3 Financial Situations You Need to Have a Backup Plan For
by Ande Frazier
October 9, 2018 .2 min read
Getting caught in some difficult financial situations can be very frightening. Are you prepared to deal with the unknown? Do you have a plan for if the unexpected happens? What if any of these three things happen to you?
Unexpected Situation #1: You Lose Your Job
Unfortunately, as the end of the year approaches, many companies start to adjust their workforce. This can mean unexpected layoffs and job elimination. Make sure you are saving at least 6 months worth of living expenses. And be sure you are saving this in a safe and liquid account. The last thing you want to do when a job loss occurs is to go into debt to make ends meet or to sell off long-term investments when the market is down.
Unexpected Situation #2: The Unexpected Happens
Death or disability can happen when we least expect it. Losing a loved one or spouse can be especially traumatic. Research shows that within five years of a spouse’s death, 40 percent of widows fall into poverty due to lost pension, Social Security or other income. But death is not the only thing that can be catastrophic to your financial world. Becoming disabled can also lead to a loss of income and security. A staggering 31 million Americans experience a disabling injury each year. What protection do you have in place to replace this sudden loss of income? Is it enough to support your wants and dreams for the long term? Are you protecting those blue dollars in addition to protecting the green dollars? Obtaining proper protection is the first step towards ensuring your financial future. Don’t make the mistake of not handling this for yourself and your family.
Unexpected Situation #3: You Get to Retirement and it’s Not Going as Planned
It can be frightening to get ready to retire and realize you are dead broke. Many people end up having to find other means to support themselves just when they should be enjoying their golden years... simply because they didn’t properly save. With escalating healthcare costs, improvements in medicine and time on your hands, you will need to have adequate resources to secure your retirement income for the long haul. No one wants to be a burden to their family or have to look for ways to cut back all because they procrastinated and didn’t take the time to plan ahead. In order to make sure you don’t have to face this frightening situation take action now.
Ande has made it her mission to break down the emotional, behavioral and societal barriers that stand between women and strong financial foundations.
She's widely recognized as a driving force in the financial community, having risen to the top of the primarily male-dominated insurance world as the former head of a multi-million-dollar fintech company and a VP at Penn Mutual.
Ande launched myWorth to inspire a financial awakening among women who are eager to take control of their financial journeys. Her first book will be published in October 2019.