Ask Yourself These Four Questions to Help Decide What’s Best for Your Disability Expense Needs.
Once you’ve opened your IL ABLE account, you may be wondering how to allocate your contributions to meet your savings and spending horizons. Start by reading below.
- What qualified disability expenses do I want to save for? Am I going to use the money for regular payments such as monthly rent? Am I going to use the money for medium-term items such as summer recreational programs? Am I going to use the money in the long-term or for big item such as a new wheelchair, accessible vehicle or home?
- When will I need the money? Am I going to need it today, tomorrow, next week or next month? These are called short-term expenses. Am I going to save my money for expenses that are down the road, perhaps in 1-3 years? These are called medium-term expenses. Am I going to save my money for the 4 or more years for something large such as a home? These are called long-term expenses.
- What is risk? Risk is any uncertainty in the financial markets that has the potential to negatively affect the money you invested now or in the future. When you invest your money in the investment options, the investment values might go up or go down because of changes in market conditions, which means that your account balance could go up or go down.
- What is my risk tolerance? You need to ask yourself, “How will I feel if the value of my IL ABLE account balance goes up or down because financial markets changes.” Your answer to this question will help you know what your “risk tolerance” is.
Download the IL ABLE “What Type of Investor Are You?” tips sheet here: What Type of Investor Are You?
Or, visit the Investment information links at Investing Tips.
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