We are now a quarter of the way into this century! Time can get away very fast, and when it does, all those little personal administration jobs get forgotten about (or left on the to-do list forever). why not make this your year to get your affairs in order?
Financial management
- Emergency fund
- 30s-40s – it would be ideal to have enough savings to cover 3-4 months of living expenses. But who are we kidding? Are you at least able to have savings that will cover the excess on your home and car insurance put aside?
- 50s-60s – by now, having 3-4 months of living expenses in savings is much more realistic, and necessary. Particularly in a society that is increasingly ageist, if you are made redundant, it could take a few months to find new employment.
- 70+ – hopefully by now you have had access to your superannuation lump sum. So putting some of that aside as an emergency fund, in a hidden account or a different bank may be a good idea. Also, if you don’t have private health cover anymore, then it may be wise to put a few thousand aside so that you can pay for elective care.
- Budgeting
- 30s-40s – review your income and expenses, set goals for savings and debt reduction.
- 50s-60s – much the same as your younger counterparts, you should review your income and expenses. Whilst your goals may be saving for travel instead of saving for a home, setting goals for savings and debt reduction is still important.
- 70+ – your income may have changed, and what you need in expenditure may have changed. Make sure you review and adjust accordingly.
- Insurance
- 30s-40s – are you getting the best deals on your home and car insurance? Health insurance? Life insurance? Does your life insurance cover your outstanding debts?
- 50s-60s – reviewing your cover on your home contents, on your health extras, and whether life insurance is still necessary. Get help from a financial planner, if needed.
- 70+ – make sure you’re getting any discounts on insurance that you’re entitled to get as a senior, and review some of the insurance companies specialising in senior insurances, as you may get better deals.
- Retirement planning
- 30s-40s – make sure your superannuation is consolidated into one fund. Check your life insurance cover on your superannuation. And make sure your binding death benefit nomination is up to date. Contact SPG Lawyers for advice, if you are unsure.
- 50s-60s – approaching retirement, your should start paying more attention to your superannuation. Did you know that your superannuation is not automatically covered by your Will? So after your house, this lump sum may be your biggest asset. And who will it go to after your death? Don’t leave this decision up to your superannuation fund. Contact SPG Lawyers for advice.
- 70+ – if you haven’t withdrawn your superannuation as a lump sum, then it is probably in pension phase. Once superannuation is in pension phase, you have a few more options for whom you want to leave your superannuation to after you pass away. Contact SPG Lawyers for further advice.
Household and health
- Home inventory
- Making a home inventory at any age, being a list of things in each room of your home, could be invaluable if you needed to make an insurance claim due to flood, fire, or theft.
- Decluttering
- At any age, doesn’t a clean and orderly house make you feel more organised and have more clarity? A good clean out, and donating the excess to charity, would make you feel doubly good!
- Preventative care
- 30s-40s – are you up to date with your dental check-ups, vaccinations and annual doctor’s appointment? Better book those in through out the year!
- 50s-60s – by now you might be getting more health messages in the mail. Regular blood tests are getting more important, so don’t let your appointments slip. And in all your busy-ness, make sure you’re also doing strength training to prevent loss of bone density!
- Health records
- Compiling and digitalising health records for yourself and everyone that you are responsible for can be time-saving in the case of an emergency. If you have young children or teenagers, then this is probably something you have for them … but what about yourself? And what about your aging parents?
Document organisation
- Centralise key documents
- Put your birth certificates, marriage certificates, insurance policies and records of property ownership all in one place. Sometimes storing these documents off-site from your home could be a safer option. Remember that SPG Lawyers has a safe custody service, where you can deposit your personal documents, as well as your legal ones.
- Names changes and corrections
- If your names are different on various identity documents, now is the time to fix it. Proof of identity is becoming more difficult and important, due to the number of identity theft cases and fraud issues. Having accurate identity documents is very important.
- Passports and visa
- Are you passports up to date, or expired? Where are they kept? These are another important document to store.
- Professional development
- For those approaching retirement, this may not be as important. But updating your resume, consolidating records of attainment, and professional certificates are important. Even if you are retiring, but looking to participate meaningfully in community groups, being able to easily demonstrate your aptitude and qualifications could be very helpful.
Family communication
- Emergency planning
- What you to grab quickly, and what do you leave behind? Where do you meet loved ones?
- Family meetings
- Can regularly family meetings, to talk about important things, be helpful each month/fortnightly/bi-monthly?
- Legacy conversations
- Talk about what is important to you – what heirlooms have meaning? What aspects of your life story, and what you’ve experienced, is important to you for future generations to remember? What have you learned that you want to pass on?
- Shared goals
- What are your next bigger holidays in the coming years? Who has a major birthday coming up that needs to be celebrated? Is there a family tradition to maintain or change?
Digital organisation
- Password management
- Choosing one system for storing your passwords is my recommendation, and make sure you are consistent. If there is a master password for all the other passwords, then make sure that is recorded somewhere where it can be accessed/found by your loved ones.
- Digital back ups
- Photos and other digital works should be saved off the device they are created on (like your phone), and stored in the cloud so they are recoverable. Then also make physical back-ups on an external local drive.
- Subscriptions
- Are there subscriptions that need to be transferable, or are you prepared for all your data in subscription accounts to be lost?
- Digital legacy
- If you are a creative, and you have written works, or digital artwork, or other widgets you are creating electronically, then they have value. Similarly, your electronic address(es) like domains and websites may also have value. You don’t want them lost, so make sure their ownership is also transferable.
Estate planning
- Wills and trusts
- 30s-40s – appointing guardians for your children, and leaving them detailed instructions, and ensuring there is sufficient funds to raise and benefit your children is one of the most important things to turn your mind to.
- 50s-60s – by now making sure your elderly parents have their affairs in order will be important, as well as your young adult children. Because if something goes wrong with your parents or your children, it will be your burden.
- 70+ – things change over time, quite quickly sometimes, and family dynamics change too. Make sure that what you intend to happen will actually happen.
- Enduring powers of attorney – in case of an emergency
- 30s-60s – if you’re in hospital for an extended period of time, who keeps your house and finances running, and your kids’ routines operating? Do they have the authority to do it, or will it be a mess for them? Giving someone legal authority can make a harder situation easier.
- 70+ – if your mental capacity ever comes into question, the sooner you have a power of attorney in place, the better.
- Healthcare directives
- If you have special directions for what sort of treatment you want in specific situations, then you need to leave detailed instructions, or no one will have the specific authority.
- Funeral plans
- 30s-60s – this is probably not at the forefront of your mind, except maybe for a couple of key details. Do the right people know what those details are, and do they have the authority to make sure it happens?
- 70+ – you might want to take control of organise and prepay for your own funeral, so there is less planning for others, and this will make sure you get what you want.
This article has been written by SPG’s Special Counsel Jacqueline Brauman. You can contact Jacqueline by email jacqui.brauman@spglawyers.com.au or telephone our office.
