Early on in our careers there are many decisions that we need to make in terms of how much money we need to take out for taxes (What number do we put in the box of dependants – this has always been a tricky one.), which health insurance is most beneficial for us (do we go barebones if we are single? Do we get a more comprehensive plan if we are married?) and how much do we put aside for retirement (Retirement? That sure seems like a long way away!)

The fact of the matter is that for most young people it is very hard to imagine anything bad happening to us. Retirement seems like a million years away, we can’t imagine getting sicker than coming down with the flu, and taxes are just something that we pay. But as we get older we find ourselves making more comprehensive plans for our healthcare as we have very quickly come to realize that we are in fact susceptible to illnesses of all kinds and beside that, we now have a family to cover; we start putting money hand over fist into our 401k plans because we have also come to discover that retirement, once a far-fetched idea, really isn’t as far off as we had thought; and, as far as those taxes, well, we hire an accountant.

Some of the other areas that may suffer from too little attention in our younger years are life insurance and disability insurance. Life insurance is often not too much of a consideration because, after all, we’re not really going to die (ahhhh, the immortality of our twenties) and disability insurance is only for those who have an illness that they think may one day prevent them from doing their job.

In the next post….we address these inaccuracies and uncover the necessity of such things as disability insurance.

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