Thread: Are you prepared?

I've recently made a career change into the financial services industry and have been learning some surprising things. It made me wonder how financially prepared our little group is. Think about these questions: do you actually have the right amount and type of life insurance? Do you know what the "right amount" is? If something happens and you're disabled, will you be ok? Do you have a plan in place to take care of your parents if they need long term care? Are your retirement plans dependent on the market or are they actual plans?

I'm just curious. I know all of the above for me (at the moment) is no. I'm definitely not ready for anything. Part of it is that I simply didn't know I should ask those questions, or that I could actually do something about it.

If your someone of means you can afford to cover every eventuality in life. For most folks it's just hard to get through life. I realize the financial services industry (nothing personal here) would like everyone to pay out half their income in various insurance policies and investment schemes but whether its important or not the reality is you can only do what you can afford to do. As far as taking care of others like parents most have problems taking care of themselves and their children.

I don't want to seem cold here but if our parents haven't planned for their futures and assumed someone would take care of them I think in most cases they are in big trouble.

No offense taken. There are a lot of scum in this industry, most of which are lining up for a bailout right now. I'm not the biggest fan of people in my position at other companies simply because our business goals for clients are far different. Don't think that I'm saying everyone should be prepared in all those events. It's true, if your parents didn't prepare, then there's not a whole lot that can be done. If that's the direction you want to see it though, that means that you should be prepared as well. It's mind blowing the amount of people who take your point of view but then don't prepare for their own retirement for whatever reason. I'm definitely one of those people. I don't plan on being there financially for my parents, but I don't have plans in place for my own retirement. Part of it is my situation in life, but most of it is really me not putting any thought into it.

Part of the issue (I think) is the aforementioned scum of the industry. They've made real and helpful products unavailable and dirty looking to most of the country, so no one wants to go to a "professional" to find help. It's like asking a car salesman if you should fix your car. It's sad, but it at least makes my job easier

As far as paying out half your income for insurance policies, I'm not saying you should do that either. However, we insure the other important things in our lives: homes, cars, razors in the mail, etc. Isn't your livelihood the most important thing you've got? In my eyes, only those of means can afford not to get eventuality insurance. I don't know about you, but I can't afford to be disabled. For that matter, I can't really afford to die. However, for the equivalent of about one nice W&B a year, I could at least cover everything my wife would need from paying off the bills to therapy and burial. That's worth a razor to me

Not sure what you're talking about. Health care is free (or, say included in what you pay) and retirement is paid by the state. Unless you live in the USA, the only country in the world without free health care as far as I am aware.

I'm actually not talking about health care at all- we do more in life when we're retired than go to the doctor (I hope!) As far as state run retirement, I'm not sure where you live, but retiring on social security in the US is like retiring to poverty. I assume that most of the US posters here live above poverty and would like to at least retire with the same quality of living.

Originally Posted by Cornelius

the USA, the only country in the world without free health care as far as I am aware.

yeah, the free health care in Somalia is fantastic, I'm sure. Pretty sure it involves a warlord raping the women and killing the men.

I'm prepared for most things. Truck is insured against almost everything. Same for house. Same for healthcare, same for life, accidents, loss of employment, retirement, etc. I consider all those things living costs and have budgeted for them since graduating from college and becoming employed. The wife and I both carry enough life insurance to pay of each of our debts (school), cover funeral expenses and pay off the house. The wife and I are also both insured against any disability that might prevent us from being able to work.

Some of my friends think I'm wasting my money, but I think of it as cheap peace-of-mind.

I might add that all of that insurance, retirement, etc, etc is paid for from my pocket and is my choice. I am not relying on other people's taxes to cover me at all. I am wholly expecting Social(ist) Security and Medicare to collapse before I am anywhere near old enough to retire, so my plans don't include them.

Originally Posted by jockeys

The wife and I are also both insured against any disability that might prevent us from being able to work.

Good thinking. Very few people have the understanding or the forethought of disability insurance (I call it "paycheck insurance"). I don't know many people that can sustain a hit financially for six months, a year, two years by being disabled from an illness or injury, having no income and come out of it unscathed. With your protection in place, you don't have to worry about that.

Chris L

Originally Posted by jockeys

yeah, the free health care in Somalia is fantastic, I'm sure. Pretty sure it involves a warlord raping the women and killing the men.

Dude, have you ever even seen Somalia on a map? It's totally the opposite of what you wrote. It's the MEN who get raped and the WOMEN who get killed.



This thread sounds like an insurance salesman.

-Rob

Tend to agree.

Many people spend all their lives saving for their retirement and die within six months of stopping work and I mean many.

I'm not saying you shouldn't save or insure for risk but lets not go to extremes. What your parents do is not really your problem. I know, I'm a parent and I don't expect or want from my kids.

I believe that insurance is there to share risk between each other and banks exist to take care of peoples money safely, securely and with integrity. I also expect to give them a fair return for the service they provide.

However, both of these service providers throughout my life have proven themselves to have lost their way and seem to have no integrity and suffer from greed and stupidity. The current world economic crisis has been caused by disreputable bankers and wait until you need to make a legitimate insurance claim to see the integrity of the world of insurance.

I wish you luck in the Financial Services Industry but if you want to hold your head high, I suggest you stick to the basics like house insurance or car insurance, or risk averse pension schemes. If you don't you may end up not sleeping nights like many in your industry that have sold the public down the river.

Originally Posted by English

However, both of these service providers throughout my life have proven themselves to have lost their way and seem to have no integrity and suffer from greed and stupidity. The current world economic crisis has been caused by disreputable bankers and wait until you need to make a legitimate insurance claim to see the integrity of the world of insurance.

I agree. Thankfully, all financial companies aren't the same, and I've been fortunate enough through hard work to work for what the world considers the best.