Lunar New Year's Resolution: 8 questions to guide your prospects to prosperity

"The beginning of the lunar year is a great time to resolve to get our financial houses in order, and to put in place financial strategies that can help bring us and our families closer to security and prosperity," said Wonhong Lee, Director of Multicultural Market Development, Massachusetts Mutual Life Insurance Co. (MassMutual.) "Simply resolving to get started is sometimes the most important step."

To help launch the New Year successfully, MassMutual suggests asking your prospects the following eight questions that will help guide their thinking about their own situations.

1. What is important to you? "You should clarify what's truly important to you – the people whom you care about, the aspirations you have, the things you want to protect, and the support you'd like to give to others," said Lee. "Your answers will create the framework around which your financial strategy can be built."
2. Who depends on you today, and who might depend on you tomorrow? While spouses and children are commonly thought of as the most obvious dependents, there can be others – for example, parents, in-laws or siblings who, due to age, or other circumstances, may be unable to care for themselves. "Even individuals who are single without a family have dependents – namely, themselves – since their well-being depends on their own ability to earn an income," said Lee. "Knowing your list of current and potential dependents will help you create a comprehensive strategy."
3. Who is providing for your dependents now? "When you develop your financial strategy, make sure that you account for all of the people who provide essential financial or non-financial support to your dependents, such as stay-at-home parents or grandparents," said Lee. "The valuable support they provide can be extremely expensive to replace."
4. What risks have you overlooked or not fully considered? People most obviously think of life insurance as protecting surviving dependents, but other financial responsibilities to consider may include preparing for retirement and taking care of aging parents. "Be sure to think broadly about the various financial responsibilities you face today or may face in the future," said Lee.
5. Are your plans flexible enough? There are numerous ways that financial product solutions can be structured to provide future flexibility and adjust with evolving needs. "When speaking with your financial professional, ask about flexible solutions that can be upgraded (or downsized) as events in your life unfold," said Lee. Whole life insurance, a traditional product that is gaining new respect in today's economy because of its many guarantees, also provides cash values that can be tapped for unforeseen needs, such as paying for a child's education.
6. How do you pick the right financial professional to work with? The best financial professionals are not only experienced and knowledgeable but also good listeners who seek to fully understand your circumstances and financial objectives before ever proposing possible solutions. They should have access to product solutions from multiple fine companies, should clearly explain how they get paid for their services, and should provide references upon request. "Make sure your financial professional has a solid support network – those affiliated with a strong, reputable firm will likely have access to better resources to support your changing needs," said Lee.
7. How do you pick the right financial services company to work with? "Just as you'll want to align yourself with a strong, reputable financial professional, you'll want to do the same with regard to financial services companies," said Lee. In many cases, these products will be used to address financial needs and objectives that last for decades, if not a lifetime. To help ensure that your financial product providers will be there when you (or your loved ones) need them, work with strong, stable companies that have received high marks from independent ratings agencies.
8. What if you already have a plan? "Even the best financial strategies should be revisited and updated regularly – generally at least once a year," said Lee. An experienced financial professional should regularly review your strategy with you, to help ensure that it remains aligned with your objectives and appropriate for your circumstances.