Top 10 Surprises to Avoid

My grandgirls love surprises.  It could be receiving a beautiful package or hearing that we’re going on a trip to Disneyland.  Who couldn’t appreciate a surprise visit from a best friend or a lottery win?

But sometimes the surprises may not be so pleasant.  Markets don’t like surprises.  Granted, markets are inanimate.  It’s actually people reacting to bad news like dropping a stock like a hot potato, or throwing the baby out with the bath water.    

Check out our top 10 list of things you can do to avoid some unpleasant financial surprises.

1. If you act as an executor, get a tax clearance certificate when wrapping up the deceased’s estate. This will protect you from being saddled with any unpaid tax bills.
2. If you have a family, make sure you have enough life insurance so you don’t leave your family in need.
3. If you’re working, make sure you have enough disability insurance so your income is adequately replaced if you are unable to work.
4. Ensure your portfolio has enough fixed income so your portfolio won’t be decimated in market downturns.
5. Ensure your portfolio has enough equities to help grow your nest egg for the future.
6. Ensure your portfolio includes alternative strategies for protective diversification.
7. Ensure you’ve got a cushion big enough to cover an emergency of not less than four months’ spending.
8. Ensure you’ve got a Will so you don’t leave your loved ones guessing about your wishes or paying unnecessary legal bills.
9. Ensure you’ve got a Power of Attorney for financial matters so someone you trust can manage your affairs if you are not able.
10. Ensure you’ve got enough home insurance in the event of disaster to your home, or someone working in it.

If your ducks are in a row, we applaud you.  If you’ve discovered some gaps, or want more information, don’t hesitate to be in touch. 

Teresa Black Hughes is a Financial Advisor with RGF Integrated Wealth Management. The views expressed are those of the author and not necessarily those of RGF Integrated Wealth Management, which makes no representations as to their completeness or accuracy.

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