’ve already earned, but benefits going forward can be reduced. Traditional pension plans have experienced large losses during the market decline, which will require additional contributions from companies. As an alternative, companies might reduce benefits. Keep an eye on your pension plan, so you know if your employer makes changes.

Switching jobs can affect your retirement benefits. If you have a traditional pension plan, don’t change jobs without considering your pension benefits. The same applies to 401(k) plans with matching employer contributions. You may find staying at your job a while longer will significantly increase your benefits.

Don’t forget about pension benefits at previous employers. Many employees leave a company without realizing they are entitled to pension benefits. Before changing jobs, check with your employer to find out what benefits you are entitled to.  Then keep track of the company, so you can claim benefits when you retire.

Early retirement can significantly reduce your retirement benefits. Sure, it sounds great to retire before age 65 with company pension benefits. But don’t just look at how much you’ll receive when you retire early. Also consider what you would receive if you wait until normal retirement age. Retiring early can dramatically lower your monthly pension benefit for several reasons – you don’t have as many years of service, salary increases you would have earned aren’t considered, and those extra years of benefits cause a large actuarial deduction in benefit calculations.

You may not be able to count on health insurance benefits after retirement. Due to rapidly increasing costs for health insurance, many companies are either phasing out health insurance benefits for retirees or increasing retirees’ share of the cost. While Medicare is still available once you turn age 65, those benefits don’t cover all medical costs. Whether or not you can count on health insurance benefits is often a significant factor in deciding whether you can retire before age 65.

Social Security benefits are changing. Normal retirement age is gradually increasing from age 65 to age 67, a change affecting anyone born in 1938 or later. You can still receive reduced benefits at age 62, but the permanent reduction in benefits is increasing from 20% to 30% depending on you year of birth. These changes are meant to encourage you to retire at a later date.

Decide carefully before taking a lump sum distribution. Some traditional pension plans allow lump-sum distributions instead of monthly pension benefits. Use that option with care. While the amount of money might seem large, are you sure you can invest it and earn more than the monthly pension option?

There are many challenges to saving for retirement. Don’t let them upset your retirement plans. If you’d like to discuss your retirement plans in more detail, please call.

Copyright © Integrated Concepts 2012. Some articles in this newsletter were prepared by Integrated Concepts, a separate, nonaffiliated business entity. This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. The appropriate professional advisers should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

What percentage of your preretirement income will you need? You can find various rules of thumb indicating you need anywhere from 70% to 100% of your preretirement income. On the surface, it seems like you should need less than 100% of your income. After all, you won’t have any work-related expenses, such as clothing, lunch or commuting costs. But look carefully at your current expenses and how you plan to spend your retirement before deciding how much you’ll need. If you pay off your mortgage, stay in good health, live in a city with a low cost of living, and engage in inexpensive hobbies, then you might need less than 100% of your income. However, if you travel extensively, pay for health insurance, and maintain significant debt levels, even 100% of your income may not be enough. You need to take a close look at your expenses and planned retirement activities to come up with a reasonable estimate.

When will you retire? Your retirement date determines how long you have to save and how long investment returns can compound. You want to make sure your retirement savings and other income sources, such as Social Security and pension benefits, will support you for what could be a very lengthy retirement. Even extending your retirement age by a couple of years can significantly effect the ultimate amount you need.

How long will you live? Today, the average life expectancy of a 65-year-old man is 81 and of a 65-year-old woman is 84 (Source: Social Security Administration). Most people look at average life expectancies when estimating this, but average life expectancy means you have a 50% chance of living beyond that age and a 50% chance of dying before that age. Since you can’t be sure which will apply to you, it’s typically better to assume you’ll live at least a few years past that age. When deciding how many years to add, consider your health as well as how long other family members have lived.

What long-term rate of return do you expect to earn on investments? A few years ago, many retirement plans were calculated using fairly high rates of return. Those high returns don’t look so assured now. At a minimum, make sure your expectations are based on average returns over a very long period. You might even want to be more conservative, assuming a rate of return lower than long-term averages suggest. Even a small difference in your estimated and actual rate of return can make a big difference in you ultimate savings.

Have you considered inflation? Even modest levels of inflation can significantly impact the purchasing power of your money over long time periods. For instance, after 30 years of just 2% inflation, your portfolio’s purchasing power will decline by 45%. When estimating an inflation figure, don’t just look at the historically low inflation rates of the recent past. Also consider long-term inflation rates, since your retirement could last for decades.

What tax rates do you expect to pay during retirement? Especially if you save significant amounts in tax-deferred investments that will be taxable when withdrawn, your tax rate can significantly affect the amount you’ll have available for spending. You may find your tax rate is the same or higher after retirement.
Once you’ve estimated these factors, you can calculate how much you’ll need for retirement. Please call if you’d like help with this calculation.

Copyright © Integrated Concepts 2012. Some articles in this newsletter were prepared by Integrated Concepts, a separate, nonaffiliated business entity. This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. The appropriate professional advisers should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

Much will depend on your definition of early retirement. If your definition means to quit working completely so you can travel extensively and pursue expensive hobbies, then you might want to postpone those plans for a while. However, if your definition means to change careers to work part-time at a less-stressful job, cut back on your living expenses, and only take minimal amounts from your retirement savings until Social Security and pension benefits kick in, then your early retirement plans might still be feasible. If you want to seriously consider early retirement, review these tips:

Make sure you know what you’re going to do with your time. When you’re working full-time, it seems like you could fill all your waking hours with the things you don’t have time to do. But if you’re used to a fast-paced life, can you really expect to spend the next 20 to 40 years of your life just puttering around the house and golfing? Make sure you have concrete plans to fill your days so you don’t get bored early in retirement.

Calculate your numbers carefully. When calculating how much you need for retirement, be very conservative, Bump up your expected expenses by 5% to 10%, add a few years to your life expectancy, reduce your expected return by a couple of percent, and increase your inflation expectations. Don’t expect to draw more than 3% to 4% annually from your retirement investments. Now, can you really afford to retire early?

Cut back on your standard of living. Cutting back your expenses now will serve two purposes. It will provide more money to save for retirement, and it will reduce your living expenses now and during retirement.

Work at least part-time during retirement. Even a small amount of income after retirement can go a long way in helping to fund retirement.

Move to a less-expensive city. The cost of living in different cities across the country and in different countries can be vastly different. If you live in a city with a high cost of living, moving to a different location can dramatically lower your living expenses. However, this is not just a financial decision. You need to consider whether you’ll be happy living somewhere else, away from family, friends, and other ties.

Copyright © Integrated Concepts 2012. Some articles in this newsletter were prepared by Integrated Concepts, a separate, nonaffiliated business entity. This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. The appropriate professional advisers should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

Just because you’re retired doesn’t mean you should stop saving. Consider these tips:

• Construct a financial plan. Most retirees fear that they’ll run out of money during retirement. To ease those fears, create a financial plan detailing how much money will be obtained from what sources and how that income will be spent. Make sure your annual withdrawal amount won’t cause you to deplete your savings. Review your plan annually.
• Consider part-time employment. Especially if you retire at a relatively young age, you might want to work on at least a part-time basis. Even earning a modest amount can help significantly with retirement expenses.
• Contribute to your 401(k) plan or individual retirement account (IRA). If you work after retirement, put some of that money into a 401(k) plan or IRA. As long as you have earned income and meet the eligibility requirements, you can contribute to these plans.
• Try before you buy. Want to relocate to another city or purchase a recreational vehicle to travel around the country? Before you buy a home in an unfamiliar city or purchase an expensive recreational vehicle, try renting first.
• Keep debt to a minimum. Most consumer loans and credit cards charge high interest rates that aren’t tax deductible. During retirement, that can put a serious strain on your finances. If you can’t pay cash, avoid the purchase.
• Look for deals. Take the time to shop wisely, not just at stores, but for all purchases, When was the last time you compared prices for auto or home insurance? Can you find a credit card with lower fees and interest rates? When did you last refinance your mortgage?

Copyright © Integrated Concepts 2012. Some articles in this newsletter were prepared by Integrated Concepts, a separate, nonaffiliated business entity. This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. The appropriate professional advisers should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

Every year, more organizations and people fall victim to cybercrime. Last year, more than 300,000 reported cybercrimes to the FBI with losses in the hundreds of millions of dollars. Whether it’s simple theft, fraud, or identity theft, this is a significant area of opportunity for criminals. Let’s shed some light on how to protect your church office and those you know from cybercrime.

Where There’s Opportunity …

A new level of crime became possible with the popularity of the Internet on a scale never before imagined! Criminals saw the opportunity to repackage old scams into electronic format and reach the masses in a way that could yield astounding results. That criminal vision has become a painful reality to many naïve victims.

