There are things that each of us can do to make our lives better. Some changes we make have more of a lasting impact than others. It is those to which we should devote our most concerted efforts. Here are a few of them:
Legal risks: One of the greatest risks for legal liability most individuals have involves driving motor vehicles. Another risk is that someone could get hurt at your home or on the premises of your business. You should make sure you have adequate insurance, including an all-risk, umbrella policy.
Include in your coverage all the underinsurance you can purchase to protect you if someone without adequate insurance runs into you or a member of your family. If you are a safe driver, your greater financial risk is likely less about your negligence than the negligence of another party who has inadequate insurance and who leaves you with the bills. Just the amount of lost wages from being out of work because of an injury can be a real burden. Adequate underinsurance coverage can really help.
Call your insurance agent and see what that extra coverage costs. You can probably go through your existing coverage and find some areas of coverage in which you can reduce your premium to give you extra dollars for more useful coverage. The collision coverage you have on your much older vehicle could probably be reduced, for example.
Tax planning: The estate tax laws have changed a lot since many people did their estate planning. Trusts set up to save on taxes that would have been owed years ago may not be necessary. There may be ways to simplify your planning.
Whether you have tax planning or not, many people have wills that were done years ago, when their children were very young. They likely should be redone, not because they are not valid but because they are out of date.
Powers of attorney: All powers of attorney are hardly the same. Some powers of attorney present challenges in terms of their enforceability.
The laws on advance directives such as living wills and health care powers of attorney were changed in fall 2007. Existing advance directives may still be valid, but they could be improved significantly.
If you have advance directives that are more than 3 years old, have your lawyer review them and consider taking advantage of these greatly improved documents. You can also call Best Health or Hospice and take advantage of their free clinics on advance directives.
If your will and durable (financial) power of attorney are more than 10 years old, you would benefit from reviewing them with your attorney to see if they still accomplish your objectives. Your documents may be valid, but they may not give the broad powers likely needed.
Debt levels: In this challenging economy, in which so many people have had a gap in their employment or they are now making less money, your debt level can really get out of control if you are not careful. Contact Consumer Credit Counseling of Forsyth County at either (336) 896-1191 or www.cccsforsyth.org to set up a confidential conference before your budget challenges get worse.
Consider consolidating some of your debt, and pledge to use less credit in 2011. Take advantage of better interest rates being offered by some lenders. But be sure you know what happens to your rate when the introductory period expires.
Remember: An informed choice is a smart choice.
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