Major changes — whether personal or professional — can significantly affect your family’s insurance and investment needs. A year-end review of your situation will help ensure that you have adequate coverage and that your investments are meeting your needs. Consider where you stand now in terms of your financial goals and what, if any, adjustments are required in your plan.
Here are some big changes that you may be experiencing:
- Your family has grown. Perhaps you got married. Your responsibility now extends to another person. The birth of a child increases your responsibility that much more. Be sure to expand your life and disability insurance coverage accordingly. A divorce, serious illness, or death in the family may also require you to adjust your insurance and estate plans. Changes in family obligations also affect spending patterns, investment goals, and other aspects of your financial affairs.
- Health concerns. If you have been diagnosed with an illness, it may affect how you want to structure your finances. Perhaps you need funds readily available, or you need expert advice on the best way to access your savings.
- Your work has changed. Did you start a new job this year? Are you expecting a raise or promotion soon? Higher income means greater financial losses to your family if something were to happen to you. If you left a full-time job to raise children or start your own business, it’s crucial that you replace group insurance benefits with a personal plan. Think about how work is going. Do you expect a promotion? Is a layoff possible? Good news or bad — these should factor into your investment decisions.
- You took on debt. Perhaps you’ve bought a new home or car, or borrowed money to renovate your kitchen. If you’ve taken on additional debt, make sure your insurance is adequate to cover all liabilities and interest payments.
- You are approaching retirement. As you get closer to retirement age, an investment review and retirement plan is essential. Your tolerance for risk may go down, as you look for more stability and security. Your investment time horizon may also change to ensure that your funds are available when you want to access them.
For help in getting your financial needs in balance so you can live a more generous life, contact FaithLife Financial. We can provide a detailed financial analysis giving you the peace of mind that you have the necessary insurance coverage and investment mix for your current situation.