Invest in the stock market, mutual funds, or similar financial instruments in Denver, CO. Those investments can be subject to significant swings in worth, especially during times of volatility. Many ask how to protect themselves from substantial market downturns during a recession or worse. Financial planning insurance recommended by AFI Insurance may be the answer.
Financial Planning Insurance and Market Volatility
Insurance is vital to financial planning but does not protect investments from downturns. The best way to protect investments from volatility is to diversify your portfolio. Instead of putting all your assets into stocks, your financial planner should recommend a balanced portfolio that includes stocks, bonds, annuities, and other investment types that respond differently to market fluctuations.
The Role of Financial Planning Insurance
Various policies include life insurance, disability insurance, and long-term care insurance. These policies provide you with a safety net when you need them. If your other investments falter and lose worth, your insurance products can compensate for those losses. Life insurance, in particular, can provide considerable worthwhile also mitigating risks.
Financial Planning and Insurance: A Dynamic Duo
Just as financial planning isn’t a one-and-done deal, so is buying financial planning insurance. Your financial planning goals should change throughout your life, so your investments and insurance products may change. You may need to add or change the type of insurance policies you own. When you change your financial goals, make sure you review your overall investments, including all pertinent insurance policies.
AFI Insurance, serving residents of Denver, CO, can help you understand how various insurance policies make a sound investment and play into your financial plans. Contact our office today to schedule your consultation.
