FInancial STability is nothing more than good risk management. The main areas of financial risk that often impact families can be summarized by the four L’s:
- Longevity (Living Too Long)
- Life (Dying Too Young)
- Liquidity (Losing Your Job)
- Loans (Borrowing Too Much)
Without proper planning, any or all of these events can cause significant financial hardship. For example, without saving on a regular basis, you may have to work longer or lower your lifestyle expectations during retirement. Without adequate life insurance, your family may struggle financially and have to take on extra work to make ends meet. Your kids may not be able to attend the colleges they want and the family home and business may have to be sold at distress prices. The loss of a job, an unforeseen medical event or unexpected auto repair can cause significant strain on family finances if there is no money set aside. And finally, taking on too much debt requiring high monthly payments can be stressful, overbearing and limit your options. Personal bankruptcy can adversely affect your ability to borrow for years to come.
No need to worry. Introducing the FInancial STability (FIST®) index. Simply answer a few easy questions and you will be able to get an instant snapshot of your financial risk exposure in these four areas: retirement, protection, liquidity and debt management. The sophisticated mathematical engines will quickly identify areas you need to improve. Similar to a credit score, your FIST® score will give you a gauge of your overall financial health on a scale of 0-100. Review the recommendations section to see how you can improve your category and composite scores. Use our additional resources such as articles, blogs and other calculator tools to improve in each category. Come back often and watch your score improve with the actions you take. No more procrastinating! You can do this! Today is the time to identify your financial risks and take steps to become financially stable!