Sally Jo Button

GETTING TO THE NEW NORMAL

"When Life Changes Money Changes

When Money Changes Life Changes"

Susan Bradley of Sudden Money Institute

There are many issues that can cause a change in financial status and life situation, including: retirement, sudden loss, inheritance or marriage.

Honoring the Emotional before the Financial is essential.

Changes, especially a sudden loss, often create changes in the financial, human and emotional sides of our lives. By virtue of our human-ness, our brains operate differently than usual. We may feel in a state of limbo, as if there were no such thing as normal. At such times, we’re not grounded; our brain feels shut down; we may lose our sense of self; depression may set in. Our natural tendency is to procrastinate in making decisions or make any decision to feel more in control.

Actually, procrastination may be a positive reaction. These are not the best times to make decisions because of the fog, and not making hasty decisions can be the best decision. These are the times to grieve or look inward and protect ourselves by having trusted advisors surrounding us.

Working with a Financial Planner can be a rewarding or negative experience, depending on the philosophy of the planner. We at Button Financial see the person, not the money, as our client. And, we have created a process to manage the financial issues.

When a Sudden Loss occurs a List of Priorities can create order within an overwhelming world. So take your time and attend to the most crucial.

1. Engage the Agents under your Powers of Attorney or Trusts

• Determine existence of disclaimers

2. Make a List of Immediate Needs

• Cash Need

• Emergency Funds

• Bill Payment

• Children

• Pets

3. Attend to What Needs to be Done

• Make travel arrangements

• Prepare and attend to funeral

4. Then, …JUST BE…for however long….

• Cry

• Pray

• Be with loved ones

• Accept support

• Refuse to make financial decisions with long term impact

5. When the time is right to get back to a life, we begin to work together to Put the Pieces together.

Marriage or retirement, a more gradual transition, allows more preparation time before and after the event. Our brains should be clearer for making sound decisions. However, putting it all together for a new couple or at the beginning of retirement is a daunting task, as every facet of one’s financial life will be changing.

Gradually, a new life will begin to take form and a plan can be devised, one with flexibility first, before all other considerations.

At first, we concentrate on Short Term Needs. These include cash flow and liquidity concerns. We see the list of tasks as follows:

• Review insurances

• Health - Medicare/Cobra

• Life – Beneficiaries, amount of policies

• Disability

• Long Term Care

• Taxes

• File back and current taxes

• Documentation

• Projections

• Investments

• Look at investments after liquidity is met

• Review or design an "Investment Policy Statement"

• Revise as needed

• Estate Planning

• Beneficiaries on life, annuity, retirement plans and trusts

• Create, or review and revise

• Wills

• Powers of Attorney

• Living Will

• Pre-Nuptials

• Relationship Contracts

• Re-title Property

• Living revocable Trust

Then, Long Term Needs – forming a financial base which will support and allow us to create a fulfilling and fulfilled life:

Another part of Long Term Needs is Debt Management - Credit Cards, Mortgages and all other loans fall into this category.

As a "New Normal" begins to take shape, we pay attention to the On Going requirements of the financial relationship including:

• Manage Investment Maturities to meet liquidity needs

• Non-discretionary money management

• Tax management:

• Errors or omissions on prior years

• Projections for coming year(s)

• Tax planning reviews twice a year

• Mid Year – see if we are on track thus allowing us to rebalance portfolios early

• Late In the Year – Bonus, Salary adjustments, Illnesses and year-end tax planning

• Checking in together for more "New Normal" developments

Then, Every 5 Years (or earlier if needed) we review and revise:

• Estate Plans

• Investment Policy Statement

• Insurances

• Size and value of the estate

• Debt

Part of "Normal" includes our families. We assist with both child and parent issues, such as:

• Coordinate with their advisors

• Review Living Arrangements and Options

• Review and advise the effects their trusts and estate plans will have on your financial situation

• Understand their documents as they may affect you

• Encourage communications between generations

• College planning

We Become a Friend. We are here to celebrate milestones, visit new homes, sit together during illness or other times of crisis, hold your hand during a loss or time of sadness and maybe even help find the perfect pet. In short, we become your coach and loudest cheerleader.