With travel plans and home events gearing up in the summer months, May is a great time to review your emergency savings and property casualty policies to ensure you’re properly protecting your assets.
- Emergency Savings – The more you earn, the higher your expenses, and the more important this key account becomes in protecting your wealth. Set aside in a specifically designated savings account enough cash to cover a minimum of 6 – 12 months worth of expenses. Obviously, in order to know how much you need to allocate towards this account you have to know your average monthly expenses. Again, you don’t need to have a line by line breakdown. Simply know what the total average is each month. If in doubt on the exact number, be conservative and add additional “buffer.”
CAUTION, do not take this simple yet key account for granted. I have witnessed fortunes lost in a relatively short time during an unexpected crisis (job and/or loss of business), simply because a family did not properly allocated enough for emergency savings; especially those with high liabilities (mortgages).
Factors impacting where you fit in that range:
- Single or multiple income earners?
- Reliable unearned income, like from a trust? If through a trust, what is the proper annual distribution percentage to properly ensure sustainability?
- Large liabilities, like multiple homes?
Call us to review together and determine your appropriate amount.
- Property Casualty. Having adequate savings for emergencies will allow you to have higher deductibles in your home and auto insurance policies leading to lower premiums. When did you last review the following policies?
We’re happy to use our resources and provide you an independent review of all your policies.
Simply email me directly for the request at firstname.lastname@example.org