Lake Country This Month

By Chris Bennett Special to The Freeman PEWAUKEE — Some of you make no sense to those who sell insurance for a liv- ing. The crowd which causes some of the most head- scratching is those who rent an apartment, townhouse or other domicile and do not carry renter's insurance. Let Mark Lindow with American Advantage — Lin- dow Insurance in Pewaukee break down the math. Insurance not just for drivers For the sake of argument, let's discuss the plight of someone aged 24 who rents. The individual owns a car that is about three to five years old and pays about $1,200 per year in car insur- ance. "That young person doesn't own a lot of stuff, but the value to replace everything in their apartment should be somewhere between $20,000 and $30,000," said Lindow, who's been in the insurance business since 1977. "Those are typical numbers." Understand that insurance companies do not replace a couch by walking to the curb on trash day and choosing the one with the least amount of stink. If that's how you acquired your couch, the insurance company will pay to replace it with a new piece of furniture if you carry renter's insurance. When one views their pos- sessions through that lens — replacement value — the total dollar amount of what most own begins to climb. The cost of a renter's insurance policy for a renter in the aforementioned sce- nario is about $135 to $150 per year. "They will, in most cases, get a least a 10 percent dis- count on the cost of an auto- mobile police if they package it with renter's insurance and do it with the same com- pany," Lindow said. A 10 percent drop in car insurance knocks $12 per month off the price of the policy. "Which essentially pays for renter's insurance," Lindow said. "For young people, sin- gle and under 30, I don't know what the percentage is but I know we have an awful lot of clients in that age range who say 'I don't want it' or 'I don't need it.'" You will want to check with an insurance agent such as Lindow if you are living in a college dorm or with a boyfriend or girlfriend and have questions regarding coverage. Covering your assets A good piece of insurance for homeowners to carry is an umbrella policy. An umbrella policy is extra lia- bility insurance that helps protect one's assets from major claims and lawsuits. In the way that young peo- ple do not realize the total value of their possessions, those approaching or moving through middle age might occasionally lose track of what's been amassed. "As we get older, our net worth tends to increase," Lindow said. "That's every- one's financial goal — to get to the point where you have substantial net worth and can support yourself com- fortably in your retirement years." Most over 50, if they've made sound financial deci- sions, have considerable equity in their home, own cars and possessions and have investments and per- haps businesses. Consider if you are in an automobile accident. What happens if your liability is set at $500,000 per accident for bodily injury, but it is a multicar accident and there are multiple individuals in each vehicle? "If there's a couple of peo- ple in the car and you're at fault, that can easily get up into a million dollars or more," Lindow said. "The question becomes what are you willing to pay for extra protection? "Are you, as an individual, just fine with half a million, or for $140 more have that extra million, just in case? A $1 million umbrella poli- cy should run about $140 per year, according to Lindow. Umbrella policies can be pur- chased for a number of dif- ferent amounts. Lindow Insurance is at 2311 Silvernail Road in Pewaukee, and can be reached at 262-548- 8070 or on the Web at http://lindowinsurance.com. By Chris Bennett Special to The Freeman OCONOMOWOC — Get over it if you are more than 40 years old and have noth- ing set aside for retirement. You still have at least 25 years of savings ahead of you. Kelly Savatski, invest- ment officer and manager of Investment Services for Prairie Financial Group, said that is sufficient time to put together a robust retirement. "Even for someone who's in their 40s, I don't think it's too late to start," Savats- ki said. "It's never too late to start." Savatski is a certified financial planner and also holds the accredited invest- ment fiduciary designation. Prairie Financial Group is a division of Waukesha State Bank and is based in Oconomowoc. WSB has 14 branches in Waukesha County. In Lake Country, WSB operates branches in Oconomowoc, Delafield and two in Pewau- kee. Time on your side It is evident that the idea of savings and of retire- ment is changing. If you turn 65 on the day you read this article your life expectancy is roughly 84 years for a man and 86 years for a woman, according to the Social Security Admin- istration. "We are seeing people working longer than they ever have," Savatski said. "People are pushing back that