Over many years in the financial industry, I have been blessed to have learned several lessons that are useful in life generally; but which have certainly helped me and my clients to protect our loved ones and prepare for retirement. Here are some very brief reminders that you may find useful.
Protect your family
Far too many times I have seen young, and not so young, people forget that if they die unexpectedly their loved ones will still need to live, pay off debts, send children to school, etc. Review your life insurance periodically to make sure you don’t leave them wondering why you didn’t do so.
Plan your future
Many clients forget to start saving early for their retirement, setting aside emergency funds “just in case…”, and generally recognizing that you will not always be at your present age and in your present situation. Put as much into your employer and/or other retirement plans as you can spare; and speak to a financial advisor about how to best do that.
Make settling your estate easy
Easy is likely not the best word to use, but you can make an emotional time easier on your loved ones. Make sure to do at least these things for them:
- Make a Will and Medical Directive
- Review the titling of your assets with your advisor and/or an attorney to make sure that assets pass on to your desired beneficiaries (check retirement plan and insurance beneficiaries!)
- Create a Trusted Contact, and if appropriate, a Power of Attorney, on your accounts just in case you are not responding to your advisors or are unable to make decisions
- Create a Personal Financial Organizer, sometimes known as a Family Love Letter, that clearly states how to contact all the relevant legal, financial, and other advisors so that your survivors don’t have to add to their stress in a bad time. I suggest you visit asfinancialservices.com for our Organizer form.
You earned your assets, so use them for you
Most people who are financially able to do so will help their children, grandchildren, charities, etc. However, remember that you are not required to help them if it means that you cannot retire comfortably. In other words, it is your money, not theirs. If you can afford to take that bucket-list trip, take it while you can do so!
Money, and disagreement, can make people mean and stupid
I am very lucky. My siblings and I really never put emphasis on money or inheritance. God, family, country, hard work. Everybody has their own focus, but far too often, I have seen families fight over money.
Here is my lesson learned: If you want money, earn it yourself. Nobody owes you anything, so don’t fight over something that isn’t yours anyway. Mommy and Daddy earned it, and they can give it to whomever they please. We also see too often that people disagree on things like which team to support, politics, economics, religion, etc. I am happy that I learned early on to disagree but not necessarily dislike someone who had a different view. Discuss if you want to, agree to disagree, but then go have a beer together…even if they root for the Cowboys!
The most important business lesson
The CEO at Meridian Bank, Zeke Ketchum, told all of us, the trainees, to remember that if we don’t have customers, we don’t have a job. Obvious, right? The overriding lesson there, and at Alloy Silverstein, is that when you treat clients with respect, care, and honesty, you will find that you will make a nice living while helping your clients make a successful plan.
Some things are worth remembering.