As a financial advisor, many people probably assume that I have every aspect of my personal financial planning perfectly organized at all times. The reality is that much like doctors, who sometimes neglect their own health, financial advisors can be guilty of putting their own planning on the back burner.
I am in my forties, healthy, and active. Estate planning updates, reviewing life insurance coverage, and making sure every document was in place always seemed like tasks that could wait until tomorrow. After all, the odds of something happening before I got around to them felt remote.
Last fall, after experiencing worsening heartburn and acid reflux, I decided to get evaluated by my doctor. After testing, I was diagnosed with a hiatal hernia and referred to a surgeon. The procedure to repair it was described as relatively minor. I was told I would likely go home the same day or spend one night in the hospital.
Things did not go according to plan.
Unexpected complications turned what was expected to be a two- to three-hour procedure into a 16-hour surgery. I woke up in the intensive care unit, unable to speak, connected to numerous tubes and monitors while doctors kept me heavily sedated to allow my body time to heal.
One of my first thoughts when I saw my wife standing beside my bed was not about work or even about the surgery itself. It was whether I had done enough to protect her if I did not recover. I had some life insurance. Beneficiaries were listed on my accounts. But had I done everything I should have done? Would there be loose ends? Would she know where everything was? Would important decisions become more difficult because I had postponed planning that I knew needed to be completed?
Fortunately, I recovered. But the experience left a lasting impression on me.
What struck me most was that the greatest risk was not necessarily death. It was the possibility of being unable to make decisions for a period of time while my wife was forced to navigate important financial and medical matters on her own. Temporary incapacity is something many people overlook when thinking about planning for the unexpected.
The experience reinforced advice I have given clients throughout my career: none of us knows when life may change unexpectedly. Planning is not just about protecting assets. It is about making life easier for the people we care about during what could be one of the most stressful periods of their lives.
A few important questions everyone should consider:
- Would your spouse or loved ones know where all of your financial accounts are located and how to access important information if you were unable to manage things yourself?
- Do you have disability coverage that would adequately protect your income if you could not work for an extended period of time?
- Do you have core estate planning documents in place, including a Will, Durable Power of Attorney, Health Care Surrogate Designation, and Living Will?
- Have you reviewed and updated beneficiary designations on retirement accounts and insurance policies?
- Have you evaluated whether your life insurance coverage would provide sufficient resources for your family’s ongoing needs and long-term financial goals?
Most of us assume we will have time to get our affairs in order someday. My experience was a reminder that someday is not guaranteed.
If you have not reviewed these areas recently, now may be a good time to do so. While preparing for the unexpected is important, the ultimate goal is to create a plan that allows you and your family to move forward with confidence, regardless of what life brings.
If you would like more information about the terms and strategies discussed in this guide, or if you’re ready to explore how they apply to your specific situation, contact Waverly Advisors. With experience working with individuals, families, and executives managing significant wealth, we specialize in creating tailored strategies with the goal to help you grow, protect, and transfer your assets effectively.
