We would all like to know that our family’s financial future is secure – especially in a difficult economy like ours.
But when you think about it, how safe is your family’s future right now?
How can you tell?
Here are 3 areas that you can check – and if you can strengthen these, you can more guarantee that your family will be financially strong for years to come.
In 1980 a stamp cost only 15 cents. Now its up to 44 cents. That’s about a 300% increase in 30 years.
Inflation will eat away at whatever money you have – which means in the future, you will only be able to buy a fraction of the things you can buy now.
The inflation rate is currently averaging about 2-3% – if your money isn’t earning more than that – then you are losing your money little by little every year.
Tip: invest your money to earn returns that are greater than the inflation rate, (a bank won’t cut it) so that your money will grow to meet your family’s future needs.
Many of us are preparing for retirement by investing in a 401K, or IRA. Its a great strategy -especially if your employer matches your investment.
Unfortunately, if this is your only source for retirement – when the the time comes to pull it out, you may have a tax time bomb on your hands.
This is because the money in most qualified accounts (401K, 403b, IRAs, etc.) are taxable as ordinary income, when the money comes out.
Tip: find other tax free sources to invest your money into – such as a ROTH IRA or a life insurance policy where you can borrow from tax free.
When the time comes for you to get money out, take your money from all three sources so that you can keep your taxable income at a minimum. This will keep you in a lower tax bracket.
3. The 3 deadly “Ds”
Death, Disability and Disease.
These three things, though scary – are common to us as we grow older in age.
But, can you imagine what would happen to your family financially if any of these inevitable situations were to happen?
Are you and your family ready for it?
Tip: Insure yourself and your family against all three of these with sufficient life insurance, disability insurance – and long term care insurance.
Do it now, when its cheaper. Also do it now, because if you were to get sick, it will be much more expensive…or God forbid, no longer available to you.
Now, these are only a few of the challenges that need to be overcome in order to secure a better life for your family.
But if you conquer these, you can better guarantee a great financial future for your family, and know with confidence that you and your family will prosper in the years to come.