8. Protect your money from outside predators (Probate, frivolous lawsuits, the government) 9. Have good insurance for major medical and long-term care expenses I really like what my friend and mentor, Kim Butler says in her book "Busting the Financial Planning Lies": She writes THINK long-term but strategize short term. This is not to say financial strategizing shouldn't consider longer time horizons. In fact, 45 years or 50 years or longer are very real possibility they will live for another 45 year. But those strategies need to be flexible, open to the possibility of change, and ready to meet challenges and opportunities that may occur in five years as well as 45 years from now. The long-term reality is that the future is unpredictable. Thinking long term means being open to the possibility of change, and ready to meet challenges and opportunities that may occur in five years as well as 45 years from now. The long-term reality is that the future is unpredictable. Thinking long term means being open to the possibility of change, and ready to meet challenges and opportunities that may occur in five years as well as 45 years from now. Consistent saving is a key long-term concept, and your strategies should always include an assessment of saving. However, the decision on where to put those savings should also reflect the short-term realities. For example: Work changes. Recent surveys have shown that most Americans will change careers an average of 7 to 10 times in their working lives. That means they will have a steady stream of ever- increasing income. You will need to adjust the ups and downs in your cash flow. Financial instruments change. Today, there are at least 20 times more mutual funds available compared to 30 years ago. Financial products change. Interest rates change. Tax rules change. Financial objectives over your lifetime. Everything else changes. Tax rules change, as governments search for new revenue sources to fund new programs. Values change, technology changes, and what used to be a "growth industry" becomes obsolete. Values change too.
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