Are You the CEO of Your Household?
Are you the person who knows where everything is?
You know which accounts the mortgage comes out of. You know where the life insurance policy is. You know the investment accounts, the bills, the passwords and probably the answer to just about every financial question that comes up in your household.
In other words, you’re the CEO of your household.
But what would happen if you suddenly couldn’t take care of those responsibilities?
Would your spouse, partner or another trusted person know where to find the information they need?
Your financial life is probably more complicated than you realize.
Think about everything you manage on a regular basis:
Bank and investment accounts
Retirement accounts
Life insurance policies
Mortgage and other debts
Monthly bills and subscriptions
Tax documents
Important legal documents
Financial and professional contacts
Online accounts and passwords
You may have all of this information organized in your head—or scattered across filing cabinets, email inboxes and online accounts.
That works when you’re the one managing everything.
But if someone else suddenly had to step in, it could become overwhelming very quickly.
Financial planning isn't just about money.
Being financially prepared also means making sure the people you trust can find the information they need.
You don't need to create a complicated binder or document every detail of your financial life. Start with the basics.
Create a simple list that tells a trusted person:
What you have.
Your bank accounts, investments, insurance policies and other important financial assets.
Where to find it.
Include the location of important documents and the institutions that hold your accounts.
Who to contact.
Make a list of your financial advisor, attorney, accountant, insurance professional and other important contacts.
How to access it.
Think about how your trusted person would securely access the online accounts and passwords they may need.
Of course, don't leave passwords sitting on a piece of paper or in an unsecured document. Consider using a reputable password manager or another secure method for sharing access information.
Start small.
This doesn't have to be another project on your never-ending to-do list.
Set aside an hour this month and start with the information someone would need most. Then add to it over time.
Once you have everything in one place, tell the person you've designated where to find it—and make sure they know how to access it if necessary.
You may be surprised by how much better you feel once it's done.
Because being prepared isn't just about making things easier for someone else.
It's about giving yourself peace of mind, too.
You already carry a lot of the mental load in your household. Having a plan means you don't have to wonder what would happen if you weren't able to manage everything yourself.
A simple question to ask yourself
If you had to step away from managing your household finances tomorrow, would someone else know what to do?
If the answer is no, that's a good place to start.
Financial planning is about more than preparing for retirement. It's also about preparing for the unexpected and making sure the people you care about aren't left trying to figure everything out on their own.