You worked hard, saved your money, secured a company pension, built up a 401(k), and invested well. In short, you made all the right choices in planning for retirement. But that was then; this is now. The stock market's collapse since 2007 has pummeled Americans' retirement accounts, wiping out more than $3 trillion in value, by one estimate. (1)

If that weren't worrisome enough, retirement expenses are also growing by the year. Our life expectancy continues to increase, 77.7 years and rising, according to the federal Centers for Disease Control and Prevention (2), while the cost of living keeps going up as well. This means your retirement years are likely to be longer and more expensive than you thought.

Facing these unnerving facts, people who once invested heavily in the stock market are now playing defense in their retirement planning. Many Americans appear to be fleeing stocks and shifting more of their nest eggs to cash and fixed-income instruments in response to the latest downturn. (3)

Spreading the Wealth

Most financial professionals agree that a prudent strategy for limiting vulnerability in volatile economic conditions is to spread one's assets among a range of investments with varying levels of risk. Yes, stocks may still be part of the mix, but so may bonds and fixed annuities.

For people that have a rainy day fund with no immediate need for it, and want death protection, the answer may be life insurance. A single-premium universal life insurance policy such as New York Life Insurance and Annuity Corporation (NYLIAC)'s 4 Instant LegacyTM is designed to guarantee* a financial legacy for the policyholder's heirs, generally free from federal income tax, while also providing a number of living benefits. One of the living benefits such policies offer is access** to your money when you need it, provided that your death benefit protection needs have decreased. In uncertain times, you may want to consider this kind of flexibility.

This educational third-party article is being provided as a courtesy by Gary Sunada, Financial Services Professional, New York Life Insurance Company. To learn more about the information or topics discussed, please contact him at 315.738.2612.

* Guarantees backed by the claims-paying ability of the issuer. ** A policy cash value may be accessed via policy loans and/or partial surrenders. Policy loans accrue interest at the current rate. Loans and partial surrenders reduce the death benefit and cash value. Policy loans and withdrawals may be subject to regular income and may carry a 10% IRS penalty tax if the policyowner is not yet 59 1/2.

1 The Urban Institute, "How Is the Financial Crisis Affecting Retirement Savings?" by Mauricio Soto, March 10, 2009, http://www.urban.org/publications/411847.html

2 Centers for Disease Control and Prevention, "Deaths, Final Data for 2006," April 2009, http://www.cdc.gov/nchs/fastats/lifexpec.htm

3 The New York Times, "When Nest Eggs Change Colors," by Paul J. Lim, April 4, 2009, http://www.nytimes.com/2009/04/05/your-money/05fund.html

4 NYLIAC Instant LegacyTM is issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation), a wholly owned subsidiary of New York Life Insurance Company.

But even if a small business owner can't control the marketplace, he or she can take steps to protect their key assets: the people the business relies upon.

* Details Matter To Customers - A recession tests customer loyalty, as people cut back on spending and carefully weigh their options for even necessary purchases. For businesses that are strapped themselves, it may be easy to let attention to the details of customer service slip. But this is the time that details matter most, whether it's taking the trouble to send a holiday note to your mailing list or offering special deals to prize patrons. The key to their loyalty is to let them know they matter to you.

* Appreciate Your Employees - Of course, you want your employees to know they're important, too. You need their knowledge and experience to navigate the uncertain times. The recession might mean sacrifices for everyone, but it is also a time to make sure valued workers know how much they are appreciated. Even small gestures, like movie tickets or a night at a local restaurant, can keep morale steady.

* Supplement Benefits, Not Costs - You may want to consider "beefing up" your employee benefits package. A "Voluntary Payroll Deduction" (VPD) program is one of the most popular ways employees can purchase additional, personally-owned buy life insurance. A VPD program can usually be set up using your existing procedures for payroll deduction. A life insurance agent would then meet individually with each employee to explain the benefits of life insurance and the ease with which it can be purchased. All products purchased through VPD are employee-owned and paid for, with no direct out-of-pocket cost to you except the cost of administration. The VPD offerings can be a smart way to supplement your overall benefits package, without draining your budget.

Note: Employee participation in a payroll deduction insurance program is completely voluntary. Since this program is not intended to be subject to the Employee Retirement Income Security Act of 1974 (ERISA), employers cannot contribute to, or endorse, this program.

* Protect Yourself - As the owner of a business, you are the most important piece of the puzzle. And especially during difficult times, it is important to think about how the business would function without you. One thing that can provide a greater sense of security is a comprehensive life insurance policy. It can be tailored to fit your needs and ensure that those who rely on you every day would be provided for.

So when you think about protecting your assets in this economy, consider your human assets first.

This educational third-party article is being provided as a courtesy by Gary Sunada. For additional information on the information or topic(s) discussed, please contact him at 315.738.2612.

Gary Sunada MBA CLTC, Financial Services Professional New York Life Insurance Company