What Your Financial Planner May Not Be Telling You

Financial Planning can be a complicated equation with several moving parts that are constantly changing.  I recently heard that, a house with a crumbling foundation is worthless.  A house, like a financial plan, must have a solid foundation or eventually it can be weakened or even worthless!

This made me wonder why I rarely hear about insurance products as a foundational tool for a properly designed financial plan.  Insurance to some may seem expensive, yet what’s the true cost of NOT having insurance?   I have heard the term “Self-Insuring” or handling the potential risk on your own, seems to be a risky approach to protecting one’s current estate, future retirement lifestyle and legacy for their loved one’s.

We recently learned that there are three primary risks in retirement that jeopardize a retiree of achieving their dream retirement: (1) Market Volatility Risk; (2) Tax Risk; and (3) Longevity Risk.  In other words, losing money in the stock market, while taxes increase and living a long time, could have high risks once retired.

Life Insurance comes in various forms, based upon one’s protection needs:

  • Term life insurance is known as temporary life insurance.  It covers you for a specific period of time.
  • Permanent life insurance is known as cash value life insurance.  It’s used to address permanent concerns and typically covers one until death.
  • Life Insurance provides benefits that can strengthen your overall financial plan.

Long-Term Care (LTC) insurance is a “safety net” for an extended period of time:

  • The need for care may be due to cognitive or physical impairment.
  • LTC can be paid monthly, annually or in a single premium.
  • A 65-year old couple has a 70% chance of one of them needing LTC in their lifetime.

Disability Insurance (DI) is income protection that we can rely on while we are working:

  • If unable to perform one’s job duties, DI will replace a portion of their income, tax-free.
  • DI allows for the continued funding of lifestyle and retirement plans.
  • Severance disability insurance plans can be included in severance packages.

For a recent presentation on the above, please see: 

Finding a Life Insurance, Long Term Insurance or Disability Insurance Advisor that understands how to stabilize the foundation that your financial plan sits on, is key to a successful plan.

For advice on any of the above. please contact:

Nico Wiborg – (650) 465-8957  nwiborg@ft.newyorklife.com

Todd Wellnitz – (415) 846-1521  todd@wellguardfinancial.com

(The above information is for educational purposes only.  For more information on the above, please contact your financial planner, tax planner, estate planner or attorney)

Any questions on the above or lending, please contact me at:

Rob McCarthy

Senior Mortgage Advisor


408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01165697  NMLS #121019


  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.