Life happens. Even with the best plan, surprises can take you off course. That might mean emergency car or home repairs. Add on the potential cost of a visit to the hospital and it’s easy to see how the unexpected can quickly add up.
Here are three things to do when you're planning for expenses you can’t predict.
Insurance can help protect you from the big expenses that come with accidents, injuries and natural disasters. Insurance premiums add to your monthly budget, but if you ever need it, it can help save you from draining your savings.
Insurance comes in many forms and can help you weather financial storms and maintain greater peace of mind.
To cover your...
Make sure you have
|Health||Medical insurance, long-term care insurance|
|Home and possessions||Homeowners or renters insurance|
|Vehicles||Auto, boat, motorcycle, RV insurance|
An emergency fund is a reserve of cash you can dip into in the event of a financial hardship. Try to set aside three to six months' worth of living expenses in an account where your money will be safe and easy to access, like a savings or money market account.
Having the money to cover unexpected expenses, like repairs or insurance deductibles, can help keep you on track with your investing goals — or prevent you from running up credit card debt. Whenever you tap your emergency fund, try to restore the balance quickly so it will be there in case of another emergency.
It's important to keep certain documents safe in case you need them in an emergency. A good option is to buy a fireproof, waterproof and portable safe and keep it somewhere in your home where you can get to it easily. Use the safe to hold things like:
You can also keep electronic copies of your documents, files and personal information — either on CDs or on a flash drive. Your Internet provider might offer storage in their secure environment, but be sure to read the fine print; you want assurance that your information will not be easily compromised if stored in this type of area.
The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity and may lose value.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.
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