Getting Back to the Basics Revisited
Episode 175 – Between personal responsibilities and career commitments we tend to overlook the fact that there are certain basic areas that we need to pay attention to. If these basic areas are not addressed, there may be serious gaps in our financial plan. Learn just how critical this is as we revisit one of our popular episodes.
Transcript of Podcast Episode 175
Hello, this is Bill Rainaldi with another edition of Security Mutual’s “SML Planning Minute.” In today’s episode we take a look back at one of our favorite previous episodes, let’s talk the basics.
Our daily lives are complicated. Between personal responsibilities and career commitments we tend to overlook the fact that there are certain basic areas that we need to pay attention to. If these basic areas are not addressed, there may be serious gaps in our financial plan. In previous episodes we’ve outlined a process for financial planning. However, this episode will focus on a few of the basic areas that should not be overlooked.
- An Emergency Fund. You need an emergency fund. Typically it is recommended that you save somewhere between three and six months worth of expenses in your emergency fund. This is a fund that you do not access for ordinary expenses. It may reside in a liquid investment such as savings account or other similar vehicle where it can be accessed easily and immediately. This fund should last long enough to pay for emergency expenses until the emergency is over. Disability, loss of a job, and natural disaster are some of the events that we do not like to discuss but which can occur and you should be prepared financially.
- Life Insurance. Life insurance can accomplish many financial goals, but first and foremost, especially if someone else depends on you financially, you should review those financial commitments and make sure that you not only have enough life insurance in force, but more importantly, make sure you have the right type of coverage.
- Disability Insurance. Similar to life insurance coverage, you should ask yourself this question, “If I became disabled and could not work, how many months will my savings last to pay bills and provide me and those that depend on me with the essentials, food and shelter?”
- Home, Renters, and Auto Coverage. We pay premiums, we receive policies, but when was the last time you actually reviewed your coverage? Has your lifestyle outgrown your coverage? Have you looked at your deductibles and coverage limits?
- Business Insurance. There are many individuals now who are working from home and running successful businesses. Do you have the proper coverage? If you are covered as an extension of your homeowner’s or renter’s policy, does that provide adequate coverage or do you need a more specialized policy?
By overlooking any one of these areas we may be placing our financial plans for ourselves and possibly for those who financially rely on us, in jeopardy.
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The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation
To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.
The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.