Life Planning

Financial Literacy (Rebroadcast)

Here’s the reality: financial literacy should be a required class in school—but for most people, it never was. And because of that gap, many of us are fumbling through adulthood, reacting to financial crises instead of preparing for them. This week we discuss 10 questions to jumpstart your financial literacy.

Life Planning at 18

In this episode, Angela addresses 18-year-olds and their parents about essential financial and legal considerations as they transition into adulthood. She emphasizes the importance of financial literacy and proactive planning to secure a stable future. The discussion covers medical and financial powers of attorney, building excellent credit, planning for the future, and investing in oneself through financial education.
Key Takeaways 💡
Upon turning 18, parents no longer have automatic access to their child's medical information or the ability to make medical decisions on their behalf; therefore, it is crucial for 18-year-olds to establish a medical power of attorney with HIPAA privileges, allowing their parents (or chosen representative) to access medical information and make informed decisions if the young adult is unable to do so themselves.
Similar to medical information, financial information becomes private at 18, and parents lose the automatic right to manage their child's finances; to address this, a durable power of attorney is essential, enabling parents to assist with financial matters such as bills and loans without needing court intervention, while avoiding the complications and liabilities of being directly on their child's bank accounts.
Having excellent credit is crucial and can save a person six figures over their lifetime by securing better loan terms and lower insurance premiums; building good credit involves using credit responsibly, such as through revolving lines of credit (credit cards) and installment credit (loans), and resources like "Seven Steps to 720" can provide valuable credit education.
It is important to think about the future and not get caught up in only living in the present; young adults should research and align their education and career paths with their life goals and desired lifestyle, considering the financial implications of different choices to avoid costly reinventions later in life.
Investing in oneself through financial literacy is essential for long-term financial stability; young adults should prioritize paying themselves first by saving and investing 20% of their income, learning to live off the remaining 80%, which will help them avoid financial struggles and make informed decisions about housing and other obligations.

Should You Have a Family Meeting?

In this episode Angela discusses the importance of having family meetings, especially as children grow older and move out. She emphasizes the need for proactive communication within families to address important life decisions, end-of-life wishes, and potential conflicts that may arise after a parent's passing. She also encourages families to have open and honest conversations to ensure continued harmony and support.
Key Takeaways 💡
Family meetings are often perceived negatively due to past experiences, but they become increasingly important as children leave home to proactively address family matters, rather than reactively dealing with issues as they arise. Husbands and wives, despite living together, often spend significant time apart, leading to independent thoughts and goals that may not be communicated effectively, highlighting the need for open discussions.
It is important to openly discuss life wishes, such as preferences for end-of-life care, to avoid potential conflicts among family members, as assumptions about what a parent wants can lead to disagreements. Children need to hear directly from their parents about their wishes, ensuring everyone is on the same page and minimizing the risk of disputes after the parents are gone.
Parents should consider the potential impact of their decisions on family relationships after they are gone, as disagreements over estate money and end-of-life wishes can cause dysfunction and hardship among siblings and other relatives. Taking the initiative to communicate these decisions can foster wisdom and prevent future conflicts, ensuring the family remains united.
It is crucial to have a plan in place for long-term care assistance, including who will make medical and financial decisions if the parents are unable to do so, to avoid burdening children with difficult choices. Communicating these plans and wishes can alleviate stress and potential conflicts among family members, especially when differing financial situations and opinions exist.
Naming one child as the executor of an estate can create added pressure and potential resentment among siblings, especially if they have busy lives or differing financial needs. It is important to discuss these roles and responsibilities openly to avoid overburdening one child and causing conflict among the others.
Families should discuss potential tragedies, such as the death of a child, to ensure that guardians are in place for any young grandchildren and that the grandparents' desire to see them is known. Proactive communication can turn potential stress, tension, and disarray into a proactive approach that strengthens family relationships and ensures everyone is prepared for unforeseen circumstances.
When conducting family meetings, it may be beneficial to initially exclude in-laws, ex-laws, and outlaws to focus on the immediate family's boundaries and concerns. If you are struggling with how to have these conversations, seek guidance to help your family continue to live life on purpose and prevent family relationships from crumbling after you are gone.

