March 23, 2005 -- When you think about your financial future, the first thing that probably comes to mind is accumulating enough assets to be financially independent and to secure a comfortable retirement.  Talking with your financial advisor about accumulating and growing your asset base is usually a happy conversation. But, what about protecting that wealth accumulation from tragedy? That is not a conversation that most people look forward to, because they must discuss all of the potential tragedies that can occur, including death, injury, illness, liability, etc. Therefore, many investors put off discussing this important part of the financial planning process.  Just as it is important to plan for the accumulation of assets, it is equally important to protect that accumulation from tragedy. That is where insurance or risk management comes into play.  Owning insurance can help you protect yourself and your entire family from the high costs associated with the following tragedies:

The loss of an income earner.  It is imperative to protect your family from the potential loss of a wage earner who provides all or part of the income needed to support your family’s current and future lifestyle.  Proper life insurance can go a long way in providing this needed security.

Loss of income due to illness or injury.  According to data from the Society of Actuaries, between the ages of 35 and 65, you have a 30-percent chance of becoming disabled and being unable to work for 90 days or longer. This statistic shows the importance of protecting your family’s future with disability insurance. This type of insurance provides your family with an income source in the event that a wage earner becomes sick or injured and is unable to work any further.

Replacing assets damaged by tragedy such as homes, automobiles, boats, etc.  You worked hard to buy a nice home and/or automobile for yourself and your family.  Protect your possessions with property and casualty insurance from damage caused by natural disasters and other tragedies.

Lawsuits. Risk management involves protecting your assets against lawsuits associated with your home or auto. Homeowners insurance, auto insurance and umbrella liability protection can provide you with security from potential lawsuits.

The high cost of medical expenses.  Major illness or injury can wipe out your entire family’s savings due to the high costs of medial treatment.  Proper major medical insurance and critical illness insurance can help cover those high bills and other expenses.

Rising costs of long-term care. Nursing home and home health care costs are on the rise.    These expenses can wipe out asset accumulation in a couple of years, leaving nothing for your heirs.  Proper long-term care insurance can help to offset these expenses allowing you to keep your money for the purposes you desire.

Outliving your assets.  With increasing life expectancies, retirees now face a greater possibility of outliving their retirement nest egg. Traditional stocks, bonds and cash investments cannot guarantee an income stream for life.  You can guarantee income for life through a fixed annuity contract.  An annuity contract can help you protect against the risk of living too long. (Guarantee based on the claims-playing ability of the insurance company).

Shielding your assets from all the potential risks is a critical part of planning your financial future. Insurance and risk management are essential in accomplishing this goal.  Fortunately, you do not need to be an expert in these matters. Talk to your financial advisor to sort out what types of insurance are necessary for your financial plan.  Your financial advisor will help you determine the right mix of money you should spend on accumulating assets and protecting those assets to keep you on track for accomplishing your financial goals.  Together you can coordinate all aspects of both asset accumulation and asset protection.

Call Doug Hall or Vicki Dworski, Asher Financial Advisors, at 215-564-1900 for more information.  

Securities offered through1st Global Capital Corp. Member NASD, SIPC.  8150 N. Central Expressway, Suite M-1000, Dallas , TX 75206 , 1-800-959-8440 .  Asher Financial Advisors, LLC is not affiliated with 1st Global Capital Corp.

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