This is a short blog/story based roughly on client experiences I’ve come across and the crucial impact of early planning on managing personal finances and health directives. It’s night and day comparing the effort (and what I’ve had to bill) between folks who have delayed or even refused to do planning because they didn’t really understand the impact it would have on their bottom line versus those who were far more proactive in having important documents and safe, secure access in place.
For those clients with even the most basic measures in place, the time and hassle to make sure things are paid and finances running smoothly was a FRACTION of the time required versus those who put it off or felt they could handle everything themselves. The adage of “an ounce of prevention is worth a pound of cure” (another Benjamin Franklin quote), most certainly applies true here.
Proactive Financial Organization: The Story of Alex
Alex, a revered former school principal, exemplifies the benefits of preparation. With clarity and foresight, Alex had designated his sibling, Jordan, as both financial and healthcare Power of Attorney (PoA). Together, they meticulously organized all crucial passwords and account information in a secure digital vault, ensuring easy access for both.
When health challenges arose which required extended medical care, Alex’s proactive planning facilitated a smooth transition of financial management. Jordan, alongside a Daily Money Manager (DMM), efficiently managed Alex’s financial obligations, allowing Alex to focus entirely on recovery. A Zoom meeting permitted safe transfer of password information and installation of shared two-factor authentication. Alex’s affairs could be attended to with relative ease, few, if any bills late, and the DMM was able to provide core services in a reasonable, affordable, time frame. This partnership highlighted the peace of mind that comes from having one’s financial affairs in order or that trusted contacts could step up and at least temporarily take over.
The Financial Impact of Delay: Bailey’s Experience
Contrastingly, Bailey, a retired engineer celebrated for her independence, faced significant challenges due to a lack of prior planning. Without a PoA or an organized system for managing her finances, Bailey’s financial stability was severely impacted by her health issues. The accumulation of unpaid bills and the ensuing stress complicated her situation and compounded her recovery. No one could check balances, write checks or pay bills and Bailey was too ill to go to the branch or spend time on the phone.
In her case, her wealth manager who, with Bailey’s approval, established a new, accessible checking account with his firm. It certainly helped, but even that was delayed and time consuming. Although she was in the process of meeting with an attorney (who fortunately did house calls to her rehab) for the overarching estate plan, she also had to fill out other paperwork for a ‘localized’ PoA for her new accounts so her trusted contacts could pay bills. And even then, that had an approval process to wind through as the bills piled up. Her sibling, who live hundreds of miles away, was on the phone constantly over the months trying to triangulate and manage things, a heavy burden on his time until he learned of DMM services.
The Role of a Daily Money Manager
In these scenarios, the Daily Money Manager (DMM) was able to help. For Alex, the DMM’s role was streamlined thanks to the groundwork laid by proactive planning. Simple communications from Jordan were enough to address any financial hurdles. Jordan had a bit of heavy lifting for a short period of time, but then was able to get on with his life and was mainly someone who oversaw the DMM’s work and helped remove roadblocks which Alex recovered.
In contrast, Bailey’s situation necessitated extensive efforts from the DMM, her wealth manager, and her sibling to restore financial order. This included identifying and accessing accounts, a process that highlighted the DMM’s role as both an organizer, project manager, and a problem-solver. The time and effort invested in achieving a semblance of the stability Alex enjoyed from the start underscores the value of early estate planning and far exceed the cost of establishing a solid estate and emergency plan early on; something Bailey had to invest in anyhow, but essentially paid at least triple for in not just actual invoiced time, but an incalculable cost to her hard earned credit score and peace of mind. This doesn’t even include Casey’s endless hours of calls, emails and strategy sessions while working with the DMM to try to socially engineer safe solutions and work-arounds.
Insights and Recommendations
The stories of Alex and Bailey illuminate the profound benefits of early financial and healthcare planning – and these are not pure works of fiction. Please benefit from these powerful reminders of the peace of mind and stability that come with foresight, as well as the potential costs and stress of being unprepared.
Preparing legally and financially, with the support of professionals such as attorneys, wealth managers, insurance advisors, and Daily Money Managers, is not just about mitigating future crises; it’s a critical aspect of well-being in the present.
Conclusion
The necessity of early planning in financial and health matters cannot be overstated. By taking proactive steps now, individuals can ensure that they, and their loved ones, are not left navigating through life’s uncertainties unprepared. Let the lessons of Alex and Bailey inspire you to take action towards securing your financial and healthcare future.