Personal Finance Exercises for the New Year, Part VI
We believe that the most successful people are on top of the issues of the day. Being well-informed and staying well-organized will help you to succeed, so for the next few weeks we will be outlining six exercises for you to stay informed and ready to make good decisions. Those six exercises are:
- Making a calculation of your net worth
- Taking inventory of financial assets
- Understanding your cash flow projections
- Examining your expenses
- Making sure you have an updated estate plan and living trust
- Taking stock of all insurance policies – health, life, long term care, annuities, etc.
Five weeks ago, we took less than an hour to calculate your net worth. Four weeks ago, we talked about taking inventory of your assets. Three weeks ago, we figured out how to understand your cash flow projections. Two weeks ago, we looked at your expenses, and last week we talked about wills, trusts and guardianship. If you missed any of these exercises, please go back and listen to those previous podcasts for more detailed information, or you can read the summaries of each exercise on our blog.
This week, we are talking about insurance: health insurance, life insurance and annuities. Insurance is an essential expense, and we encourage everyone to take a look at what you own, what you have and what you need.
There is such a thing as being “over-insured”. Sometimes life insurance can move from being an asset to becoming a liability, so getting a professional to look over your life insurance and what you need is essential. Todd Clucas is our insurance expert on staff and can help with any issues at 888-300-3684.
Annuities are a very powerful tool, but we believe that they are sometimes over-sold. Not everyone needs an annuity, but it’s important to know if you do need that option, and whether it’s worth the investment. Again, please get in touch with us if you have any questions about this or any other part of our personal finance exercise series.
Once you know what you have to can set clear, reachable goals. Tune in next week for more on Doug Fabian’s Monday Market Update. (Also, if you read this blog and enjoyed it, listen to Doug’s podcast this week for even more details on these topics, and please share this information with others who might benefit from our perspective.)
