Preparing For The Unexpected
Preparing for the unexpected
Life can be unpredictable, but that doesn’t mean you have to be unprepared. We can help you care for your family’s financial future, so that you can rest easy knowing you’ve planned ahead.
How do I establish an emergency fund?
To begin planning for your emergency fund, start by setting a savings goal. The simplest way to calculate how much you’ll need is to track your family’s total monthly spending. Once you’ve determined your monthly budget, you’ll want to decide how long you want the fund to last you and your family. While more is always better, many advisors suggest making a goal that equals at least 6 months of your regular spending.
So, now you have your ideal number, but how do you actually start saving? One way is to aim to place 10% of your income in your emergency fund every month. However, if 10% isn’t possible, do what you can with your goal in mind.
Once you begin to save, you’ll want to keep your emergency fund in an independent account that helps it grow. Remember, this money isn’t for vacations—it’s for the unexpected. Two popular ways to safeguard your emergency fund are by opening a traditional Savings Account or a Money Market Account.
A traditional Savings Account is an interest-bearing deposit account that provides a modest interest rate. Banks and financial institutions set limits on how many withdrawals you can make from your Savings Account each month and may charge a fee if you don’t maintain a specific minimum daily or average daily balance.
In comparison, a Money Market Account is a type of savings account that generally has a higher interest rate than a traditional one. However, in exchange for the higher interest rate, Money Market Accounts may have a higher minimum balance and stricter withdrawal requirements.
Both Savings and Money Market Accounts help you earn interest on your emergency fund, while keeping it separate from your everyday checking accounts.
How do I ensure that my estate affairs are taken care of?
Everyone wants to make sure that their families will be comfortable even after they can no longer be there to care for them. Leaving behind a clear plan for your assets helps minimize the financial burden on your loved ones.
Don’t know where to begin? Our Relationship Managers who specialize in estate planning are available to make sure your legacy is a bright one.
How do I choose the right life insurance?
When the unexpected occurs, it can bring financial hardship to the people in your life who matter most. The right life insurance plan can replace your income if necessary, so that you are assured your loved ones will always be taken care of.
You will first have to choose between term and permanent life insurance. The right fit depends on you and your family’s personal priorities.
Term insurance protects you for a certain amount of time, and is often sold in 10-, 15-, 20- or 30-year segments. It is less expensive than permanent insurance, but only provides coverage for a specific amount of time.
While permanent insurance can be pricier, it has the benefit of indefinite coverage, which means that you will be covered throughout your lifetime. And, because the insurance premium is set at the time of purchase, it will not increase as you age. In addition, some permanent insurance policies allow you to borrow from the cash value you’ve accumulated on your account, to cover unexpected costs and can even assist with long-term care (LTC) expenses. Newly issued policies can allow an acceleration of the death benefit to help you fund expenses of an extended illness via LTC or chronic care riders. However, policies vary and not all are designed to allow withdrawals or loans.