{"id":15940,"date":"2023-09-29T15:21:34","date_gmt":"2023-09-29T20:21:34","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=15940"},"modified":"2023-09-29T15:21:34","modified_gmt":"2023-09-29T20:21:34","slug":"financial-tips-for-international-day-of-disaster-reduction","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/financial-tips-for-international-day-of-disaster-reduction","title":{"rendered":"Financial Tips for International Day of Disaster Reduction"},"content":{"rendered":"
When it comes to mitigating disasters, a culture of preparedness and long-term safety can prove invaluable when it comes to your finances.\u00a0<\/b><\/p>\n
The International Day for Disaster Risk Reduction observed on 13 October, is an opportunity to acknowledge the progress being made toward reducing disaster risk and losses in lives, livelihoods and health, to prepare and adapt to the risks of disasters and strikes in different sectors of development.<\/span><\/p>\n Consider this: What if we use the same foresight to protect our financial futures against unexpected events?<\/span><\/p>\n While financial hardships aren\u2019t exactly the same as natural disasters, it can still be extremely beneficial to have a plan when they inevitably happen. This is especially important as we get closer to retirement.\u00a0<\/span><\/p>\n So, are you ready to learn how to brace for the storms of financial uncertainty? In this blog, we\u2019re going to explore how to combine disaster resilience with financial security. Let\u2019s dive in.<\/span><\/p>\n According to a recent Bankrate survey, approximately 22% of U.S. adults admit to having no emergency savings or plan in place.<\/span><\/a> Confronted with unforeseen medical bills, car repairs, or job loss, individuals may have to resort to dipping into their retirement income investments and personal savings.<\/span><\/p>\n This situation becomes even more severe for those in retirement planning or nearing retirement age. Neglecting to allocate emergency savings for retirement can result in difficulties during one\u2019s golden years.\u00a0<\/span><\/p>\n However, understanding and managing your finances early can help protect you from these future hardships and secure a safer retirement.<\/span><\/p>\n Risk management<\/span><\/a> is like having an umbrella \u2013 you might not need it every day, but when you\u2019re stuck in the rain, you\u2019ll be thanking yourself. One crucial aspect of risk management is having adequate insurance coverage. Insurance is a financial safety net, protecting you from the financial fallout of unforeseen accidents, health issues, or disasters. Securing these policies transfers some financial risk to an insurance provider, which can help provide peace of mind.<\/span><\/p>\n <\/p>\n Another vital component of risk management is maintaining an <\/span>emergency fund<\/span><\/a>. It serves as your financial cushion, preventing these unforeseen events from derailing your financial stability. A common rule of thumb is to have enough funds that cover at least 3 to 6 months of living expenses. However, during market volatility, consider upping that number to 12 months.\u00a0<\/span><\/p>\n Including risk management in your retirement plan is essential, as it can help you protect the lifestyle you envisioned in your golden years.\u00a0<\/span><\/p>\n With Americans living longer than ever, <\/span>retirement planning<\/span><\/a> is key in helping to ensure you don\u2019t outlive your savings. Here are some key principles of retirement planning:<\/span><\/p>\n Nearly 70% of retirees<\/span><\/a> will need some type of long-term care, according to the U.S. Department of Health and Human Services. This can be a huge expense, depending on the level of required care.\u00a0<\/span><\/p>\n Let\u2019s break down some numbers for Iowa:\u00a0<\/span><\/p>\n Planning for these potential expenses early on can make or break your financial future. However, it can be tricky to prepare for these services. While some retirees will have enough funds to pay out of pocket, that isn\u2019t always the case. That\u2019s why some financial advisors suggest purchasing a long-term care insurance policy. These policies may cover all or a portion of the services with premiums depending on your age, gender, health, location, etc.<\/span><\/p>\n <\/p>\n Whether you should buy LTC insurance will depend largely on how you balance the following factors:<\/span><\/p>\n It can be beneficial to regularly keep an eye on these costs as you plan for retirement. It\u2019s also important to frequently review and make updates to your retirement plan as circumstances change.\u00a0<\/span><\/p>\n Working alongside a <\/span>Fiduciary advisor<\/span><\/a> is like entrusting a disaster response team to orchestrate emergency relief efforts. Just as these teams operate with complete trust, good faith, and honesty to safeguard communities, a Fiduciary advisor acts similarly, advocating for your financial well-being with unwavering dedication to your best interests.<\/span><\/p>\n Embracing the guidance of a Fiduciary advisor proves to be a wise choice, particu<\/span>larly when crafting retirement plans. With over two decades of Fiduciary experience, Iowa-based <\/span>Matthew P. Johnson<\/span><\/a> of Johnson Wealth and Income Management is committed to help you work towards achieving all your financial goals and to help provide you with a \u201cworry free\u201d retirement.<\/span><\/p>\n Our team of Fiduciary Advisors can help you in various critical areas, <\/span>including:<\/span><\/a><\/p>\n As we mark the International Day of Disaster Reduction, remember that preparing for disasters isn\u2019t just about physical safety. Just like we plan for <\/span>other <\/span>disasters<\/span> in life<\/span>, it\u2019s important to secure our financial future through <\/span>proper <\/span>retirement planning.\u00a0<\/span><\/p>\nAre you Financially Prepared?<\/b><\/h4>\n
Managing Your Risk<\/b><\/h4>\n
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Retirement Planning For Financial Freedom<\/b><\/h4>\n
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Include Long-Term Care in Your Plan<\/b><\/h4>\n
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Working with a Fiduciary Advisor<\/b><\/h4>\n
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Final Thoughts<\/b><\/h4>\n