While not everyone enjoys planning ahead, we can all agree it’s the smart thing to do. And the start of a new year gives us all a chance to plan a brighter future for ourselves and our families.
As you get ready for tax season and pull together your financial planning materials, don’t forget to include life insurance. Here are more recommendations for tackling your financial challenges this year.
The New Year Brings a New Set of Financial Concerns
2020 has passed, but we’re still experiencing a worldwide pandemic and its economic fallout. Some families have more savings, while others are struggling to meet their month-to-month obligations. There are several considerations that are top of mind for us this month:
- The Economy
What will the economy look like in 2021? Will the ups and downs of this new year impact our employment prospects, salary levels, stock market returns, or interest rates? The uncertainty worldwide can trickle down to ordinary households, so it’s important to be informed and aware of economic changes.
- Family Savings and Emergency Funds
Over the past year, many of us dipped into our emergency funds. 2021 will hopefully bring us back to better levels — but how? How will families get back to where they were financially?
- Potential Tax Savings
It’s possible that, at some point this year, stimulus spending and tax revenue shortfalls will need to be repaid. This may result in higher taxes for you and your family. Will you be prepared?
At Low Cost Life Insurance, We Recommend Getting Organized!
All of these uncertainties can make financial planning difficult. Getting your finances organized can be a big help!
We recommend collecting your tax forms, income statements, insurance policies, and everything else related to your family’s finances in one place. You can create an online file or do it the old fashioned way in a three-ring binder. Gathering all of this information and storing it in an easily-accessible place serves two functions:
First, it allows you to find your information quickly when a financial issue comes up. For example, when you want to purchase a piece of property or need to cover a financial emergency.
Second, it helps anyone tasked with handling your finances if you become incapacitated or if you pass away. This will make things much easier on your loved ones.
In the realm of financial planning, uncertainties can pose significant challenges, underscoring the importance of organizing one’s finances. While establishing a comprehensive financial plan, individuals may encounter obstacles such as overwhelming debt burdens, which can impede their financial stability.
In such instances, exploring options like engaging with a consumer proposal company can offer a structured approach to debt resolution. Not only does it provide individuals with the support needed to navigate their debt obligations, but it also offers peace of mind knowing that their financial affairs are being managed effectively.
By entrusting their financial concerns to experienced professionals, individuals can streamline their path to financial stability and ensure that their loved ones are well-equipped to handle their affairs in the event of incapacity or passing.
As you imagine your future, what’s the best financial outcome you can envision – and the worst? Asking this question can help guide you as you look for gaps in your financial plans, set a budget for the year, and imagine larger goals for yourself.
Don’t Forget. Life Insurance is Part of Your Overall Financial Planning.
Don’t forget to include life insurance as part of your planning! While it isn’t exactly a financial investment, it is an important part of your overall strategy. Not only that, but it is perhaps the best piece of security you can purchase for your family in case the unthinkable happens.
We usually think of the beginning of the year as a fresh start. An opportunity to put bad habits aside and set goals we can look forward to. As your tax documents arrive and you start to plan out the year (and years) ahead, don’t we hope these recommendations will be helpful to you. Don’t hesitate to contact us if you have questions about your life insurance policy, or if your life has changed and you need to make new plans!
