LIFE’s FINANCIAL CHALLENGES

No matter what financial challenges you face – whether it’s debt, limited savings and investments, or lack of life insurance — they can be resolved successfully.  By providing you with a better understanding of your financial situation and access to products and solutions that are appropriate for your specific goals, your IAA associate can help you achieve your dreams.

 IAA believes that having a solid understanding of the challenges families and individuals face is an important first step to overcoming them.

Saving money during first job

Landing your first job can be very exciting, however figuring how to handle your finances cab be very intimidating. To find out what works for you may involve a bit of trial and error in the beginning. Before you blow your first paycheck, it is important to keep in mind that this is the beginning of a new journey and you need to spare some time to implement some strategies to save money in order to reap the rewards of your employment.

Pay your bills

Payment of bills is often taken for granted. You may routinely do it, but not think much about it or even not get too concerned about making the payments late. Between rent, student loans, mortgages, and other bills that may be due at different times within the month, it may be difficult to stay on top of things.

Setting some time to organize yourself and perform some administrative tasks will not only help you keep track of all bills that are due, but also save you exorbitant amounts of money in the long run. 

Getting Married

Finances can play a big role in the success of your marriage. According to a study by the Kansas State University, having financial arguments was the top predictor of divorce. Managing your own money can be quite challenging but incorporating your spouses can be overwhelming. 

The two of you should take plenty of time to work some things out so that you can easily get accustomed to healthy financial habits.

Purchasing a Home

This is one of the biggest financial steps that you will ever make. When making this decision you have to consider whether you will be able to afford the additional costs like added utility cost and garbage, and taxes and insurance related to your home.

To qualify for a better mortgage interest rate, you need to strengthen your credit by resolving any credit disputes that you may have and paying off credit cards.

Setting up a Rainy Day Fund

Setting up a rainy day fund is one of the smartest things that you can do. It can help see you through a potentially costly and unexpected life event such as a job layoff or a health crisis. You should aspire to save enough to cover at least six to nine months of living expenses. Do not forget to replenish your account once you the existing amount.

Starting a Family

Bringing a new life into the world can be one of the most exciting and fulfilling things. It is however an expensive business as most parents can attest to. You need to create a realistic budget and work your finances together as a couple. 

Try saving us as much as you can to cover prenatal visits, labor and delivery charges and other day to day expenses when the baby comes along. Also try to drop your debt as low as possible if not completely, before you start a family.

Unexpected loss

The loss of a spouse or a family member can be devastating. There are however some financial implications you will need to deal with as soon as possible. It is important to get professional legal and financial advice, obtain proper documentation and have a clear picture of your circumstances. The decisions that you make could have a lasting financial impact on the well-being of your family.

Wills and Trusts

You have worked hard for your money and made every attempt to be a meticulous saver. It is only natural that you would want some control over what you want to happen to your assets after you pass away. There are certain strategies to choose from to ensure that this happens and that it is done in a timely fashion. The strategy of your choice will depend on your circumstances as an individual.

Planning for Kid’s College

When it comes to education, we all want to do what is best for our children. College is however not a cheap affair. The average cost per year in college is $8,893 according to the College Board, a New York City-based non-profit. 

If you are not certain how you are going to pay for your kid’s college, there are a number of options you can look into including; 529 plans, Coverdell education savings account, UTMA and UGMA accounts or even getting your kid to chip in through working if they are old enough. 

Build and Preserve Wealth

Everyone who wants financial stability and prosperity is looking to build wealth and preserve it. We all know some wealthy people that have lost fortunes, ending with close to nothing due to failure in having a well-designed and managed financial plan.

It is important that you get proper guidance and advice as well as a sound management system plan designed to support your long-term goals.

Divorce

No amount of marriage counseling is enough to avoid divorce for some couples. It can be a very tough process both emotionally and financially. One of the most difficult things about divorce is deciding who gets what.

The more amicable you and your spouse’s divorce settlement is, the less damage there will be to repair your overall financial situation. After your divorce is finalized, you have to sort out your finances and figure out what lifestyle changes you will have to make.

Retirement

Just the thought of retirement can make you anxious and many feel unprepared and overwhelmed. With some planning, you can steer clear of the mistakes that could derail your retirement. You need to figure how much you need to support your cost of living when you retire, consider any benefits you might receive from social security and start saving immediately.

Legacy

Just as with writing a will, planning \your legacy is important so that when you pass away you leave your affairs in order. With the right legacy and planning, and the right suite of solutions, you are able to enhance, protect and distribute your wealth as you wish.

You can seek advice from a financial advisor to help guide you towards reaching a level of financial security that will give you both a comfortable life and allow you to leave wealth as part of your legacy.

Protecting Family after death

Life is precious and temporary, and while we cannot be sure when it will come to an end, it is best to be prepared for it when it does. Planning for your death is a loving act to perform for your family that lets you retain control even after death.

You should start planning as early as your 30s. No amount of planning can prevent the sadness and grief that follows death, but it can help minimize the impact on your finances as well as the stress levels of your family.