We spend a lot of time prepping. We prep for hurricanes, snowstorms, BBQ's, and the Zombie Apocalypse. We prep to insure that when we leave this world we do so with our name in good stead. But when our Wyrd and Orlog demand our last breath have we "prepped" to leave our loved ones in good condition? Or financially destitute and borderline homeless? Fidelity, self-reliance, and one's personal honor scream out a very loud NO to the former questions. Know this: the flowers of youth wither and die.
It is common for youth to disavow death - youth seems like it will never end. But it does. Along the road between birth and death we acquire responsibilities. Like a spouse, children, and property. All of which must be protected. We can protect our loved ones and property by force. But we must also protect against unexpected death and financial loss.
No person living knows their date with death. As written above, youth tends to dismiss death as something that is "not gonna happen to me, cause I'm gonna live forever!" The sobering fact is - no, you will not. Some of this attitude diminishes after nuptials. This can be for many the beginning of the awareness of responsibility. From this point, responsibility just increases. Children and the acquisition of property, both real and personal, happen. So Northern Soul, what should you do?
The first step that needs to be taken to protect your loved ones and property is insurance. Insure your personal property that if loss occurs, you will be "made whole," put back into the position you were before the loss. The next step some folks find extremely humorous, but I assure you, it is far from funny. Unfortunately, it's still labeled "life insurance."
It is ridiculous to assume that a life can be "insured." It is simply preposterous. Yes, some Hollywood types have "insured" various parts of their body. But, here is the but. They have insured those body parts in the same manner that the average Joe insures his house or car. Period. You cannot insure a life but you can ASSURE AN INCOME. This is accomplished with dirt cheap term insurance.
Starting with the main "bread winner," multiply the yearly earnings by 10, then add 20%. Use this example: $50,000.00 annual income,multiplied by 10 = $500,000.00. When 20% is added, you came up with $600,000.00. This "death benefit" is invested at 8 - 10 percent to provide monthly income for the surviving spouse and children. In my opinion, term insurance makes this affordable. We are far from done. The "other" spouse must be considered.
Traditionally, the "other spouse" was the female component of the marriage. Today, it could be the man. In any event, income in any form must be considered. If the other spouse draws a paycheck, you can follow the formula above. Should the "other" be a stay at home mom/dad, you bet your heathen ass it must be taken into account.
Who does the wash? The dishes? Cleans the house and takes care of the kids? Who cooks and shops for the necessaries, runs errands, and picks the kids up from school? The other spouse. When you take into account that this is at least a 12 hour -a -day job, it certainly is meaningful. From a monetary point of view, consider this: 12 hours a day, 7 days a week = 84 hours. If $10.00/hr. is paid, that is $840.00/wk. That's at straight time, no overtime considered. You can argue with me as much as you want about the hourly rate. But a domestic engineer needs to be compensated. This real "homework" must be taken into consideration, regardless of the paycheck status of either spouse.
Northern Soul, this is just the a part of your responsibility. More will follow. Do you really think that others, or the government will care for your loved ones? Not so. The fidelity to your family, the passing on of self-reliance, and your personal honor demands that you do so. This is taking care of business.
Author's Note: I am not a financial planner. All of the above is my personal opinion based on the reading of various periodicals over a period of time.
Copyright @2017 Terry Unger