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It wasn’t long ago that we faced an economic downfall. During the housing market crash of 2008, a lot of families saw a sudden impact on their financial well-being. While it’s hard to say when (and if) there will be another unforeseen crash—though many experts believe it’s coming—it is easy to prepare your finances in case the threat becomes very real. There are several ways you can help your clients get their finances ready for a big dip.
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It’s not enough to put aside whenever you might feel comfortable doing so. While many people add to their savings when they can, it’s important that you develop a working budget that includes a dedicated, fixed amount of money that goes directly into savings. It’s also not necessarily enough to put it all into the same savings account, either. It should be a designated rainy day fund that can be used if the stock market were to crumble again. Your clients should still be putting back as much money as possible, and living on a strict budget to make sure their retirement money will last through a downturn.
Over time, we acquire a lot of stuff. Some of that stuff is useful in our day-to-day, but not all of it. Recommend sifting through belongings at least once a year and taking inventory of everything. Ask them to consider what they need and what they don’t need. Anything they don’t need can be sold or donated for a tax write off. Annual garage sales are great from clearing out unnecessary stuff and bringing in a nice little chunk of change.
Sell Unwanted Assets
Unlike our toys and belongings, assets are a little harder to part with. However many of us are not aware of just how many assets we have. Homes and vehicles aren’t the only valuable assets people own—jewelry, collectibles, and more can also maintain a high value. One asset not many people realize they have is a life insurance policy. For many, their insurance policies aren’t needed or are unnecessary.
If your clients are concerned with being prepared for a future stock market crash, then you might want to discuss selling a life insurance policy through a life settlement. In most cases, selling a policy leads to a larger sum of money than the policy’s surrender value.
If you’re interested in selling your life insurance policy, check out our life settlement qualification calculator to see if you qualify today!