Chances are that you worked hard to build your wealth. It takes years to build wealth, and a financial disaster can destroy it all too quickly. Protecting you and your family from financial disaster can be just as important as building wealth. Here’s a checklist to determine how much protection you really have from life’s unforeseen circumstances.
- Do you have an emergency fund of 3 to 6 months?
- Do you have other assets and savings to draw on in the case of an emergency?
- Are you covered if you get disabled and cannot work?
- Is your family protected if you die?
- Are you protected if your spouse dies?
- Do you have adequate life insurance?
- Are your debts insured in case of death or disability?
- Are you in control of your debts?
- Do you have a plan or strategy to pay off your debts and become debt free?
- Do you have an estate plan?
- Do you keep your financial documents in an organized fashion where others can find them in case of an emergency?
- Do you have a will?
- Is your will properly updated?
- Have you told your executor or loved ones where they can find your will?
- Do you have an enduring power of attorney?
- Do you have a personal directive?
- Are all of your beneficiary designations current and up to date?
- Do you have adequate resources to fund medical expenses?
- Do you have resources set aside for long-term care if needed?
- Do you have access to a line of credit for emergencies only?
- Have you reviewed the downside risk in your portfolio and considered whether or not it’s appropriate for your circumstances?
- Do you have a few safe and relatively liquid investments to draw on in case of an emergency?
If you are exposed to too much risk, the time is now to make necessary changes to protect yourself from financial disaster.
Can you think of any other strategies to protect yourself from financial disaster?