'Income Protection' - in the world of investing and financial planning, this is never a thrilling topic of conversation. I don't know how many times I've seen client's eyes begin to glaze over whenever I've broached the subject of income protection, or life insurance for that matter.

And yet we all know, at gut level, that protecting your capacity to generate income (so you can pay the bills) is a fundamental part of any investment or retirement strategy. Brutally put, if you're still in the process of building your wealth, without income, there's a pretty good chance that your goals and dreams will suffer a major, soul-destroying setback.

In other words if you have an earned income, you should protect it before doing anything else, including investing. As painful as insurance can be (I get it), income protection is just one of those 'must-haves'.

Self-employed people in particular can be among the most vulnerable when it comes to sickness and injury, due to little or no access to paid leave - a situation that can deteriorate quickly. But employees also need to look beyond their accumulated sick leave or in-built superannuation based insurances as these rarely do the job properly. It's a little like insuring yourself for every second or third day - not exactly the peace of mind you were looking for!

I think Will Smith's classic quote applies here - "if you stay ready, you won't have to get ready".

So please, if you're not sure about your insurances, or you're about to embark on an investment or retirement strategy (i.e. invest in property, shares, super or a business) you should get face-to-face advice from a Financial Planner (like us), or an insurance specialist, and get your cover right the first time - you only have one shot at it.

Ok, enough said, time to step-off my soapbox.:)

Rick Maggi