Sticks and Stones and Financial Goals (Mike Alford, Alford & Associates)
Let’s start with a simple question. Would you rather your home’s foundation be built from sticks or concrete?
Sticks will support your home for a short period of time before they rot and eventually collapse your home, quickly and without warning. Concrete will eventually require some repair but the remaining foundation is strong enough to hold up the rest of your house.
Your financial goals should be built very much like your house. The Sticks are your savings and the Concrete is the solid foundation your goals are built on. A great way to build a solid foundation is through insurance. Ask yourself this. What happens if you were to die, become critically ill or disabled? You can have all the savings in the world but, without a well built foundation; the provisions you have and the goals you have made will erode very quickly and without warning.
What exactly does Insurance do for me? The simple answer here is “Insurance enables one’s life to continue on financially in the event of death, illness or disability”. Let’s use Roger & Marilyn as an example. Their monthly premiums for their life, critical illness, and disability policies are in excess of $500. Sounds like a lot doesn’t it? Let’s look at it this way. What if Roger & Marilyn didn’t pay these insurance premiums? Sure they would have more money in their bank account, but if either were to suffer a critical illness, disability or death, how long would that extra $500 last? Think of your home expenses and do the math. Roger & Marilyn understand the value of a solid foundation and because they pay these premiums their family can survive financially. If either die, the family house can remain their home. If either gets cancer, they’re given lump sum of money that is going to afford them the ability to stay home and get better. If their illness / injury are permanent then their disability insurance will pay them an income until they’re 65. Insurance quite simply is a “what if” plan. We don’t purchase insurance because we expect to die or have a stroke. We purchase insurance because death, illness or disability are all very distinct possibilities. We purchase insurance to allow our families to continue on financially as if nothing changed, because emotionally they have.
Alford and Associates Inc. is a family owned and operated financial practice in Brantford Ontario. For over twenty five years we have helped our clients secure their retirement goals. First and foremost we help you secure your greatest asset…your family.
www.alfordandassociates.ca (519) 751-0901