(NAPS)—Creating a financial plan without protecting yourself
against the unexpected has been compared to building a beautiful
mansion on sticks of wood. No matter how much wealth you accumulate, it’s a good idea to consider what your plan is built upon or it can easily collapse.
A sound financial plan looks a lot like a pyramid and consists of
three parts—protection against life’s uncertainties, growing your investments and managing your
retirement and estate. Here are some things to consider when you
build the foundation of your financial plan:
•Emergency Savings. Many
financial professionals say you
should always have enough money
on hand to pay everyday living
expenses for three to six months.
Ideally, emergency savings should
be in vehicles such as savings,
checking and money market
accounts which provide easy,
penalty-free access.
•Insurance. Insurance forms
the underpinning of your financial
plan. Life insurance helps protect
your family and loved ones
against financial difficulties in the
event of your premature death.
Disability insurance replaces
lost income in the event you
become ill or disabled and can’t
work.
Health insurance helps pay for
the ever-increasing costs of med-
ical care.
Long-term care insurance goes
beyond medical care to include
assistance you could need if a
chronic illness or disability leaves
you unable to care for yourself for
an extended period of time.
Property/Casualty insurance
provides protection for property like
homes, cars and household posses-
sions, in addition to protection from
liability as a result of their use.
A financial advisor can help you create a strong
foundation to ensure your family’s
financial security no matter what
road bumps you hit along the way.
Financial Security Starts With A Foundation
A financial plan is only as strong as its foundation, which
helps protect against life’s uncertainties.
No comments:
Post a Comment