Are you a saver?
Whether you own a hair studio or make-up and design studio, one day you will eventually retire and need to have savings. Unfortunately our industry is not filled with savers and unless you are one of the few who have religiously saved money over the years, when you retire and no longer have the ability to work, the question is will you have enough money to live comfortably?
This question scares most because the answer is usually “no, I’m not a saver and live paycheck to paycheck.” The good new is it’s not too late for most and you can change and become a saver. If you just invested $10 dollar a day or the cost of one trip to Starbucks over 30 years that seemingly small investment would be worth $733,239 if it just got 8% a year return. Most any well managed mutual fund has a shot to get that if not more over such a long period of time. Compounding interest over the long term is the secrete. This site has free calculator that you can plus in numbers and project savings over time, click here.
Okay, you have saved well so don’t lose it!
An often over looked financial planning tool that wipes out billions of savings each year is the high cost of needing long term care at home or in a nursing home. If you are that saver who has saved $100,000 or more congratulations so you might want to think about insuring that investment. The department of Health and Human Services division did a study and found that people 65 years and old have a 50% chance is needing long term care before they die. Why is this stat important? The average annual amount of money spent on long term care is $55,000 per year. As you can see if would not take too many years to blow through most if not all of your savings.
What you can you do to plan?
There is a little know insurance product that use to be exclusive just for the rich called Long Term Care Insurance. Now, companies have stated creating Long Term Care Insurance products that the average person can afford. Of you have Long Term Care Insurance and need say home care, as opposed to having to spend your hard earned dollars on care, this insurance will pay that bill. A wise man once said to spend pennies to protect dollars.
If you don’t have a financial pro to talk to, go get one! These people are critical for helping you grow your wealth and keep it!