Family Focus - Part 1

As I type this post, we are entering the Christmas season.  It seems that this season continues to creep into our calendars earlier and earlier, but I think December is historically when the countdown truly begins.  While we are all seeking out the perfect gifts for our friends and family, I wanted to take some time to explore some of the somewhat intangible things we could be doing to take care of our families.

All families are composed differently, but for the purposes of this blog, let's meet our example family:



Bill, the patriarch of the family, owns a construction company and is married to Susie.  Susie is a stay-at-home mom and is overworked and underpaid taking care of their daughter, Annie, and son, Little Billy, full time.  Bill and Susie are in their late 20s, and Annie and Little Billy are not yet school age.

Bill and Susie have worked hard their whole lives, and have been able to accumulate a few assets. Bill owns their home, but he has very little equity at this point.  Bill has a small retirement account and attempts to save around $5,000 a year after all the family's expenses are paid.  Susie inherited a small cabin in another state that the family visits a couple times a year.  In addition to the mortgage, Bill still has student loans that it seems he will be paying for the rest of his adult life.  They have one car loan and pay off their credit card bill every month.  Annie and Little Billy are both very energetic, happy, and healthy children.

As Bill and Susie are calmly and rationally discussing their finances one evening, they begin to wonder how they could take care of their children if something were to happen to one or both of them.  Although they are not sure what they can do to plan for this scenario, they make the commitment to meet with a local attorney to discuss their options.  Next we will explore what they learn.  PART 2