At a point in some people’s lives, they conclude they need some sort of assistance with their financial situation. This could be a recent high school or college grad determined to start off on the right track, or those in their mid to late working careers wondering if what they’re doing is the “right” way of doing things financially. In either case, the hope may be to make as few mistakes as possible along the way. When considering this situation, there are a few things to look at first, before moving on to other planning areas. In other words, think of the follow as a good foundation to have before expanding on or continuing your wealth management plan.
This protects individuals so they do not have to leverage expenses on a credit card, home equity, or dig into precious retirement or college investments. As non-discretionary expenses increase, so should the emergency fund. However, non-discretionary expenses don’t have to increase arbitrarily. Be cognizant of whether an increase makes sense (e.g. higher rent, mortgage, car payment, etc.). Which leads to our next point.
Being over-leveraged makes or causes delays or shortages to retirement and college funding. It makes us susceptible to working just to pay current debts, instead of working to fund long-term goals.
Life insurance protect human capital (current and future wages) from pre-mature death, disability insurance does protect income if we can no longer work due to disability. Auto insurance protects us against liability from accidents and homeowners provides liability protection in addition to protecting (for many individuals) their largest asset. An umbrella policy (which everyone should have) provides additionally liability should limits be exceeded on underlying policies. Health insurance covers illness so we do not become insolvent due to an illness, while long-term care insurance may be necessary to preserve wealth due to long-term care needs. Annuities (the other life insurance) may be necessary to protect against outliving one’s income. While not exhaustive, these are the general areas to think about then first getting started, or continuing with your wealth management plan. As always, feel free to reach out to use if we can help you along the way. The post Just Getting Started appeared first on Getting Your Financial Ducks In A Row. Via http://feedproxy.google.com/~r/GettingYourFinancialDucksInARow/~3/PgzNLaaybvA/
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AuthorHi I am Evelina Bryant , I am 32 years old from Big Bear Lake, CA. I am woring as a financial analyst with local financial services company. ArchivesNo Archives Categories |