Grab A Hold of Your Financial Power By Investing in a Tax-Free Plan You May Not Even Know Exists
Eryn Henry of Rise North Capital joins us to share why it’s important to prioritize your financial plan for retirement, even if you believe it may be too early.
According to Yahoo Finance, one of the biggest regrets people face in retirement is not saving more. The truth is that many people wait until it’s too late to start saving. Life often gets in the way—whether it’s paying off student loans, buying a home, raising children, or dealing with unexpected expenses. These immediate financial priorities can push retirement savings to the back burner.
“By the time you’re 25, you should have something set up,” says Eryn Henry, Financial Professional at Rise North Capital. “Even if it’s putting funds aside in a savings account, being proactive when it comes to your savings can set you up for successful retirement later down the road.”
Working primarily with individuals in the 20-45 age range, Henry says, “When you’re young, you have a lot of people with the mindset of having all the time in the world to prepare, and it’s not something you need to worry about. But older people will tell you, those years go by really quickly. While you are young is when you are in the best position to lock in a secure financial future. The longer you wait, the more money you have to save to be able to retire.”
Many individuals in their twilight years express regret over not prioritizing their retirement savings earlier. They often find themselves working longer than anticipated or facing a lower standard of living because they didn’t take advantage of the opportunities they could have when they were younger.
“I hate it and it breaks my heart when I know people work hard for their money and want to retire, but they’re putting their funds somewhere that’s going to leave them with a lesser outcome, owing more taxes and having a lot less access when they can have quite the opposite,” Henry says.
The problem is that many people simply don’t know what their options are because of common misconceptions and financial illiteracy. “We aren’t taught about these types of things in school,” she continues.
One of the most common misconceptions Henry’s clients have when it comes to financial security is the usefulness of what’s called Cash Value life insurance. “Cash Value life insurance is much different from the Term Life insurance that you get from an employer, which is only there for a specific period of time,” she says.
Cash Value life insurance is a form of permanent life insurance that lasts for the lifetime of the holder and acts as a tax-free savings vehicle. Besides a Roth IRA and a 529, it is the only other tax-free vehicle that exists and is the only one that is liquid accessible before the age of 59 and a half. “It is what most are missing from their financial plan. Most people don’t realize that you don’t have to die to use life insurance, it is like a personal line of credit that you have to be approved for, just like a credit card; Except you don’t have to pay it back” she adds.
“It can outperform 401(k)’s as well as other market-based accounts and you can have access to it in your pre-retirement years, meaning you’re not touching any of your savings. People usually end up dipping into their 401k, paying the penalty, loan, and taxes, which can all be avoided.”
Passionate about educating people on their financial options, Henry continues to add; “The younger generation needs to be extra smart. We have inflation and taxes going up and not knowing where they will be is the scariest part, so where our savings go is the most important thing, more so than what we’re saving. We don’t want to be writing the government a blank check by saving pre-tax.”
Having previously worked as a compliance analyst before becoming a business owner and starting her practice with Rise North Capital, Henry realized how many people are struggling with their finances and wanted to make a difference.
“It’s not easy in the beginning, it never is. It takes a little bit to get started, but just like I tell anybody else who comes in here, anything with a great reward is not simple. You have to work hard, but it’s an investment in yourself.”
Acknowledging that she is not the most “typical” financial advisor, as most are thought of as “older men wearing suits,” Henry describes her differences as her superpower, affording her the opportunity to bring a fresh perspective to her clients and cater to the needs of a new generation.
“As a younger individual, you want to be talking to somebody that’s going to be retiring when you are, someone that’s on track with your generation and knows what’s going on,” she concludes.
Henry emphasizes the importance of being proactive when it comes to your finances and the benefits of understanding your options beyond traditional savings methods and having an advisor that understands the things that we need to combat in the future while we have the power now. “This is not something your employer can do for you, and many people don’t think about that,” she adds. By taking action now and leveraging resources like Cash Value life insurance, young adults can secure a more comfortable and financially stable future, especially for retirement.
For more information or to kick-start your retirement savings plan, contact Eryn Henry or visit Rise North Capital at https://www.risenorthcapital.com/.
