By Dian Cohen
Editor’s Note: Dian Cohen passed away on May 5. This column, sitting ready on the desktop of her computer, was forwarded to The Record for publication by a family member.
This is my last column. I’ve loved every minute of writing them and answering your questions. My curiosity about how the financial world works has driven my efforts to provide you with insights. I learned early on that politics plays an outsized role in finance, but it’s not the only factor.
Since we have little control over what politicians and bureaucrats legislate ostensibly on our behalf, we can stay abreast of their schemes, we can make our opinions heard in various ways, but ultimately, we aren’t in control of how the world will turn out. When it comes to financial comfort, though, you are in control. By following a few of the suggestions below, you can reach a point where financial scrambling is a thing of the past; while other issues may arise, financial stress won’t be one of them.
Starting to save at an early age is ideal, but it’s never too late to begin. The earlier you start and the more you save, the less financial stress you’ll experience throughout your life.
Make a budget. It’s not hard to do – there are a million templates on the net. Choose one that’s simple and that you feel inclined to use. Use it regularly. Treat your retirement savings as a recurring expense, like paying rent, mortgage, or a car loan.
Learn investment basics. Understand your risk tolerance. Even if you prefer not to manage your investments, you should know enough to interview and hire a reputable financial manager.
Have a plan for “when bad things happen”. This is essential for minimizing the stress associated with accidents, illness, and death. We all face unpleasant situations, and having a plan in place can help. I recommend using a financial organizer that I have used for the past 40 years. http://www.fiscalagents.com/knowledge/corndir.shtml includes a link to the Publications section, where you can download or print a copy of the Estate and Planning Organizer. Complete it as soon as possible. This organizer keeps crucial information in one place, including identification numbers, contacts for your doctors, dentists, and pharmacists, details of your credit cards, bank accounts, insurance policies, investments, and legal documents. This will save you—and your family, in the event of your death or incapacity—countless hours of grief. Explore other free publications from Fiscal Agents for additional helpful resources.
As early as you can, designate a support person – someone you trust to have a key to your home and/or to know where your Organizer is. This person might change over the years as you move your residence or find someone more suitable.
Prepare key legal documents: Among the most important documents are the powers of attorney or mandates for financial and healthcare decisions. Without these, your support team may struggle to make important decisions during critical times. A power of attorney or mandate can authorise your support person to manage all your finances or just to make certain decisions on your behalf, such as paying monthly bills from your chequing account.
An advance care directive or healthcare mandate outlines how you want to be treated in certain medical situations where your support person is making medical decisions when you can’t. You may need a medical release form so doctors can share information with your support person. Be thoughtful about who you name on these documents. Be sure you and they understand the responsibility they are undertaking.
You’ll need a will if you care about where your assets go after you pass. I recommend consulting an estate planner, a notary, or a lawyer.
Review your financial organizer once a year or whenever your lifestyle, income, or financial responsibilities change. Ensure that your support person or team knows where the Organizer is located, and I strongly recommend printing it out every year.
While I have focused primarily on financial matters, it’s important to remember that they are not the entirety of life. Years ago, I conceived a modest health clinic to serve an underserved rural population, and we collectively defined “wellness” as follows:
WELLNESS = MOVE MORE • STRESS LESS • EAT WELL
I’m old enough to claim a certain expertise in wellness. Make room in your busy days for some serious exercise – it doesn’t matter what it is. It’ll pay off in less pain and greater mobility in your later years. Keep your family close. If you’re on the “outs” with a family member and it bothers you, reach out to resolve your differences. Less stress will result. Cultivate a hobby you love and will be able to do when you’re older. I learned to knit in grade school, where we knitted squares for blankets that were sent overseas during WW2. Find something like this that will entertain you forever.
