Joe Hearn's Blog

34 Years

Lady Bird Johnson died yesterday.  Her husband died in 1973.  That's a difference of 34 years.  Sometimes planning for the unexpected involves asking the question "What if I died unexpectedly?"  Just as important, however, is: "What if I live for a really, really, really long time?"

And on that subject...

While we're on the topic of disability insurance, I saw an interesting statistic in this week's "Retirement Weekly" newsletter by MarketWatch (subscribe here).  MarketWatch cites a study by Unum that reports that cancer is the #1 cause of their long-term disability claims.  It doesn't matter how old you are or how risky (or safe) your job is.  Cancer can strike anyone.  My sister discovered that when she was 24.  Don't leave a hole in your planning.

Playing the odds

Q:  Are you more likely to die or become disabled?

A: Between the ages of 35 and 65, you're 3 times more likely to become disabled than to die. 

This fact not withstanding, only about 40% of people in this group have disability insurance compared to 70% with life insurance.  You insure your house, your car, etc.  Do you insure your income?  Life insurance does part of the job, but death isn't the only thing that can deprive you (and your family) of an income.  If you're in the uninsured crowd, you may want to talk to a trusted financial adviser.  Until then, look both ways before crossing the street.

Remember Katrina?

Another active hurricane season is expected this year.  After Hurricane Katrina, I wrote an article for AARP called 7 Ways to Disaster Proof Your Life.  It might be worth reading if you live in an area threatened by hurricanes (or tornadoes or wildfires or earthquakes or floods).

Despite our best efforts...

I don't care who you are, where you live, or what you do, the unexpected should be expected by all of us.  Take the Amish, for example.  They don't drive cars, don't have telephones, and in most cases, live a lifestyle that is pretty secluded from the rest of the world.  And yet, six months ago, some lunatic walked into an Amish school in Pennsylvania and shot ten people.  That school was torn down, and Today's USA Today has a story about the one built to replace it.  I thought it served as a good reminder that, despite our best efforts, bad things sometimes happen.  How well we (or our families) cope, depends on the steps we've taken in advance to put our affairs in order. 

Paperwork Overload

Ever wonder what paperwork you should keep and what you should shred?  AARP asked me to write a short article for them on the topic.  You can read it on their site.

This is reassuring

I'm traveling to El Salvador later this year.  As part of my trip preparation, I was looking for any country specific warnings on the State Department website.  That's where I found this little gem: "Random and organized crime is endemic throughout El Salvador...Many Salvadorans are armed, and shootouts are not uncommon."  I've been warned that the State Department site is sometimes given to hyperbole, but you can bet that I will do everything I can to have my affairs in order before I go.

All this reminded me of an article I wrote for AARP last year about travel insurance.  If you'll be traveling anytime soon, you may want to check it out.

Premonition

Sony Pictures called and wants to use "If Something Happens to Me" as part of a sweepstakes for their new Sandra Bullock movie "Premonition."  You can enter the sweepstakes by visiting either Sony Pictures or the sweepstakes entry page. 

RE: Hats and Cattle

My boss was meeting with a client of his today that is worth north of $20 million.  I went out to the parking lot to get something out of my car and noticed that they had come to the meeting in a used, four-door Honda Accord.  Interesting how most times a person's wealth is inversely proportional to their display of it.

Getting Organized in 2006

With the headlines of 2005, it is obvious that the unexpected should be expected by all of us.  Here's an article that I wrote for the AARP Bulletin awhile back that gives guidance on preparing for those unexpected events.  If your 2006 resolutions include being more organized, the article can help.  Also helpful, your very own copy of my book.