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5 Must-Haves For Your Financial Security


5 Must-Haves Fo r Yo ur Financial Security 0 co mments

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321 W. Yosemite Ste. 107 Madera CA Posted: Wednesday, July 3, 2013 5:19 am | Updated: 5:28 am, Wed Jul 3, 2013. Posted on July 3, 2013 by Jeff Jackson Financial security is the f oundation we set up f or a secure f uture to f ulf ill all our goals and ambitions. T here are the ABCs of f inance that every individual must be aware of and invest in to pursue their passions and interests with an easy mind and with little worry about your f amilys security. T his article highlights the 5 must-have f or f inancial security that every individual must be equipped with. 1. A Financial Plan - Every individual goes through a lif ecycle; and at every stage of the Lif ecycle, they f ace dif f erent f inancial requirements. Having a f inancial plan will give you clarity about your f inancial requirement and help you prepare f or it accordingly. T he f inancial plan must cover your savings, investments and any current or f uture expense you will be likely to incur in the f uture. 2. Risk Mitigation - T here are dif f erent kinds of risk we f ace throughout our lives - the risk of losing our jobs, the risk of trying something new and f ailing at it, and the worst of all the risk of untimely death or def ormity due to an accident. T he best way to be saf e f rom any risk related to a secure income source, such as losing a job, is to invest and save. T he risk to lif e is covered by lif e insurance, while the risk to health by health insurance. T heref ore, besides a regular lif e insurance policy, a person must get a health insurance cover too. Health insurance providers can help get cover f or both. 3. An Emergency Fund - You can never tell what lif e brings f orth and a job security has become a thing of the past. Recessions come and go and leave the markets swinging high and low. It is a good idea to have an emergency f und in place to support you f or at least six months without compromising much on your standard of living. T here is no rule of the thumb as to how much one must save, but you can assess your needs and base your decisions accordingly. 4. Source of income post-retirement - Retirement is inevitable except f or those who have their own business, and even they might want to hang the boots someday. T heref ore, investing in a good retirement plan to generate a steady source of income f or the remainder of our lives is a good idea. T he postretirement income plan also helps support ones spouse or dependant af ter the death of the insured. For those who have been employed with a single company f or a long time, they must take f ull advantage of their companys retirement plan via the 401(k) contributions. Try and invest as much as you can in your post retirement f und as due to improved medical benef its, the lif e expectancy of people has increased. 5. A plan to disburse your assets after your death - A Will or planning your estate can never be started too late, especially if you have accumulated plenty of assets or have too many loved ones whom you would like to share it with. Preparing a Will also ensures that no conf lict arises af ter your death amongst your loved ones over the distribution of your assets. Consulting a good estate planner will also help you save taxes f or your loved ones when they receive inheritances. You may also consider giving away a part of your

f unds to a charity f or a cause you deeply believe in. It is never too late to begin f inancial planning. In f act, all the f inancial gurus will unanimously advise you to start early so that you can make more money out of the money you earn. T he power of compounding will help you earn better returns on your savings and investments if you were to start early. If you have any query related to any kind of insurance or conf used which insurance to select email Jef f @ jjackson2@f armersagent.com or visit http://www.f armersagent.com/jjackson2 T his content was contributed by a user of the site. If you believe this content may be in violation of the terms of use, you may report it as abuse of the site. Log In to report. Discuss Print

Posted in Ouropinion on Wednesday, July 3, 2013 5:19 am. Updated: 5:28 am.

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