Moms and Dads

The Three Best Investments You’ll Make For Your Family

Dad of three Mike shares the top three investments every family needs for a secure future

Being a dad of three kids aged 8, 6 and 2, the pandemic made me realize the value of investing. Our savings went down, but the expenses continued. We realized that this is what retirement — our future — would look like.

A good friend of ours also had to bring her mother to the hospital because she was infected with the virus, the hospital bills definitely put a stop to their future plans. With the toughest year —2020— firmly in our past, there’s a lot to look forward to in 2021, especially with the vaccine. And yes, it’s the best time to start investing.

Being in the financial wellness industry, here’s what I learned about ensuring a secure future with the right investments.

Looking to invest? Here are the top three investments every family needs to make:

1. Life Insurance

Life insurance in the Philippines is still a taboo. We don’t like talking about death or the notion of getting ready for it. LIfe insurance is not about your death, but it is the preparation for the outcome of unforeseen events that is sure to happen.

Life has many uncertainties, and the moment you start a family and have kids, you would want to protect them from any of those events. Your kids rely on you, your kids rely on you to put food on the table, to provide for them and to give them the best that you can offer for them. In just one fell swoop, everything that you dream of for them will be gone.

Life insurance makes sure that your family’s future is secure and that your dreams won’t die with you. Your family can continue on living as if you were there. 

2. Health Insurance

Now that you have a Life Insurance plan, the next investment you should consider is a Health Plan. A great health plan secures your savings from getting wiped out when you get sick. We all know that the pandemic has exposed how expensive our healthcare system is. With limited capacity, hospital bills are sure to skyrocket.

Maybe it is now time to consider looking for a health plan that not only covers your checkups and ER visits, but one that also covers major illnesses.

Your corporate HMO plan may not be able enough as this only has a benefit limit up to your rank in the office. Major illnesses such as cancer, heart attack, stroke or any life threatening disease will surely burn a hole in your saving. And yes, the main purpose of a health insurance plan is for you to pay less but benefit more. 

3. Retirement Plan

Investing is more about preparing for the future. You build a business to get a nice return on your investment in the future, you invest in education so that you can get a better salary and you invest all your hard earned money for the future of your children.

Your kids might have a bright future, but what about yours when your children are already starting their own families? Your children are not your retirement plan. Start investing for your future. You can start small, let’s say 5% of your salary and place it in a retirement plan handled by a financial adviser. You can do it yourself by doing some research.

Savings are not enough, have you seen how much the interest rates banks are giving? Rising prices are a fact of life, and your money should grow higher than the rise. By the time you are retiring, what you saved up may not be enough for your everyday expenses.

Money can sometimes be a sensitive or touchy subject to talk about. A lot of people are not comfortable talking about it. But with the realities we are facing today, we have to rethink some our strategies — spending, saving, budgeting, etc. Your future will depend on the choices you make So, the best time to invest or start an investment is now! 

From The Modern Parenting Team:

When it comes to investments, there are a lot of insurance companies, financial advisors, etc. out there. We suggest you do your research to find one that’s right for you. Here’s a link to our Real Talk episode where we discuss all things money.

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