Formulate a Family Investment Plan

Before planning expenses, Dad and Mom, as part of our newly Formulated Family Investment Plan, had to each separate 20 percent of their own income and write them down under Retirement fund. This way they will pay themselves first.
After this they will write down an equal amount under Savings. With the amounts gathered under this column the family’s home will be purchases, as well as furniture cars and higher valued objects, calculating the period necessary to purchase them. This way we can also program it being around sales season, and through opportunity cost we can acquire better quality object or at lower prices.
Afterwards they need to gather the money and work with the remaining 60% distributing it as best as they can, since it has been determined that this amount is the maximum that will be available for the rest of the household expenses.


ORGANIZING A FOLDER. CALCULATING APPROPRIATE AMOUNTS

The first things we need to organize are policies and planning documents in an alphabetized folder, as following:
- Cars. Even though the policies are usually stored in the cars, it’s convenient to keep a copy, because in case of theft, when you report it the first thing that is required is the policy number, which is usually inside the stolen car.
- Home
- Health care
- Retirement. Here we store all the documents we have in order to program our retirement.
- Life. Even if this aspect is related to retirement, there could be other policies, which are acquired through banks, shopping malls and even over the phone, etc. Which only cover death.
- Succession expenses. In addition to considering demise and survival options, we consider a very important and often looked over fact: what will happen in the event of full incapacity. This completes three situations that any person could face: premature death, full incapacity and survival

All the above is placed in a red folder, so they are not confused with others and is easy to identify in case of emergency, even by the service staff, which are usually the ones in the house. Afterwards, we write the word insurance in the spine.

FORMS

Forms must be reviewed periodically in order to ensure that, as time goes by, goals are being reached. On the first we will concentrate the amounts resulting from the calculations we will perform on the second.