Everyone who has lived through a recession understands the concept of a “Financial Disaster”. We all know that it’s a dangerous world out there, disasters seem to lurk around every corner. So, how do you keep these “Financial Disasters-of-the-Day” from turning into your own personal “Financial Emergency?” How can you insulate your family from panic and devastation? By being prepared.
Everyone should have a plan to deal with the disaster of the day. What do you do when your investments unexpectedly, but temporarily, decline by a third? What about the unexpected death of a loved one? Or worse, a non-fatal debilitating disability? What about those unexpected needs for immediate cash such as car repairs, a hot water heater blowout, or medical expenses? Or an unexpected job loss? How do you keep these events from becoming a destructive force on your, and your family’s lives?
You Plan. You purchase life and disability insurance to help protect against the unexpected. Write wills and durable powers of attorney so that your family is taken care of should something happen to you. Pile up an emergency cash reserve, make a budget, and pay off your credit cards. Open a 529 account for each of your children and put some money into them each month. Invest ten percent of your paycheck for your dream retirement from the first day of your job to the last.
Diversify your investments with the world’s best companies domestically and internationally. Be disciplined and buy every month regardless of current market movements. Sell only when you need the cash and then, only when the markets are not in free fall. Be patient and have faith in the long-term prospects of the world’s greatest multinational companies. And learn to love dividends.
And turn off the financial talking heads on TV and social media. Their job is to incite panic and push the disaster-of-the-day to increase trading for the commission-hungry Wall Street firms. Turn on the Home and Garden channel and relax in the knowledge that your financial house is in order, and you are little affected by the next “Financial Emergency.”
Having a plan in place for life’s what-ifs can do wonders for your long-term financial goals and objectives. Your strongest asset in planning for financial success is time, make sure you aren’t handicapping yourself and your family by failing to plan and leaving yourself open to making harmful emotional decisions in times of disaster.
If you and your life savings are being ignored or feeling taken advantage of, come join our family. We are a family-owned financial planning and investment advisory firm that promises to treat you like family. No products. No hard sell. No gimmicks. Just honest advice based on four decades of experience.