Playing everything by ear is certainly exciting, but it is not very responsible. If you have a family, you need to plan for different circumstances so they don’t struggle when you are gone. The three concepts below will put you on the right path.
1. Consider Your Life Insurance Options
Although it is not pleasant to think about, everyone’s lives end at some point. That is why it is important to look at term life insurance to keep your family functioning in the event of your passing. This type of product makes money available to the beneficiaries based on premiums the covered person paid during their lifetime. Companies generally base those premiums on the insured person’s health, gender and age.
This is crucial for single-income families because they need to stay afloat while they try to line up other sources of income. There are plenty of affordable term life insurance policies to keep in mind, so do your research.
2. Diversify Your Financial Investments
Too many people put all their eggs into one basket. This is dangerous because you can lose everything all at once. To rectify this, spread your wealth in some of the following ways:
- Buy real estate properties to either flip and sell or use them for rental income
- Contribute to your company’s 401K plan
- Invest in low-risk instruments such as money markets or savings bonds
- Take on higher-risk investments in the form of cryptocurrencies or trading options
With these strategies in mind, you will ideally maximize your profits while minimizing your losses.
3. Keep Your Documents in Order
Don’t hold off on writing your will. It is perfectly legal to create your own, but you can also hire an attorney if that makes you feel more comfortable. Also, contemplate a do-not-resuscitate order, which allows you to decide whether or not you want someone to perform CPR on you if your heart stops beating.
Make sure you keep your social security card, birth certificate, tax records and any other important documents in a secure place where your loved ones can access them when necessary. A fireproof safe is a good choice.
By working through this checklist, you will be granting your family peace of mind. Don’t hesitate to make your moves.