In this space last month, we talked a bit about preparing for the inevitable finality of life. Stuff happens. Much of it unavoidable! But while we’re in the middle of our day to day there’s an awful lot that can impact our productivity and functionality. Whether these circumstances are avoidable or not, isn’t the issue. But rather, how to prepare for lifus-interruptus.
When we’re young and feeling mostly invulnerable, thinking about all of the things that can go wrong in life, is usually the furthest thing from our mind. When our youth provides us with a healthy state, there’s little conscious reason to think negative thoughts about potential inevitabilities. But why wait? Why put off preparing now for what might (or might not) happen later?
The first reason most folks give for not thinking about their future and the planning of their estate or personal wishes for the disposition of their possessions and assets is that they are too busy. You may be of the belief if you’re young that you don’t have much to leave or prepare for. Or, old or young, you maintain the perspective that none of what you achieve now will matter after you’re dead. Well, unless you intend to live your whole life as a hermit with no ties or commitments to others, planning for tomorrow is always a good idea, and those in your life will appreciate your fore-thought in the matter.
Sad, but true: bad things happen to good people! We don’t have to be looking for trouble or problems when they actually find us. Whether there’s a hidden or dormant medical condition that rears its ugly head, there’s job loss due to unexpected downsizing, an accident occurs on or off the job, something unexpected happens to a child, spouse, or parents, having a few advance plans can save you many headaches later. The list of things that can draw your attention away from your job is long and scary though a modicum of preparation might be the difference between circumstances that completely derail your life or those that are only interruptions that can be overcome.
(DISCLAIMER: These suggestions are not offered as legal, financial or any other kind of formal advice. Seek out professional assistance in fulfilling any plan for your future, whether legal, medical, professional or other specialty. Your employer’s plan administrator can steer you in the right direction, or you can also seek out independent guidance from qualified and certified financial planners, estate planners and insurance agents on your own to create a personal strategy.)
Your planning can take many forms. You can start simply putting money into a savings account every month. Your employer may be able to direct a deduction from your paycheck into an account of your choosing, in addition to any IRA’s or other similar financial instruments. As not all employers provide benefits, creating a regular savings plan on your own is easy to set up and manage. As your income (hopefully) grows you can increase your deposits proportionately. You’ll be pleased at how fast regular deposits will accrue a nice balance. But because you are planning for your future, leaving these accounts alone for as long as possible is your best strategy.
If you are fortunate to work for a company that has a large array of savings programs as part of a benefits package, take advantage of them. The automatic contributions to these accounts will accrue with little input or direction from you. Keep in mind, however, that you should always monitor your accounts for growth and accuracy.
Some long-term healthcare policies have cash back options. The principles paid into these accounts accumulate interest over time and can be cashed out in the future, if the options they provide are no longer needed. There are also some life insurance policies that work similarly, where the money you pay in grows over time and the account can be cashed out when you feel you no longer need to pay in. Not all of these type of accounts work this way, so make certain to understand your options.
The idea of Wills, Trusts, Medical Directives, Medical and Personal Powers of Attorney, can be intimidating. Many will say, “I’m not old enough to have to worry about this stuff.” But having these documents in place can assure that your wishes (and those of your family members) are respected and adhered to, should they be needed. Again, consult with a professional for the creation of these documents. And don’t forget to update then periodically, as your circumstances evolve.
Regardless of the strategies you adopt, advance planning for your future is a smart move. No matter how intuitive you are, predicting the future – yours or your family’s – is a guessing game with high and long odds. Give yourself and your loved ones a gift of your organizational planning. Have open and honest discussions with your family and significant others about your wishes and theirs to facilitate making the best moves for all concerned. Indeed, life is what happens while you’re making other plans, but the plans discussed here are the kind that will serve you well.
As Mr. Spock says, “Live long and prosper!”
# # #