Protecting Your Assets
BOSTON (CBS) - Step 5 is the CYA part of your financial plan. Cover Your Assets!
Protecting Your Assets
You've worked very hard to achieve your goals and accumulate assets. Now you need to protect them. A well diversified portfolio with an asset allocation mix to meet your goals is your best defense in the stock market.
And as part of your financial plan you will need to be sure you are adequately insured and have an estate plan as well so you can protect those you love as well as your assets.
Insurance allows you to protect your home, car, health, life and ability to work. It provides protection against a major loss that you couldn't cover with your emergency fund. So you pay a premium, the price of the insurance, to protect yourself and those you love.
The insurance company pools all of the policyholders' money and takes out expenses and salaries but must leave a reserve in its kitty so when something does happen there is money to cover the claims. Review all of your insurance policies to be sure you are adequately insured.
Estate Planning: this is the very last piece of the financial puzzle. And the one most people never get around to doing. Estate planning allows you to control from the grave.
A will tells the world how you would like your assets distributed upon your death. If you don't have a will the laws of the state where you reside dictate how your assets are distributed.
In Massachusetts, if you are single it will go to your parents, but what if you have a partner you want to protect. If you are married with children, half goes to your spouse and half goes to the children even if they are tiny. Make the effort to finish your financial plan by getting your estate planning done.
At the minimum you need to have a will, a Durable Power of Attorney, and a Health Care Proxy.
Money Conference Alert!!
On October 11th I will be the key note speaker at The Money Conference which is a FREE one-day event presented by The Office of Massachusetts State Treasury. It will be held at UMASS Boston and the first 500 registrants will get a free copy of my newest book, Money, Your Personal Finance Guide.
There will be afternoon classes on everything from budgeting to buying a house. The Financial Planning Association of Boston will have volunteer financial planners there to help answer questions. You can set up a meeting with a Money Mentor when you register. If you have questions about the conference, contact Sheila O'Loughlin of the State Treasury at (617) 367-6900 ext 615.
