When it comes to protecting your family and your assets, there are many areas you should take into consideration. Whether you’re looking at insurance or an investment fund, it’s important to take the time to make wise financial decisions that can provide benefits for years down the road. Here are six investments every family should consider.
Home Alarm Systems
Your home is likely to be the biggest investment you’ll make in your life. Most homes have values in the six-figure range or higher. Getting a home alarm system can alert the authorities to a break-in, or even if one is attempted, and many can set off an alarm if a fire breaks out. Leading monitoring and home security systems have carbon dioxide detectors and some come with flood warnings as well.
Speaking of natural disaster, having a home insurance policy is a must if you own a home. Fires can cause varying levels of damage from small cosmetic issues, to total losses. This makes insuring your home against a fire or many other disasters go a long way to preserving your wealth.
Few things can hurt a family’s finances more than the untimely loss of a breadwinner. The lost income can lead to major problems for just about any family, but the emotional turmoil can be just as great. Life insurance pays out a lump sum of cash should such a loss occur and can take one burden off the shoulders of a struggling family.
The leading cause of bankruptcy in the US is unpaid medical bills. While premium and copay levels can be quite high, they are nowhere near as high as most trips to the emergency room. Major surgery can cost even more. That’s why it can really pay off to have a health insurance policy and some savings stored for emergencies.
Stocks or Mutual Funds
Few investments pay off more over the long term than the stock market. It’s definitely possible to lose a massive sum on a single stock investment which is why it’s important to diversify and own multiple companies for the long term. Mutual funds and exchange traded funds can allow you to own multiple companies through one purchase. A financial advisor can help you decide the best places to invest in the market.
Cash is king, but cash flow is even better. Owning rental properties can bring in a positive cash flow to the owner. This cash flow can increase quite a bit after the property is paid off. Of course, it’s important to remember that repairs, taxes, and insurance will continue even after a mortgage is no longer a concern.
Making sure you’re making investments throughout your life is a solid way to protect the assets you’ve accumulated. Your family will likely be better off in the long run if you take this long-term view into consideration. These six recommendations are just a few that could help.