2013 SPRING ISSUE | CHOICES 11
Check Your Family ’ s Security System
Insurance can help protect you and your family members from the costs of accidents , illness , disability , and death . However , because it is such an emotional aspect of a financial plan , it often gets neglected . Insurance is one of the most important components of your financial structure . Most people hope to never use it , but if you need it , you usually pat yourself on the back for making the decision .
Your individual need for coverage will depend on your personal circumstances , including your age , family , and financial situation . A young , single person , for example , may not need much life insurance . A person with a growing family , on the other hand , may need to ensure adequate financial protection for their spouse and children .
Preserve the Assets You ’ ve Accumulated for your Heirs
You may not enjoy thinking about what will happen after you ’ re gone , but failing to plan could cost your family and loved ones . A sound estate plan can help preserve your assets and keep them from being unnecessarily reduced by taxes . In 2013 , taxpayers can exclude up to $ 5.25 million of an estate ’ s assets from federal estate taxes . While that may sound like a limit you ’ ll never approach , if you tally the appreciated value of your retirement assets , your home , and your other holdings , you may find otherwise . Your estate plan may include a family trust , an up-todate will , a living will and may make use of tools for charitable giving and joint ownership of property .
Savings and Spending
In an uncertain economy with stubbornly high unemployment , it ’ s especially important to have an emergency fund that covers 3 to 6 months of expenses . Many people think “ I won ’ t lose my job ,” and you probably won ’ t but one of your children may . An emergency fund may keep you from raiding your retirement savings if you have to help a family member or a friend .
Take a look at your spending so far this year to find places where you can trim spending and redirect money toward your financial goals . Be honest with yourself when looking at minor expenses that you may not be fully utilizing , such as magazine subscriptions , and gym memberships . Personally , I was able to eliminate one of the cable boxes in a bedroom , a monthly savings of $ 50 . It doesn ’ t sound like much now but over 10 years that could be a down payment for an automobile .
Debt Can Threaten the Foundation
While you ’ re putting the rest of your financial house in order , don ’ t neglect credit card balances or other outstanding debt . Consider ways to either reduce your debt or manage it better . For example , you might be able to save on interest charges by consolidating and transferring your credit card balance or by refinancing your mortgage . It ’ s also a good time to create or adjust plans for major purchases you expect to make over the next few years . Focusing on what you may need in the future makes it easier to set aside money now and reduce the temptation of tapping into other savings . This would also include money for your children ’ s education .
Your financial house is a complex structure that needs regular upkeep . By staying on top of things and keeping you financial house in order , you ’ ll be well on your way to reaching your goals .
ABOUT THE AUTHOR
Becky Buckley has been advising clients about creating wealth for thirty years . She is filled with wisdom and moneymaking secrets that may change your life , and she will guide you to take the actions necessary to meet your financial dreams . She is a Certified Financial Planner ( CPF ®) and holds the Certified Divorce Financial Analyst™ credentials . She is a member of the Financial Planning Association , and the Institute for Certified Divorce Financial Analysts .
As President of Buckley Financial Strategies Group , Becky Buckley serves clients with their financial needs in and is on a select list of advisors who TD Ameritrade recommends to their clients seeking financial advice .
Becky Buckley may be contacted at : bbuckley6 @ cox . net Phone ( 702 ) 460-3318 Fax ( 702 ) 515-7401