New Year’s Resolutions Must Include Financial Preparations!

New Year’s resolutions must include financial preparations! I just read an article written by ARA Content on the 28th of December, 2008 and I promise that I was not the author! The article was in the Imperial Valley News. This could have been written by me because the article is titled, “Women Need Financial Security Before, During & After Divorce.”
For those of you who are friends and followers on Twitter, my blog and site, you are familiar with my opinion. I advocate that all wives especially stay at home moms implement financial preparation in case of tragedy which includes divorce.
I would like to quote parts of this article.

“…For many women, the financial ramifications of a divorce can be devastating. Women are much more likely to interrupt their careers to raise families, to neglect insurance and retirement planning and in many cases, to have no plan at all when faced with a divorce.

According to Prudential’s 2008 study on Financial Experience and Behaviors Among Women, nearly 75 percent of women are caught in the trap of worrying about their financial future, yet not quite sure what to do about it. The study noted two-thirds of boomers nearing retirement are behind when it comes to saving or in “catch-up” mode. Those who are not confident in their potential retirement income have a more limited view of how they might fund those golden years, even anticipating they may need to work during retirement.

These days, nearly 43 percent of first marriages end in separation or divorce within 15 years, according to the Centers for Disease Control and Prevention. It may seem pessimistic to plan your finances around this possibility, but to ignore it could have dire consequences. To get started, take a personal financial inventory:

* What if any assets are in your name only?

* Whose name is your house in? Would you be at risk of losing your home if your marriage ends?

* Do you and your husband both have a will? If so, who are the beneficiaries? (If this is a second marriage, make sure your will has been updated.)

* Update or create your will to make sure your assets are protected from probate court.

* Make sure you know how to access vital documents like the title deed to your home and insurance documents. Many women still leave records management to their husbands and are woefully in the dark when they find themselves on their own.

* Review your insurance coverage, including your life and disability needs. Be sure to ask your financial professional how long-term care insurance may fit into your plan.

* Max out your 401(k). There’s nothing like having savings set aside in your own name to help boost your financial security and peace of mind.

* Start educating yourself about products created to help secure your retirement income, like an annuity with an optional benefit, which can guarantee a lifetime stream of income. (The guaranteed income is based on the claims-paying ability of the issuing company.)

* Meet with a financial professional who understands divorce laws in your state and review your situation. Make suggested changes now — just in case.

For better or worse, married women need to take financial matters into their own hands so they are prepared if they become suddenly single due to divorce. Should the day arrive when you are required to make it on your own financially, will you be prepared?…”