The first half of 2020 is now in the books. We all know that this has been a year that many would like to forget. But, unfortunately we can’t and we all need (if we haven’t already done so) to do a self-assessment of our overall financial situation. So, what grade would you give yourself for the first half?
No matter the grade, you still have another half of the year to go. If you’re doing well, stay the course. If some adjustments need to be made, then let’s get to work! BALANCE does a wonderful job with its content creation and there are a few key areas that are mentioned from time to time but many don’t truly understand why they are vital to your overall financial success.
I want to make sure you have an incredible second half of the year.
Let me be the one to shed a bright light on these “key” topic areas:
We’re experiencing a pandemic and people are literally leaving this earth sooner than expected. This is where life insurance comes into play and why it’s so important. It PROTECTS your family and can help you leave a legacy, not bills that your family has to cover. You should ask yourself these questions (in this specific order):
- How much life insurance do I personally own?
- (If employed) Does my employer offer me any life insurance coverage?
- If I add up the coverage from the previous two questions, do I have enough?
Disability Income Insurance
If you are seriously sick or injured and you cannot go to work, how do your bills get paid? Do you have adequate emergency savings? Think of this as your “paycheck insurance.” Disability protects YOU, your most important asset.
Now, I know someone is thinking, isn’t my house my most important asset? No! Your ability to get up every day and earn a living (which helps pay that mortgage) is the most important asset, and it must be protected. If your employer offers you this benefit, please make sure you actually understand the coverage they provide to you. All coverage isn’t created equally and during the enrollment period at the job, many of us normally just “check the box” when it comes to disability coverage.
This needs to change.
And lastly, you should ask yourself the same questions I posed previously about life insurance. Just replace life insurance with disability insurance.
How are your retirement/investment accounts looking these days? Don’t worry, many people might have taken a little hit—but as history has taught us, the market always rebounds.
Like literally, just look at the overall stock market performance since 1929.
Once you’ve done that homework, you then need to assess where you are currently in your life because that will dictate what kind of risk you should be taking within your investment and retirement accounts. A young single person probably has a different approach than a person in their mid-40’s, who is married with children or someone who is nearing retirement. I’d highly recommend you do this assessment BEFORE you get emotional and just start moving money around.
Also, despite all of the advancements in technology that let you pick your own investments and conduct your own research, I’d highly recommend you seriously consider meeting with a professional and do a thorough analysis of your current strategy. You should not go at this alone and there are professionals who do this work day in and day out, so that should provide you with some comfort moving forward.
That’s it for the halftime speech. Now go out in this second half and let’s win the year!