Excuses, excuses
The Virtual Attorney published some great statistics about who isn’t planning and why. Let’s take a look at some.
Statistics found that 92 percent of adults under the age of 35 do not have a will. Well, that makes some sense since young people don’t really think about their mortality and/or haven’t really had someone in their life die, which would make them less likely to think about estate planning. In fact, most don’t have assets to plan for… or do they? Many young people have one asset that is invaluable and should be planned for with thought, care and precision. What is it? Their children. If you are under the age of 35 and have children don’t be like the other 92 percent — get a plan together ASAP.
Here are some reasons why people are not creating a will:
Eighteen percent said it is not necessary. Statistically that is probably close since many people don’t have the estate necessary to warrant the preparation of a will.
Sixteen percent said it was too complicated to deal with right now. Oh, I’m sorry. We wouldn’t want to interrupt your busy life of web surfing and Facebook to plan for the future. (insert sarcastic tone). Truth is, if you have a qualified and experienced guide then estate planning is not complex.
Fourteen percent said it was too expensive. I get it, this isn’t a fun thing to spend your money on. For many people the funds just aren’t there, but like a dentist, pay us now or pay us later, eventually your assets have to pass to someone and it is never free. Typically, a well-laid plan is less costly by a great margin than not having one.
Thirteen percent believe a spouse and/or children will automatically receive any assets they have. There are people who will luck out and have no plan at all and actually accomplish what they really want, but more than likely you are just gambling. It’s fun to gamble in Vegas, but not so much with your family’s financial future.
Six percent believe it is too time consuming. Honestly, it doesn’t take that long. Furthermore, it is worth your time.
My favorite statistic has to be this one: 32 percent of Americans would rather do their taxes, get a root canal or give up sex for a month than create or update their will. Root canal? Really? Obviously these people have never been to my office. This shows me that there is a stigma or misconception about estate planning. If you have a professional help you then there are really only a few decisions to be made. (I still can’t believe estate planning is lower than doing taxes.)
So don’t be a statistic. Get started on your estate plan today… before it’s too late.
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I learned over 40 years ago at a job with a major insurance company who specialized in privately held business planning that most people do not plan to fail they fail too plan. Having spent 45 years in retirement plan and investment management this is still true. It is equally difficult to convince people to purchase life insurance and increase contributions to their 401(k) plans or open individual IRA’s. Did I forget 529 plans for their children’s education. Some people do take time to plan and it pays off later in life. Hopefully they will find you.