1. Live too long: If you are a man aged 65 today, the social security administration expects you to live, on average until 83. If you are a woman, 85. If you retire now, have you saved enough for 20 years of expenses? What if you live 25? Save early, save more, work longer.
2. Live too short: If you have dependents, and you die, do you have enough term life insurance to keep them from having to move to a little tiny apartment and get huge college loans? Term life insurance is cheap, and the term need not be longer than they are dependent.
3. You are disabled: If you don’t have disability insurance, look into it. If it is too expensive, bank some vacation or sick time so you have some paid weeks in reserve. If you can’t bank time, bank some money, this is one of your biggest reasons to have 3-6 months of expenses in an emergency account.
4. You have kids: These financial time bombs are the best thing that has ever happened to you. At the very least, open a 529 account for college.
5. Procrastination: If you are 35 and haven’t begun saving for retirement, don’t wait until 45. If you are 45 and haven’t begun saving for retirement, don’t wait until 55. If you are 55 and haven’t begun saving for retirement…