As we get older, we start to think more and more about life and how we plan on spending our days after we finally finish our working lives. This is all so much more important when we are also parents. It’s crucial to know that our children will be taken care of should the worst happen sooner rather than later. There are several different things to consider as you get older to help you and your family as time goes on.
Planning for your retirement
When thinking about retirement it is imperative that you first make a plan, there are plenty of useful sites online that offer advice on this. You will want to come to a conclusion as to how much money is still owed in debts, this includes things such as your mortgage and money tied up in other assets. Aside from this it is also important to start budgeting and come to an understanding of how much you spend each month on the essentials. By doing this you will then know how much you need to save. Your bills may change in the future, but getting into the saving mind-set now will benefit you far more in the long run.
Another way to put away money now to help you and your children later is to invest your money. A simple investment to make which has a valuable return is to purchase bonds. Bought for a nominal amount of money now, a bond will mature over the course of about 20 years. At this point you can cash them in when they will be worth far more than their original value. Investing in the stock market is also a good way to generate money in the future. Whatever you choose to do it is important to be diverse with your investments.
Life insurance
Deciding whether you need life insurance can be a complicated process. However, if your family depend on your income then the answer is probably yes. If you want your kids to go to college and your family enjoy a certain kind of lifestyle that they wouldn’t be able to afford without your contribution then you can address those concerns by buying life insurance.
You have several options when buying life insurance with a term life insurance policy and a whole life policy being the main types. With a term life insurance policy, you are covered for a set number of years, generally 10 to 30. This kind of policy is a good option should you want cover at a crucial time such as when your children are at college and your support is essential to them.
Like the name suggests, a whole life policy covers you for the length of your life, helping you to protect your family against all eventualities. There are several different types and sub categories of each type, but they will usually all pay out to your beneficiaries on the event of your death.
Writing your will
It is estimated that 58% of Americans die without a will each year. A will is important – by making one you are deciding who should look after your affairs after you pass away.
A will makes it much easier for your family to sort everything out after you die. Without a will the process of sorting everything out can be far more complicated. This is especially true for example if you and your partner aren’t married, regardless of how long you have lived together they could receive nothing if you have failed to plan ahead. If you don’t write a will everything you own will be shared out in a standard way defined by the law – which isn’t always the way you might want.
Funeral planning
It might be hard to think about planning your own funeral, especially when you’re in the prime of your life, but the cost of a funeral may be more than you think and it’s important to make sure that your family won’t be hit by the financial cost of your death as well as the emotional. A funeral plan is a sensible and cost effective way to organise funeral arrangements in advance, specify your wishes and take care of the costs.
Paying towards the cost of your funeral now will save your family worry and expense, and take the pressure off your family at an incredibly difficult time. It is an uncomplicated way to do something amazing for your family and well worth considering when planning your future.
If you live in England or Wales and are seeking more information regarding funerals, you can check out the GOV.UK website or alternatively, if you live in Scotland, please visit The Scottish Government website.
