Top 10 Reasons to Plan Ahead Financially

by Brian Watson

There are many reasons to think long-term when it comes to finances. Here are ten points to consider:

1. If you don't do it, no one will do it for you! You must take the initiative and guide your financial life in the right direction.
   
   
2. Time is your friend when it comes to investing. The longer you have before you need the money, the more time it has to appreciate. 
   
   
3. In situations where insurance is needed, such as life insurance (whether for survivor needs or for estate planning) and long-term care insurance, you must be insurable. Waiting "until I need it" may put you in an uninsurable category, preventing the acquisition of coverage.
   
   
4. If you are saving for a specific goal, such as retirement or funding a college education, it is easier to budget small now and increase your contributions over time, than to wait and contribute a much larger amount in the future.
   
   
5. As with many things in life, "begin with the end in mind."  If you have not thought about your long-term goals, how do you know what steps are the best to achieve your goals? 
   
   
6. "I don't worry about my investments because I buy and hold." There is nothing wrong with buying and holding, unless what you are holding is a poor investment. 
   
   
7. Many people procrastinate when it comes to estate planning. Specifically, people with a high net worth may leave their wealth exposed to unnecessary risks such as taxes, court costs, attorney's fees, lawsuits, irresponsible beneficiaries, and future divorces. 
   
   
8. Think of the situations where you know you need to address something, but are dreading it. Then think of a situation where you addressed a problem and took care of it. Do you feel anything different in the two scenarios? Tackling your finances head on and getting things organized will make you feel better.
   
   
9. Looking at the "big picture" is important.  Some financial actions you take can actually work together and build synergy. Making your decisions without considering all of the relevant information can hinder your financial growth.
   
   
10. Running out of money is not an option! To make sure you are not overspending, you must project your assets over time, taking into account the growth of your investments, your spending rate, and inflation.

Brian Watson
Koss Olinger Financial Group
2700-A NW 43rd St
Gainesville, FL 32606
(352) 373-3337
brianw@kofinancial.com