Monday, May 5, 2014

Protecting Your Wealth

As you build your wealth it is critical you take measures to protect your wealth.
The proper insurances - life, health, auto, home, liability - all are forms of protection against risk. Homeowner or renter's insurance provides protection in the event of fire or theft.

Life insurance is certainly essential if you have a young family or own a large home which requires two salaries to maintain it. Losing your spouse or partner can be a horrible experience but to lose your home at the same time can be catastrophic.

If you recently got married or had a child please assess your needs now, meet with an agent and put the necessary insurance in place ASAP. You are not invincible!

Older folks may not need life insurance. If children are grown and educated, if the mortgage is paid down, or if there is no one dependent upon you, then stop paying those life insurance premiums. The premiums only increase as you get older. But, if the life insurance policy is one way of assuring you have some money to leave to heirs, then that is a good reason to continue paying life insurance premiums.

Another protection is to verify your beneficiaries are correct and current. If you've recently married or divorced, or have had children please contact your bank, brokerage and HR department for Beneficiary Designation forms to make changes.

Also, is your will up to date? A will determines how your wealth is distributed. Again, major life changes (marriage, births, divorce) require adjustments to your will.
Do not try to change your will yourself. In some states, writing on a will may void it. Contact your attorney. A codicle - an amendment to a will - is appropriate for small changes. Drafting a new will may be necessary for more extensive changes.

You've worked hard to build your wealth, take the steps to protect it.
Be $ smart!