The MFGS Chronicle – October Newsletter
Getting Your Financial House in Order
These last few years have been very tumultuous for our nation’s economy and perhaps for your personal finances as well. Here are a few tips to manage risk – financial and otherwise.
Loss of Your Computer
A survey released in June 2008 commissioned by Dell and performed by the Ponemon Institute claims that over 12,000 notebook computers per week are lost at U.S. airports. There are also a myriad of other ways that you can lose access to the hard drive of your computer. The hard drive could crash, or your computer could be stolen. Manage this risk by signing up for an automatic, off-site backup system such as the one offered by Carbonite.com that costs only $55 per year.
Loss of Your Paper Files
According the U.S. Department of Justice, about 3% of U.S. households are burglarized each year. Imagine if someone broke into your house and took all of your financial records. Would a burglar be able to figure out how to access your accounts based on the papers you have sitting in your desk or file cabinet? Manage this risk by taking those papers to your bank and keeping them there in a safe deposit box.
There is no need for a statistic here. We all know that one day, every one of us will die. So, this one is a certainty. What should we do to help our loved ones prepare for this, especially since the timing is a surprise? The answer is to give them three things: life insurance, legal documents, and instructions.
Life insurance is designed to provide money to pay your family’s bills and replace your income. It is critical to make sure you have adequately protected your family right now, while you are still healthy and the insurance is affordable.
Financial Market Meltdown
What if this year brings another market meltdown? If you cannot stand to see what happened in the past few years happen again, it is time to move your money to safer places. In many cases, that can be a fixed annuity, and we see a large number of our clients making that move. There are also index products that guarantees you a death benefit, eliminates downside risk of losing principle and past gains in the Market; and guaranteeing you an income that you cannot outlive. Doing this while providing upside potential when the Market is doing good. How much better would your IRAs and 401(k) have done the last 10 years if you could have eliminated the 3 down years in the Market?
We all know it is coming – how much of your retirement dollars can you afford to lose in the next down Market?
There are always other risks to consider. Life in general is a big risk-management challenge. However, I encourage you to consider the above risks, because a few simple changes can make you dramatically more secure. You can thank me later when one of these solutions eases the pain when one of these risks strikes.
Wayne McLeod, Safe Money Adviser
Affiliated with National Brokerage
The information provided here has been taken from third party sources and is deemed to be reliable, but is not guaranteed.
It is provided for informational purposes only, and you should consult with a tax advisor for further information.
Our organization does not provide tax advice.