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Jordan Goodman is the author of Everyone's Money Book, available at 888-201-6300. This is the third edition of the book. You can also visit his Web site at www.moneyanswers.com. He talks with us on Thursday mornings.
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March 20, 2003
"Preparing For The Worst"
With the war with Iraq about to start, it is an important time to go over
some financial basics with your spouse and significant others if you are
going to war, or if you are left behind. Though it is extremely difficult,
emotionally, to deal with these issues, it is far better to deal with them
calmly in advance than to have to scramble to pull things together after one
of you has died or been injured. Here are a few steps you should take to
prepare for the worst:
- Make out a will and know where it is. About two-thirds of Americans still
do not have wills, and when one of them dies, their affairs are left to a
probate judge they’ve never met to make decisions on everything from who is
the guardian of your kids to who gets the grandfather clock. A will is your
way of giving instructions to the court and your relatives as to your wishes
to distribute your assets. It is important to have a will even if you won’t
have to pay estate taxes.
- Know where all your records are. Both spouses should know where all
important documents are and the contacts related to those documents. This
includes insurance policies (and related insurance agents); real estate
documents (deeds, mortgages, rental agreements); brokerage statements and
related brokers; bank statements and related bankers; credit card
statements, tax returns, and related accountants. If one of you
dies, you have to notify all these companies and get your name put on all of
them singly, instead of jointly.
- Discuss your wishes with each other. As difficult as it may be, discuss
who you want to be guardian of your kids, if you have enough life insurance,
if you have established credit in each of your names, and all other issues that
you would have to face if you are left alone. Also, discuss how you should
make financial decisions when you are out of touch during the war, and make
sure your spouse knows how to pay all the bills, balance the checkbook, and
take care of all the normal financial details of your life.
You always have to hope for the best and prepare for the worst, financially,
under these circumstances -- and the more you can plan and discuss in advance,
the easier it is if the worst happens.
For More Financial Tips From Jordan Goodman
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