Publix has a brochure in their entryway called Prepare for the When - Hurricane Readiness Guide. It's not called Prepare for the If. The Atlantic hurricane season lasts from June 1 to November 30. Hurricanes will not probably happen. There is no question that they will.
In a similar way, we must prepare for an exit from our life's work. The end of our work lives won't probably happen. We will all exit in one of three ways - by decision, death or disability. A little more than 5 months from now, we will be ringing in 2020. Then, in a blink, 5 years will have passed. It is critical that we prepare now for the When with financial contingency plans. As with a hurricane, it is important to understand the dangers of not being prepared.
- By Decision - This is how we all want to leave our work. We want to be in control of our timing. To be ready, we need to prepare financially and emotionally for this big shift in our lives. Where will your income come from when you are no longer earning a paycheck? Do you have multiple sources of income? How about medical insurance? Do you understand the costs? What will you do with your time? Do you have an adequate income stream to do what you want to do?
- Death - Unexpected loss of life happens all the time. We always think that we have more time. Do you have the proper amount of life insurance to protect your family? As a business owner, do you have a buy-sell agreement? is it funded? Do know the actual value of your company? Do you have a formal exit strategy in place?
- Disability - Accidents and illness can result in our inability to work. Do you have disability insurance or at least adequate resources to take care of your family while you are not earning a paycheck? The funded buy-sell/current business value/exit strategy is critical here too.
Have you informed your family about your financial contingency plans? Do they know what to do in the event of an emergency?
Next time you are in Publix, pick up a copy of Prepare for the When. It's filled with helpful tips on preparing for the hurricanes that we will most definitely be heading our way. When you pick up this brochure, think of me. I can help you get ready for the storms of life. Prepare for the When when the sun is shining.