Planning Ahead for Life-Changing Events

Tue, Apr 28, 2015

Bankruptcy, Estate Planning, Probate

Some rights reserved by LisaW123You can’t plan life-changing events all the time.

For instance, you might be able to plan a baby to a certain extent…but Mother Nature often throws a wrench in even the best-laid plans. Your baby might come early or late, you might be ordered to bed rest, you might need to take extra time off, your child might have special needs, or you just might not want to go back to work. Make sure you’ve thought ahead about how you might deal with some of these things. One way to plan ahead would be to save all your sick time and vacation time you can in the coming months to use after the baby is born if you don’t need to use it prior to the birth. Know how much you have and how much you can get in case of emergency. Short term disability insurance can often be helpful if you get the right kind and you get it in time–check out waiting periods and how you should pay for it (pre- or post-tax). Know what your health insurance covers and doesn’t cover, and how you can add a newborn to the policy. Be prepared that you might need to check out new coverages once the baby comes.

Speaking of a disability, it’s often said that disability insurance could be more helpful than life insurance because you’ll still be alive and you still need care. Check out both long-term disability and short-term disability insurance and see if they would work for you. Sometimes they are pricey, but they could pay off in the long term. Check with your workplace to see if they offer any directly, if not, check out a local insurance provider. Make sure you know what the plans cover and don’t cover and what the application process is like.

Then there’s life insurance—always a good idea if you have dependents of any sort. Term life insurance is often the most advantageous, however whole term does have its place. A financial planner and/or estate planner can help you with that determination.

Death is a certainty. Make sure you have a will ready. A good estate planning attorney and/or probate attorney will be helpful for this process. You want to create an advantageous will for you and your dependents. Think about trusts, avoiding probate, and more. Don’t leave your dependents in a bad financial situation.

Retirement is also something you can never plan enough for. You think social security and a small nest egg might be enough, but is it? Will you have enough if you are ill or you lose your job earlier than you plan on retiring? Make sure you have some ideas for saving ahead…would a Roth IRA or a 401K be better, consult financial planners to determine the answer.

Then there is the everyday disaster, like your air conditioner going out, your car breaking down, or your home flooding. Make sure you have some money set aside for these every day disasters. Check with a financial planner to see how to go about setting up a nest egg to cover such disasters. A long illness, a nasty divorce, or job loss can throw you for a loop at any time too…make sure you are ready to handle some of the resulting bills with ease.

Attorney Smith is able to consult with clients on many of the issues mentioned in this article.

Attorney Christopher D. Smith, Sr. is designated a Board Certified Consumer Bankruptcy Lawyer by the American Board of Certification.  SmithLaw is located in Lakewood Ranch, Florida.  Attorney Smith concentrates on bankruptcy, civil litigation, probate, estate planning, and elder exploitation cases in the Sarasota and Bradenton area.  Call 941-202-2222 to learn more.  SmithLaw offers free consultations in certain areas, including consumer bankruptcy, probate, and personal injury matters.

Image: Some rights reserved by LisaW123

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