The FBI co-publishes an annual Internet Crime Report detailing painful statistics. In the 2010 report:

• Among people ages 20 and older, fraud complaints are evenly distributed. This means those who are younger and more tech savvy still are just as likely to fall victim.
• Cybercrimes are evenly split among male and female victims, although men report an average of 25 percent more in financial losses.
• The largest complaint category was no payment or no delivery of merchandise through an online transaction (14 percent), followed by scams (13 percent), and identity theft (10 percent).
• The top five places where criminals resided was the United States (66 percent), the United Kingdom (10 percent), Nigeria (6 percent), China (3 percent), and Canada (2 percent. This means we’re all vulnerable, especially in the United States, where it appears most of the crimes occur.

It is important to note that people are vulnerable, but so are organizations! If your church or ministry conducts business over the Internet (email, purchasing, and so on), it is probably more vulnerable than an individual because of the number of staff online!

Most Common Scams

While non-delivery of merchandise or payments was the largest category of complaints, the second was scams. The three most common 2010 scams, according to the report are:

1. Mystery/Secret Shopper. Victims are contacted via email to help retailers evaluate the quality of their stores, personnel, and processes. Sometimes the employing company sends a check and asks the person to cash the funds, spend them, and return the unused portion. The problem is that the check is counterfeit.

Sometimes the employing company uses an extensive application and screening process to gain the shopper’s personal account and identity information.

2. Claims of being stranded. Law firms are getting email from out-of-country citizens requesting help. Also, people receive emails telling them a friend or family member is stranded and needs money immediately wired to them (in some cases the email arrives from a person they know whose email account was hacked). The pleas are lies designed to trick people into sending money.

3. Natural disaster relief. Natural disasters bring out the best in Americans; they also bring out criminals.

What Does the FBI Recommend?

The Federal Bureau of Investigation provides five quick recommendations that individuals and church offices should note and share:

1. Do not respond to unsolicited email, also known as spam.

2. Avoid filling out forms in emails.
3. Don’t click links.
4. Don’t open attachments in unsolicited email.
5. Be skeptical of those representing themselves as surviving victims or stranded friends.

Extra Precautions

The FBI’s recommendations are good, but I suggest going further with these additional precautions:

1. Besides avoiding responses to unsolicited email, get your email scanned for spam and malware before it arrives to your computers. This will eliminate almost all undesirable email and improve your defenses, but continue to be cautious! Cybercriminals are constantly working on ways to get through those protections, so still be wary of anything that looks questionable. The most effective solution is the Barracuda Spam Firewall , which you can acquire and use yourself, or you can hire a third party to install and do for you (which usually costs less than buying and doing it yourself).

2. If you receive an email from someone you don’t know, don’t click on any links or attachments (ideally, you’ll just delete the email, but if you’re afraid the email is a legitimate inquiry, be cautious and avoid clicking on anything. Simply hit “Reply” and craft your message based on the text you read).

If you receive an email from someone you know that contains links, attachments, or other content that make no sense, delete it.

3. Any email offers that sound too good to be true are probably scams. Immediately delete them.

4. When you or your office want to respond to disaster-relief fundraisers, give only to organizations you know. Research unfamiliar ones through Charity Navigator or the Evangelical Council for Financial Accountability (ecfa.org).

Shopping Online

Shopping online is a convenient and effective way to secure needed resources, often while saving money. For anyone using a church computer to make purchases, the following basic best practices before entering personal information, or credit card or banking information, can help ensure the transactions remain safe:

Windows Explorer

When browsing in Internet Explorer (the picture below is from version 8), first look for the closed lock. This will tell you whether or not you’re on a secure, encrypted web page:

If you’re still uncertain, click on the lock; doing so will tell you who owns the security certificate, who the issuing authority is, and when it expires:

On a Mac it will look like this:

In Firefox, the security certificate is available via the color-shaded section to the left of the website address, (also called the URL). Clicking on that shaded area shows the dark box shown with summary information about the certificate; clicking on “More Information” shows the following:

Clicking on “View Certificate” shows the following:

With these methods, you can check to be certain the website is owned by the organization you expect to own it, has a security certificate from an appropriate issuing authority, and is protected by a certificate that is still in effect.

Careful Where You Browse!

Another threat is the ease of inserting malware into unsecured websites. That means you could visit a legitimate website, but if the webhost hasn’t kept their security up-to-date, a hacker could have added malware to it that will instantly download to your computer!

