This checklist that is given below defines that what your family can do at various times when you have financial uncertainty so that you can prepare for your future. Now is the best time to get prepared.
✅ Do you have a written financial plan, informed by different experts, that’s being implemented and monitored?
✅ Do you have estate planning elements in place that have been reviewed and created within the last three years?
✅ Have you changed or altered your account titling or beneficiaries to match your Trust strategy?
✅ Do you have enough cash reserves that take into account potential job loss, business income reduction, and uneven business cash flow?
✅ Are your long-term investments appropriately diversified with transparent or reasonable fees?
✅ If retired, do you have enough cash reserves and income flows for projecting your portfolio during the next market downturn?
✅ If a business owner, does your business enjoy diversified sources of revenue, with no one big customer?
✅ Have you worked on your business such that it runs adequately for you to take off a month or two? Have all insurance policies been reviewed for fit and price?
✅ If a W2 wage earner, have you continued building your skillset as well as networked well so that you may pivot to another job fairly rapidly if your company and industry is hit hard?
✅ Is your industry susceptible to long-term trends?
✅ Does your financial plan account for your becoming disabled and dying?
✅ Do you have a Family Disaster Plan as well as a Personal Survival Guide completed for your family for natural and human-caused disasters?
✅ For the elderly is there the same disaster plan in place for your elderly loved ones that take into account caretakers’ welfare or medicines?
✅ Are all medicines and prescriptions organized and enough refills in place?
✅ Are living arrangements safe or secure? Has every insurance policy been reviewed for price effectiveness, appropriateness as well as fit to your current written financial plan and condition?
✅ Does your overall financial plan get reviewed with experts a minimum of once every 6 months?
✅ During emergencies and times of crisis, like the outbreak of the coronavirus, it is essential for revisiting and organizing your finances. We have put together a fast checklist of tasks and considerations that can help alleviate most of your stress and allow you to concentrate on what is important taking care of your family.
Here are some tasks to review:
Look at your cash flow and budget
Maybe some importantly, this’s the time to review your finances. If you are employed or you’re a 2-income household, how has this time impacted your budget? If you are retired on a fixed income, are you able to continue on with your current price of living? What changes should you make to plan for a potential loss of income during the very short term? Making a spreadsheet can help you paint a full image of your finances. Prioritize your expenses.
While we do not advocate never covering your expenses, there are specific prices that must be covered first. Be sure your bills are prioritized as well as check into which companies can be deferring payments in the short term. You can look at cutting back on spending that can no longer be important to you.
Reevaluate that list each some weeks to see what has changed and where you can want to adjust. Things like 529 plan contributions, custodial account contributions, as well as discretionary expenses may be put on hold for the short-term with a small effect on long-term success.
Review your insurance coverage
First, you should look into health insurance coverage. Does it cover everybody in your family in case of hospitalization? Do your adult-aged kids have suitable health insurance? What will be the effect should you and a family member require emergency care? We recommend looking into the insurance of the homeowner.
What will it cover in emergency times? (It should be noted, mortgage giants Fannie Mae and Freddie Mac have both known for additional flexibility with borrowers, reducing and suspending mortgage payments for up to one year.) For those with renters of more properties, confirm if your tenants have insurance of renter.
Review your investment portfolio
Making emotional decisions may be expensive, so instead, we recommend reviewing your long-term objectives in light of these tumultuous times. Have your personal and financial goals changed at all? How are your investments matching your objectives nowadays, as well as what should be done to keep you on track?
Be sure your estate plans are up to date
As we have seen in these past weeks or months, things may change quickly. There is a surge in DIY wills through online channels recently, and one trust firm in San Diego noted a 50 percent uptick in customers in the past some weeks alone.
If you have an estate plan in place, now is a better time to review that plan to make sure it yet reflects your wishes. If you do not have one, instead of using online services, finding a reliable trust attorney may help you formalize all of your desires and take care of your family.
Make a circle of reliable resources
Whom can you trust for the best advice during these difficult times? We say that emotion may cloud our decisions whether they’re related to finances and otherwise.
It is helpful to create a list of the professionals you can count on a financial advisor, accountant, maybe an attorney to get solid answers to your questions. Do not allow the internet to make your decisions for you. The great wisdom of the crowd is to know that you’re not the crowd, your conditions are personal to your family.
Explore your options for emergency funds
It is recommended and advised that you should keep an emergency fund that is, separate savings account for times like this one to help feel protected and in control of finances. There are many strategies to make emergency fund accounts work for you, and you can find a lot of strategies in that case.
Talk to a financial planning expert!
Still uncertain about your financial future?
Our team at YMA Wealth Management Group knows the ins and outs of finances for both business and personal. If you have questions about planning for a great retirement, building credit, business credit, investments, you name it, we have a dedicated team of experts ready to help you get on track to a successful financial future today. Call now: 1-800-381-9206
