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If you can't work because you get sick or injured, disability insurance will pay part of your income. You may be able to get insurance through your employer. You can also buy your own policy Types of Disability Policies There are two types of disability policies. Short-term policies may pay for up to two years. Most last for a few months to a year. Long-term policies may pay benefits for a few years or until the disability ends. Employers who offer coverage may provide short-term coverage, lo

What would happen if suddenly, due to an illness or injury, you were unable to work?

Insurance may be less about if you’ll need it than when you’ll need it. Anyone who started driving at 16 is likely to have had a claim by the time they’re 34. More than 1 in 20 insured properties reported a claim in 2016, according to Insurance Services Office (ISO). And according to the U.S. government, someone who turns 65 this year has an almost 70% chance of needing long-term care services, which are generally not covered by Medicare. A network of prudent insurance coverage is the foundatio

The prospect of suddenly having to face life with a disability that limits your ability to work in the way you're used always seems unlikely. Disability is something other people face, maybe in old age, but not you. While disability insurance may seem unnecessary right now the facts give cause for the preemptive action. Approximately 12% of the total American population and more than 37 million Americans are categorized as disabled; more than half those disabled Americans are between the workin

You just ran the numbers on your retirement and realized that you aren’t going to be able to save enough to make it happen. Don’t panic: There are still things you can do to better your situation, especially if you’re willing to be flexible about your plans and your lifestyle. The first step is to determine exactly where you are. In retirement, you may have income from a number of sources: Social Security Pensions Investment income An inheritance Earned income from a side hustle Next, estimat

Think you know how much you’ll need to retire comfortably? You might want to think again. According to the Schroders Global Investor Study 2018, which surveyed more than 22,000 investors from 30 countries, 15% of retirees lacked sufficient income to support a comfortable retirement. Moreover, the research found that people anticipate budgeting 34% of their retirement income for basic expenses but actually require nearly 50%. This disparity is understandable given the many unexpected changes tha

There are many formulas for figuring out how much money you need to retire. Almost all of them can end up being wrong for a variety of reasons. Let’s face it: We love fast food, and we love “fast-food” formulas - simplistic rules of thumb that we can use instead of actually thinking about a problem in depth. The retirement investing space is filled with these. Some say you need eight-to-12 times your current annual income or that you should have 25 times your annual expenses, 80% of your income

Many people who are saving for retirement haven’t taken the time to figure out how much they may need when they retire. Financial planners who do pension consulting point out that saving without a goal could leave you in trouble when you reach retirement. After all, how do you know if you’re saving enough if you don’t know how much you may need? Factors to consider One way to start figuring out how much you’ll need in retirement is to look at how much you’re spending now. That will at least pro

A secure and enjoyable retirement doesn’t just happen. You need to plan for it. And the sooner you start planning, the more time you’ll have to make changes and adjustments to meet your retirement goals. Here are seven things you should consider for your retirement plan. 1. What will you do? Retirement could last 20 or more years, and you’ll probably need to find something to do with that time. Most happy retirees set goals for themselves. Also, you should have some idea of what you want to do

One of the best things you can do for your financial wellness is to set up an emergency fund that covers at least three months of your regular household expenses. It may take time to set aside this amount of money, but once you do, it can take a lot of pressure and stress off of you should the unexpected occur. But the question is, where should you put this money? Hint: It’s not under the mattress. What you want is a place that will be relatively safe from fluctuations in the stock market and b

While we don’t know when or where an emergency will strike, there’s a good chance you’ll have to deal with one eventually - that’s life. So it’s best to plan ahead for various types of crises that you may encounter. The foundation of your plan should be to establish an emergency fund that will cover at least three months of living expenses. However, there are a number of other steps that you can take to help protect yourself from difficulties you may face: Health Crisis You may have a health in

No one likes to think about it, but emergencies are a part of life. But just because we don’t know exactly what will happen and when, that doesn’t mean we can’t help ourselves be more prepared for them financially. That’s why establishing an emergency fund with three months of expenses is considered a foundational component for any sound financial plan. Having the dedicated fund set aside in a safe, highly liquid account can help you weather the storms that life may occasionally bring your way.

One of the first lessons of finance we are taught, by our parents or through some basic personal finance course, is to make creating an emergency fund our top priority. Having a reserve of cash equivalent to six to 12 months’ worth of living expenses is considered the most fundamental principal of financial security. Yet, the reality is that less than 10 percent of income earners have enough reserve cash to cover more than a month’s worth of expenses1. Is it denial, ignorance, laziness, that le

When it comes to preparing for a rainy day, the best time to act is now. Establishing a 3-month or $10,000 emergency fund is a critical pillar to your financial wellness - and it will help you sleep a whole lot better at night. But how can you find room for this essential line item in an already tight budget? Here are 12 tips to help get you there. 1. Set a target date to reach your goal. This can help bolster your motivation, especially if you need to cut back a little on your expenses (see #3

Target date funds, or TDFs, have become very popular among investors in recent years. And if you’re opening a new 401(k), this may be an option to consider if you want to minimize the stress of adjusting your retirement strategy as you get older. In the past, 401(k) participants would have to create their own blend of investments called an asset allocation, typically including an array of stocks, bonds and cash equivalents. Asset allocation should reflect the risk tolerance of the investor as w