3 Financial Situations You Need to Have a Backup Plan For

Man and woman in discussion

Getting caught in some difficult financial situations can be very frightening. Are you prepared to deal with the unknown? Do you have a plan for if the unexpected happens? What if any of these three things happen to you?

Unexpected Situation #1: You Lose Your Job  

Unfortunately, as the end of the year approaches, many companies start to adjust their workforce. This can mean unexpected layoffs and job elimination. Make sure you are saving at least 6 months worth of living expenses. And be sure you are saving this in a safe and liquid account. The last thing you want to do when a job loss occurs is to go into debt to make ends meet or to sell off long-term investments when the market is down.

Unexpected Situation #2: The Unexpected Happens

Death or disability can happen when we least expect it. Losing a loved one or spouse can be especially traumatic. Research shows that within five years of a spouse’s death, 40 percent of widows fall into poverty due to lost pension, Social Security or other income. But death is not the only thing that can be catastrophic to your financial world. Becoming disabled can also lead to a loss of income and security. A staggering 31 million Americans experience a disabling injury each year.  What protection do you have in place to replace this sudden loss of income?  Is it enough to support your wants and dreams for the long term?  Are you protecting those blue dollars in addition to protecting the green dollars? Obtaining proper protection is the first step towards ensuring your financial future. Don’t make the mistake of not handling this for yourself and your family.

Unexpected Situation #3: You Get to Retirement and it’s Not Going as Planned

It can be frightening to get ready to retire and realize you are dead broke. Many people end up having to find other means to support themselves just when they should be enjoying their golden years... simply because they didn’t properly save. With escalating healthcare costs, improvements in medicine and time on your hands, you will need to have adequate resources to secure your retirement income for the long haul. No one wants to be a burden to their family or have to look for ways to cut back all because they procrastinated and didn’t take the time to plan ahead. In order to make sure you don’t have to face this frightening situation take action now.

Written By: Ande Frazier

Ande began her 20+ year career as an adviser and quickly realized that many people weren’t taking into account was how emotions play a huge factor in financial decision making. Leaving behind her practice to focus solely on educating both advisers and consumers alike, she became an expert in behavioral finance. Author, speaker, thought leader, and money educator, Ande is helping women to take control of their money.


Our content is created for educational purposes only. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Vantis Life encourages individuals to seek advice from their own investment or tax advisor or legal counsel.