Testimonials

Share

Financial considerations while grieving

We strongly recommend you consult with a qualified professional when making any financial decisions.
Avoid making unnecessary or hasty financial decisions.

• Do not sell or remodel your house.
• Do not pay off your mortgage.
• Do not borrow money unless absolutely necessary.
• Do not lend money or give money to friends, relatives or anyone else.
• Avoid any contract or purchase which exceeds 5% of your net worth.
• Avoid frivolous expenditures on nonessential items such as jewelry, expensive automobiles, etc.
• Avoid investments which are not recommended in the investment section of this page.
• Seriously weigh advice from well-intentioned friends and relatives.
• Don't change jobs unless absolutely necessary.

Probably the greatest risk to your long-term financial well-being is the way in which you invest your money. Friends, relatives, sales representatives and even trusted advisors will all gladly share their opinions. Regrettably, few people truly understand the risks involved in even the most seemingly "conservative" and "guaranteed" investments at this time:

• Invest new monies (such as life insurance proceeds) in the following vehicles:
• Bank Checking, Savings, and Money Market Accounts
• Bank CDs (3-12 month)
• U. S. Treasury Bills (3-12 month)

Government Money Market Funds

Comments:

• Limit bank investments to $100,000 per institution and utilize only federally insured banks, credit unions or savings and loans.
• Investment in U. S. Treasury bills can safely exceed $100,000 and can be purchased through most banks or directly through the local Federal Reserve.
• Government money market funds can also exceed $100,000 and are available many of the mutual fund families. Phone numbers for the mutual funds can be found in any of the financial magazines.

Avoid new investments in the following:

• Stocks (common, preferred, utility, etc.)
• Corporate bonds
• Municipal bonds (muni's)
• Convertible bonds
• U. S. Savings Bonds
• U. S. Government notes and bonds
• GNMA certificates
• Zero-coupon investments
• Unit trusts
• Mutual Funds (except government money)
• Gold and other precious metals
• Limited partnerships
• Coins, stamps, collectibles
• Annuities and life insurance contracts
• Commercial paper
• Options and futures
• Real estate of any kind
• Long term bank CDs (greater than 1 year)
• Any other investment not recommended in the previous section

Comments:

• Some of the investments on the "Avoid" list may be appropriate at a later date. Each, however, carries potential risks at this time.
• Do not necessarily sell existing investments if they are included on this list. The investment recommendations here apply to new monies such as life insurance proceeds. If you have significant existing investments in these categories, you should probably seek the advice of a professional.

Establish Appropriate Spending Habits

You may have received a large sum of money from an insurance company or employer and are wondering to what extent you can safely tap into those and other savings. Once a person becomes comfortable with a certain standard of living, it is difficult to take a step backward. For this reason, it is imperative that you understand, up front, the relationship between spending and total assets, and that you establish good habits from the outset.