Financial Good Fortune Takes

With St. Patrick’s Day right around the corner, you are likely to hear about “the luck of the Irish”.  This phrase was coined during the gold and silver rush of the 19th century, when many successful miners were of Irish American descent.

Unfortunately, whether you are Irish or not, it takes a lot more than a four-leaf clover to ensure financial good fortune.  So, this St. Patrick’s Day, consider using these three practical tips to help you get financially prepared, no matter what sort of luck comes your way! 

1. Make sure you have an emergency savings fund.

Emergency savings accounts help protect us against total financial devastation in the face of an emergency such as a health crisis, job loss, or a major repair on your home or auto.  A general rule of thumb is to have anywhere from three to twelve months-worth of living expenses in your emergency fund. The amount will depend on whether you are a single or dual income family, and what your tolerance for risk is.  A consistent way to build up your emergency fund is to have money transferred automatically from your checking account to your savings account each time you get paid. If you are self-employed or don’t bring home a regular paycheck, you can manually transfer a percentage of your earnings, as soon as they hit your account.

2. Review your insurance policies.

While it’s true that many of us have our basic insurance policies in place, such as renters or home, auto, and health, it’s also true that many of us are guilty of not reviewing our policies to make sure that our coverage is still appropriate for our ever changing financial circumstances.  Reach out to your insurance provider every few years and ask if any changes need to be made. In addition to your basic insurance policies mentioned above, consider adding life insurance if you have family members who depend on your income, and disability insurance if you rely on your current income to cover your basic expenses.

3. Get your estate plans in order.

While it’s not fun to think about the end of life, having your final wishes in place can ease the pain of loved ones during a difficult time.  Estate planning involves naming a guardian for minor children, deciding how you would like your affairs to be handled should you no longer be able to do it on your own, the distribution of your assets upon death, as well as charitable giving.  An estate plan may include a will, trust, and power of attorney for property and healthcare. I suggest researching estate planning attorneys in your area, who can help you to prepare these documents.

In closing, remember this: while we wish for the luck of the Irish to be upon us, it is best to be prepared for times when it’s not.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you discuss your specific situation with your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results.

Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.

Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.