Having financial security is a goal for many people. We all want the ability to spend what we want when we want, with no repercussions of having little money left for necessities. For those of you who already have that security in place, it is best to avoid the threats that could get in the way. For those of you who are still in the planning stages, now is a good time to be proactive about protecting your planned financial future. There are at least four threats to your financial security, which you should avoid at all costs.
Long Life Expectancy
The average life expectancy is far higher today than it used to be. You can expect to live until at least 84, with one in four people living past 90. When retiring age is only set at 62 for most, this could mean having to stretch your savings for more than 20 years. Your financial security will start to dwindle as the years go on. You need to save up as much as you can now to avoid a significantly dwindling account as you age.
As people age, they experience a far more likely chance of developing some sort of illness. Cancer, Alzheimer’s, and heart disease are three of the most commonly seen diseases in old age. The medical expenses you’ll incur during this time could drain your savings dry. You need to build up your savings now so you’ll be able to handle these expenses in the future.
Older generations are much more likely to become the targets of identity theft. Criminals target them because they believe the people have plenty of money saved and will never notice anything is gone. Phone scams are especially targeted toward senior citizens, with the hopes of getting naive seniors to disclose their personal information, such as social security numbers. Do your best to avoid these scams so you can keep your money for yourself and skip the hassle of dealing with a stolen identity.
It is never wise to not have insurance. Your money and assets all need proper insurance so you are protected in any event. You cannot foresee the future, so you never know when a natural disaster will strike or a criminal will break into your home. Either of these events could cause you to lose a great deal of the financial security you currently have. Get insurance and make sure all your most valuable belongings are covered.
Threats to your financial security will never die down. You need to be prepared for everything life will throw at you so you can keep as much of your money as safe as possible for your future.