The 2×2 System is where you set aside two hours on the calendar two times a month to complete a predetermined financial task. This modest but consistent effort can help you sustain financial health and build wealth in bite-sized chunks. To view December’s blog covering scams and tips for improving your online security, click here. We hope you find this month’s information on estate planning and talking to your parents about their future beneficial.
Congratulations, you have reached the final two sessions of the 2×2 System. If you have been following along for the last eleven months, you have completed 22 sessions and probably feel much better about your finances than when you started—just two more sessions to wrap up the program and start 2025 strong.
While the 2×2 System doesn’t come with a diploma or certificate, it does come with the knowledge you learned along the way. Methods and techniques that you will continue to use and find valuable during your financial health journey.
The January sessions may be considered “advanced planning.” You are setting yourself and loved ones up for success in the future by planning today.
SUBHEAD: January Session 1: Handle your estate matters.
As with so many items on this list, estate issues are not ones to drag your feet on. Failing to have comprehensive paperwork to reflect your final wishes can create unpleasantness for your surviving family members. Make sure to have these taken care of:
• Will or trust
• Durable power of attorney
• Updated beneficiary information
• Letter of intent
• Healthcare power of attorney
• Guardianship designations
Tip: Even if you already have the above information completed, reviewing it yearly is wise to ensure it reflects your situation and preferences. If you need help getting started, visit our friends Trust & Will. They can help you give your loved ones clear direction about your estate and help you leave a lasting legacy. As a Credit Union Member, you can save 20% on any online estate plan.
January Session 2: Discuss your parents’ future.
Usually, we think of a parent imparting financial guidance and assistance to their children, but there comes a time when that role flips. If you have an aging parent or parents, talking to them now about their retirement, long-term care, and estate planning can save a lot of heartache and confusion later.
Tip: This conversation is an excellent opportunity to ensure a clear understanding of the future living arrangements for your parent(s). “I just assumed we would move in with you” is not something you want to be surprised with later. As your parent or parents age, one important thing to consider is cognitive changes. Pay attention to their ability to make decisions and manage their finances. Have they missed paying monthly bills and taxes? Are they no longer managing their investments mindfully? In addition to stepping in to help them with day-to-day and medical care, it may be time for you to step in to help them manage their finances. To learn more, review our recent blog on financial planning and cognitive changes, which covers creating a financial support system, simplifying financial management, and more ideas to provide financial care for your parent or parents.
Final thoughts.
January is an excellent time to consider new beginnings, set resolutions, and take steps to set yourself up for success in the new year. As hard as it may be, it’s also time to consider the last chapters of one’s life. Spending time thinking and planning for the days you and your parent or parents have passed can make others’ lives easier in an emotionally challenging time. You also teach a final lesson in caring, fiscal maturity, and love that will be valued for generations.
This article was developed in partnership with our friends at Balance Pro.
