David Lerner Associates: Five Financial Threats That Could Derail Your Future

David Lerner Associates: Five Financial Threats That Could Derail Your Future

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We all make plans for our future and try to cover all the bases.  As much as we’d like to believe that everything will go according to plan, we know that there are likely to be bumps and setbacks along the way. These five events are probably the most serious threats to a successful financial future:

  1. Outliving your money. As life expectancy gets longer and longer, the need to provide funding for a lengthy retirement increases. The possibility of outliving your money is a very real threat today. The best scenario would be to plan to live until you are 100.  That way you’ll be sure to have enough money to live comfortably in your old age.
  2. Dying unexpectedly. This is the opposite scenario - if you were to die suddenly, long before you expected to, you leave your family facing an uncertain future. You will probably not have had enough time to put aside sufficient money to support the family without your income. The solution to this problem is life insurance.
  3. A negative lifestyle change. So many things can happen that could impact your ability to maintain your lifestyle. During the Great Recession, many families experienced hardship due to job loss or the loss of savings due to the stock market crash.  Natural disasters, illness, or accidents can also cause a serious change in your financial situation.  Disability insurance and disaster insurance can go a long way to giving you peace of mind.  Create an emergency fund that covers six months of living expenses, so that no matter what happens you have a window of time to recover.
  4. Valuable documents and items.  Whether you keep your documents electronically or hard copy, it’s vital to secure these documents so that you know where they are and can easily access them at any time.  Make sure that you have a Valuable Docs file on your computer that is password protected.  Install firewall and anti-malware software on your system.  Back up the system regularly so that should you experience a hard-drive crash, your data won’t be lost. Hard copies should be filed in a safe place that you and your spouse know how to access.  Keep all valuable items, like jewelry and art, insured and in a safe place.
  5. Identity theft.  This has been the number one consumer complaint to the Federal Trade Commission for the last 15 years. Cyber-criminals are getting more sophisticated, and it’s not just credit card theft that should be on your radar. Identity theft takes many forms besides financial identity theft, including the use of stolen identities to commit criminal, medical, and government fraud.  Shred all financial data before you throw it away.  Carry only the cards you need when you go shopping.  Keep a hard copy of all the credit and debits cards in your wallet. Keep your Social Security card in a safe place at home.

Always expect the best, but plan for the worst.  That way you and your family will be able to enjoy life no matter what circumstance come along.  If you need assistance with this planning, contact an investment advisor who can help you get your financial future secured.



Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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