An excellent motivator is fear. It’s safe to assume that most of us would be terrified for our lives if we were standing on a precipice ready to bungee jump off a bridge. There are always some members of society who embrace risk and danger. They enter the battle without thinking through the repercussions.
While head first might be effective for conquering a fear of heights, it is less helpful when it comes to money.
Many restless nights might result from running out of money to pay your retirement or to save for your child’s college education. Your fear of what is ahead may motivate you to make sure you are well-prepared and equipped to face the challenges that lie ahead.
Here are three strategies to help you get over your concerns and improve your quality of sleep.
Make Use of a Financial Advisor’s Experience
Money is really complex. There are several products, ranging from stocks and bonds to annuities and REITs, that can be both beneficial and very complex if you do your own study. It can be quite beneficial to have a financial advisor sort through the specifics and legalese while offering you guidance on your particular circumstances.
I was apprehensive about using an advisor myself. After years of overseeing our whole budget, I failed to see the value in having someone else handle our finances. I was completely mistaken. Our advisor was able to combine our funds and provide us a long-term perspective of what we would need to achieve our retirement objectives rather than having several different accounts. Seeing the difference between reality and my perception of how we were doing was depressing. This has enabled us to change our direction and give savings and long-term planning more attention.
Launch a 529 Plan
Over the past 25 years, the expense of attending a four-year institution has skyrocketed. Attending a four-year in-state public university in the United States typically costs $26,000 annually. Attending an in-state college for a year is more expensive than my four-year degree. Compared to when I graduated more than 25 years ago, that is a 74% gain.
Parents and potential students are still affected by years of inflated fees, even if the cost of attending college has leveled out since COVID. It is not only necessary but also essential to have a plan in place to deal with this massive price. For you and your family, a 529 plan might be a fantastic choice. A 529 plan invests your money in equities, bonds, mutual funds, and other assets on your behalf. You can withdraw the money tax-free for approved school expenditures, and the earnings grow tax-free.
Examine life insurance.
Annuities, whole life, and term life. Are you aware of the distinctions and benefits between the two? Are you knowledgeable enough to choose the best course of action for you and your family? It’s unlikely that you’ve had enough free time to consider all of your options and determine which one will be the most cost-effective and offer the biggest benefits in the event of death, accident, or retirement.
The world of insurance can be complicated. Like a financial counselor, it may be very beneficial and time-saving to have an insurance agent sort through the details to find the best option or options. It’s never enjoyable to consider dying or getting hurt. It’s also unpleasant to lose your life savings due to inadequate insurance or to leave your family in debt.
Finding the appropriate course of action to achieve your own objectives after consulting with a financial counselor is crucial.
You enjoy yourself when it comes to bungee jumping. No amount of preparation could help me get over that fear.