Five Factors That Can Impact Your Future Financial Situation

Many middle aged people are worried about securing their future that they are would readily buy a 10-year bond, or invest in mutual fund in a heartbeat. Or leave a significant amount in a time deposit account.

Although it is alright to invest in these financial products to secure your family’s future as well as to give you an additional source of cash during your retirement, you could be overlooking other factors that might impact your financial plan or your future, to wit:

Non Core Assets

Five Factors That Can Impact Your Future Financial SituationThe term is usually used in the banking industry to identify assets that are no longer used in operations. Non-core assets are no longer relevant to the business but can serve other purposes. For instance, these assets may be sold by the company to raise extra cash, or to pay down debt.

Like banks, you have a lot of things or assets that you no longer need. These include collectibles, appliances, household items, and gifts you’ve collected from past Christmases. You may not consider these assets important anymore, but you can get some extra money by selling them in the future. Although the money you can get from selling these stuff may not be a lot compared to the earnings you get in a Vanguard 500 index fund, there’s no denying the cash would come in handy during hard times.

Your Talents

Five Factors That Can Impact Your Future Financial SituationYour skills and knowledge can give you the means to earn income even at an advanced age. No matter what Wall Street may want you to believe, your biggest asset is your talent, as well as the things that you can do. Your ability to earn even at an advanced age should never be overlooked, as you could still be productive  even in retirement.

Some people are blessed to be productive even though they are in their 60s or 70s, moonlighting as consultants and entrepreneurs after retirement. Their talents allow them to earn despite their age, so they could add more to their retirement purse.

Health

Five Factors That Can Impact Your Future Financial SituationHealth is wealth, they say. It’s true that most people tend to overlook good health, as they are mostly concerned in building up their portfolio. But having good health means fewer trips to the hospital and translates to more savings. Healthier people also don’t need to spend on medicines or medical equipment.

Plus, healthier people can remain productive even during their twilight years. Healthier folks can do more and work later in life, in case they need to.

No matter how much money you have made from working or from investing in stocks and mutual funds, you’d definitely find yourself cash-strapped in case (God forbid) you fall sick due to a serious disease like cancer.

Lifestyle

Five Factors That Can Impact Your Future Financial SituationYour lifestyle can also dictate your financial freedom in the coming years. It is okay to live luxuriously if your income from pension, social security, and investments allow you to. But if you are not earning enough to maintain such a lavish lifestyle, then chances are high you’ll find yourself digging into your retirement savings a few years after you left the workplace.

Family’s Assets

Five Factors That Can Impact Your Future Financial SituationHaving an inheritance will have a significant impact on your financial freedom. If your parents will leave behind a large estate, then your financial future is more or less secured.

But for most families, the most important asset that they’ll get from their families is the support and love they have for each other. These include the care that the children and parents have for each other, as well as the wisdom imparted particularly when it comes to money matters.

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