June 19, 2016 Financial Planning Tip 001 - Planning for uncertainties:

The following post was initially published in Facebook on June 19, 2016. While the post is titled Financial Planning, it covers risk, managing risk and alternatives to traditional choices.

"No one knows when a person may die and sometimes people spend tons of money on certain products which last until the age of 65. Unfortunately, age 65 reaches and the event does not materialize and all of the worry which lasted for so many years goes to zero in an instant, along with some hard earned cash!!! Not that you were praying for the event to materialize as the life was more precious than the possible cash inflow which would have arisen from the death of the loved one.

Right now, my strategy is to manage my greatest risk and continue to deal with that, until I can improve on another area so as to reach a level of comfort!!!

After that, I will deal with another risk and move on with time!!!

So in real terms, I am not going for the largest category of protection in the Family Indemnity Plan (right now). At this time I will purchase a smaller level in the plan and invest in another product which provides cash inflow which will be designed to meet another need and a third product which will meet a third need.

With all of these products, I will try to have monthly commitments for cash outflows and at least one commitment for an annual cash flow so that all of my cash outflows are not tied up and tracking them does not become burdensome!!! Enjoy!!!!"