Do you know how to protect your money? I mean, truly protect it—to the extent where nothing is being spent unnecessarily, and nothing is at risk of being spent unnecessarily? While many people claim to know how to protect their money, the fact of the matter is, only a handful of Americans know the secrets to true financial protection.
One of the most common questions asked of financial advisors is, “Where do I being?” And while many (correctly) expect the answer to start with something along the lines of “Save and Invest,” there are a few more steps you can take to make your financial life both profitable and protected. Here are a few tips you can use to better protect you money:
1. Review Your Personal Insurance: Make sure that you have life insurance for both your own income and your spouses. Assess your needs and debts, consider disability insurance (unanticipated costs of living with a disability can be devastatingly high), and, if possible, always buy your insurance personally; company plans tend to be taxable, while personal insurance plans aren’t.
2. Review Business Insurance: If you own a business, make sure you have an operating agreement that details protocol in the event that an owner becomes disabled or even passes away. Make sure you have buy-sell insurance.
3. Fund Your Retirement: Just like age, retirement sneaks up on you – the best thing you can do is be prepared. When working, pay yourself. A lot of retirement savings accounts are tax-deferred, and compounding effects can be considerable. Even better, most companies match a portion of your contributions. While you’re still in the workforce, invest wisely.
4. Be Liquid – Budget: When the economy took a turn for the worse in 2008, many people were unprepared. These people lost their houses and cars, were forced to pull their children out of college, etc. If an economic downturn happens again, make sure you’re ready.
5. Live Below Your Means: Create a budget, and stick with it. If you can’t do this, you can’t protect you money.
At MediGap Advisors, we may not be able to help you keep track of your every dollar, but we can help you save money on your healthcare expenses, and even find you tax-breaks that you didn’t know existed. And we do all this for free. See how we can help you protect your money at our website.