Creating A Bright Future For Loved Ones

Our family is our most important asset, yet we often overlook ways to protect our loved ones and their future. Here are 5 ways to help your family thrive in good times, and when things get difficult:

  1. Maintain a substantial rainy day fund. ​People change jobs with greater frequency these days than ever before, and not always as a result of their choosing. It makes great sense to fund an account that can be tapped in times of great need. A good rule of thumb is to maintain a fund worth three months of your current salary. Think of it as your “Wealth Savings Account” when something unforeseen occurs.
  2. Get enough insurance.​ But how do you know how much you need. Consider finding out one of your highest priorities. How would your sudden death, or disability, impact your family? What if someone gets hurt on your property and sues you? Are your protected? Is your health insurance plan in tune with your family’s needs? There are far more important questions that need to be answered, and there are available coverages to meet just about any need.
  3. Save for college.​ Whether you use a 529 Plan, or Coverdell Education Savings Account, or other tax­ advantaged plans, the reality is that you can save you and your family a great deal of stress, and loan interest, if you start saving now. But it’s also important to have a game plan for funding higher education and knowing how much, and where, to save. If you have kids, this should be a very high priority.
  4. Invest for your goals.​ Goals­-based investing is catching fire because people tend to appreciate the concept of savings more if they believe it has a specific purpose. Sure, there’s education and retirement savings strategies and accounts, but how about trip­ planning, and holiday spending? Or saving for a new car? I’m sure you can think of many reasons to save. Think about establishing an account and investment strategy for each goal you have.
  5. Invest for retirement even if you don’t get a company match.​ Financial security in retirement is your responsibility, and it is expected that employers will continue to diminish their contributions to your cause. Know your tax­-deductible limits and strive to get as close to them as possible. If your company matches your contribution, great. And don’t forget to contribute to a spousal IRA if one of you is staying at home with kids.

If you would like to take the time to review these and other issues with us in a complimentary, no obligation consultation, please contact us at (855) 786-9584, Option 1 or email us at admin@ptmwealth.com.