Cold Hard Truth On Family, Kids And Money by Kevin O'Leary pt. 4

Not my photo.

Part Four: Family

Chapter 12: All in the Family

This chapter is about small businesses which I’m not really interested in. If you are, you can take the book out from the library.

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Chapter 13: Hope for the best, prepare for the worst

Make sure you have enough money saved up for retirement. There are a lot of huge costs when dealing with the later stages of life. From unexpected health crises to long-term care facilities things can add up quickly. You have to make sure you’re prepared monetarily.

Costs for long-term care facilities for seniors vary by province. B.C. is one of the less expensive places coming in at $16,243 per year. In Ontario it’s 25,550, which is a little bit above average across the country. O’Leary advocates buying long-term care insurance. I guess that depends on your particular situation.

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Four questions you need answered before the end (death)

1) Do you have a will? You need a will. Especially if you have dependents.

2) Create a file for your surviving family members. It should include all the steps to take before your will is probated, including tax assessments and a potential phone call to the bank. (If you have money in a joint account with your partner, you may need to notify the bank to make sure the account holder’s names are separate so that your money isn’t frozen in the event that one of you dies.)

Indicate where important documents can be found, such as property deeds, tax papers, insurance and medical claims. You’ll probably want to keep your birth certificate, passport, social insurance number and any other official, hard-to-replace documents in a separate place for safekeeping (like in a safety deposit box at the bank). To be extra safe scan each of these documents so you have digital copies as well.

Write down a list of people who should be notified of your death. People who will need an official copy of your death certificate. These include: the civil authorities in your province, your financial advisor, the lawyer who drew up your will, your pension fund providers, your health insurance, other insurance companies, your various credit card providers, the office that issued your driver’s license and your tax account (if someone else does your taxes). List their names and contact info (phone numbers and e-mail addresses).

If you own real estate, indicate the address and expected resale value of each property. This can help your beneficiaries decide whether to keep, sell or rent the property in question.

3) Have you made funeral arrangements?

4) Have you written down all of your e-mail and social media passwords? Write down the site name, login ID and password for every single site you use (and your computer itself). Bank websites, sites for auto and property insurance, Facebook, Twitter, and any kind of e-mail accounts.

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Chapter 14: Midlife Crises & Money Mismanagement

Pretty much he’s saying, don’t do anything stupid with your money.

In your 30s you want to focus on paying off your debts. Your 40s are for saving and investing. If you’ve accomplished your goals by your 50s you can reward yourself (within your means). Treat yourself to a little gift. In your 60s you are rehearsing for retirement. Live within your means, and do not deplete your principal. You do not know how long you’re going to live, so spend like you’ll live to be 100.