retirement age and are healthy. Some people are just working longer." If you are 40 or older and lack a cohesive plan for retirement there is still time. "That is very much a long-term investment, and they can still make up ground, even if they haven't done anything into their 40s," Savatski said. Savatski said 55 percent of Americans are in danger of not fulfilling their retire- ment needs, according to statistics from Fidelity Investments. The statistic is derived by looking at saving versus basic needs in retire- ment. Do not be afraid to avail yourself of help if you lack retirement savings. Find a way to get past any shame you might feel over lacking money for the future. "With them, it's kind of facing the facts," Savatski said. "Most people aren't proud they haven't saved anything to that point." The issue is not going to rectify itself. Set a meeting with a professional like Savatski, take a hard look at where you are and where you want or need to be and find a way to move forward. The sooner you do it the sooner you don't have to think about doing so. If you are over 40 you are at the point where you don't want to waste time figuring out investing on your own. Seek professional guidance. Options for saving On average, you should ear mark 10 percent to 15 percent of your annual income for retirement, Savatski said. Take advantage of any employer-sponsored plans, such as a 401(k) or 403(b). Often employers match employee contributions. You are allowed to set aside a maximum of $18,000 annually if you are under 50. If you are past 50 the number you can save jumps to $23,000. "It's easy to use a payroll deduction," Savatski said. "You tell your employer 'This is how much I want to pull out of my paycheck.' It just goes right into the retirement plan." IRAs — individual retire- ment accounts — are also excellent tools for saving for retirement. Such plans are set up by you and your adviser independent of your employer. Several types of IRAs exist — some are set up with pre-tax assets and others with post- tax assets. More aggressive mea- sures are available for sav- ing and investing — again, consult a professional. The stock market is a strong option and offers more growth potential, long term, than a 401(k), 403(b) or an IRA. Those who invest in stocks must learn to think long term and be willing to ride out any short-term dis- comfort. "All the volatility we're seeing in the market right now, it's hard to watch," Savatski said. "But we have long time before we're going to need that money." FREEMAN & ENTERPRISE LAKE COUNTRY • Page 3A March 2016 Avoid the risks of lyme disease and other tick transmitted diseases through tick prevention, along with a lyme vaccination for the best protection. Each dog is different, so call us today to determine what is best for your pet. 262.347.0787 Bring in this coupon for $15 OFF your next visit! No cash value. Limit one per family. Pewaukee Veterinary Service Tick Prevention and Vaccination OPEN 7 DAYS A WEEK • CONVENIENT EXTENDED AND URGENT CARE HOURS M – F 7:30 AM – 8 PM • SAT 8 AM – 5 PM • SUN 12 PM - 4 PM to schedule an appointment online, visit: PewaukeeVeterinaryService.com 248953001 Edith I. Christian, CPA 262-646-2008 Don't Pay More Income Tax Than The Law Requires! INCOME TAXES TRAFFIC FOR ACCURATE, STRESS-FREE PREPARATION OF THIS YEAR'S TAX RETURN, CALL OUR OFFICE FOR AN APPOINTMENT TODAY. INCOME TAXES TRAFFIC 248130004 At least we can make one less stressful. www.EdithChristianCPA.net Serving the Milwaukee Metro Area Charles Auer/Freeman Staff Kelly Savatski of Prairie Financial Group says it is never too late to begin saving for retirement. Still time in midlife to save for retirement Longer lives, careers offer chance to catch up if starting late Cover your losses with renter's insurance Charles Auer/Freeman Staff Renter's insurance provides a good value and protects your possessions. CEDARBURG — After a long battle with breast cancer, M: Milwaukee's Lifestyle Magazine Editor-in-Chief Amy Siewert lost her fight March 10. A post on M magazine's Facebook page announced Siewert's death Thursday. "It's with the heaviest of hearts that we write this. Our fearless editor-in-chief, Amy Siewert, lost her courageous battle with breast cancer early this morning. She was a pillar on our staff for more than 20 years, and her role at the magazine was much more than just a job to her — it was a passion. Her commitment to you, our readers, was stead- fast and unwavering; she remained dedicated to deliver- ing fresh, relevant content month after month, and she took great pride in celebrating Milwaukeeans and our com- munity as a whole." The post goes on to say the staff appreciated and will miss Siewert's strength, humor, compassion — and even her highly organized color-coding system. — Freeman Staff M magazine editor in chief dies

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