Make Yourself Financially Secure with These 10 Products

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8. Life Insurance

Hypothetically speaking, if you were to die would your family be able to cope financially? Do they even have enough cash to pay for your funeral?

Unless you’ve got plenty of spare cash laying around, you’re going to need a life insurance plan to keep your family feeling secure. If you do have some wealth, you also might want to get a policy that will keep estate taxes at bay. It would be heartbreaking to leave your family in mourning. But, it would be a whole lot worse if you left them bankrupt, too.

Some perks of life insurance plans that you can use before you die include living benefits that will allow you to access your insurance funds if you are terminally ill.

9. Retirement Fund

In future, you’ll want to retire and maybe that seems like a long way off but a little planning can help significantly, no matter your current age. It’ll be nearly impossible to live from Social Security once you retire. The average annual benefits are below $15,000 per year.

Financial advisers suggest that on top of social security, retirees need 70% or more of pre-retirement earnings to live a comfortable life. So, you’ll need to start saving as soon as possible. The first kind of retirement savings account you should get is a 401(k) plan with your company offering employer match. Beyond that, there are many tax-free plans to choose from – like Roth IRAs and Regular IRAs.

10. College Savings Account

If you’ve got children, then you probably want them to go to college. But if you don’t want them to start their working lives riddled with debt, then you should seriously think about a 529 college savings plan or Coverdell education savings account. This is a common way to save your funds for your child and get tax advantages too. But, if you end up using the money for a different purpose you will get hit with a tax penalty.

Additionally, here’s some food for thought. If your child ends up getting a scholarship or quitting after the first semester then you might want to place your money in an investment fund instead. Then, if things go south for your child’s college days you’ll still have a large chunk of money. You can transfer this amount to your retirement fund or even use it for a dream vacation.