What Are You Stressed About?

This week we discuss how to identify the root cause of stress in life and business. Think about your thinking and identify the one thing that, if changed, would significantly reduce your stress and improve your overall well-being.
Key Takeaways 💡
Many successful individuals, especially business owners, juggle numerous responsibilities daily, including finances, employees, logistics, customer relations, and strategic planning, leading to significant stress. This constant multitasking and the inability to disconnect from work contribute to a lingering stress that affects health, relationships, and overall well-being.
Community involvement and supporting local businesses are important, but they add to the responsibilities and stress of business owners. Balancing business, family, and community obligations often leaves little time for personal health and financial planning, which are crucial for long-term well-being.
Business owners often delay personal financial planning, assuming they can address it when they have the money, but this reactive approach can be detrimental. Neglecting to plan for the future, including long-term healthcare and business succession, can lead to financial insecurity and missed opportunities.
The primary source of stress for many busy individuals is a lack of time, leading to burnout and health issues. Instead of focusing on how to find more time, individuals should identify who can help them delegate tasks and responsibilities, freeing up their time and energy for more important activities.
Business owners often resist delegation, believing that no one can perform tasks as well as they can, but this is often untrue. Identifying tasks that others can do better and finding the right people to delegate to can significantly improve efficiency and quality of life.
To reduce stress and live life on purpose, individuals should reflect on their thinking and identify the single most impactful change they can make. This may involve delegating tasks, prioritizing personal well-being, or seeking help from others to manage responsibilities.

Your Next Vacation - Retirement

This week Angela discusses the importance of intentional retirement planning compared to the time people spend planning vacations. She highlights the irony that people often invest far more time planning short vacations than their entire retirement, emphasizing the need for early and purposeful retirement preparation beyond just finances.
Key Takeaways 💡
Travelers spend an average of 303 minutes per day on travel content during the 45 days before booking a vacation, totaling about 227 hours or over five and a half work weeks. This highlights how much time people invest in planning short-term leisure activities compared to retirement planning.
Most people spend little to no time planning for retirement, which can last decades, despite its critical importance. Retirement requires intentional planning not only financially but also in terms of physical, spiritual, intellectual, and social purpose to avoid depression and health issues.
Retirement should be viewed as a lifelong journey requiring a clear purpose beyond just leisure activities like golf or travel. Purposeful engagement such as mentoring, volunteering, or community involvement is essential to maintain fulfillment and mental health during retirement.
Without a clear retirement plan, including lifestyle and financial goals, it is impossible to accurately determine the amount of money needed for retirement. Budgeting in retirement should be practiced well in advance to ensure financial freedom rather than restriction.
Most retirement planning occurs too late, often within a year of retirement or after retirement, which limits options and increases risks such as tax liabilities and insufficient savings. Early planning, ideally five years or more before retirement, is crucial to maximize benefits and avoid compromises.
Last-minute retirement planning often results in the realization that 'something has to give,' meaning people may not achieve their desired retirement lifestyle due to lack of preparation. This can lead to reduced lifestyle, increased financial stress, and missed opportunities for tax and asset optimization.
Angela challenges listeners to treat retirement planning like vacation planning by dedicating 227 hours over a year to prepare for retirement. This approach is more manageable as it requires only about 30 minutes a day and can ultimately save money and provide peace of mind.
Angela emphasizes the importance of setting priorities and making time for retirement planning despite busy schedules, noting that failing to do so can lead to significant financial and emotional consequences for individuals and their families.

Life After Graduation - What Your Kids Should Know

This week we discuss essential life planning advice for parents and graduates facing the transition after high school or college. The episode covers practical financial knowledge, legal considerations, and ongoing parental support to help young adults successfully launch and sustain their independence.

