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Approximately 1.3 million people filed for bankruptcy last year.

Why? Well, one reason is poor risk management.

Many American families neglect to plan
for unexpected job loss, illness, injury, or death.

Only 22% have enough savings to cover basic living expenses for longer than 6 months.

Average unemployment period lasts for approximately 7 months.

Only 35% have disability insurance.

Average disability claim is for 31.5 months
95% of disability causes are not work-related.

Only 34% of individuals have wills.

Why does this happen? Well, we under-estimate
the risks and over-estimate our abilities to avoid them.

For example

51% of US population are afraid of snakes.

Yet there were only 5 estimated deaths from venomous snake bites that occured last year.

But 94% of the US population are not afraid of riding in motor vehicles.

And there were 32,675 estimated deaths from automobile accidents last year

So we under-estimate our day to day
risk because we don’t think it can happen to us.

For example

78% of workers believe the only 1 in 25 people will become disabled.

Actual odds are 1 in 4.

As a result of poor planning, more and more
individuals risk financial ruin.

Unpaid medical bills cause over 62% of all US personal bankruptcy filings.

69% of families cited a significant impact to their financial stability after the loss of a spouse.

28% of 25-year old couples will have one spouse pass away before the age of 65.

Emotions and misinformation are at the heart of these behaviors

Avoidance

This problem will go away on its own

Anxiety

I just can’t deal with this

Miscommunication

Talking about it makes it more likely

Illusion of Control

These risks don’t apply to me

Financial Advisors can help!

Like a tutor helps a student to study to ace an exam, a qualified financial advisor can help you to make sure that you have protected yourself and your family against unforseen events.

Research shows that families working
with professional financial advisors...

Are more-likely to have insurance and other protections in place

Feel more ready to meet financial challenges

Make fewer financial decisions based on emotion

Stay on budget and save more

Aren’t financial advisors expensive though?

Actually, the cost is small relative to the benefits you receive. An average family who hires an advisor for a comprehensive consultation including evaluation of life insurance coverage pays about $720. Isn’t that worth it?

Let's take a look at two comparable families and their finances.

Family 1

 

Income

$58,000

Expenses

$54,810

Annual Savings

$3,190

House

$188,900

Net Worth

$77,300

Life Insurance
Coverage

$493,000

Family 2

 

Income

$58,000

Expenses

$54,810

Annual Savings

$3,190

House

$188,900

Net Worth

$77,300

Life Insurance
Coverage

$0

One year later

Family 1

(Father dies unexpectedly)

Income

$30,000

Expenses

$43,010

Annual Savings

-$13,010

House

$192,678

Net Worth

$355,283

Family 2

(Father dies unexpectedly)

Income

$30,000

Expenses

$43,010

Annual Savings

-$13,010

House

$192,678

Net Worth

$57,018

Five years later

Family 1

 

Income

$33,122

Expenses

$45,661

Annual Savings

-$12,539

House

$212,732

Net Worth

$279,015

Family 2

(Forced sale of house to meet spending needs)

Income

$33,122

Expenses

$42,501

Annual Savings

-$9,379

House

$0

Net Worth

$66,283

Seven years later

Family 1

 

Income

$34,461

Expenses

$46,797

College Support

-$50,000

Annual Savings

-$62,337

House

$221,326

Net Worth

$585,400

Family 2

(Cannot afford to help daughter with college, more reliable on student loans)

Income

$34,461

Expenses

$43,580

College Support

$0

Annual Savings

-$9,120

House

$0

Net Worth

$85,857

Retirement Time

Family 1

(Can retire)

Income

$0

Expenses

$62,771

Annual Savings

-$62,771

House

$342,771

Net Worth

$1,041,442

Family 2

(No retirement on the horizon)

Income

$53,275

Expenses

$49,943

Annual Savings

$3,333

House

$0

Net Worth

$179,190

How do you find a qualified advisor? Let Wealthminder help you.

We designed our advisor-matching service to help every American gain access to the investment advice they need to reach their Financial goals. The service costs you nothing and takes only a minute to get started.

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