By: Laura Walton AFC®
Inertia can be a powerful force! We all know what we should do but getting around to doing it is another thing altogether.
As the year draws to a close, our 2014 classes are coming to an end as well. With a number of items on her Financial To Do list, one of our participants has scheduled time on her calendar every Friday between now and the end of the year to work down her list. Here are a couple things likely to be on everyone’s Financial To Do list.
Review your will or trust: 60% of Americans have no will. Those that do probably don’t look at them often enough. Babies, deaths, and marriages are just a few of the reasons that your wishes might need to be updated. The State Bar of Arizona website is a good source of general information.
Review Account Beneficiaries: You can’t “set and forget” your beneficiaries. Nearly every financial advisor knows someone whose assets at their death went to a former spouse instead of a current spouse simply because the will hadn’t been updated after their divorce and re-marriage.
Review your insurance coverage: When is the last time you sat down with your insurance agent to confirm that your coverage is adequate? Again, life events change your needs. For one, if you have adequate emergency funds and savings, you could ask how much raising your deductibles would save on your premiums. And, while you’re at it, comparison shop your policies. Whether or not you change providers, it’s good to affirm that you have the coverage you need at a reasonable price.
Do you have advanced health care directives? 75% of Americans don’t. Without this paperwork, if you are incapacitated (i.e., in a coma) health care workers will be making medical decisions for you, not a trusted family member or friend. The State of Arizona has forms and instructions online.
That’s plenty for now! If completed, you could end the year feeling good about the most important items on your Financial To Do list.
Here’s one tip to overcome inertia – put “Eat chocolate” at the top of your To Do list. Once you’ve completed that item, you’ll have the energy and motivation to tackle item #2!