If You Love Someone, Do These 4 Things Now!

I know it’s not true of everyone, but ALMOST everyone has someone who they love and who depends on them. A husband or wife, children, parents, etc., etc.

I recently sent the following letter to a successful friend of mine (in this case a man) who, in my opinion, is not taking the basic steps necessary to provide for his loved ones. This is very simple stuff and really covers only the primary things that need to be done.

“Dear Friend,

I’m writing to you as a friend and I hope that you don’t mind me intruding on your financial affairs. The problem is that I keep thinking about you and your family and worrying that you haven’t taken the basic steps needed to assure your collective future. I know that I’ve told you this before, but it bears repeating. You absolutely must:

1. Get a will drawn up by a competent lawyer.
2. Have your life & disability insurance policies reviewed.
3. Make sure you have an emergency fund.
4. Start investing for the future.

I gave you the name of a good attorney for the will. If you don’t hit it off, I have the names of some other lawyers I can give you or you can contact the State Bar Association for suggestions. While you may not have any real problems here, it is best to have everything arranged the way you want it, rather than have the government settle things according to its wishes rather than yours. It will cost you a few minutes of your time and a few hundred dollars.

I know you told me you have some life insurance, but is it enough? Will your wife and children be able to stay in your home and maintain your current standard of living? Do you have disability insurance? The likelihood of a permanent disability for a young man is higher than that of dying prematurely. And yes, I consider you young, at least relative to me. You should protect your family in the event of some disaster befalling you. It is not at all uncommon and I have read many stories about unexpected disasters striking young families like yours. And, by the way, guessing how much insurance you have or need is not really the best approach to the issue; you should talk to a knowledgeable agent. I know some that I could refer you to.

Unfortunately, money related emergencies can pop up almost at any time. You should have an emergency fund set aside for just such an event. For someone like you, I usually suggest at least enough cash to cover six months of living expenses.

Finally, I can guarantee that time will march on. You need to set aside some of your income to provide for yourself, wife, and children in the future. I’d love to have you invest with us, but frankly, if you would rather use someone else, that’s fine. You need to get started now, though, even if it seems like you’re starting with a very small amount. The passage of time will greatly reduce your ability to build a meaningful fund for the future.

If I’ve intruded on your privacy, I apologize. Try to look at it like I’m your financial “doctor” and you’ve asked me for my opinion. Except you didn’t ask for it. I’m just giving you my opinion whether you asked for it or not because I care about you and yours. If you’re upset with me because of that, so be it. But for your sake, and for those you love, I hope you’ll listen and take action.

Best wishes,

Tom”

Post from: Insights