Start the new year by improving your financial or retirement plan…

Add an end of life plan using two easy steps:

1. Complete a Family Registration Guide

2. Create a “Love Drawer”

Many financial professionals refer to life insurance as “love insurance.” As cliché as it sounds, it certainly has a great deal of merit. What better end-of-life gift can you give your family and loved ones than a large sum of money that can be used to replace income, college tuition, retirement, taxes or estate taxes, charitable giving, and much more? The key point here is that the last thing any of us should want to add to our families during a time of such emotional loss and grief is unnecessary financial and emotional pressures.

Financial planning involves the use of protection tools and strategies

Financial tools like life insurance, wills and trusts, long-term care, etc., each play an integral role in the financial lives of most families. I also believe that there are other aspects of financial planning that are just as important, if not more so. Here is a short list of some of the key reasons why I have become so passionate about this topic:

1. With over 23 years of experience as a financial advisor, the sad truth is that over 70% of people who pass away end up leaving their families without even a basic last will and testament.

2. I have worked with families after losing a loved one

3. I recently lost my mother and personally experienced what many families go through every day.

4. I strongly believe that end-of-life planning should be openly discussed as a necessary part of a comprehensive financial plan for every family.

The truth is that most financial professionals and families tend to downplay, overlook, and/or ignore the importance of incorporating two additional key pieces to building a successful comprehensive financial plan.

Step 1 – Complete a Family Registration Guide

Studies show that most people have not created a written end-of-life plan that includes all the necessary final arrangements. This can easily be accomplished by obtaining and completing a Family Registration Guide, which is a written document containing the full details of your end-of-life plans and preferences, such as your burial wishes, financial matters, bequests, last wishes, funeral insurance etc.

Step 2 – Build a “Love Drawer”

Studies have also shown that very few people have created another wonderful and overlooked gift of love, commonly referred to as the family “love drawer.”

So what exactly is a “love drawer”?

In the funeral industry, the written or documented version of this “love drawer” is commonly known as a Family Registry Guide. However, my definition of the physical “love drawer” is the actual place someone can turn to in case something unexpected happens to you. Since the unfortunate reality is that each of us is at risk of dying unexpectedly every day, this “love drawer” serves as the key place where someone you trust can go and access the whereabouts of your full financial details, records, and end of life plans

So what are some financial and end-of-life issues that typically fall into this “love drawer”? Some of the key pieces that should be included in your end-of-life plan include your estate planning details (attorney, location, etc.), insurance policy details, IRAs, life insurance, investment accounts, bank accounts, employer contact information, Social Security Administration statements and contact information, any debts, birth certificates, driver’s license, passport, deeds or titles, pre-planning details (burial wishes, preferences , location, etc.), final notes, wishes or letters to loved ones, as well as any funeral insurance designed to cover your end-of-life expenses.

YOU NEED BOTH

The key point to make here is that completing a Family Registry Guide and a “Love Drawer” are two entirely separate, but equally important pieces of creating a smart end-of-life plan. In other words, a comprehensive end-of-life plan can only be considered complete once you have documented your end-of-life plans and gathered all of these details and instructions in one identifiable place.

I also strongly suggest that you tell at least three people you love and trust about the whereabouts (actual physical location) of your final version of your Family Registry Guide and “Love Drawer.” These loved ones may include your spouse, parents, children, friends, or even your financial advisor or lawyer. Also, while it may seem like a no-brainer, I ask that you please respect her privacy and never access any of this information until absolutely necessary. These entrusted loved ones will be the ones to help ensure that someone is there to immediately intervene and act on the details and instructions of your end-of-life plan.

Oh, and one last piece of advice is to make sure you update your end-of-life plan at least every two years. One of the only guarantees we have in life is that things will change. Life contains so many constantly moving parts such as taxes, estate taxes, family, age, health, wealth, our last wishes, etc. Therefore, we must continue to review and review our financial affairs on a regular basis. Periodic updating of your end-of-life plan can reflect any major financial issues that need to be added, revised or removed.

nothing good comes easy

One of my all-time favorite quotes is from legendary football coach Vince Lombardi, who said, “The difference between failure and success is largely determined by the amount of time and preparation that goes into preparing for the future.Regardless of how many hours this may take, I am completely confident that once you have finished both your Family Registry Guide and your “Love Drawer” you will find this time well spent for you and your family.

Key benefits for you and your family

For you, you will experience great peace of mind knowing that your loved ones can easily handle all of your financial affairs without unnecessary financial pressure, confusion or disagreements. For your loved ones, they will have the gift of being able to remember you in the way that you would want, that you are kind, generous, generous and considerate. More importantly, it can take away a lot of the emotional and financial pressures that surround such a difficult time and allow them to focus on what’s most important, which is celebrating the wonderful legacy and memories of their life.