When you build a house, you want a strong foundation. It is the same with your finances. You want to ensure everything is in
place so your finances will stand firm and you will be protected. There are three important pieces to the
foundation of your financial house:
1.
Updated legal
documents including a will, living will and durable power of attorney.
2.
A delayed spending account,
called a put and take account.
This is where you're depositing and withdrawing money for day-to-day
expenses and annual expenditures.
This is where you want to practice good
budgeting habits and self-discipline.
3.
Appropriate insurance
coverages. Typical insurances here
are homeowner's, auto, health, disability, umbrella and term life
insurance.
You cannot build
the rest of your solid financial house until you build this very solid
foundation. Where most Americans
fail is that they never build a solid foundation of correct legal documents,
correct and adequate insurances, and correct use and understanding of the put and
take account.
However important
this foundation is, it is not enough for your financial health and retirement
planning. Can you imagine someone
showing you their beautiful home with a wonderful foundation but on top of it they
have plywood and a tent? If you
ask them to help you understand, they will tell you they never got past
building the foundation.
Unfortunately, that's where most Americans are. They have never got beyond a strong
financial foundation.
In the next two
blog posts we’ll focus on not just the foundation of a put and take account,
but also the critical put and keep account.
Retirement planning
can be complicated. If you need help planning your retirement contact us today.
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information herein has been prepared solely for informational purposes, and it
is not an offer to buy or sell, or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading
strategy.
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and investment advisory services offered through National Planning Corporation
(NPC), NPC of America in FL & NY, Member FINRA/SIPC, and a Registered Investment
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registration requirements, or an applicable exemption or exclusion. Kemp and Associates and NPC are
separate and unrelated companies. NPC PRIVACY POLICY. NPC # 66691 10/14
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