Why is planning for risk management crucial to the success of a financial plan?
Risks associated with yourself (life, health, disability, liability) and your property (homeowner’s or renter’s, auto, liability) represent potentially huge financial losses. Whereas excessive insurance is not recommended, adequate insurance coverage to protect from possible risk exposures is a cost-effective strategy. In other words, everyone pays a little, to subsidize the larger losses that periodically occur to some people. More importantly, you avoid going into debt or “robbing” funds saved for other goals by including the cost of insurance in your annual financial plan. To control costs, be sure to shop around. 7. Why might an income tax refund alert you to evaluate your tax withholding? Some people like to receive a large annual tax refund. But in reality, they are providing the government an interest-free loan. Since banks don’t make interest-free loans, perhaps neither should you!! Review your tax withholding, and include the “extra” income in your annual budget or savings pla
