Protect what you can’t afford to lose - Cover the “What ifs”!

Risks and insurance

Life doesn’t always go according to plan. A good financial adviser will work with you to identify the main financial risks you face and the potential solutions for protecting yourself against those risks – or at least making the impact less painful.  This process often uses questions that start with, “What if ….”

Questions to consider:

• Few NZers have completed their financial balance sheet and acknowledged the non-investment risks they face. 
  
  
• Are you prepared for the unexpected?  What are the most important risks you face?
  
  
• What is the right balance between self-protection and buying insurance so that some of the risk is passed on to the insurance company?

Estate planning

Another aspect of planning for the “what ifs”, is called estate planning which originally was about writing a Will, setting out what should happen when you eventually die. In the words of Benjamin Franklin “In this world nothing is certain but death and taxes.”

Today, there are many more tools that can help manage the estate planning “what ifs”. 

• What if you had an illness or accident and were no longer able to make personal decisions or manage your own financial affairs?  For the elderly, this could result from a stroke or dementia.  For the young, it might be an accident.
  
  
• What if you travelled overseas, but wanted someone to formally act on your behalf here in NZ while you were away?

Enduring powers of attorney are designed to cover situations like these.

You may also have good reason to protect your family assets by using a Trust.  These can continue operating for many years, even after your death.

With an increasing number of blended families and second relationships, complications can arise with relationship property. Professional advice can help you avoid future problems and grief.