You can plan to pay down your mortgage, save for your children\u2019s education, and prepare for retirement. You can even plan for changes you see coming, like a move or a new job. But no family can put a date on every expense or life change it may face.<\/p>\n\n\n\n
A car repair might interrupt a savings goal. A change in health or employment might affect your income. And while it can be difficult to think about, your loved ones would need a way to manage financially if you were no longer there.<\/p>\n\n\n\n
October is Financial Planning Month, which is a great opportunity to look at how these possibilities fit into the bigger picture. A financial plan should make room for the goals you choose and the changes you don\u2019t.<\/p>\n\n\n\n
An emergency fund is money set aside for expenses outside your usual monthly budget, such as a home repair, medical bill, or temporary loss of income. Having savings available may help you handle one of those costs without taking on debt or drawing from money intended for another goal.<\/p>\n\n\n\n
The amount to aim for depends on your circumstances. If setting aside a large sum feels out of reach, consider what you could save consistently and build from there. A cash cushion can help protect a long-term goal from a short-term setback.<\/p>\n\n\n\n
\nA cash cushion can help protect a long-term goal from a short-term setback.<\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n
Plan for Retirement With Flexibility<\/strong><\/strong><\/strong><\/strong><\/strong><\/h5>\n\n\n\n
Retirement planning involves more than just the amount to save. You should think about when you hope to retire, which sources of income you expect to have, and how your expenses may change over time.<\/p>\n\n\n\n
Those answers may shift. A job change could affect your workplace benefits. A family responsibility could change what you can set aside. As retirement gets closer, you may want to revisit how you expect your savings and other income sources to support you.<\/p>\n\n\n\n
Think About the People Who Depend on You<\/strong><\/strong><\/strong><\/strong><\/strong><\/h5>\n\n\n\n
Your financial plan also needs to account for the people who count on your income or care. Life insurance can offer loved ones financial support as they adjust to life without you.<\/p>\n\n\n\n
Consider what your household would need to keep paying for and how long that need might last. If you already have life insurance, look at the amount of coverage, the beneficiaries you named and whether the policy still fits your situation. A new child, a change in income or a move away from an employer-sponsored policy can all be reasons to revisit your policy.<\/p>\n\n\n\n
\nLife insurance can offer loved ones financial support as they adjust to life without you.<\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n
Look at Your Other Protections, Too<\/strong><\/strong><\/strong><\/strong><\/strong><\/h5>\n\n\n\n
A financial setback can take many forms. Depending on your circumstances, it may be worth reviewing your health, disability, and property insurance alongside your emergency savings and life insurance. What would each cover? What costs would still be yours to manage?<\/p>\n\n\n\n
Looking at these pieces together can help you identify questions to bring to the appropriate insurance or financial professional. Your needs may change as your household and responsibilities change.<\/p>\n\n\n\n
Revisit the Plan as Life Changes<\/strong><\/strong><\/strong><\/strong><\/strong><\/h5>\n\n\n\n
Your financial plan is worth another look when something significant changes \u2014 and from time to time even when life feels steady. Ask yourself: \u201cDo my savings reflect the unexpected costs my household could face?\u201d \u201cDoes my life insurance still fit the people and responsibilities in my life?\u201d \u201cHave changes in work or family life affected my retirement goals?\u201d<\/p>\n\n\n\n
A plan should change when the life it supports changes. You can begin with whichever question feels most relevant today. If it has been a while since you reviewed your coverage or retirement goals, talk with your FFS agent about the protection and retirement options available for your needs.<\/p>\n\n\n\n
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