I was watching Zoolander the other week and it got me thinking about the importance of having a back up plan. Do you want to make a difference in the world like Derek with the “Derek Zoolander Center For Kids Who Can’t Read Good And Wanna Learn To Do Other Stuff Good Too?”
Having a back up plan is an important aspect when it comes to planning for your life, this includes:
Your Risk Management Plan
Do you have an ability to self-insure? What I mean here is do you have enough assets if the worst happened. If not insurance can provide that for you. Do you and your family have a plan in place to cover your income if you are disabled or die?
If you are like the majority of the Australian population the answer is probably not. Australia is one of the most under insured developed nations.
Hoping for the best, cost and confusion often result in this falling into the too hard pile.
Your Estate Plan
This includes a Will, Powers of Attorney, health and financial directives and can even include a legacy.
Your Will is the document which provides the directives to your executor and list how you want your assets to be passed to others. How you own your assets now and the tax structures they are owned in effect this.
When it comes to legacy planning this is where‘ Zoolander’ comes into play.
It is possible to create a living legacy or a legacy as part of your Will which could be used to give to charities or causes you believe in.
It isn’t nice to go to the place of dead, disability or loss but it is important to have the discussion with your family, partner and advisers. A tip here, make sure your professional advisers are all working together and talking to each other so as to get the best outcome for you.
Because “there’s more to life than just being really, really, really, ridiculously good looking.”
Scott Malcolm (firstname.lastname@example.org) is Director of Money Mechanics (ph: 6257 5557) a fee for service advice firm who are authorised to provide financial advice through PATRON Financial Advice AFSL 307379.
The information provided on this article is of a general nature only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information you should consider its appropriateness having regard to your own objectives, financial situation and needs.