From the Cybercrime Intelligence Report (Issue #3, 2009) published by the Finjan Malicious Code Research Center:

As we reported in our previous reports, it doesn’t take much for today’s cybercriminals to infect website visitors with a Trojan. Using commercial software … available for $100-$300 on hacking forums, the cybercriminal can easily launch a massive attack. It allows him to insert exploiting code to vulnerable websites (legitimate or fake ones). Once a visitor visits one of the infected websites, an exploit code, served by the crimeware toolkit, installs a Trojan on the PC in use.

Spread the Word!

I also recommend holding workshops for your staff and for your congregation. Your staff needs to know how to protect themselves and your church, but your congregation is vulnerable too—especially during the holiday shopping season! A wise strategy includes hosting an annual workshop every October or early November to protect your church, your staff, and your congregation from potentially damaging threats they may not be aware of.

Nick Nicholaou is president of MBS, a consulting firm specializing in church and ministry IT and CPA services. He has written numerous articles for Christianity Today International’s Church Management Team. 

1. Mass transit passes - Employers can urge employees to use mass transit instead of commuting to work by car. As an inducement, provide monthly transit passes as a fringe benefit. For example, your company may authorize payments on a pre-tax basis-like a 401(k) plan-or the company can foot the bill itself. For 2012, an employee may receive mass transit benefits valued up to $125 per month without owing any federal income tax. (In 2011, this amount was $230 per month, thanks to a temporary increase which expired at the end of the year.)

Note: Some states provide additional tax benefits.

2. Carpooling and van-pooling - Similarly, an employer may encourage employees to commute back and forth work in a company-owned “commuter highway vehicle.” As with mass transit passes, the maximum tax-free monthly benefit for 2012 is $125 per employee (like the mass transit pass, this amount was $230 in 2011 thanks to a now-expired temporary increase). To qualify, the vehicle must seat at least six adults (not counting the driver) and at least 80 percent of the mileage must be attributable to transporting employees. Furthermore, at least half of the seating capacity (not counting the driver) must be occupied during these trips.

3. Got employees who ride a bike to work? Employers can extend to bicycle commuters a transportation fringe benefit that can be provided to employees who ride van pools and public transportation. The exclusion amount is $20 a month.

4. Telecommuting - Even better, an employer may permit employees to work from home all or part of the time. This can significantly reduce the congestion on the roads. Although there is no specific telecommuting tax break on the books for employers, employees may qualify for home office deductions if it they can prove they are working from home for the convenience of their employers. Address this requirement in a formal written policy.

5. Energy-efficient buildings - Owners of commercial buildings can qualify for a special tax deduction if certain federally mandated standards are met. For qualified property, the deduction is generally equal to $1.80 per building square foot less any deductions claimed in prior years. The building must achieve at least a 50 percent energy reduction for its type of building. A partial deduction of $.60 per square foot may be available if it reduces your energy costs by at least 16.66 percent.

6. Energy-efficient equipment - As with other business assets, your company may qualify under Section 179 to currently deduct all or most of the cost of energy-efficient equipment placed in service during the year. You may also qualify for bonus depreciation. There are limits so consult with your tax adviser.

7. Environmental clean-ups - As a general rule, environmental clean-up costs are treated as expenses that must be capitalized. However, under Section 198, a company may elect to currently deduct certain clean-up expenses of hazardous materials if the expenses were paid or incurred before January 1, 2012.
Many environmentalists don’t believe the tax code goes far enough to encourage “green behavior.” With the issue taking on such prominence today, it is possible that tax breaks for improving the environment will expand or be extended in the near future.

When one of your referrals calls us, we will ask them how they heard of us.  When your name is mentioned we will send you a $5.00 Starbucks gift card. In addition, you will be eligible for that month’s drawing of a $25.00 gift card AND be eligible for the quarterly drawing of a $50.00 gift card.  Every referral gives you another opportunity to win in the monthly and quarterly drawings!  It’s just our way of saying “thanks” for sharing your confidence in MEA with others.

We genuinely appreciate your business and look forward to working together for many years to come.

The winner of the $25.00 gift card for March was Dave H. from Tigard.  Our quarterly winner of a $50.00 gift card is Terry K., from Tualatin!

Thank you for your help and support!

Has the following ever happened to you?  While driving, you are texting or talking to someone on your cell phone, and the next thing you know, you have reached your destination and you can’t remember how you got there?  Or, while you are driving, you look up and have to slam on your brakes in order to avoid hitting the vehicle that is stopped in front of you?  Distracted driving occurs any time you take your eyes off the road, your hands off the wheel, or your mind off your primary task of driving.  Any non-driving activity you engage in is a potential distraction and endangers you, your passengers and any bystanders.

