The Glory of Paperwork [Estate Planning]

The NYT reports on a new program JP Morgan is trying to patent for making sure its clients estate plans don't get screwed up. The plan appears to boil down to being careful with the paperwork and decorating it with virtual color-coded organizational tabs. I am going out on a limb and assuming most of the people reading this blog don't have the millions of dollars most of JP Morgan's clients possess, but you, too, can approximate the company's stellar customer service by taking the following steps:

1) Name the right people. Make sure your retirement accounts and life insurance policies name the right person as a beneficiary. The identity of "the right person" can change over time as your relationships change--I just changed the beneficiaries in my policies from my brother to Shiner.

2) Buy life insurance. If your estate is large enough to be taxed at your death, and is largely in illiquid assets like stocks or real estate, buy life insurance sufficient to cover the taxes. The policy beneficiary can use the proceeds to cover the taxes without being forced to liquidate assets in a down market.

3) Don't name someone as executor of your will who would be over her or his head, given the complexity of your estate.

I don't mean to snark, since I'm sure most people don't amass great fortunes without having their money in a lot of different places so this stuff no doubt gets very complicated, but I wasn't especially impressed with the description of the program JP Morgan has developed. Mostly I was wondering why this isn't stuff that was caught before. I am not an estate lawyer, but I have worked on complex matters with a lot of moving parts where analogous sorts of screwups aren't the primarily the client's, they're a sloppy advisor's.

2008 Goals Checkin: The Final Countdown

This is going to be one of those embarrassingly autobiographical/number crunchy posts, which unless you are a financial voyeur like I am, will be much more interesting for me to write than for you to read.

But first, a plug about the role of public accountability in goal setting: I am decidedly pro. Having committed out loud in the presence of others to do something is a fine kick in the ass to get that thing done. I am working on a post about our 2009 financial goals (once again, accountability!) but first I need to fess up on the status of my 2008 financial and non-financial (but still financial) goals.

Financial Goals
-Max Out Roth 401(k): Done. Well, sort of. A few months ago I switched my contributions to a pre-tax 401(k) rather than the after-tax Roth 401(k) so I could save a little more cash in preparation for a job change to a lower-paying job in mid-2009. But I've made $15,500 in contributions to one account of the other this year.

-Fully fund an IRA: Done. $5,000 into Vanguard's Total Stock Market fund, and all done after the September landslide, so I'm only down $300 rather than the $1700 I could have been down. I guess that's something.

-Home equity loan down to $12,900: Done. At the close of 2008, I'm at $12,900 and will get down to $12,700 or so once a work reimbursement comes in, though that may not be until early 2009. I could have paid down more, but I decided to stuff cash into my savings account instead.

-4 months of living expenses in an emergency fund: Done. I started 2008 with three months expenses saved, spent two thirds of that replacing a furnace, and have rebuilt from there, so this is even a bigger victory than it initially appears. I also have $5,900 in a slush fund that was going to cover our honeymoon, but since we've significantly scaled back the honeymoon due to economic uncertainty (and frankly, uncertainty/possible paranoia about my job security), I will have a bunch of that money left over--I think another month's worth of expenses for the emergency fund at least.

-Save $11,000 for the wedding Done. Shiner saved another $2,000 and I think we'll end up spending less than $12,000 on everything, including food and drink. A very expensive party, but not a very expensive wedding, and everything we could want.

Non-Financial Financial Goals
-Floss more: Success! I can officially say this is habit. My morning routine felt totally weird when I briefly ran out of dental floss in November. I should do this at night rather than in the morning but it's easier to remember in the morning and that's better than nothing.

-Read one classic book each month: Fail. There were only six or seven books read, though in my defense, one of them was Anna Karenina which is really freaking long.

-Maintain a high-quality blog: If I am being truthful, I think I have really slacked off on this. There have been a lot of fallow periods, and a lot of times I've thought "huh, I should blog this" and then bimbled off to have a nap. Even where I haven't felt up to snuff, the quality of comments on the blog has made me feel like it is still a useful pursuit. Thanks, gentle reader.

Build a pergola:: Done! I put up the cash but otherwise had nothing to do with this, it was all Shiner and his dad. It is beautifully designed, beautifully constructed, and it makes spending time in the back yard so much more enjoyable. It's like having a airy, romantic new room to the house during the wamer weather months. I think it really adds to the value of the house, too, though we're not looking to sell anytime soon.

It's Not MY Wedding, Dammit, It's OUR Wedding

This Christmas, when exchanging gifts, several people said something very interesting to me. Or maybe the thing they said wasn't so interesting, but it was interesting because it was said to me. Three different people got me something inexpensive and, like they needed to apologize for that, told me they were getting me something bigger for our wedding in a few weeks. But the strange thing was that they either spent a standard amount (as in, comparable to other family members who aren't getting married in a few weeks) on Shiner, or they also spent less on him but didn't apologize to him, only to me. I was left with the distinct impression that the wedding gift to come was really for me, like this year I am a kid with a Christmastime birthday: the wedding is my thing, my party, the wedding presents are really about me, Shiner is just along for the ride.

I want to be very clear that I am not upset about getting inexpensive presents. They were all actually really cool, thoughtful things that I appreciate and will use--one was from a couple of Shiner's friends who got me something separate and I was just really touched that they'd even thought of me (I didn't get them anything...). And I completely understand that by getting married not too long after Christmas that a lot of the people we've invited will have a serious case of gift buying fatigue, and we don't want them to stress themselves out financially on our account. In fact, I've written before about how we have a pretty minimal registry because we are hoping people don't feel pressured to drop a lot of money on us. That appears to maybe not be working so well, judging by these comments, but dammit we tried.

So I feel like a real asshole being at all ambivalent about someone else's generosity toward me and Shiner, but this idea that they're spending less on my Christmas present because they've still got to shop for what is really *my* wedding present feels so similar to when we've met with vendors and venue people and they all start out by directing their questions to me, defering to me, catering to me. Because I'm the bride, doncha know, and I must have been dreaming of this day and its ornaments for decades, and the man I've brought along with me is just one of the more necessary ornaments. It's been surprisingly surprising how much we encounter this attitude in one form or another not just from vendors (who I'm sure have seen this attitude from time to time, and have started to see it where it doesn't exist) but from our friends and family who I expected would get it more. Especially Shiner's friends and family--he's getting married, too, you know. It's a big deal for him, too. It's not all about me.

You never know where you're going to find the sticky wickets.