Money Pillar #5 - Legacy

There are three (3) elements to this final Money Pillar:

1. Personal Insurances
2. Estate Planning
3. Giving Back.

Personal Insurances

Most people hold their personal insurances inside their superannuation - Life Insurance, Total and Permanent Disability (TPD) Insurance, Trauma Insurance, and even Income Protection Insurance.

There are a few things to be mindful of here:

• Where you have multiple superannuation accounts, you might have multiple insurances.  This means that you're paying multiple insurances premiums for the same thing.  That is going to drag down your super retirement balance. 
• When moving to another fund nowadays you have to "opt in" to insurance, which means you are no longer automatically covered.  Best to check.
• Make sure you have the right amount of coverage - too little and it won't help as much as you need it to.  Too much and you're paying for insurance you don't need.
• Whether you want to have the insurance inside your super account, or outside.  There are pros and cons to both.  Having insurance inside super means your super pays for your premiums, but you also have to abide by not just the insurance clauses but also the super funds rules if you make a claim on the policy.

Estate Planning

There are three key documents when it comes to Estate Planning:

1. A Will (which could also include a Testamentary Trust) - outlines your financial beneficiaries and wishes after your death.  It's important to know that if you have a Will and then get married, you need to redo your Will, as marriage invalidates an earlier Will.  You can also set out your Guardianship wishes in the event of your passing while your kids are still under 18 (I realise this isn't a nice thought, but it's important).
2. An Enduring Power of Attorney - sets out your wishes in the event that you become incapacitated.  This relates primarily to your financial wishes.
3. An Advanced Health Directive - this sets out your medical / health wishes in the event that you become incapacitated. 

These aren't the most uplifting topics in the world, but for the most part you think about it, set it up and then not think about it again for a very long time.  Getting this sorted will definitely bring you peace of mind!

Giving Back

Once you get your own money house in order, you may choose to look at giving back.  You may have already been giving back along your journey – it’s a very individual choice.

Seeing as we’re talking about money, I’m going to focus on donating as the giving of money.  There are SO many worthy causes out there.  Many of us are constantly “harassed” by people and organisations asking for donations.  It’s about choosing a cause that has meaning and substance for you, rather than just avoiding the whole concept.

Before I began donating regularly to organisations of my choice, I used to donate my time – mentoring for the Smith Family, or wish granting for the Starlight Foundation.  I began to run short on time, so I then started to donate more money (which increased as I earned more).

In 2013 I joined a Business Chicks program that teamed up with The Hunger Project.  I was one of 20 women who each fundraised a minimum of $10,000, then self-funded our travel to Uganda to see how the money was spent, first hand.  To say this was a life changing experience is an understatement!

It feels wonderful to be able to give back, and it adds new purpose and responsibility to earning money and being more “savvy” with it.