1. Review Your Property & Casualty Insurance
Many insurers offer bundling discounts, but how much you save depends on where you live and the company that insures you. This is also a great opportunity to review your current coverage and determine if your coverage is adequate.
You may also want to consider umbrella insurance. Umbrella insurance is a type of personal liability insurance that covers claims in excess of regular homeowners and auto policy coverage.
2. Term Life Insurance
Now that you have purchased a home, generally you have a significant amount of mortgage debt. If you were to pass away, your family would be liable for the monthly mortgage payments. Term life insurance could potentially provide more than enough cash to pay the mortgage off or cover the monthly payments.
Term life insurance provides coverage to a policyholder for a set amount of time, like 10, 15, 20, 25, or 30 years. That’s the “term” — a period you choose when you buy your policy. Coverage amounts can range from $50,000 into the millions of dollars, and you pay a set monthly premium for the duration of your term.
It is best to work with a professional financial advisor that is a fiduciary to determine what amount of term insurance is right for you and your family. A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ interests ahead of their own, with a duty to preserve good faith and trust.
At Nepsis, Inc. we have the ability to shop around and find you the best rates available. We are not tied to one insurance company and are not pressed by one company to meet sales goals or sell a particular product. We have one objective, and that is to act in the best interests of our clients.
3. Create a Budget
Now that you have a monthly mortgage payment, it is a great time to start a budget. A budget is a plan to track monthly to determine how much money you are spending and saving. A budget gives you permission to spend, while keeping you on track to reach your savings goals.
4. Build an Emergency Fund
An emergency fund is 3 to 6 months’ worth of living expenses set aside in case of an unexpected life event, such as employment termination, illness, or home maintenance cost. For example, if your household spends approximately $5,000 per month you should have $15,000-$30,000 emergency savings account set aside for emergencies.
5. Draft an Estate Plan
An estate plan allows you to provide enforceable instructions for what will happen to you, your loved ones, and your assets after you pass away or become temporarily or permanently unable to communicate.
You may consider an estate plan if you would like to:
• Limit probate expenses.
• Reduce your estate taxes.
• Ensure family privacy.
• Protect your beneficiaries.
• Ensure your assets are distributed to the right beneficiaries.
• Select a guardian for your minor children.
• Help avoid family conflict.
An estate plan may include Wills, Trusts, Powers of Attorney, Health Care Directives and many other estate planning documents. Working with an experienced estate planning attorney can help make the process of creating an estate plan as efficient as possible.
6. Update Home Address
Prior to Moving
• Gas, electric, water, sewer, trash, phone, cable/Wi-Fi.
• Government Agencies – Internal Revenue Service, Department of Motor Vehicles, Social Security Administration, Voter Registration Office.
• Financial Companies – Banks / Credit Unions, Investment Advisors, Lenders (auto, home, personal, education).
• Other: Medical (doctor, dentist), Auto Insurance, Church, Licensing Certifications, Schools, Daycare, Friends, and Family.
Disclosures: Nepsis, Inc. is not affiliated with this real estate agency, and they do not share compensation. Nepsis, Inc. is not a tax accountant; please review all tax strategies with your tax professional.
Advisory Services offered through Nepsis, Inc.; An SEC Registered Investment Advisor.