“A perfect method for adding drama to life is to wait until the deadline looms large.”
Alyce P. Cornyn-Selby
If the coronavirus has shown us any truths it is that life can be hard, and life can be unpredictable.
In a world where there are never-ending demands on your time and resources, with an uncertain economy and job security being a thing of the past, where costs rise all around us at an alarming and often unpredictable rate, it can be hard to find the time and money to do the planning that we need to do for the future.
So, we put things off. We procrastinate. We think that we can just plan our retirement, take care of our insurance when this bill is paid off, when year-end holidays are over, when we think we will have a better idea of what our income will look like for the next year.
But is it easier later? No.
There will always be something that needs to be done and putting off planning won’t make it easier later- in many instances planning later can be more complicated or expensive- and life can change in an instant. Proper planning can help minimize problems that arise unexpectedly.
There is no time like the present to get things done.
Below are 8 things you can do today, that don’t cost much and make a real difference. And these are areas where we can help and facilitate active family planning and meetings with our adult children when appropriate… even virtual meetings.
Ground work- these first two steps make anything else you do so much easier.
1. Make a budget and stick with it- it is a good idea, every year, to review how much you are spending and on what. Life changes regularly, and some things you pay for out of habit may not bring any value to your life today. Look at your expected income vs your fixed expenditures and see if adjustments can and should be made. Make sure you are saving money every month.
2. Get Organized- if anything happens to you, will your spouse know how to log into your joint bank account and pay the bills? Will they know who to call if you have an insurance claim, or where all of your accounts are located? Do your loved ones know who your accountant is or your lawyer or where you keep the most up to date copy of your will? Do they have an accurate list of your insurance policies?
The 6 things you can do today that cost little and make a huge difference.
3. Make sure your loved ones know your current planning and the reasons for them: (I am giving your brother the business we run together, and I am giving you the life insurance policy to make things equal. I am giving your cousin this policy because she took care of grandma for 8 years and wasn't able to work as much. Don't make your loved ones guess why you did things, because they could guess wrong.)
4. Make sure everyone is on the same page- Make sure your family and friends know what you want your life to be like if you get very ill, if you live a long time, if you become disabled, or if you die before anticipated.
5. Make your wishes known- Make sure your attorney and your accountant, as well as your loved ones, know exactly what you want to do under various circumstances.
6. Write everything down. Sign and date, it. Memory fades, but written words stay the same. And give these important facts and objectives to your family.
7. Make sure your wills and trusts are up to date.
8. Make sure your life insurance policies are up to date and have the proper beneficiaries. (especially important after major life events like the birth of a child, a marriage, divorce or business startup or break up).
These are things you can do on your own, or Rosenheim Consulting can help you through the process, and facilitate the family conversation as well.
The important thing here is not how you do it, but that you do it and soon. Procrastination does not work, but active and regular planning and discussions make a huge difference.
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