This recent series has been all about Saving Money. Just as with any task, saving money can be broken down into stages. In this case I outlined “4 Quadrants of Saving” to illustrate how each quadrant (or stage) builds on the previous one, and how the task can be made more achievable.
Quadrant #1 of Saving, Personal Vision, is most important but the overall task of Saving cannot be achieved — and maintained — without all 4 Quadrants working together:
- Personal Vision
- Designing a Portfolio
- Programs that Personalize Your Savings
- Protecting Your Savings (this week’s topic)
Quadrant #4 of Saving is all about: Protecting your Savings.
Think about anything you work hard to achieve:
- Getting a job or promotion
- Buying a new or bigger home
- Building a Family or Business
- Being Healthy
- Collecting items of value (art, cars, jewelry)
One of the most important things is to protect what you have built or achieved. It is the same with Savings. We want to protect our savings, minimize risk, and have a plan to grow our savings. We want the Savings to be there for us someday. There are a number of obvious ways to protect savings, and some overlooked ones.
Obvious
- Life & property/casualty (homeowners, auto, umbrella) Insurance
- Health & Disability Insurance
- Long-Term Care insurance or solution
- Safes and Safe deposit boxes
Overlooked/Under-rated
- Having a sufficient Emergency Fund
- Defining the Timing of when you will spend your money
- Diversifying
- Having a Will
- Estate Planning
Most of all, work with a CFP® on all 4 Quadrants for guidance — and to implement your plan and protect your savings.
As I write this edition of “TGIF 2 minutes” there is horrific damage to homes and lives in Houston, Texas and imminent danger in Florida and places in the southeastern US. I cannot refrain from saying that my thoughts are with those who have been affected by the storms. Stay safe and sound best you can.