Everyone is responsible for their own money at some point in their life. In order to have your affairs in order early in life, it is important to create a financial plan. This allows you to be sure your finances are settled for the future. Continue reading below to learn more about what everyone should include in their financial plan.
Saving for retirement is one of the most important things a person can do for themselves. When you no longer have a full income, what money will you have to live off of? With an automatic savings plan, even small amounts of money can go towards savings bonds or mutual funds. Those who have more money to work with can diversify their holdings with several types of investments. Younger individuals should consider investments that allow for growth. A person’s strategy for investment can change as they do and their life circumstances become different overtime.
Unbeknownst to many, disability is more common among middle-aged individuals than death. However, disability insurance tends to be overlooked. Having proper insurance for yourself is crucial. It is because of this that it may be beneficial to consider supplementing an employer’s coverage with another policy. Many people aim to replace 60% to 80% of pretax income, as disability payouts are generally tax-free. This policy should cover partial disability in addition to total disability.
Many people like to create a financial plan because they have others who depend on them. In these situations, it is important to have life insurance that protects any dependents. It is important that this is done, even as a stay-at-home parent. This is because their absence would still create financial hardship for their family.
Having an estate plan allows a person to be sure their assets and belongings are prepared for anything that may happen in their future. This includes how they want their assets to be cared for and distributed upon their death. However, in addition to this, it can also cover a person’s major healthcare decisions for their life.
Contact our Firm
Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.