Whether you are a lifelong single person or you found yourself single through divorce or the death of your spouse, you have your own financial considerations and complications. Unfortunately, many single people overlook financial planning. Don't make this costly mistake.
Financial and estate planning
help you protect your earnings and your property. For single people who do not
have someone to fall back on, planning for unexpected financial setback is
especially important.
Protecting your earnings (your
ability to provide basic needs for yourself and your dependents) should start
with creating an emergency fund that could pay for your basic living expenses
for six to twelve months. The fund should be separate from your other
investments, readily accessible, and reserved solely for emergency use.
Insurance is an important
factor when it comes to protecting your income. Disability insurance provides a
steady income stream when you're sidelined by illness or injury. Employers
frequently offer disability policies, but they are also available through
private insurers. Life insurance may not be a priority for you if you do not
have dependents, but if anyone relies on you financially, a term life insurance
policy would offer an income stream to your loved ones in the event of your
death.
Asset protection is more
complex. Through powers of attorney, you can appoint trustworthy people to make
financial or medical decisions for you in the event you become incapacitated.
By creating a will (and perhaps a trust) and naming beneficiaries for your IRA
or 401(k) plans, you can ensure that your assets will go to the individuals or
charities of your choice.
Your financial planning needs
are unique. If you'd like to learn more about protecting your finances and
property, call our office at (518) 798-3330.
