Financial planning is something that many people neglect, but even those who do plan ahead often neglect important areas of their future. The following are three often neglected areas of financial planning.
After death expenses
If this is not planned for, it can become a financial burden for surviving loved ones. There are a variety of expenses that can be created by your death, but the most obvious are those related to your funeral. Cemetery plots can be purchased in advance if you choose to be buried. Cremation services can also be paid for in advance if you wish to have this done. Many funeral homes offer an entire funeral to be paid for in advance, so working this into your financial planning can relieve a burden for those who will be grieving your death. For those without a great deal of money, there are end of life insurance policies designed to pay for these type of expenses in the event of your passing.
Debilitating disease
There are many diseases that can render a person incapable of making financial decisions at a certain point in their life. One example of this is Alzheimer's disease or other forms of dementia. A person who has been diagnosed with this disease needs to begin thinking about power of attorney for decision making after a point in time when this is no longer possible. In addition, money may need to be shifted from a long-term to a shorter term investment, so the liquidity will be there to pay for needed assisted living and other nursing care. But even without a diagnosis, if there is a history of this type of debilitating disease in your family, it may make sense to consider additional health insurance that covers assisted living care.
College expenses
For married couples who have just had a child, planning to pay for college tuition starts right after the baby is born. The expenses involved in sending a child to college have become out of reach for many Americans, but for those who plan ahead, there is a much greater chance that this can be realized. Saving and investing your money over the entire childhood years makes college a possibility for many parents. The key to success is to start planning immediately.
Perhaps the best way to address your financial planning issues is to speak to a professional. Everyone's financial needs in the future are slightly different. A professional financial planner will ask you all of the necessary questions, so no stone is left unturned, including any areas that you may not have thought of.
Share20 October 2016
My name is Alison, and I recently found out that I should have been saving for retirement since I first began working. I have now discovered what it takes to have a successful retirement plan, and I felt secure in my ability to care for myself once I am done working. I may even be able to retire early! I'd like to help you get your retirement plans in order and make the most out of the time you will have when you are no longer working. Let me help you understand what you need in a retirement plan and how you can get started.