What does personal health have to do with my financial plan?
Your health may impact your financial plan more than you think.
It’s often we think of our personal health and our financial health as two unrelated aspects of life.
The two aren’t correlated, are they? Well, actually, they are very correlated.
Life expectancy: all financial plans take into consideration your time-horizon and longevity. In order to project whether you have enough money to live the life you want, we need to understand how long your money needs to last. Two key figures within every financial plan are the age in which you plan to retire/stop receiving a paycheck and the age to which you expect live. Health and family health history must be taken into consideration when determining the latter.
Insurance: If something happens to your health, having the right insurance in place may be the biggest factor to whether or not you and your family will be okay through a health event. An insurance analysis and looking at various “what-if” scenarios will help determine if you have the coverage you and your family would need should something happen to you.
Business Succession: For business owners, it’s important to ensure everything is structured property in the event of a health event that results in you being unable to operate the business or pass away. What does your operating agreement state if something happens to you? Do you have a buy-sell agreement in place?
Estate Planning: If you have a health event leaving you disabled or if you pass away, having your estate planning properly structured will save your loved ones time, money, and legal headaches. Having your estate properly structured may also save your family from owing taxes on anything you’ve left behind as well.
If you’re in good health and have good health history in your family, you may be thinking, “I’ll focus on all of that planning someday but I’m in great health now so it’s not a priority”. As you can see, your health greatly impacts all areas of your financial life. At Freedom Family Office, we encourage our clients to live a healthy life because of the correlation health has on the success of their financial life. That said, we know that unexpected things happen and strive to protect our clients and their families in the event their health fails.
If you’re interested to learn more about how you can live a healthier personal and financial life, contact us at AskFreedom@freedomfamilyoffice.com