In this article, Jonathan Scholes a Partner in our Wealth Management team, reflects on why Christmas is as good a time as any to consider your financial position.
It's that time of year again, Christmas. The shopping, the presents, the crowds, and most importantly, time with family. I hope during this time with family, as perhaps you settle around a roast dinner with all the trimmings, that the last thing on your mind is money.
On the other hand, maybe it's a great time to talk about some of those things that we just never find the time to discuss. The things we avoid.
Check in on your loved ones
Have you asked your children how they are going financially? Are they managing the mortgage well, how's the promotion coming along, is the extra money being used wisely? Have they made sure they are getting the best deal on their mortgage, or of most importance, have they arranged adequate insurance should something go wrong?
Check in on your safety-nets
While you're having this conversation, it's a great time for you to ensure that they understand your financial position, particularly the parts that are going to impact them. I'm not talking about quantifying what inheritance they will receive (if any); I am talking about your Will, your wishes, and how you want things to be handled after you’re gone.
And while we are talking about your plans, do your children know what medical treatment you would want should you become terminally ill? How about aged care, what happens if they have to make the decision for you, what are your needs and your wants?
If you are reading this thinking, “I'm not sure what my Will states, or what would happen if I need to go into care,” then perhaps it’s worth a few minutes of your time. Think about it; write it down; give it to your children.
It’s a time for families to come together
While I understand this is not everyone's idea of the perfect lunch conversation, it is a conversation that you need to make time for. It may uncover a problem, your children might need some help, or they might need to help you.
Christmas is an amazingly special time, for me it is also a reflective time, so this year grab your kids and spend five minutes talking about those things we tend to avoid.
Speak to your local Findex adviser today for more information or to discuss your individual circumstances.