The Griever's To-Do List (Rebroadcast)

This episode focuses on the importance of life planning to prepare for unforeseen circumstances like illness or death. Through the story of Maria and her husband Tom, the episode highlights the emotional, financial, and logistical challenges faced by families without proper planning.
Key Takeaways 💡
The episode emphasizes the importance of taking action to prepare for unforeseen life events, such as illness or death, to reduce the burden on loved ones. Angela encourages listeners to reflect on their responsibilities and take proactive steps to care for their families.
Maria's story illustrates the challenges of navigating life after her husband Tom suffered a severe stroke, which left him physically impaired and behaviorally changed. Their retirement dreams were disrupted, and Maria had to manage alone, highlighting the unpredictability of life.
Maria faced a steep learning curve in managing financial and estate matters after Tom's passing, despite having a financial cushion from selling their business. This underscores the need for a comprehensive retirement and estate plan.
The episode discusses the limitations of Medicare and health insurance, which often do not cover long-term care needs. Maria had to navigate the complexities of Medicare, Medicaid, and out-of-pocket expenses during a health crisis.
Financial planning challenges included managing the proceeds from their business sale, understanding tax implications, and dealing with inflation's impact on savings. Maria also had to make difficult decisions about social security and her late husband's belongings.
The emotional and logistical burden of funeral planning and addressing her own future needs led Maria to realize the importance of having a plan in place. The episode stresses that planning is a gift that provides peace and allows survivors to thrive.
Angela encourages listeners to consider what should be on their 'griever's to-do list' to avoid placing unnecessary burdens on family members during difficult times. Proactive planning can ease the challenges faced by survivors.

Finding Peace in Turbulent Times (Rebroadcast)

The water in life gets rough from time to time. When we take our eyes off of the horizon, we tend to suffer. And like being sea sick, you may feel that you probably aren’t going to recover until your feet hit dry land. This week we share some tips to help you find peace during turbulent times.

No Time to Die (Rebroadcast)

Like the title of a James Bond movie, we live in a day and age where it can seem like there is no time to die. There seems to be so many obligations that need our attention. Do you care about your family? Then you don’t want to miss this week’s episode of Life Planning 101.

What Isn't New in D.C.?

This week, Angela discusses key financial and legislative updates, including the Corporate Transparency Act, Social Security Fairness Act, Secure Act 2.0, the impact of executive orders on financial markets, and more.
 
Key Takeaways 💡
The Corporate Transparency Act, though not currently enforced, could impose significant fines and prison time for non-compliance. A new rule is expected by March 21st, and Congress is discussing potential changes or elimination of the act, which could benefit businesses.
The Social Security Fairness Act addresses unfair provisions like the windfall elimination provision and government pension offset, benefiting 3.2 million people retroactively from January 2024. Listeners are encouraged to check their eligibility for potential benefits.
The Secure Act 2.0 introduces automatic enrollment in retirement plans and increased catch-up contributions for employees aged 60-62, effective in 2025. These changes provide an opportunity to maximize retirement savings.
Executive orders are creating uncertainty in financial markets, with reactions depending on whether policies are pro-business. Angela emphasizes the importance of seeking opportunities amidst the chaos and adapting to the evolving landscape.
The Tax Cuts and Jobs Act of 2017 faces slow progress for extension in Congress due to political strategies and reconciliation bill complications. Angela highlights the implications for business deductions, tax brackets, and the challenges of balancing the budget.
Angela stresses the urgency of addressing the debt ceiling and the limited timeframe Congress has to achieve proposed goals. It's important to stay informed about tax cuts and legislative changes through reliable resources.
Listeners are urged to adapt to inevitable changes and find growth opportunities, quoting Jack Canfield. Proactive planning is recommended to navigate the ongoing changes from Washington.

Are You Taking Your Financial Supplements? (Rebroadcast)

Recently I was speaking with a client about how important it is to take preventative measures in regard to health - eating right, exercising, and taking the right supplements. It is just as important that we take preventative measures in regard to our finances - planning for the worst-case and best-case scenarios, exercising good financial habits, and revisiting your plan on a regular basis to make necessary changes.

Family Disaster Planning (Rebroadcast)

You have great power over the destiny of your family. In fact, you have the ability save your family… or destroy it. Too many of us make all the excuses in the world to not work on our estate plan or just throw darts at an attorney, get documents in place, and say we have one. Neither of these add up to a Family Disaster Plan.