The Nuts and Bolts of Insurance
Most people forget that they even have insurance. With the exception of an occasional doctor’s visit, it’s an insignificant benefit for which we pay an arm and a leg. However, being seemingly inconsequential matters such as being underinsured or paying high interest rates can be immensely damaging to your financial profile.
Tending to your insurance generally consists of monitoring two key ingredients: rates and coverage. If you do not recognize either of these words, the first step is to call your insurance agent. Although you might hesitate to inconvenience him, think of all the money you could be hemorrhaging on exorbitant rates and insufficient coverage.
Most agents receive commissions based renewals and new sign ups, not for updating you on rates that complement your changing lifestyle. Request a review of your policy once a year to ensure that you are receiving full coverage, earning applicable discounts, and staying informed about changing. Having this awareness will supply you with tools to shop for a better package. Also remember to keep an eye on your credit score as it can adversely impact your insurance rates.
Take Control of What’s Yours
You have to know who is in control of your investments. It doesn’t necessarily have to be you, but it should be someone you trust and can consult with conveniently. The worst scenario is not being aware of your finances. If you need help to track your investments, hire a financial consultant or advisor through a trusted source. If you’re not sure of what your finances look like, find out whether you funds are depleted or you’re actually holding onto sound capital.
Once this question is answered, reconsider your risk tolerance, a measurement of your comfort level with certain investments. Depending on your income, experience in the market, age, years to retirement, monthly expenses, and long term goals, some stock commitments can be perceived as jeopardous. Choosing items that match your degree of risk tolerance will decrease the likelihood that you will ignore your investments. Instead of steering clear from disappointing news, you’ll be curious to see what happens with your stocks.
