Finances

Taking Fear out of Family Finances
An Interview with Financial Planning Expert, Dan Benson, by Mike Nappa
This material appears courtesy of Nappaland

Whether we admit it or not, most of us parents worry about our family's financial situation-especially in January when all those Christmas bills come due! This year we decided to do something about that, so Mike contacted finance guru, Dan Benson for help.

Dan Benson is a financial planner-turned-author who has helped thousands of singles and couples succeed with their personal finances. He has authored invaluable works like 21 Days to Financial Freedom (Zondervan) and his most recent book from Word Publishing, Never Retire: How to Secure Financial Freedom and Live Out Your Dreams. (Note: starting September 1, 2000, all you bargain hunters out there will be able to get the budget-friendly paperback version of this great book! It'll sell under the new title: Preparing to Thrive in THE NEW RETIREMENT.)

Recently Mike was able to chat with Dan about family finances. Care to listen in on their conversation?

Mike Nappa (MN): Based on your experience as a financial planner, what would you say are the biggest financial fears families have today?

Dan Benson (DB): First, loss of their job or their ability to earn necessary income-and what such a sudden shortfall could mean to their present lifestyle and future dreams. Second, a financial emergency that would mean a severe setback, such as a major car repair or medical expense, or serious damage to their home or possessions. Third-and probably the most prevalent among aging baby boomers-not having enough money to enjoy their retirement years-a fear that they'll have to live with their own grown children someday or depend on the government or charity- that they may outlive their money.

(MN): What can families do to take the fear out of their financial situations?

(DB): The Bible tells us not to be anxious; at the same time, it tells us to be good stewards of our finances by doing what we can to prepare for the future. Good stewardship involves, among other things, saving and wisely investing a portion of our income so we'll have a ready reserve to draw from when those financial emergencies strike. (I call these emergencies "Murphs"-from Murphy's Law, which states that "If anything can possibly go wrong, it will.") If you've built and maintained a savings reserve, you'll be better prepared when those inevitable Murphs rear their ugly heads.In the long run, saving and investing wisely through tax-advantaged retirement savings programs such as 401(k)s or IRAs will go a long way toward providing what you'll need to thrive in your retirement years. The key is to start now if you haven't already, to tuck away as much as you legally can in those accounts that are available to you, and to choose good investments for those funds.

"Taking Fear Out of Family Finances" by Mike Nappa. Copyright © 2000 Nappaland Communications Inc. Reprinted by permission. All rights reserved. For permission to reprint this article in another publication, please send your request to: authors@nappaland.com.

For all other comments or questions, you can contact the author directly through the free webzine for families at: www.Nappaland.com.

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