One fact that everyone can agree on is how nobody can predict the future. Sometimes, certain events can occur and transform people’s lives – in a good or bad way. When you have children, you want to be there for them as long as possible.
You also want to ensure their financial future is as secure as possible so that both you and they have little to worry about as they grow older. Keeping those thoughts in mind, it makes sense to “future-proof” your family and yourself. Here are some ways to do just that:
1. Life Insurance
If something happened to you that meant you could no longer work or were no longer around to support your family, could they cope financially? Should the answer be ‘no,’ you need to take out a life insurance policy.
Doing so will give your family financial support and will mean one less worry for them. It’s easy to organize a life insurance policy, and you can get one that best suits your financial needs.
It’s worth considering a life insurance policy that also pays out if you have a life-changing disability or illness (critical illness cover).
2. Savings and Investments
Do you have money spare after you’ve paid for your expenses each month? If so, it makes sense to make some or all of that extra cash work for you. Despite today’s economic woes, you can still earn interest or make your money grow in various ways.
For example, you could ‘lock’ some of your spare cash away in a long-term savings account that pays a reasonable interest rate. You can also invest your money by purchasing company shares.
Another option is to have an investment manager split your money across different companies to lower your risk but achieve a high return on your investments.
3. Medicare Advantage
You’ll also need to think about what might happen as you approach retirement. As you can imagine, your medical needs will change as you get older. You don’t want to find that you can’t afford to have specific medical procedures carried out.
A Medicare Advantage health insurance plan makes sense for people that are approaching retirement age. In a nutshell, it provides coverage for inpatient and outpatient hospital services and can include cover for medication.
Should you need a lot of medical attention once you’ve retired, it means your family’s finances won’t get impacted by that requirement.
4. College Funds
When you have children, you want to ensure they have the best of everything you can provide. You also want your kids to have a good, well-rounded education so they can start their working lives on the right foot.
A college education is by no means cheap or even affordable for a lot of families. If you’ve got very young children, now’s the time to build up a college fund for them. Once they approach a college education age, they won’t struggle financially to pay for it.
An IRA (Individual Retirement Account) is a savings plan that offers tax advantages. It’s a way for people to keep assets like company stocks, bonds, and mutual funds while saving on their tax liabilities.
You may already have a 401(k) set up by your employer. But, self-employed people can set up IRAs themselves. There are different forms of IRAs, so you should get professional advice to determine which one is best for your needs.
6. Emergency Cash Savings
No-one knows what the future holds, and so it makes sense to have a large sum of money that’s easily accessible in an emergency. You won’t necessarily gain any interest on such cash because it’s available to you at a moment’s notice.
However, the advantage of such savings is you can use them for any of life’s emergencies. For example, you may need the money to carry out emergency repairs to your home or vehicle. Or, you might need to pay for emergency medical treatment.
7. Home Insurance
What would happen if your family’s possessions got damaged due to fire or theft from your home? Could you easily replace those items with no financial impact? If the answer is no, you need to organize a home insurance policy for your household possessions.
Home insurance will typically pay out money if a major incident occurred, such as fire or theft. It can also pay out for things like water damage caused by burst pipes or flooding and damage caused by natural disasters.
Be sure to select a home insurance policy that best meets your needs. Thankfully, there are many home insurance policies available, so you won’t have trouble picking the right one.