You will find your personal finance’s worst enemy when you look in the mirror. Yes, you are your worst enemy. Stop blaming the stock market or the economy. Act now and do something. Preserve your financial well-being.
Concerning your health. When your health collapses, it will surely hurt your finances. Remember that Medicare is short-term and does not cover all medical expenses. According to surveys, the costs for dementia care in a private room of a skilled nursing facility can go as high as $92,000. There are reports that the cost of long-term medical services increase at a rate faster than the annual inflation rate.
How do we address this concern then? Do not use your investments just yet. Instead, use your extra money to purchase long-term medical insurance. With the recent reports by reputable institutions, your investments can go a long way if you place them in a workable long-term medical insurance.
Concerning your longevity. You wanted to live long and enjoy life. So you take care of yourself, exercise everyday, eat the right diet and maintain an active lifestyle. This kind of lifestyle can make you live about 30 years beyond retirement age. This sounds good. But you don’t realize this can lead to a huge financial problem.
Why is this then? According to reports, we have had 33 bear markets over the last century. Doing simple math, that’s about one in every three years. In 30 extra years, you will have ten more bear markets. If you are not using your investments during those ten bear markets, how long do you think your retirement funds would last? Therefore, you need a good strategy to protect yourself during those ten bear markets.
Concerning your subjectivity. We all make decisions; good and bad decisions. When it comes to money matters, emotional decisions make for bad decisions; at least, almost every time. Just when you think you are capable to manage your finances singlehandedly, then you are dead wrong. You need someone behind you. An expert in investments to help you avoid bad decisions. You need the services of a financial advisor to make your decisions objective. Try to find someone you trust. There is someone out there who can provide you with this valuable assistance.
Bottomline. You can take a positive action on these issues now. Plan for a long-term health care insurance. Make extra effort to protect yourself from bear markets. Avoid bad financial decisions by engaging the help of a financial advisor. The next time you look in the mirror, you are sure that your worst enemy has been neutralized.