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FINANCIAL PLANNING FOR THE FUTURE

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By financial expert and contributor Pamela Sams

Saving money and proper financial planning are essential to insure that your future will be secure.  Following are a few ideas to protect the financial future of your family:
Investing
Investing money can be a wise approach to insuring your financial security.  A variety of methods exist to invest in the future.  Some of the more popular investments include stocks, bonds, real estate, mutual funds, and certificates of deposit.  Investments can provide great peace of mind for the future as long as they are handled correctly.
How to Invest Wisely
Regardless of which method of investing you select, it is always a good idea to consult with a financial advisor about your investments.  A financial advisor can help you to determine what the best path of investment might be for you, as well as assist you in managing the income from your investments.  Take the time to invest wisely today and enjoy the security of your investments tomorrow.
Borrowing
At some point in your life, you are likely going to face a situation in which you need to borrow money from a bank or other financial institution.  Taking out a loan can be an excellent way to invest in your future or build up your current finances.  The key to maintaining good credit and building a sound financial future through personal loans, however, is to borrow responsibly.
When borrowing is handled in a responsible manner, it can be a profitable way to begin saving for the future.  Borrowing money to put towards profitable investments can prove to be a financial strategy that might help you to insure that your financial future is secure.  Responsible borrowing can also help you to build a good credit rating for future loan needs.
What is Responsible Borrowing?
Responsible borrowing entails gathering all of your current financial information beforehand and determining exactly how much you can afford to borrow.  You shouldn’t borrow any more than you can reasonably expect to be able to pay back in a timely manner.  Making loan payments consistently and on time each month is a sign of a trustworthy and dependable borrower.  Financial institutions will be much more likely to approve your loan application if you have shown previous signs of borrowing responsibly and have maintained a good credit rating. 
Life Insurance
One of the best ways to invest in the financial future of your family is to take out a life insurance policy.  The cost of funerals is constantly rising each year.  By investing in a life insurance policy, you are insuring that your loved ones will not have the added burden of paying for an expensive funeral.  Additional coverage can insure their financial security even beyond funeral expenses.
Selecting an Insurance Policy
The most standard types of life insurance policies are whole and term life.  Term life insurance covers a specified amount of time and has flexible rates that can be changed as your needs in life change.  Whole life insurance is a permanent policy at a fixed rate that is generally more expensive and includes a number of investment options.  Discuss your options with a life insurance agent to discover which type of plan suits your needs and will best provide for the financial security of your loved ones.

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1 Response
  • Peter
    April 25, 2011

    This type of insurance policy is one type of permanent life insurance. With a permanent policy, the insurance is designed to last as long as you pay the premiums. Whole life insurance guarantees this lifetime protection. Universal life does not have these guarantees but there is now term life insurance where you can add a feature that guarantees that the insurance will last the rest of your life.

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