We all know the saying “Do not leave for tomorrow what you can do today”, however, despite knowing that we have to do something about planning our personal financial goals like, save for retirement, eliminate debts, or save For our children’s university, most of us do not take action for one of two reasons: we are not sure where to start, or because we do not believe we have enough assets to make it worthwhile to think about a financial plan.
The truth is that when it comes to taking steps to improve your future there is no specific place to start and there is no level of income or assets needed to make it worthwhile to plan financially. . You must take action, regardless of where you are in life or the amount of money you have (or do not have).
The first step is probably the easiest one: identifying your current and future financial goals, such as making sure your family is financially protected in case of death or disability, managing those at home while paying off debts; save for retirement and leave an inheritance. If you are willing to develop and implement a financial strategy, these objectives may be within your reach. Steps you can take now can include increasing contributions to your retirement plan by maximizing contributions made by your employer, while obtaining a tax deduction. These savings can be used to eliminate your debts.
This is also a good time to review your life insurance to see if it is enough to meet the needs of your family in your absence. Life insurance was made to replace your income in the event of an untimely death. Today, some life insurance offer accelerated benefits that allow you to collect the policy in life in case of a chronic or critical illness.
Something very important when you consider your financial goals are taxes. To begin, make sure that you are saving the maximum allowed in accumulation vehicles with tax benefits such as your retirement plans, life insurance and real estate. If you are over 50, do not forget to take advantage of the additional contributions you can make to qualified plans.
The steps that are taken today can help create assets that will last for life, and still be able to pass assets to their beneficiaries. Do not forget to always consult with a lawyer a financial advisors and tax advisor to review your will, power of attorney and perhaps establish a trust that can help maximize your assets and distribute your assets according to your wishes.
Working towards your financial goals is not something that you can achieve at one time … it is something that you have to review in the course of your life. But no matter what stage it is, the time to start is now.
This information is not intended to be tax or legal advice. Please seek the advice of a professional advisor before making any decision regarding your own situation.
The views and information contained in this document have been prepared independently and are presented for informational purposes only.
