Protecting Your Finances
- Preserving you future assets – If for any reason you need to take out funds from your retirement accounts (401K or IRA) before the age of 59 ½ make sure you can quickly replenish the lost funds.
- Maintain a diversified portfolio – Have a broad selection (i.e. life insurance, savings, CDs, annuities, stocks, bonds etc.)
- Make sure your bank with some protection. FDIC means that your money is protected in case something happens like the economy collapses or we have another depression. FDIC stands for Federal Deposition Insurance Corporation. It was created in 1933 and protects your checking accounts, savings accounts, money market deposit accounts, and certificate of deposit accounts. It will cover up to $250,000 for each bank account and it is only insurance with banks that offer FDIC.
What does protecting your finances mean? It means taking the necessary precautions for any financial situation. For example, understanding the importance of saving money in case there is an emergency. Another example would be having life insurance in case something happens to you your family will be taken care of financially.
Be vigilant when it comes to identity theft. It can happen to any of us. Make sure to keep track of your credit report. The best option is to have a monitoring service that alerts you about any activity being reported on your credit report. I personally have my credit report monitored and I have an app on my phone so that I can quickly access my report or any suspicious activity. The app is great and don’t worry if you lose your phone. In order to access your app on your phone, you have to give your password and last four numbers of your social security numbers.
- Keep your finances in order (your bills, statements, medical history, and billing).
- Watch out for scams. Don’t click on links that someone sent you via email. This could be a trap to access your computer and gain information to obtain credit info or watch you logging into accounts online like your bank account.
- Check your bank statement regularly and report any activity or withdrawals immediately to your bank. You can sign up with your many banks now to have alerts come straight to your phone via text message. These alerts are daily and let you know when money is deposited into your account, withdrawn, and your daily balance.
- Be wary of request asking you to update your personal information via email or by phone. Again, this is a scam to get your personal information like your secret password or Mother’s maiden name to access your bank or credit card accounts. Unless you contact your banking or credit card company directly NEVER give out your social security number, bank account number, personal identification number, password, birth date, and/or Mother’s maiden name.
- Protect your finances even for a possible divorce. Having a prenuptial agreement is a smart move to protect your personal assets. Let’s face it there are more divorces now then there are marriages.