What’s love got to do with money? Part I

Valentine - Month of Love

February is the month for celebrating love. So it is with a heartfelt celebration of my father’s life that I share his legacy of love. Love of family. Love of knowledge.

I’d like to share some ideas that will provide you with answers to questions you may not have even thought to ask. I hope these tips help you as you make plans to pass on your personal legacy of love.

There are many forms of wealth, only one of which is financial.

However, money is a powerful and emotionally complex tool which impacts every facet of our life. Money provides us with a sense of power and control; security and independence. How we spend, save, and exchange our life energy for money reflects how we value ourselves and others.

So why don’t we talk about money? Money is the last taboo.

We are secretive about money because we don’t know who or what to trust. Indifference and not taking control of our finances destroys true inner wealth. When you are on an emotional roller-coaster, you can’t possibly learn all you need to know about money. Often times, it’s even too late.

The one thing constant in life is change.

None of us has a crystal ball to know when a life-changing event will transform our lives. Transitions are often accompanied by feelings of overwhelm and the fear of what ifs. Decisions must be made and action steps taken. Wouldn’t it be great if you knew you were making the right choices? For you? By anticipating and preparing for the unthinkable … our own mortality … we are telling our loved ones that we care; that we have purposely chosen to simplify their lives. Thousands of dollars and our most precious asset, time, can be saved just by becoming aware of the issues.

Understand Six Simple Steps to Security

Awareness:

Know what you own, how it is titled, and what happens in the event of death. Know who the named beneficiary is on your life insurance, 401(k), IRA’s , and bank accounts. This is especially important in the event of second marriages. There have been many occasions when an ex-spouse or parent remains listed as the named beneficiary on an account just because of an oversight.

Acceptance:

None of us is immortal. We are all a part of the circle of life. Properly titling assets and preparing documents to protect your loved ones is a gift. Trust me. There is no truth to the rumor that preparing a will hastens your death! Really!

Accountability:

You are the person responsible for opening the conversation with your husband, parent, sister, child, or friend. You cannot afford to wait for someone else to bring up legacy planning and having the proper documents and beneficiaries in place. This is your future we are talking about. And theirs.

Action:

Set a time for discussion with your partner. Don’t fall into the trap of thinking you don’t know what to do and don’t want a confrontation. Educate yourself. But please remember this: Information is not knowledge and knowledge is not wisdom. Information is gathering facts. Knowledge is understanding. Wisdom is knowing how those facts apply to you! Reading something that “sounds good” may not fit the big picture of what is right for you or your family. Once you have done your research, get professional advice from your attorney, tax acccountant and/or financial planner about what is appropriate for you.

Achievement:

Congratulate yourself for baby steps. Did you talk with your loved ones? Good. Did you go over all of your assets and debts? Good. Have you set an appointment with a trusted professional to help you? Good! Don’t feel you have to do everything at once. But get started. This is too important a matter to put off.

Assessment:

Once all your documents are in place and beneficiaries named, you can relax. For awhile. Remember, however, to review your plan at least once a year. Life transitions may make it necessary to change plans that seem just perfect right now. Planning is not an issue that needs to be taken care of when we reach a certain age, retire, or have “substantial” assets. These are the documents every adult needs, regardless of age:

Durable Power of Attorney – Durable Health Care Power of Attorney – Will – Living Will

Now, change your perspective

Imagine. You are the loved one who is left to pick up the pieces. What would you have wanted your loved one to have done to prepare for you? We’ll discuss these ideas in our next issue.

In the meantime, here is a legal resource to visit for solid information. Visit for the education it provides.

Please remember, information is not knowledge. And knowledge is not wisdom. Consult with a professional about your situation.