I’ll never forget the day I asked my mother:  “Do you know what Dad has planned for you when he dies?”  My father was seriously ill. I worried about mom. And I was terrified to ask her that question.

When I finally screwed up the courage, she quickly deferred. “Oh yes,” she replied. But when I pressed her for details, she couldn’t deliver any. 

She also made it abundantly clear:  this was not a conversation she wanted to have.  I made it even clearer: avoidance was not an option.  Here’s what we did:

1.  We had “The Talk.” I had Mom sit down with Dad and we looked at all their financial documents:  bank statements, investments, estate planning, etc.  This was not, by any means, an easy conversation.  Nerves were frayed.  Mom glazed over.  Dad lost patience.  I kept scratching my wrist (a nervous habit) until it bled.  But by the end, Mom knew where every penny was and what arrangements he had (and hadn’t) made.

2.  We assembled “ The Team.” My Dad was very much a do-it-yourselfer.   Mom needed a team of professionals.  First on our list was an estate lawyer. Mom, my sisters and I met with him first, brought in my father, and together my parents created a very good, tax efficient estate plan. We helped her find an investment advisor and a CPA .  She meets with her “team” on a regular basis to this day.

3.  We updated documents.  We made sure the Will, Power of Attorney, EVERYTHING reflected their latest info and current wishes.

4.  We had annual family meetings. These gatherings, though often emotional, put everyone on the same page while Dad was still alive.  The meetings included my sisters, spouses, and all the grandchildren (we eventually had great-grandkids crawling around too).  My Dad let everyone know what his wishes were, especially for philanthropy, and enrolled the whole family to the board of his foundation.

By the time my father died, all my mother had to do was grieve.  Every detail was in order.  There were no surprises.  Practically speaking, his passing was seamless. 

Emotionally, it was devastating.  But being financially prepared mitigated the hassles and made the experience…well…easier.

If you enjoyed these “Words of Wealth”, head over to my website and sign-up for my FREE weekly newsletter at: www.barbarastanny.com

It’s tempting to keep all your money in cash because it seems so safe, right? After all, it’s guaranteed by the government. However, you’ll never build wealth when you’re losing money to inflation.

Stocks, on the other hand, feel so risky. Most of us, including the dictionary, see risk as “the possibility of loss.” But as smart investors know, risk is an opportunity for gain.

In fact, the biggest risk you take, as a woman, is not that the market will go down. Because it will. It always does. But it also always goes up.
 
The biggest risk that you and I take is that we will OUTLIVE our money…that our purchasing power, like a wool sweater in a hot dryer, will shrink over time.

So at least a portion of our money must be invested in assets that grow faster than inflation and taxes take it away.

If you enjoyed these “Words of Wealth”, head over to my website and sign-up for my FREE weekly newsletter at: www.barbarastanny.com

In 1926, George Clausen, publisher of the first road atlas of the United States, wrote a slim volume of parables about Babylonia, once the wealthiest city in the world. The Richest Man in Babylon has become a modern classic that some people, including me, consider among the best finance books ever written.

When we first meet the richest man in Babylon, he is telling friends the secret to his fortune.
“I found the road to wealth,” he tells them, “when I decided that a part of all I earn is mine to keep.” The men look at him incredulously.

“Is that all?” one asks, insisting that of course everything he makes is his to keep.

The wealthy man just shakes his head. “You fool, you pay everyone but yourself,” he cries, pointing to the clothing sellers, sandal makers, and wine merchants. Instead, the rich man counsels them, pay yourself first. “For every 10 coins thou places in thy purse, take out for use but nine.”

This is the way of the wealth builders. They pay themselves first, knowing that a part of all they earn goes into their personal savings on a regular basis.

Are you living that way?

Over the years, I’ve witnessed an inverse correlation between earnings and debt. As debt goes down, income increases. And vice versa.

Perhaps it’s because, as one person explained, “Now that I’m not worrying about how I’ll pay my bills, it’s like I’ve freed up all this energy to be so much more creative, strategic and successful in my career.”

Want more success? Tear up your credit cards and start paying them off. Then watch what happens!