There are many types of driving distractions, including:

• Eating and drinking
• Talking to passengers
• Grooming
• Reading, including maps
• Using a navigation system
• Watching a video
• Adjusting a radio, CD player or MP3 player
• Texting
• Using a cell phone or smart phone

The use of cell phones has the highest risk of all distractions because it involves all three types of driver distraction simultaneously: visual (taking your eyes off of the road), manual (taking your hands off the wheel), and cognitive (taking your mind off driving).

The following are other facts and statistics concerning cell phones and distracted driving:

• Drivers who use hand-held cell phones are four times more likely to get into a crash (Monash University).
• Text messaging while driving increases the crash risk 23 times (Virginia Tech Transportation Institute).
• Sending or receiving a text takes a driver’s eyes off the road for 4.6 seconds, which is the equivalent of driving the length of a football field blind at 55 miles per hour (Virginia Tech Transportation Institute).
• Using a cell phone while driving delays a driver’s reactions as much as having a blood alcohol concentration at the legal limit of .08 percent (University of Utah).

With upcoming travel to and from summer activities, it is very important to be aware of the dangers associated with distracted driving, particularly the use of cell phones.  In addition, there are several states with laws regarding cell phone use and texting while driving.  To learn more about the laws in your specific state, click here.  For further information concerning distracted driving, please visit Distraction.gov

As local volunteers, Damon Winter and Keely Carroll with the Majestic Eagle Agency, head up the task of visiting schools and teaching the students about the many areas of insurance and banking.  They travelled to West Linn high school on a recent visit, speaking to classes of juniors and seniors. During their time with the kids they talked about auto, homeowners, renters, excess liability umbrellas, health, disability, and life insurance.  Damon and Keely find that there is a significant lack of knowledge about the importance of these protections.  However, the students certainly are attentive and show more interest than one might expect.

These young people are especially interested in auto insurance because most are driving. They know that if they do not have the proper coverage, they could even lose their vehicle if there is no money to cover the damage it may sustain in an accident. During these difficult financial times, many consumers are concerned about the cost of insurance.  However, the protection this coverage provides is priceless. These young drivers and their parents need the security of knowing they are protected by appropriate coverage.

Personal Liability Umbrella policies were also discussed.  These important policies provide an “umbrella” of additional protection that goes beyond the limits of the standard home, auto and boat insurance coverage.  When the students were asked to give their parents a quiz about how many of them have the umbrella protection, only ½ of those who had responded said they had umbrella coverage.  The other ½ of responses demonstrated the parents had a lack of knowledge about this umbrella protection. As feedback from the classroom teacher indicates, “Six students told me that they talked to their parents and only half of them had umbrella coverage.  Of the three that did not have it two of them said that they did not know what it is was so their student had to explain it.”

When it came to healthcare, the teacher surveyed the class and everyone agreed about how important it is to have health insurance.  Almost every student in each class had either been in the hospital or knew of someone who had, and all recognized that medical care costs are expensive. Keely provided the students with an overview of health insurance options and benefits. With the rising cost of medical expenses, medical insurance coverage gives the students and their parents a sense of well-being.

The kids were also interested to learn that renters and homeowners insurance will cover their laptops, phones, iPods, iPads, and any other precious items they own in the event they are lost or stolen.  This coverage also extends to their lives in college. They will be reimbursed and that will enable them to replace the items subject to the terms of the policy.

Damon also covered the topic of life insurance.  Even though these kids are typically too young to have given much thought about that, they do know people who need to start planning for the future. Life insurance replaces income and pays off debts after the death of a loved-one.  Funeral arrangements and estate distribution can be costly.  This coverage protects families and businesses.

Disability insurance was another subject covered in the classroom. The students were interested in this because as soon as they become employed they will need disability insurance as income replacement protection.  These young people are learning that if someone is employed and gets sick or injured and cannot perform the duties of their occupation, disability insurance will step in and provide a portion of the employee’s income. This is an often overlooked insurance plan, but something that should be considered early in life.

Operation Hope volunteers help to give students a chance to see the realistic side of banking, finance and insurance coverage and the protection it provides. Their parents are also informed by the students through quizzes and classroom projects.  Damon and Keely’s work does not go unnoticed.  After their recent visit the teacher thanked them for their contribution to the student’s education.  “Great lesson! Thanks for visiting us!”