Financial Fire Drill: Quick, What's The Password?

I have a confession to make. I don't know how to run our washing machine. I knew how to run the old one, but not the new one. Truth be told, we've had the "new" washing machine for at least five years now. Sad excuse. Fortunately, I have a loving wife who does laundry for me. As a double bonus, my college and high school age children know how to run it. I'm on easy street, it seems. But I would be up the creek if I had to do laundry myself. Heaven help me.

Schedule a Financial Fire Drill

We're in a similar situation when it comes to our home banking and bill-paying. I do it all. I am as high-tech and paperless in our banking and bill-paying as possible. My dear wife, God bless her, is out of the loop. I have told her the master password to our accounts, but we've never had the equivalent of a fire drill to see if she remembers it and would know what to do if I became seriously ill or died. I need to put that on the "should do" list.

In the old days, if a spouse or child had to take over banking for their spouse or parent, they just picked up the checkbook and started writing checks.

The days of just picking up the checkbook and writing checks are over.

So stage a fire drill. There is no gender bias here. If the spouse who pays the bills had a stroke, would the other spouse be able to pay the bills? If your single mom or dad had a stroke, would you be able to pay their bills?

It's better to be safe than sorry.

"If your single mom or dad had a stroke, would you be able to pay their bills?"
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About Bruce J. Berno, CFP^®
Bruce J. Berno, CFP^® is the founder of Berno Financial Management, Inc. a fee-only comprehensive personal financial planning and investment advisory firm headquartered in Cincinnati, Ohio. Since 1993, Berno Financial Management has been helping individuals and families achieve financial peace of mind. For more information about Berno Financial Management, visit http://www.bernofinmgt.com.

What Is Your Life Expectancy?

Mortality tables will tell you the average life expectancy is in the low 80s. But for many of us, there is a reasonable probability of living to age 90 or 95. An informal scientific analysis may be informative.

One website that may be helpful is www.livingto100.com. It asks 40 quick multiple choice questions and should take about 10 minutes to complete. (Hint: it will be helpful to have your latest blood pressure and cholesterol test results.)

The website provides personalized feedback on all of your answers and a "to-do" list for you and your physician. For example, it may suggest that if you lose "x" pounds or exercise "x" times more a week, you could add "x" number of years to your life expectancy. We do not endorse this website for medical or financial planning advice, but consider it an interesting tool and kind of fun.

"What Is Your Life Expectancy?" could be the question that will make you the life of the party at your family Christmas gathering!

Let us know if you try it and what you learn! 

About Bruce J. Berno, CFP^®

Bruce J. Berno, CFP^® is the founder of Berno Financial Management, Inc. a fee-only comprehensive personal financial planning and investment advisory firm headquartered in Cincinnati, Ohio. Since 1993, Berno Financial Management has been helping individuals and families achieve financial peace of mind. For more information about Berno Financial Management, visit http://www.bernofinmgt.com/.