Mapping Out your Financial Future in 2012

Financial Awareness Is Crucial In An Uncertain Economy

What is the sign of a good decision?^SM

It’s clarifying what you want to achieve, what you value and how uncertainties affect plans and aspirations – turning plans into action and goals into reality.

When thinking about how to protect your livelihood or build the financial resources you will need to live life as desired, answer these 6 questions first.

1. What is important to me? Before thinking about the right financial products for your needs, clarify what’s truly important to you – the people you care about, the aspirations you have, the things you want to protect, and the support you’d like to give to others. Whether you reflect on this question by yourself, with family members, or alongside a financial professional – answer this first, as it will create the framework around which your financial strategy can be built.
2. Who depends on me today and who might depend on me tomorrow? This question should be at the core of your decision making process and should be answered well before you consider what financial products you need and in what amount. Spouses and children are often thought of as the most obvious dependents; however, there can be others – for example, parents, in-laws or siblings who, due to age, disability, or other circumstances, may be unable to care for themselves. Even individuals without a family have dependents – namely, themselves – since their well-being depends on their own ability to earn an income.With your list of current and potential dependents in hand, you will be better prepared to plot your course toward greater financial security.
3. Who is providing for my dependents now?
   Does someone in your family provide valuable non- financial support to those you care about?

   Think of the stay-at-home parent – they may not support their family with earned income, but the support they do provide is just as valuable as any paycheck. If a stay-at-home parent were unable to provide that support, it would surely be expensive to replace. Account for all who provide essential financial or non-financial support to your dependents.

4. What risks have I overlooked or not fully considered? People may concentrate on the risk of premature or accidental death and overlook other risks to their well-being and livelihood (for example, a breadwinner unable to work due to illness, an aging parent unable to care for themselves, a retiree dealing with rising heal thcare    costs,    a    business    owner    faced    with    a succession problem). As you work to construct your strategy, be sure to think broadly about the financial risks you face today, or may face in the future. Ask about flexible solutions that can be upgraded (or downsized) as events in your life unfold.
5. What if I already have a plan?
   Even the best financial strategies should be revisited and updated regularly, generally at least once a year. Common life events such as marriage, having children, changing jobs, or even moving, can affect your existing approach. So, too, can just having another birthday – particularly if it means you have reached a financial milestone, such as the year you can begin collecting Social Security, receiving Medicare benefits, or taking distributions from your retirement accounts. An experienced financial professional should regularly review your strategy with you, to help ensure that it remains aligned with your objectives and appropriate for your circumstances.
6. What is the downside of putting this off?
   Developing a financial strategy is a critically important activity that should not be rushed; however, there is a fine line between not rushing the process and not focusing on it at all. By putting this off, we expose ourselves and our families to unnecessary risks and lost opportunities – be it by not safeguarding our lifestyle from unexpected events, by not insuring our livelihood and legacy while in a position of health and strength, or by not capitalizing on even one extra day to build and protect our retirement nest egg. By actively focusing on this process, you can help protect your interests and shape your future. Take the next step by doing additional research on your own or seeking guidance from an experienced financial professional. The greatest risk of all is the risk of doing nothing.

© 2010 Massachusetts Mutual Life Insurance Company, Springfield, MA. CRN201204-133551