There's more than simple healthcare planning to do
End-of-Life Planning Everyone Needs to Do
by Gary Foreman
Video: Important Papers to Get Organized for Your Heirs
Choosing Beneficiaries for Your Retirement Plans
Calculating How Much Life Insurance you Need
Whether you're a baby boomer or part of another generation, sooner or later your days on earth will come to an end. And, much as we'd like to ignore that, we do our families a disservice when we don't do some end-of-life planning.
End-of-life planning not only includes advanced healthcare planning, but also other legal issues that become relevant at life's end. To help us understand some of the issues involved with end-of-life planning, we contacted Rhonda Sherwood. Ms. Sherwood is a Certified Financial Planner in Vancouver. She provides financial planning, investment management, retirement planning, estate planning, insurance planning, and tax planning advice to her clients.
Q: Why is it important to have an end of life planning conversation with loved ones while you're still in good health?
Ms. Sherwood: To ensure we are living the best quality of life until our final days we need to plan for the life we want to live and ensure our loved ones are aware and are committed to honoring our wishes. We also need to be doing planning while we are competent to make decisions for ourselves. For example, an Advance Health Care Directive is a way to ensure that decisions regarding our later in life health care will be carried out.
Q: What topics should be covered in an end-of-life planning conversation?
- Who you want to appoint to be your power of attorney/representative/executor
- Completing your Will and deciding what to do with your assets
- Discuss the type of later in life health care you want to receive
- Funeral arrangements
Q: Is there a preferred way to save end of life information for our loved ones?
Ms. Sherwood: Document it legally first and then have a family meeting or personal discussions with key family members or friends to discuss your wishes. Ensure key people have documentation. Plus, keep documents in a secure place.
Q: Part of end-of-life planning is legally enabling someone to act for us. What documents are typically used for this purpose?
Ms. Sherwood: The documents include Power of Attorneys, Representation Agreement, and Advance Health Care Directives. When you pass, your Will comes into effect.
Q: Most people don't like to discuss end-of-life issues. How can you make the conversation easy for yourself and loved ones?
Ms. Sherwood: I think you just have to have the conversation. There is no easy way to do it except to do it. Have a family meeting or meet with key people individually. Just let them know that you want to make life easier on them as they won't have to make the hard choices themselves. You have done it already.
Q: Technology has added new elements to our lives. How has it affected end of life planning?
Ms. Sherwood: It makes it easier to find many groups to support and direct you in the end-of-life planning process.
Rhonda Sherwood has over 26 years of experience working in various areas of the financial services industry. You can find out more about her work on her website RhondasSherwood.com, Facebook and Twitter.
Gary Foreman is a former financial planner and purchasing manager who founded The Dollar Stretcher.com website and newsletters in 1996. He's been featured in MSN Money, Yahoo Finance, Fox Business, The Nightly Business Report, US News Money, Credit.com and CreditCards.com. Gary shares his philosophy of money here. You can follow Gary on Twitter or visit Gary Foreman on Google+. Gary is also available for audio, video or print interviews. For more info see his media page.
Take the Next Step:
- Schedule an end of life discussion with your adult children.
- If you don't have the proper documents in place, contact a professional for an appointment.
- Get more smart estate planning tips and advice by visting the Dollar Stretcher Library.
- Use this tool to maximize your retirement by determining the best age to take your Social Security benefits. Don't leave thousands on the table by taking Social Security at the wrong time.
- Subscribe to After 50 Finances. You've learned how to work smarter, not harder. This weekly newsletter is dedicated to people just like you. Subscribers get a FREE copy of our After 50 Finances Pre-Retirement Checklist, a list of everything you need to do to be ready for retirement.
Share your thoughts about this article with the editor.
Baby Boomer Tools & Resources
- A tool to determine the best time to take Social Security benefits
- Get out of debt before you retire
- Get free answers to financial questions
- Get free answers to legal questions
- Retirement shortfall calculator
- Life expectancy calculator
- IRA required minimum distribution calculator
- More retirement planning calculators
Trending in Baby Boomers
- Investing retirement money that you may never need
- Financial tips when nearing retirement
- Why pay off your mortgage with a reverse mortgage loan?
- 3 ways retirees can tap into their home equity
- Starting a business in retirement
- What retirees need to know about powers of attorney
- A reverse mortgage for home maintenance?
- Downsize without guilt
- This week's Readers' Tips