College, Weddings, Mortgage...Ahhhh!

Since none of us can predict what will happen in the future (if someone out there can, contact me immediately), we need to plan for every possible situation. Now this doesn't mean having to put aside an extra $250 to feed your blackjack habit, but saving for the important events of one's life.

For example, here are few major events that may come up in one's life:

• Marriage
  - Leads to buying a home
  - Changing life insurance plans
• Raising Children
  - Education
  - According to the USDA says it costs $204,060 to raise a child through age 17
  - That's up 15% compared to 1960 ($25,230)!!
• Caring for parents
  - Nursing home costs?
  - The American Association of Retired Persons shows costs ranging anywhere from 26K - 52K per year!
• Divorce
  - Spouses and dependents have rights to your assets, so be aware of the most current laws
• Job Changes
  - How many times have you changed a job in the last decade?
  - Has the economy affected your source of income?
  - Always rollover your money when switching jobs or into an individual retirement account (IRA)
  - NEVER cash out and spend the money!
• Death
  - Pre-mature death of a spouse can make it difficult for a partner supporting a family
  - Life insurance is very important (we'll discuss this in a future post)
• Emergency Fund
  - I highly recommend putting aside money for something else that may pop up! Decide on how much you and your spouse can afford to take out of your monthly income. 5%? 10%? Even the smallest amount can make a difference in the long-run!

Now that's what we call a solid bailout plan. Wall Street's got nothing on us!