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