It’s been awhile now since I underwent that procedure no one my age likes to talk about. As much as I dreaded the actual examination, it was nothing compared to what I had to go through to prepare for it. Just seeing those words on the office door made me want to turn and run: certified financial planner.
But we did it! Harold and I spent several hours with a professional planning our estate, which is just a nice way to say we talked about getting old and dying.
Actually, it wasn’t that bad. In fact, now that it’s over, I’m so glad we did the hardest thing of all: showing up. We’ve taken those first difficult steps required to create a realistic plan that will allow us to live the second half of our lives with joy and peace instead of fear and dread. We knew specifically what we would have to do in the next 10 years. To quote that great philosopher G.I. Joe (as our boys often do), “Knowing is half the battle.”
Here’s the question that started the ball rolling: “When would you like to have the option to stop working?” Selecting a date some years in the future gave the planner a frame of reference to begin creating a plan that will allow us to do that. We pulled out the documents he asked us to bring to our appointment. He did not gasp in horror or even chuckle. This was all business for him and exactly the non-emotional approach we needed.
We left with a sizable homework assignment. Our venerable living trust needed an overhaul. We had no disability or long-term care insurance. Our investments needed reallocation, as we’ve been using that ever-popular, hit-and-miss approach of self-directed investing. But unlike then, when I couldn’t even talk about these things, we left energized and ready to go because we’ve added a valuable member to our team: a financial planner.
You may be many years away from needing the service of a professional financial planner. But you can, and should, start getting ready for your appointment now.
Get Out of Debt
You need to get rid of all unsecured debt. Easier said than done? Maybe not. I can show you how to get out of debt quickly and painlessly. It’s Chapter 5 in my book “Debt-Proof Living,” available wherever books are sold!Start Saving
You will need a savings account with at least six months of living expenses in it. Start saving now even if you are in debt, even if you think you can’t. You can. You have to!Know Your Benefits
Each year around your birthday, the Social Security Administration updates a projection of your retirement benefits. You can find that online when you create your personal account at www.ssa.gov/myaccount. Lock eyeballs with those projected figures to keep you motivated to save and invest. Remember, Social Security benefits are only a supplement.Keep Good Records
Figure out a simple filing system where you can keep your important papers: your mortgage, insurance, wills, etc. It’s a real pain to find important documents many years down the road. Take a look at TheNokBox.com. The Nokbox (short for “next-of-kin box”) is a complete system that helps you organize all your accounts, possessions, social media presence, communities, kids, pets, personal history and estate plans (even if you don’t have estate plans yet!). It’s an estate planning tool AND a home organization system that I highly recommend.There was a time not so long ago when I would have rather shoved toothpicks under my fingernails than meet with a financial planner. But I’ve changed my mind. In fact, I'll take a meeting with our planner any day over one that involves weight scales, blood pressure cuffs and the snapping of rubber gloves!
