After a holiday season spent racking up credit card bills, many Americans consider making financial resolutions in the New Year. However, now is the perfect time to not only reevaluate your saving and spending, but also commit to creating a more holistic financial plan designed to protect your finances and your family.
Consumers are seeking stability and preparedness in today’s uncertain economic environment, according to a recent Consumer Sentiment Tracker study by Lincoln Financial Group. With ongoing inflation and market volatility, 56% of respondents cited protection from risk as being most important to them. When it comes to thinking about their finances, people said they have the greatest interest in protecting their family (39%) followed by their income (26%).
“Our research reinforced the importance of financial solutions that can help consumers navigate through market cycles and protect their loved ones,” said David Berkowitz, president, Lincoln Financial Network, Lincoln Financial’s wealth management business. “People are not only concerned about having enough to pay their bills, but also saving for retirement and preparing for the unexpected. It’s important to have a well-rounded financial plan that can address those risks, protect assets and create positive outcomes for today’s families.”
To achieve a stronger financial future, don’t neglect your finances in 2023 — instead, add a little TLC (Talk, Learn, Commit). Resolve to create a robust financial plan using these three tips from Lincoln Financial:
1. Talk about it. Financial conversations play a crucial role. Be transparent with your loved ones about financial priorities so you can set expectations and work toward your shared financial goals. Initiate ongoing discussions to stay on track with everything from saving for retirement to paying for a long-term healthcare event, which can happen suddenly and be very costly. Also, consider talking to a financial professional who can help identify solutions that best meet your individual needs, as well as drive better outcomes. Lincoln’s research found those who work with financial professionals are more likely to prioritize retirement savings (26% vs. 10%).
2. Learn more about tax-deferred investments. Life insurance can be more than just a death benefit, with some types of policies offering income replacement for unforeseen events. It can also protect your financial security from the impact of taxes, market volatility and longevity. It’s not just for individuals and families either, but businesses too. Also, consider diversifying your portfolio with an annuity, which can provide protected growth and monthly lifetime income to help cover expenses in retirement and ensure you have a stream of income.
3. Commit to maximizing your workplace benefits. Look into supplemental coverages like disability, accident and life insurance that may be available through your employer. Solutions like these protect against unexpected events that can disrupt your ability to provide for your family or drive you into additional debt. If you have an employer-sponsored retirement plan, make sure you are contributing and getting a match, if offered. Tap into any financial wellness tools offered at work to help provide you with an accurate picture of your holistic financial situation and lower stress.
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