How do you plan for Life?

Ancient Egyptians built the pyramids as a process of life. They felt the steps to greatness could be achieved through dedication and as a community built over 100 pyramids still standing today. Its the structure and stability that provides the ability to weather all storms.

A similar concept—a financial pyramid—offers a model for financial stability and health. The base tier of the pyramid represents the foundation of a sound financial plan. The function of this tier is to “guard against life’s uncertainties,” primarily with insurance. This includes life and health insurance, disability insurance, long-term care, homeowner’s and auto insurance. With adequate coverage, a family can be protected against unexpected occurrences in life that might otherwise create a financial hardship. Another key element of the foundation is having adequate “cash on hand” in case of an emergency. This includes your regular savings accounts and money market funds —in fact, any type of account that allows easy access to your money, penalty-free. The goal is to have a cash reserve that is equal to three, and preferably six, months of expenses.

Additionally, you should have a will for both you and your spouse. Your insurance or financial advisor will be glad to give you the names of local attorneys who specialize in wills and estate planning. The second level involves “growing money”

through investment. Here, you want to make sure your plan includes the practice of diversification. Today, many people invest in mutual funds, which by their definition are diversified and professionally managed. However, there are other investments and tactics to consider when building a successful portfolio. Your best bet is to review your
desires and goals with a professional financial advisor.

The third tier of the pyramid addresses how to manage your retirement and how to protect and distribute your estate. This can be achieved with an estate plan and other advanced planning strategies, including trusts and updated wills. Once again, conferring with a financial advisor or an estate planning professional is advisable. Their
expertise and guidance can help ensure that your estate is managed according to your desires and goals.

About Christopher Files

Christopher Ray Files is a Financial Planner and Wealth Management Advisor for Van Winkle Agency in Seattle, Washington. As a active tactical adviser, Chris is committed to assisting his clients with dynamic and balanced portfolio options. Specialty focus on Estate Planning, Investment Strategies, Tax Efficient Planning and Financial Consulting for large and small businesses. Chris is also the Executive Director for a 501(c)3 Non Profit benefiting orphaned youth in Africa sending new and recycled art supplies to Kenya and Uganda. For more information about Chris, schedule an appointment, media inquiry, or general questions please email info@vanwinkleinsurancegroup.com