The year is 2020 and the new decade has begun. Everyone seems to be on the verge of something “big”. As we raised our champagne glasses in 2019, little did we know that we would find ourselves with the most difficult challenge the world had seen. It would not only affect our private life, but it would affect the entire world.
Now after everything has changed around us. Enforced social distance and protection masks, no hugging or handshaking, no gatherings anywhere, and shelter at home. All to avoid falling victim to an unknown virus that can take our lives, depriving us from our breathing abilities little by little. Preventing to say goodbye by our side. This virus is Covid-19. My respects to all medical and essential workers who every day put their lives while we battle this pandemic.
As a financial agent, I have dealt with the “what if’s”. I point out the need to have a proper financial plan consisting of protecting the family’s well-being and finances in the event something was to happen.
We never considered a pandemic but here is where we find ourselves. “Adaptation” is the word of the day and for me, it is quite significant. Starting with the appreciation for technology. Shout out to ZOOM for their app to conduct meetings online. For the last few weeks, it has been a non-stop schedule assisting families with questions and concerns regarding their finances over ZOOM videos.
There are tuff financial questions being asked in our community. Finding the right guidance is key to the outcome for the next few months. In my experience, I have found the following steps as a good guide:
1 Financial Review
If you were to grade yourself, what would it be? The honesty behind that answer can be life changing. It seems the daily buzz of our lives can prevent us from coming to terms with how we manage our money. Now, we never planned it to be this way. It is not our intention to not know about managing expenses or saving for a rainy day. We never planned to be broke by retirement. The root of it all starts with the lack of financial literacy. We simply do not learn about these matters in school. Therefore, we are left to our own devices. We must seek guidance of a licensed financial agent. We visit with a doctor, a mechanic, a tax preparer, and our dentist every year. Why not visit with a financial agent? Two basic reasons.
1) Lack of knowledge about financial concepts
2) The belief that financial consulting is ONLY for the elite and well-off.
The lack of awareness is what distresses our community. Therefore, a meeting with a financial agent is a must during these uncertain times. It can offer clarity and a plan of action to overcome the adversities we are facing right now. Guidance is needed as we face this huge economic crisis. It is my opinion that agents representing multiple providers can offer variety and diversification in their financial guidance to most needed families.
- Proper Protection
Life insurance has gone through an evolution. However, most people upgrade their cell phone more often than thinking of upgrading their life insurance to match their financial needs. We must keep in mind the great importance for a financial fund in the event of loss of income due to the death of a household income earner. Gofundme.com has become the most popular for funeral collection funds.
Life insurance policies can offer a death benefit of a specified sum of money for the beneficiary to handle taking care of the lives left behind. That is why it is “life insurance”. Ensuring the livelihood of a loved one economically. Some life insurance policies also offer living benefits as well.
Some of the most important ones I find are income protection for falling ill to chronic, critical, and long-term care needs. Many options can be offered regarding these types of living benefits inside life insurance policies. It is making use of your death benefit while alive to protect against the financial hardship that comes with these ailments. Further review is needed to see what is suitable for the individual insured.
- Compounding Building of your Money
It seems we understand interest only through credit cards. Our national debt and household debt is unimaginable. In the investment world, however, interest is seen as a positive. The higher the interest, the more growth potential for our investments. There is a rule I learned many years ago.
The rule of 72. By dividing the interest by 72, you could calculate the years it would take to double your money. Long term growth is an objective for anyone who wishes to retire with more cashflow than a social security check.
- Evaluation of Risk
Many hardworking Americans had huge losses in their retirement plans in the last few weeks. Although the gains are possible to return, an evaluation is in the best interest of any employee who had losses or is no longer employed. The lack of understanding of qualified accounts among the workforce is alarming. The more education there is in these areas, the better choices can be made.
Tax Now- Tax Later- Tax Never. Important categories to understand. What accounts do we find in each one? The tax consequences can reduce the net amount we have at the end. What are the tax consequences on each account you hold? Now more than before with this uncertainty we must receive guidance.
These are just a few insights to follow. I provide zoom seminars through my organization Roaring Future to assist in educating our community in essential matters like these. I invite each of you to learn more every day about your finances and the importance of receiving proper guidance. Visit my website www.wealthwave.com/giselamenjivar or contact me directly email@example.com or text a request at 818.261.4807 for zoom schedules.