Even when you’ve worked hard to build a diverse portfolio and multiple income streams, it’s still possible to experience the frustration of financial loss. In light of the pandemic and the many future economic uncertainties, now is a good time to step back and think about how you can safeguard your finances, but also set up tactics to know how to bounce back if and when that is necessary.
Some of the most common ways for people to experience financial loss include:
- A sudden medical diagnosis (that requires out of pocket expenses and missed time at work)
- Divorce
- The loss of a job
- A big downturn in the stock market
- Waiting too long to start saving
No matter which of these might impact you, the important thing to remember is that with enough awareness, you can bounce back. One of the key things to keep in mind is that without an asset protection strategy, your wealth erodes over time. Whether it’s inflation, the risk of lawsuits, or changing tax laws, you simply can’t “set it and forget it” with your finances. Instead, you need an ongoing strategy that helps you adapt to the challenges in front of you.
Be aware of the need to always set aside emergency savings and to watch for the creep of lifestyle expenses. As people earn more money, they often turn to spending a bigger portion of their income because it feels “extra.” However, savings and investments must be viewed as just as dynamic in order to protect your financial resources for many years to come.
If you’re ready to build a plan that helps protect you from unexpected financial losses, we can help you focus on resilience in your greater financial plan. Contact us today to learn more about how we can help.