As healthcare professionals, we're experts at taking care of others. We dedicate our lives to healing, supporting, and improving the well-being of our patients. But what about taking care of ourselves and our loved ones?

Specifically, what happens to our finances if we're suddenly unable to manage them, or worse, if we're no longer here?

It's not a pleasant topic to think about, but ignoring it can have serious consequences for those we leave behind. Imagine your loved ones struggling to navigate a complex financial maze during an already emotionally challenging time. They might face legal battles, miss out on benefits, or make costly mistakes, all because you didn't take the time to get your financial house in order.

This comprehensive guide will walk you through the essential steps to ensure your finances are organized and your loved ones are protected, whether you're in Canada or the US.

1. The Foundation: Essential Documents

These documents are the cornerstone of your financial plan. They provide clarity, prevent disputes, and ensure your wishes are honored.

• Will: This legal document dictates how your assets will be distributed after your death and who will care for your minor children. Without a will, your province's or state's laws will determine the distribution of your assets, which may not align with your wishes.

  • Resources:

    • Canada: Willful: (online will creation)

    • USA: LegalZoom: (legal services, including will creation)

• Living Will (Advance Directive): This document outlines your healthcare wishes if you become incapacitated and unable to make decisions for yourself. It covers things like life support, organ donation, and pain management.

  • Resources:

    • Canada: Speak Up Canada (advance care planning resources)

    • USA: National Hospice and Palliative Care Organization(end-of-life care information)

• Power of Attorney: This document designates a trusted person to manage your financial affairs if you become unable to do so. This can include paying bills, managing investments, and making healthcare decisions on your behalf.

  • Resources:

    • Your provincial or state government website (for information on Power of Attorney forms and requirements)

2. Building the Walls: Financial Organization

Once you have the essential documents in place, it's time to organize your financial information. This will make it easier for your loved ones to access what they need when they need it.

• Create a Master Inventory: This should include a list of all your assets (bank accounts, investments, property, etc.), debts (loans, credit cards, etc.), and insurance policies.

  • Tools:

    • Personal Capital: https://www.personalcapital.com/ (financial dashboard and net worth tracker)

    • Lunch Money (budgeting and expense tracking tool)

• Secure Important Documents: Store your will, living will, power of attorney, and other vital documents in a safe place, such as a fireproof safe or safety deposit box. Make sure your loved ones know where to find them.

• Digital Assets: Create a list of your online accounts (email, social media, banking, etc.) and their corresponding usernames and passwords. Consider using a password manager to securely store this information.

  • Tools:

    • LastPass: (password manager)

    • 1Password: password manager)

3. The Roof: Protecting Your Loved Ones

Insurance plays a crucial role in protecting your family's financial well-being. Make sure you have adequate coverage in the following areas:

• Life Insurance: This provides a financial safety net for your loved ones in the event of your death. The death benefit can be used to cover expenses like funeral costs, mortgage payments, and education expenses.

  • Resources:

    • Canada: PolicyMe(online life insurance), For Personal and Custom Approach: Aviva Abraham

    • USA: Term4Sale: (online life insurance quotes)

• Disability Insurance: This replaces a portion of your income if you become unable to work due to an illness or injury. This is especially important for healthcare professionals, as our ability to earn a living is often tied to our physical abilities.

• Critical Illness Insurance: This provides a lump-sum payment if you're diagnosed with a covered critical illness, such as cancer, heart attack, or stroke. This can be used to cover medical expenses, lost income, or other financial needs.

4. Furnishing the House: Other Important Considerations

• Retirement Planning: Make sure you're on track to meet your retirement goals. Contribute regularly to your retirement savings plan and consider seeking professional advice from a financial advisor.

  • Resources:

    • Canada: Wealthsimple: (online investing platform) - Use my referral link for a bonus!

    • USA: Fidelity:(investment management and financial planning)

• Debt Management: Develop a plan to pay down any outstanding debts, such as student loans or credit card balances. High levels of debt can create financial stress and hinder your ability to achieve your financial goals.

  • Resources:

    • Canada: Consolidated Credit Counseling Services of Canada (credit counselling and debt management services)

    • USA: National Foundation for Credit Counseling (credit counselling and debt management services)

• Tax Planning: Understand the tax implications of your financial decisions and take advantage of available deductions and credits. Consult with a tax professional for personalized advice.

  • Resources:

    • Canada: Tyagi Group Accounting, Kevin Mouscos (tax information and resources)

    • USA: Internal Revenue Service: (tax information and resources)

5. Regular Maintenance: Review and Update

Your financial situation and needs will change over time, so it's important to review and update your plan regularly. This includes:

• Reviewing your will and other essential documents every few years, or after major life events like marriage, divorce, or the birth of a child.

• Updating your beneficiary designations on your insurance policies and retirement accounts.

• Rebalancing your investment portfolio to ensure it aligns with your risk tolerance and financial goals.

• Meeting with your financial advisor at least once a year to discuss your progress and make any necessary adjustments to your plan.

Don't Wait: Take Action Today

Getting your financial house in order may seem daunting, but it's an essential step in protecting yourself and your loved ones. Start by taking small, manageable steps. Pick one document to tackle this week, create a system for organizing your financial information, and don't be afraid to seek professional help when needed.

Remember, you don't have to do this alone. There are resources and professionals available to guide you through the process. By taking action today, you can gain peace of mind knowing that your financial future is secure and your loved ones are protected.