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Save For What You Don't See Coming Thumbnail

Save For What You Don't See Coming

Investment Retirement Funding Insights

I think most people do a good job of forecasting or predicting what could happen in the future, except for the true surprises.

The biggest risk really to many is what you don't see coming. If you don't know to prepare for it, how would you deal with the damage that is amplified when it hits you?

A few examples:

  • 2020- Covid
  • 2022 Russia invades Ukraine
  • 9/11

The common trait isn't that these events were big, it was that no one was prepared for it.

One truth is that if you are only saving for what you see may happen, you'll be unprepared for the risk you don't see coming your way.

So how much savings should you have? I'm guessing more than you think. For those of you who were not affected by Covid, imagine you had been. Imagine you couldn't go to work and you lost pay. Would you and your family be on the same path today?

Here's my thought:

When you are questioning that you may have too much in savings, you may be at the right amount.

Your amount in savings should feel excessive. This will allow your other money to keep working for you.

Imagine have enough savings that the risk profile on your investments goes up? What could that do? Now I'm not suggesting everyone do this. I'm suggesting you look at the bigger picture.

Prepare for the worst and in this case, the really bad stuff.

This goes for how much debt you should have too.

Whatever you think is the right amount of debt for yourself, the reality is probably a little less.

The conversation around efficiency with your cash always goes up with high inflation (like we are in today). This is because people get paranoid about losing purchasing power.

This is where the prediction of what may come their way can backfire. Then they will be unprepared for what they didn't prepare for.

It’s never easy handling the moment you don’t see coming. It becomes harder when you only have prepared for what you do see coming.  

The takeaway?

Have more in savings even though it feels like a waste and have less debt that you think.

Ryan Burklo is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 333 N. Indian Hill Blvd., Claremont, CA 91711. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly-owned subsidiary of Guardian. Quantified Financial Partners is not an affiliate or subsidiary of PAS or Guardian. This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. This article is provided for informational and educational purposes only. The views and opinions expressed herein may not be those of Guardian Life Insurance Company of America (Guardian) or any of its subsidiaries or affiliates. Guardian does not verify and does not guarantee the accuracy or completeness of the information or opinions presented herein. AR Insurance License #15319412CA Insurance License #0K24924 #2022-138246 Exp 05/2024