Financial security planning is a dynamic process. Most of the people we meet have never done anything along this line and hence don’t have a plan. It’s not that they’ve done anything wrong; it’s that they haven’t done anything. That’s what’s wrong.
- Your 401(k) is not a financial security plan.
- Your disability income insurance policy is not a financial security plan
- Your will and the trust agreement are not a financial security plan.
- Your life insurance policy is not a financial security plan.
- Your bank account is not a financial security plan.
- Your long-term care insurance policy is not a financial security plan
- Your investment portfolio is not a financial security plan.
Each of these is a part or a piece of some financial security plans, but as standalone vehicles, they do not work the way you need them to.
Financial security planning is about (a) having the money you need (b) where you need it (c) when you need it. The first step in this process is to meet with a financial advisor and go through a process of discovery which assists you to customize your objectives. These usually come in three categories: personal, professional, and financial. You probably should start by setting specific targets in each of the three areas which you can actually visualize. I recommend that you set a time horizon of 36 months. You can then break your goals down into whether you want to be 36 months from now; then 24 months from now; then 12 months from now; then nine months from now and six months from now and then three months from now. This will begin to tell you what you need to start doing on a day-to-day basis to reach your first target in 90 days.
Articles for Financial Security and Planning
Here are some articles on financial security and planning for physicians and their family:
- Financial Security Bases
- Term Insurance or Permanent Insurance?
- Life Insurance — How much and what kind
- Exemption of Life Insurance Proceeds and Cash Values from Creditors
- Funding your Children’s College Education
- Here’s How To Repay Student Loan Debt If You’re A Doctor, Dentist Or Lawyer
- Financial Dignity Bill of Rights
- Have Kids and Aging Parents? How to Keep on Track for Your Retirement