Collegiality - Fact or Fiction?

Here's an article I wrote recently on the topic of collegialty. Some people think I'm talking about congeniality - not the same thing. Collegiality is how people in the same profession work together so that all can succeed. It's based on a mindset of abundance - where there is more than enough for everyone. If the tide is raised, then all ships benefit, that kind of thing.

We all have a responsibility to help the new ones coming along. Somewhere, sometime, hopefully someone gave you a leg up so that you could benefit from their expertise.

Have a great day and thank everybody for everything!

Collegiality - Fact or Fiction?

There's no such thing as a free pet

From time to time (like almost daily, okay, weekly) someone asks me whether I'd be interested in a cat, dog, horse, bird, etc. for "free." Well I'm here to tell you there is no such thing as a free pet. The cost of acquisition may be free but that's where it ends. And now, the ASPCA has published a chart that confirms this point.

So now you may agree, even if you deduct the cost of pet health insurance, in the first year most dogs and cats will cost you more than $1,000. I'm not trying to discourage anyone from the joys of pet ownership - quite the opposite, I'm just suggesting that responsible pet owners understand the costs of pet ownership and they incur these costs willingly and with a commitment for the whole of the pet's lifetime.

If you have multiple pets, obviously the cost goes up accordingly. Understanding the costs of pet ownership is also helpful for planning purposes if you are including your pet as part of your estate plan - perhaps even creating a trust for their benefit.

So next time someone offers you a free pet, consider the costs but also the benefits.

Why Wealth Disappears

This is a particularly well written article about the perils of transferring wealth from one generation to another. The bottom line is it isn't the actual transfer of the wealth but the abilities and stability of the individuals who may be receiving that wealth. This is the concept of wealth reception. How people receive wealth may ultimately determine how that wealth is utilized (or wasted). This concept of wealth reception is particularly important within the context of family businesses, many who do not survive to second and third generations. The heirs are generally not prepared intellectually and emotionally for the responsibilities of continuing the business. Many have absolutely no experience in the family business or in any business. Drug and alcohol abuse issues can also play a major role in how wealth is received and maintained. Estate planning with qualified professionals becomes a necessity if there is to be any hope of preserving family wealth.

Why Wealth Disappears

September is Life Insurance Awareness Month

I received an email today from one of my financial advisor friends advising me and others that this is Life Insurance Awareness Month. I thought this was good information to pass on. Far too often people discount the important role of life insurance in their investment portfolio.

As an estate planning attorney, I see the benefits of life insurance. A loved one has died. If there is no life insurance, the surviving family members may face financial difficulties or even, devastation. Life insurance proceeds, on the other hand, can serve many purposes. One purpose could be as simple as helping to pay for the funeral costs of the deceased. A bigger purpose could be to provide an ongoing source of financial security.

There are formulas for calculating how much life insurance you need. These are often beneficial but one question I always ask is, "Does this feel like enough?" If this was your only source of financial security after the death of your loved one, what would your life look like? Is your goal only to pay off your existing mortgage or debts, or do you want enough to secure your future? If you have children, this can be even more important. Does your surviving spouse have to go back to work and/or hire full time child care in order to continue Your family's existing lifestyle. Do you want your spouse to have to sell everything and move to a different home in order to have enough to survive?

How you answer the question of how much is enough will determine your attitude toward life insurance. Some clients say, "I don't believe in life insurance." I generally respond by asking, "You don't believe it exists or you don't believe it's a good deal?" People who don't believe life insurance is a good deal may not understand how life insurance really works. There are essentially two kinds of life insurance - the kind you buy (permanent insurance) and the kind you rent (term insurance). Term insurance can be a temporary solution to a permanent problem. This doesn't mean I don't think there's a place for term life insurance, I do. It's generally true though that more often than not, term insurance expires and becomes too expensive before a claim is ever paid. For this reason, I suggest everyone, at the earliest age possible, explore the benefits of permanent insurance. Permanent insurance can offer a number of significant benefits.

I don't sell life insurance - haven't had my license now for a number of years. I do appreciate the benefits of life insurance and I'm happy to suggest a respected agent for you to talk to if you have questions.

In honor of Life Insurance Awareness Month, I would suggest you review your existing life insurance and make sure it is sufficient to address your needs. Today is the day, tomorrow may be too late.

Freedom Isn't Free

Today I'm sending out a special thank you to all of our military personnel, first responders, police officers, firefighters - to everyone who makes living in America the best place to live! Thank you for all you do, for all you've done and for all you've yet to do.

Kody Bateman, founder of SendOutCards has produced a video as a tribute to our freedom and those that make it possible.