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Women, Wisdom & Wealth: Be prepared for an emergency or any life changes
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“The possibilities are endless once we decide to act and not react.” -- George Bernard Shaw, 1856-1950.
It’s that time again; we’re in the summer weather pattern and hurricane season began June 1.
We are never ready for an emergency but you can be prepared.
Eleven years ago we moved to southwest Florida from New England. This phenomenon called “hurricane season” caught our attention and seemed like something we should educate ourselves on and prepare for. The local newscasters host hurricane preparedness seminars so we attended one, sort of like a right of passage for the newcomer to Florida.
What we did learn was that a checklist and organization of resources are key. When you’re in the middle of an event it’s hard to think calmly and clearly about the best course of action. Do the preparation now, when you presumably have time to think.
Advance preparation for emergencies means knowing who to contact and where important documents are located. This is the same whether you’re preparing for an incoming storm or your financial future. You’ll need to identify the important people who play specific roles in your life. This could be insurance agents, plumbers, electric company, water and cable contacts, daycare providers, veterinarian, employers and neighbors.
Financial preparedness includes identifying the key players in your life. Your banker, financial advisor, attorney and accountant are there to help you prepare for significant life events. These are just a few of times when you may wish to review your preparedness plan:
Marriage — Blending lives and assets dictates that you’ll need to update your financial plan in many, many ways. Meet with a professional who’ll guide you through the details like beneficiary updates, life insurance needs and proper ownership of property.
Divorce — It’s the same thing as above, only in reverse. Emotions tend to be high so this is an especially important time to work with your team of professionals.
Birth of child or grandchild — It’s true that children change everything in many, many ways. The joy may overshadow the practical concerns of naming guardian. Grandparents may want to consider gifting and/or education funding strategies.
Illness — Priorities change real fast when someone becomes ill. Take the time to work out your legacy plan with beneficiaries before something happens. It’s quite awkward talking about these things from a hospital bed and it is comforting to all concerned knowing that your plan is up to date.
Wealth transfer/Liquidity event — Anything that may have a significant impact on your net worth and tax situation qualifies. There are a number of strategies that may minimize or postpone taxes on newly realized wealth — if they are put in place ahead of time.
Moving — If you move to a new state — or country for that matter — sit down and determine what changes may need to be made. Laws governing estate issues vary widely from state to state.
Purchase of real property — Titling and homestead considerations can be important when adding real property to your estate.
Significant giving — Charitable gifts often can be structured in ways that generate significant tax benefits. Consult with your team of financial experts before making a substantial donation to a charity.
Retirement — The most obvious event is retirement. Hopefully you’ll have a good handle on your income and expenses, meaning that you can make an informed decision on what you wish to pass on to your heirs. There’s nothing wrong with experiencing a few years of retirement first to be certain you’re comfortable transferring some of your assets.
Writing things down serves several purposes. You probably know most of this information but in an emergency you might not have time to think or time to waste. Set aside 30 minutes today and save yourself a few headaches down the road. Make sure you keep the information up to date and in an easily accessible place where you always have it at hand.
We keep important papers in a safe deposit box and anything that will be necessary during the aftermath of a storm we keep in zip lock bags in large plastic tote bins that are easy to grab and go! This is a great time of year to review what’s in your file system and make sure everything is up to date.
The tangible items like canned goods, water, dog food, prescriptions, candy, books and board games are important too. And don’t ever forget a manual can opener. An extra copy of your local phone book is useful if you need to be away from home for any length of time.
Keeping a list of important contacts all in one place is a big help too. Many financial institutions offer these sorts of documents and if you’d like one please let us know you’ll receive a Personal Emergency Checklist.
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Darcie Guerin is a financial adviser and branch manager at Raymond James & Associates Inc. at 606 Bald Eagle Drive, suite 401, Marco Island. Contact her at Darcie.Guerin@raymondjames.com, 389-1041 or toll-free (866) 343-0882.
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