EvrClrx311
Full time employment: Posting here.
- Joined
- Feb 8, 2012
- Messages
- 648
I may be getting ahead of myself here, but I like to plan and am trying to make sure my thought process here is on track (appreciate any feedback on what I may be missing)
I've maintained a term life insurance policy since having children that would cover all their expenses and education through college, and I have also diligently set aside 25% of my pay towards my 401K since I started working in my early 20's... my life insurance policy is over in about 5 years, which will be about the point my children enter teenage years. So I'm considering extending it another 5-10 years, except I noticed that my 401K is now approaching half the value of the payout... and I expect in about 5-10 years for it to be comparable to the size of the life insurance policy.
Is it appropriate to consider the beneficiary designation (to a trust my family maintains with the understanding it's to provide for my children - which is the same designation of the life insurance as well) to be sufficient. Another variable worth mentioning here is that I'm divorced which is why the money isn't going directly to kids while they are still minors.
Basically, is it overkill to have both life insurance and a 401k going to my kids... when one or the other would be sufficient? Where I'm going with this is that it seems smart to reduce the amount of life insurance based on the current size of the 401k replacing some of it's value.
I've maintained a term life insurance policy since having children that would cover all their expenses and education through college, and I have also diligently set aside 25% of my pay towards my 401K since I started working in my early 20's... my life insurance policy is over in about 5 years, which will be about the point my children enter teenage years. So I'm considering extending it another 5-10 years, except I noticed that my 401K is now approaching half the value of the payout... and I expect in about 5-10 years for it to be comparable to the size of the life insurance policy.
Is it appropriate to consider the beneficiary designation (to a trust my family maintains with the understanding it's to provide for my children - which is the same designation of the life insurance as well) to be sufficient. Another variable worth mentioning here is that I'm divorced which is why the money isn't going directly to kids while they are still minors.
Basically, is it overkill to have both life insurance and a 401k going to my kids... when one or the other would be sufficient? Where I'm going with this is that it seems smart to reduce the amount of life insurance based on the current size of the 401k replacing some of it's value.
Last edited: