Life is unpredictable, but the security of your finances needn't
be such a lottery.
If the worst happens, you need to know you have it covered. Here
are some situations you may face in life that could affect your
Without a breadwinner, how will the mortgage, car loan, food,
clothing, gas, electric and telephone bills be paid? How would your
loved ones cope financially if the worst happened?
A heart attack, cancer or stroke may leave you incapacitated in
the short term, or even unable to work ever again. If this
happened, wouldn't it be great if someone paid off your mortgage,
repaid your car loan, and put a tax-free lump sum in your bank
account to see you through until you got back on your feet?
Temporarily unable to work
Illness, a sports injury, or another unfortunate event may leave
you unable to work for up to six months. Could you afford to
survive without your salary for that long?
Permanently unable to work
Worse still - illness, a sports injury, or another unfortunate
event may leave you unable to work ever again. What plans have you
put in place to cover this income shortfall between now and when
you draw your pension?
The days of keeping "a job for life" have passed and the reality
of redundancy is an all too common occurrence. What plans have you
put in place to ensure your transition from redundancy to your new
career is financially secure?
Retirement is the time to do all of those things that you never
had time to do when you were working. The only problem is, when
work stops your income usually stops too.
Whether you contribute to a pension scheme, buy property to let,
or have an investment portfolio, you should have a plan in place to
fund your retirement. Alternatively, you could rely on the state,
an inheritance or the national lottery.
Can you afford to not plan
You know how much you need to save for your annual two-week
holiday, so how much do you think you would need for the longest
holiday of your life, maybe lasting up to 25 years?