2020 is winding down and saying it has been a crazy year is an understatement.
Equity markets have had a roll-coaster year with lots of volatility, but through the craziness they are positive for the year. Low interest rates have prevailed during these crazy times. So, in the world of personal finance there is a lot to be thankful for.
Many have felt loss personally, maybe of a job or a loved one. Income may have suffered as a result of COVID-19.
Through it all, 2020 has been a year of change and uncertainty. It has been a year of quarantine, indoor dining, social distancing, zoom, working from home and of course wearing a mask.
But as 2020 comes to a close let’s remain positive - a vaccine is on the way, you have survived and will forge ahead. The future looks bright.
Now, let’s take a look at some things you can do now to assure a comfortable future for you and your family. They say you can’t do anything about the past, but you can control the future. Take control of your financial future today! Most people fail financially for one reason - they fail to plan.
If there is anything to be learned from this tumultuous year is the need for personal financial planning and to have contingencies plans in place.
Ask yourself some really tough questions like:
- Do you have adequate reserves set aside if you experience a loss of income? If you do, where do you keep these funds? How many months of expenses should be set aside?
- Are your investments protected against the downside loss? Should a portion of your investments be protected? What portion of your investments should be protected against loss?
- Do you have Life Insurance? If so, do you have an adequate amount to protect your family against loss of your income?
- Do you have protection against a Long -Term Care illness? COVID-19 has taught us that people get sick, and it isn’t just the elderly that get sick.
- Is your Will, Durable Power of Attorney as well as Health Care Proxy up to date? Do you have these important documents?
These five questions and addressing them will really help you going forward because…
- Having adequate reserves will give you peace of mind and financial stability during difficult times.
- Having an investment policy that lets you sleep at night will give you a sense of security.
- Having life insurance and knowing it is the right amount says “I love you” to your family.
- A strategy to pay for a Long-Term Care illness might give you comfort and dignity and take a huge burden off the shoulders of love ones.
- Having the right legal documents in place, provides you with certainty that things will proceed on your terms and not the States terms.
I should point out, that not only has COVID affected people’s health, but those not directly infected may be suffering mental health issues as a result of the stress associated with it.
There is nothing you can do about the last nine months and all that has happened, but you can put yourself in position to be better prepared the next time. If nothing else, proper planning can reduce your stress and put you in a position to maintain strong mental health. So, take some time, address the five questions above. Contact your financial advisor today.
I want to wish you happy holidays, give thanks and forge ahead. If I can assist you in any financial issue or concern you may have please feel free to contact me at 973.533.1919.