Winning With Money Part 5: Plan for the Future

25 Aug Winning With Money Part 5: Plan for the Future

This is part five of a 5-part series on how to start winning with money. These 5 posts will become part of an e-book I’m writing but I wanted to make the info available ahead of time. Partially because I needed something to blog about,but mostly to share the stuff with you,our readers,so you didn’t have to wait.

Eggs representing Planning for Retirement

“By failing to prepare, you are preparing to fail.” – Benjamin Franklin

I know we’ve already talked about being proactive with your money, but this takes it to a new level. Part of your long-term plan needs to cover things like future education, home maintenance, vehicle replacement, retirement, income replacement, funeral plans, and long-term medical care, among other things.

I just want to touch on a couple of these, but don’t think that means you can ignore the rest. Winners plan ahead for future expenses and are prepared for them so they don’t become emergency expenses. That’s using your money to work for you.

Let’s face it. No matter what you do with your life, you’re probably going to reach an age where you don’t want to work anymore. Or you won’t be able to work anymore. Or you won’t be allowed to work anymore. We call these scenarios various forms of retirement. Get ready, ‘cause it’s coming.

Everyone talks about retirement as if it’s some fictitious idea that will never happen. Then when it does happen we wonder why we were too narrow minded to prepare for it and set aside money to cover our bills in retirement. Do we honestly expect that someone will always be there for us to make sure we’ll have enough money?

It doesn’t work that way. The harsh reality is far too many people reach retirement age and are grossly unprepared. Don’t let that happen to you. Have a plan. Invest while you’re young. Don’t let it sneak up on you. Make it a priority and start investing and saving now. I can’t promise you’ll be glad you did, but I’ve worked with a lot of people who were sorry they didn’t. Which one do you want to be?

I have more news for you. You’re going to die someday. Yep, it’s inevitable. No matter how you act, how much you deny it, or how much you pretend you can live forever, you won’t live forever.

Don’t you think it would be a good idea to save your family the hassle of figuring out who should get your assets? It’s not like they can ask for your opinion after you’re dead. It’s so easy to create a simple will and save the bickering, fighting, harassment, and stress that accompany the settlement of estates.

I’m sure your family is much closer than that, and I hope that’s the case. But I’ve seen enough families torn apart by the death of a loved one and the ensuing estate battles that I don’t ever want to put my family through that. Get a will. It’s rude not to.

What kind of legacy do you want to leave for your family? Do they know what accounts you have with which companies? They should. Do they know how many and what type of insurance policies you have? They should. Do they know how to pay the bills and manage the family’s finances without you? They should.

  • krantcents
    Posted at 14:03h, 25 August

    Don’t stop there! Take care of the funeral arrangements too! This way you have it the way you want it and the family is not stuck with decions at a terribly stressful time.

    • Matt Wegner
      Posted at 14:10h, 25 August

      Excellent point! My parents had all their funeral plans arranged when my mom passed and it made a world of difference for us. Much less stress in the midst of lots of stress.

  • Funancials
    Posted at 21:55h, 25 August

    Nice article Matt, looking forward to the eBook. Before it’s published, make sure Charlie Sheen hasn’t gotten a copyright on the term “Winning”

    • Matt Wegner
      Posted at 08:48h, 26 August

      Ha! didn’t even think about that. Thanks for the good laugh.

  • Marie at FamilyMoneyValues
    Posted at 09:36h, 26 August

    Hear Hear Matt!
    My take on pre-paid funeral arrangements is BE CAREFUL – there are so many scams out there. If you do buy them, make SURE your family knows about them so they don’t double spend!

    • Matt Wegner
      Posted at 12:41h, 26 August

      I agree Marie. I’m not all that big of a fan of pre-paid stuff. With funeral arrangements I think it’s good to have it all arranged at the funeral home, cemetery, church, etc. but not necessarily pre-paid through a special program. And communication with the rest of the family is crucial!

  • Travis @DebtChronicles
    Posted at 22:54h, 26 August

    A post on a different site recently reminded me that I need to get my will in order. I think my wife’s maiden name is still listed on the beneficiary of my life insurance policy through my job. Yikes.

    • Matt Wegner
      Posted at 07:26h, 27 August

      They’re so easy to do, too. We added a library of downloadable legal forms [affiliate link] to the website to make it easier for our readers. They’re the same forms we used to do our will. Simple, inexpensive, and easy.

  • Barb Friedberg
    Posted at 12:57h, 27 August

    Matt-I’ve been a planner my whole life and it has served me well. In my mid twenties I was youngest by far at a retirement planning workshop.

    • Matt Wegner
      Posted at 07:55h, 29 August

      Wow, Barb that makes you an official weirdo in the world of personal finance. But we love weird people because that means you’re not broke like all the normal folks!

  • Aaron Hung @ Discussing finances
    Posted at 11:59h, 28 August

    This reminds me, I need to open my life insurance account…I always think I don’t need it but my family will if something happens to me.

    • Matt Wegner
      Posted at 07:58h, 29 August

      I wouldn’t delay on that Aaron but make sure you’re getting insurance for the right reasons. I’ve always felt insurance is to replace your income so your family can survive if you die unexpectedly. Later in life it can be used as an estate planning and wealth transfer tool but I don’t like using insurance for that until I’ve maxed out all my other tax-advantaged investments.

  • Jackie
    Posted at 13:43h, 28 August

    This stuff is so important, and most people don’t realize it (until they end up having to deal with it when it’s too late.) This reminds me that it’s probably time for my annual “make sure my husband knows what’s going on with my accounts” update.

    • Matt Wegner
      Posted at 08:17h, 29 August

      It’s amazing how many lessons in life we are doomed to learn the hard way Jackie!

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