No one expects bad things ? and by bad, I mean catastrophically bad ? to happen to them.<\/p>\n
Yet terrible tragedies happen to people who didn?t expect them every day of the year.<\/p>\n
You can?t take a vaccine to immunize yourself against ill fortune.<\/p>\n
But you can prepare for disasters before they happen.<\/p>\n
That way, when they strike, you ? and your family ? will survive ? with the minimum hardship possible.<\/p>\n
In particular, here are 5 things I think you should do now to protect yourself against future problems and headaches:<\/p>\n
1. Become financially secure.<\/p>\n
Money can protect you against many disasters, and make many others easier to bear. <\/p>\n
How much wealth should you strive to accumulate?<\/p>\n
I recommend a goal of $2 million in liquid assets.<\/p>\n
Reason: $2 million invested at 10% annual return produces an income of $200,000.<\/p>\n
If a catastrophic illness or other crisis prevents you from working, you can just live off your investments.<\/p>\n
And if your business fails or your career derails, you likewise can live off your investment income.<\/p>\n
2. Buy life insurance.<\/p>\n
Until you accumulate the $2 million, you need to leave an estate big enough to ensure a comfortable life for your family ? preferably, without forcing your spouse to sell the house and make the kids move.<\/p>\n
Although a $2 million estate would be ideal, your spouse can probably get by nicely even with a million dollars in term life insurance on you.<\/p>\n
Tip: buy this life insurance while you are young, before you have a serious illness.<\/p>\n
Should you get sick, and then decide to get life insurance, the cost will be prohibitive.<\/p>\n
3. Buy health insurance.<\/p>\n
More than 46 millions Americans do not have health insurance.<\/p>\n
They are gambling their family?s entire financial future.<\/p>\n
One serious illness can quickly wipe out your life savings.<\/p>\n
Get health insurance now. If you can?t afford a private policy, join a group that offers discount coverage to members.<\/p>\n
Tip: buy your insurance first. Then select doctors from the HMO?s list of approved physicians.<\/p>\n
That way, your doctor visits are covered by your plan, greatly reducing your health care costs.<\/p>\n
4. Create sources of passive income.<\/p>\n
What happens if you injure your back ? or get a debilitating illness ? and can?t work?<\/p>\n
Disability payments are often limited.<\/p>\n
A better idea is to start creating sources of passive income now ? sources that make money for you without you working.<\/p>\n
One idea: investment real estate ? rental properties.<\/p>\n
Another: start an Internet marketing business that generates thousands of dollars in weekly revenues without any activity on your part.<\/p>\n
Here?s a Web site where I discuss how you can make a six-figure passive income online with your own Internet marketing business:<\/p>\n