Two Important Tasks


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Credit: Carlos Muza on Unsplash

Last year I created an Excel spreadsheet for the purpose of planning a family budget for the next ten years. For this purpose, our immediate family is Terry and yours truly.

My thought is that someday I’ll probably want to retire from full time employment. Because I began working for pay from the time I was about 12 years old, and still do so today, fully retiring from gainful employment will be a big step in my life. I’m not ready yet. But it will happen someday.

Be that as it may, I believe it’s not only important but critical for individuals or couples approaching the end of their working career to take a close look at anticipated income and expenses to see how the two match up. So that’s what I did.

The expenses on our list include generous contributions for our home congregation and other favorite ministries and charities; home mortgage, including PITI; auto expenses, including payments, insurance, maintenance, and gasoline; utilities, including water, gas, electricity, cable TV, internet, and cell phones; health and life insurance premiums; groceries, occasional restaurant meals, clothing, and routine household expenses; family birthday and Christmas gifts; travel and vacation allowance; federal taxes; medical expenses; savings; unexpected and miscellaneous expenses.

The sources of income on our spreadsheet include salary, estimated to terminate at an approximate point in time; retirement plan/pension payments; social security checks; income from IRAs, 401(k)s, 403(b)s, and annuities.

I planned for gradually increasing expenses with income adjusted by loss of current salary, followed by stable but slightly increasing revenues. As long as the difference between these two numbers is positive on the revenue side, we should be alright. That’s certainly the plan.

This process is closely related to estate planning myth #6: “No need to make a list of what I own. My family will be able to find it all.” Here’s the reality. This myth is the result of indifference, laziness, lack of care and concern for loved ones. It takes time and effort to create a budget and at least as much time and effort to make a list of assets and liabilities.

To assist in this process, we at Legacy Deo have created what we call the “Red Book.” It’s designed to help record in writing your assets and liabilities; account numbers and balances; contact information for each account, including address, phone, user name, and password; location of important legal and financial documents, etc. This is a very significant document!

Request your free electronic Red Book at mailto:info@legacydeo.org or call (512) 646-4909. You’ll be glad you did. And while you’re at it, get busy on that budget. Both are important tasks!

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