Editor’s Note: Happy Valentine’s Day! Everyone at Wealthy Retirement sends warm wishes for a joyful and appreciative day with your loved ones.
To mark the occasion, our Chief Income Strategist, Marc Lichtenfeld, offers insights on what could be the most impactful Valentine’s Day gift you can offer your partner.
Meanwhile, stay tuned for a fresh Value Meter column from our Director of Trading, Anthony Summers, tomorrow.
– James Ogletree, Managing Editor
This year, instead of heading for the usual gifts like flowers, candy, or composing a song, consider giving something less conventional but profoundly meaningful: financial security.
Now, I’m not saying you should just tuck a fifty-dollar bill into a card with "Treat yourself" scribbled alongside it. What I mean is, make sure your loved ones know exactly how to manage your/their assets if anything unexpected were to happen to you.
Though it may seem morbid to bring this up on a day celebrating love, ensuring that your family is financially secure is one of the most loving gestures you can make.
I’ve encountered numerous tales of individuals who passed away suddenly, leaving their spouses in the dark about their financial affairs. This uncertainty can add immense stress during an already difficult time, leaving them wondering if they’ll have enough to maintain their lifestyle.
Here are three essential steps to truly show your partner you care by preparing for their financial wellbeing in case the unexpected occurs.
Write a Will
If you haven’t done so already, create a will immediately. This vital document lays out your wishes clearly, specifying exactly how you want your assets distributed, which ideally prevents any conflicts.
While I advise consulting a lawyer, there are affordable software options available, like Quicken or LegalZoom, that can assist you in drafting a will.
Secure Your Valuables
I’ve lost track of how many stories I’ve heard about individuals who hid cash, gold, or other valuables in odd places – in the walls, buried in the backyard – only for these stashes to remain undiscovered after their passing. All that effort and savings gone, or left for a lucky contractor years later.
If you’re the type who likes to hide away cash, reconsider and invest in a safe deposit box at your bank or a home safe bolted to the floor. Crucially, make sure your partner knows how to access the combination for the home safe and is named as a joint owner on the safe deposit box with a signature on file.
If they’re not a joint owner and you pass away, the box will be sealed for the duration of probate, which could last months or years.
But as a joint owner, they can access the contents after your passing.
User IDs and Passwords
If you’re the one managing the finances, you likely conduct most of it online. Make sure your partner or family knows how to log into financial, insurance, utility, rent/mortgage, and rewards accounts.
It’s wise not to keep user IDs and passwords in the same document. Separate them, storing user IDs in one document and passwords in another.
Also, avoid naming these documents "User IDs" and "Passwords." Use inconspicuous titles like "Shopping List" and "Packing List" that wouldn’t attract a hacker’s attention.
A Loving Gesture, Unanticipated
It’s perfectly normal for young adults to dislike such discussions, and my kids are no exception. Yet they also know where critical information is and who to reach out to for financial guidance if needed.
You’ve provided for your family for years, and the ultimate act of love is ensuring they remain taken care of despite your absence.
So if you’re the one at the helm of the family’s finances, approach your partner and say, "I’ve made sure you’re secure if anything happens to me." Trust me, this declaration will likely have a more enduring impact than any wine, chocolate, flowers, or oysters ever could.
