Nobody likes to think about death, but if you embrace the fact that you’re going to die instead of running away from it, you’re far more likely to make better decisions in the present. This is because once you’ve accepted that you only have one life, you’ll be able to make the decisions that matter most, rather than feeling like you need to keep up with Joneses.
Perhaps nowhere is this as apparent than in the world of personal finance, where the decisions that you make now can make a world of difference in the future. If you’re looking for a few tips and tricks to help you prepare better for the end of your life, the following are must-read things to think about.
Don’t just save money—invest money
One of the most important things you can do in order to prepare financially for your future is to make sure that you’re investing a portion of your salary into the stock market. This is because, thanks to compound interest, the stock market is one of the best ways to grow your money over time. Think about it this way: if you save $100 in a traditional savings account with a low rate of return, in twenty years you may have $200. However, thanks to compound interest, that $100 could be work $10,000 in the future if your stocks perform well.
While it’s crucial to have a decent amount of money on hand and liquid should you need to deal with an emergency, if you aren’t investing some of your income, you’re unlikely to have enough money to retire later in life. If investing seems stressful to you, a portfolio rebalancing tool can be incredibly helpful in this regard, helping to automate the rebalancing of your assets so that you meet your specific goals.
Get a quality life insurance policy
Your life insurance policy is another way that you can plan for the unexpected from a financial perspective. Having a good policy allows you to give a certain sum of money to your loved ones or family members should you unexpectedly die.
This money can then be used by family members to find some sustainability if they generally count on your income to make ends meet. A portion of the life insurance payout can be used for immediate expenses, and the rest can be invested to grow over time.
Know about your options
Speaking of life insurance policies, you may have some other different options available to you at the end of your life if you meet certain criteria. For example, if you have a life insurance policy and a chronic illness, you may qualify for a viatical settlement.
A viatical settlement is basically a cash advance on your life insurance policy in the form of a lump payment which can be used to help cover medical expenses if you have a life-threatening illness or expensive medical bills piling up. If you’re interested in learning more about how much money you could qualify for, you should reach out to a viatical settlement provider.
Clearly, you’ve got a lot to consider when it comes to how you want to live your life, particularly as you near the end of your life. For many, a sense of generosity prevails during these years, as you want to be able to provide for your family members and loved ones in some financial manner.
Understanding how you can flex the money you’ve saved as you age is just as important as saving money in the first place, so don’t write off things like insurance policies or viatical settlements as you’re taking a look at your finances and planning for the future. With smart moves in the present, you and your loved ones won’t have to think twice about the future.