When you have worked so hard to achieve your financial goals and accumulated sentimental items in your life, you should work just as hard to protect them. These seemingly small efforts will have a significant impact in the event that something unplanned or unfortunate occurs. Secure your financial future and that of your beneficiaries by protecting what you have now.
Utilize Secure Storage Solutions To Protect Your Prized Possessions
Of course, you keep the bulk of your money in a bank. But what about your valuable material possessions? They need to be protected, as well, and sometimes, you need to come up with viable solutions to safeguard these important items.
Consider the following options and tailor them to your specific needs:
- Vehicle Storage – If you own valuable vehicles that are not frequently driven or require safekeeping when you are away from home, a secure classic automobile storage facility is the ideal solution.
- Safety Deposit Box – Many bank branches offer safety deposit boxes onsite to store valuable items, such as important paperwork, expensive jewelry, and coin collections. Consider using this option for things you do not need to access frequently.
- Home Safe – A home safe is a viable solution to protect valuables in your own home. Look for models that are water and fire-resistant and drill into the floor or wall, making them difficult to transport.
- Home Security System – Cap your asset protection efforts with a comprehensive home security system that includes water sensors, glass break sensors, strategically located cameras, and a monitoring service.
Maintain Current Insurance Policies
Insurance is a necessity in life, and various policies cover different aspects of it. The most important thing in dealing with insurance is to have the appropriate policies that protect your assets. The second point of order is to ensure you maintain proper coverage and avoid any gaps.
Here are some essential insurance policies every adult should carry:
- Vehicle Insurance – This is a potentially broad category, depending on what type of motor vehicle you own. To illustrate, a car or truck generally requires a different insurance policy than a motorcycle, recreational vehicle, or boat. Inform your insurance provider of every vehicle you own and work with them to determine the appropriate coverage for each one so you are protected in the event of an accident, damage, or theft.
- Homeowner’s or Renter’s Insurance – An insurance policy that covers your home and belongings is not one to forgo. Most mortgage contracts and rental agreements require that you carry insurance. The monthly fee you pay for said insurance should cover the cost to replace the structure in the event of damage to your home or to cover the replacement cost of damaged possessions. Always read the fine print and your contract in its entirety to ensure you understand the coverage regarding flooding or natural disasters, etc.
- Health Insurance – Health insurance is a confusing and fraught topic if you do not receive it through your employer. Regardless of the difficulty in obtaining it, you still should have a comprehensive health insurance policy to cover you in the event of an accident or illness. With this policy in place, you will only need to pay the deductibles or any amount not covered by your insurance policy instead of the entire bill. Some medical bills can reach astronomical levels that are difficult or impossible to pay without insurance. Health insurance protects your assets so you can use your money for your future instead of a hospital bill. It is important to note that you will need policies for vision and dental insurance, as well.
- Life Insurance – Life insurance is not something that will benefit you directly other than giving you peace of mind. It will provide a lump sum payment to your beneficiaries in the event of your death. This type of insurance policy is a necessity if you have young children or a partner living in a shared home and will help them to stay in the home and cover costs for raising your family, for example, especially if you are the primary earner in the family.
Review and Update Your Estate Plan
Your estate plan is part of your legacy. It is also part of your present. Having an extensive plan and the corresponding paperwork in place will help those who are following your wishes and the law know what to do in the event of your death or incapacitation. When things are clear, it is easier for everyone.
These are some key documents to focus on:
- Will
- Medical Power of Attorney
- Financial Power of Attorney
- Guardian for children
- Trust
- Beneficiary listings on financial documents
- Bequests
Watch this short video to learn about common mistakes in the estate planning process.
Stay the Course with Saving
Saving money is essential in both good times and bad. You might think that you should stop putting money into a savings account or emergency fund and tighten your proverbial belt during moments of uncertainty, just in case you need that money. Unfortunately, when you stop moving money into these accounts, and it lingers in your main checking account, a false sense of security can occur, or you might spend it since your account is bigger than usual. If an emergency arises, a problem does, too, if the money is no longer available.
These are some easy ways to stay on track with your savings goals:
- Automate a set monthly transfer to your savings account.
- Invest most or all of your bonus in a liquid account or your savings account.
- Increase automated monthly allotments in the event of a raise.
- Use tax refunds to pad your savings account.
- Begin saving immediately after using your savings or emergency fund.
Now that you have a general framework for how to protect your wealth, you should get started on safeguarding it immediately. The unknown can occur at any time, so it is best to avoid procrastination and check these essential items off your to-do list. Once finished, you can sit back and relax, knowing you have done what you need to take care of your future.
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