What's Your Financial Backup Plan?

Saturday, May 21st came and went.  Sorry Mr. Camping, but we're still here - another reprieve for the world, a disappointment for a small few.  So what happens now?  It has to be acknowledged that the human psyche will unfailingly attach emotions to an event or their goals with no thought for a Plan B.  We see demonstrations of this everyday, from the cacophony of a riverboat casino to the trading floor of the CME, to your living room where your day trading is accomplished to Oprah or Dr. Phil's voice in the background.

 
harold_camping_motivator_by_brokeneye32.jpg

 

Have you asked yourself what will happen if on your first year anniversary of your retirement, you realize just how much taxes you've paid?  What will you do the day after you retire and Uncle Sam dressed as the Pied Piper, comes to take your savings away?

Last week, we talked about financial contingencies and preparing for the unexpected.  But one of the other dangers is our complacency in recognizing that we've inadvertently placed our financial goals in one basket.  Some would argue that investment portfolios and their involvement in mutual funds are diversified and by this alone, we have sufficiently protected ourselves from loss or penalty.

 
Where are your guarantees?  Where's your safety net?  Ben Franklin once said that the only two certainties in life are death and taxes.  Did your Plan B recognize the real effect of what deferring your taxes really do?  If your original plan accounted for passing on your savings to your children, did you account for the sale of your home and possessions by your children who have to pay for the gift of estate taxes?
 
What happens the day after?  
 
If you'd like to know, give me a call at (312) 493-2054 or email me direct at gene@prophetfinancialinc.com
 
If you liked this blog and would like to read more that are written by my friend and mentor, Matthew Sapaula, please visit by clicking here: Matt Sapaula blog archive.

Comments

Leave a comment
  • Back up plan huh? For me that is just a negative approach to finances. I am in no way saying not to be wise with how money is managed. But I rather focus my energy on the positive and making money versus what of scenarios on losing money. http://executivecoachingx.com

Leave a comment

  • ChicagoNow is full of win

    Welcome to ChicagoNow.

    Meet our bloggers,
    post comments, or
    pitch your blog idea.

  • Advertisement:
  • Meet The Blogger

    Matt Sapaula

    Proud father, former U.S. Marine Sergeant, financial coach, podcaster of the "Money Smart Show", co-host of MSN Money's "The Invested Life" personal finance reality show

  • Let’s Connect on Facebook!

  • Tweet it Up!

  • Monthly Archives

  • Latest on ChicagoNow

  • Advertisement:
  • Fresh Chicago News