What If?
What If?
Richard Quinn June 10, 2020
IT SEEMS THE WORST of this economic crisis may have passed, though the health risks will be with us for some time. What have we learned? For many people, long-discussed financial risks became all too real in 2020.
There are two words that should always be part of our thinking: what if. Those two words aren’t always associated with bad things. What if I win the lottery? I have a plan for that, which varies depending on how much I win and whether it triggers estate taxes. The chance of that plan being needed is, of course, nil.
Most “what ifs” relate to family, money and our future security. Could anything—short of a world war—have done more than today’s pandemic to heighten those concerns? And yet I suspect the current crisis will soon be a dull memory and most Americans will be back to their old financial ways. But for those who want to be prepared for the next crisis, here are eight “what ifs” to ponder:
1. You die unexpectedly. Do you have adequate life insurance? If you own a small business, what will happen upon your death? Are your beneficiary designations up to date? Does your surviving spouse know where to turn for income?
Do you have an updated will? Have you prepared final instructions, so your family knows what to do and where important papers are located?
2. You suffer a prolonged illness. Do you have an idea of the income you could expect from employer or government benefits? Do you carry long-term disability insurance? For working people, disability is a greater risk than death.
3. You lose your job or your pay gets cut. Sure, we’ve been told about having a three-month emergency fund forever—and, for just as long, most people have ignored the advice. Has the current crisis been a wakeup call? There’s some evidence Americans are saving more. But will this last or is it just that these days it’s harder to spend money on nonessentials?
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