Welcome back to our 7 Pillar Series! Last week we spoke about wealth management and how to grow our assets. This week we’re going to flip the script, we’re going to talk about risk management and how do we protect our assets.
Now, one of the common pushbacks I hear is that “It’s too expensive” or that “I’ll never use it.” And my first response to that is always, “Do you have homeowners insurance?” And of course everyone always says, “Yes, I have homeowners insurance. I can’t afford to lose my house.” Now, we don’t like to talk about the gloomy side of life, but if you can’t afford to lose your house, can your family afford to lose you?
Can you afford to lose your income if something were to happen? Can you afford to go into long term care when you’re in retirement? We don’t like to think about these gloomy pictures, but it’s important to. In fact, 70% of those 65 and older are going to use long term care at some point. And in 2020, the cost of an assisted living facility in Minnesota was more than $3,800 per person a month.* And so, what do we need to do?
You need to take a look at whether you have insurance. Are you protected? Are you over protected? There is such a thing as having too much insurance. And finally, how much is that insurance you’re paying for. Are you paying too much for what you have?
And so, if you don’t know the answers to those questions, review it. Or give us a call and we’ll review it for you.
Finally, next week - next week we’re going to cover our third topic on our 7 Pillar Series, called Legacy Planning.
*Source: Paying For Senior Care Minnesota
Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advice offered through Priebe Wealth, a registered investment advisor and separate entity from LPL Financial.