The Financial Planning Effects of Covid: A MyLife Financial Series (Part 1)



I still remember it like it was yesterday. I scrolled through my Facebook feed like most people do when they want to catch up on their network's news. I came to a stop at a post from an old friend who I went to school with and saw that a mutual friend of ours passed away from Covid. I thought to myself, "we're the same age." I was once close to this person too. That's when the thought of mortality hit me like a ton of bricks.


Most of us, pre-Covid, lived our lives thinking something along the lines like "that will never happen to me" until tragedy hits close to home. Covid is just the latest thing right now. Other sicknesses, accidents, and things that are out of our control still exist.


My Call To Action

Most people have a screensaver on their phone of what they enjoy, a hobby, family, cars, etc... I am no different. Mine is of my daughter. As I closed the app to think of some memories I had with that person and saw my daughter's picture, I couldn't help but think of the young family my friend left behind. This person will miss their children's first day of college, graduation, wedding, and other milestones, much like my father missed mine due to his untimely passing.


As a financial planner, I'm used to planning for a spouse's premature death. As a son, I lived through the lack of planning. As a father, I thought to myself, "I wouldn't want my wife and daughter to go through the same ups and downs I did growing up."


What Did I Do

Before saying our "I Dos," my wife and I created our estate plan. You know, the one that says who gets what if one of us passes away and spells out who can make decisions if we are incapacitated. As I looked at my phone's screensaver, I thought to myself, "life has really changed for us these last few years since we married. We now have a mortgage, a daughter, plans to send her to college, etc..." It was time to update our estate plan. I'm somewhat ashamed to write that it took me 3 years from my daughter's birth to update our estate planning documents and look at how something like Covid could derail our overall financial plan. Not because I help people plan for these types of life events in my profession, it's because it could have happened to me.


Have you found yourself wondering, what will happen if you predecease someone? Need some guidance on where to start? Download my Estate Planning Checklist and see if it helps you avoid the potential financial pitfalls of Covid or any unexpected terminal event. No, I promise you don't have to enter your email address or any contact information. Just click and download.

 

MyLife Financial is a fee-only financial advisory firm providing objective and independent advice virtually. Our clients are busy professionals that face daunting questions of how today's financial decisions will affect their long-term financial success. Everything written is strictly for informational use only. Please seek the advice of your CPA, Attorney, or financial professional before implementing any strategies.


Want to know more about how a financial plan could help you? Click on the envelope below and e-mail me to set up your next meeting!





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