By Christopher Cervantes, RFP

While many remain fearful about the coronavirus pandemic, many have also become aware that this crisis is not only a health issue, but also a money issue. Indeed, Covid-19 has altered many aspects of our lives. Before the pandemic, most people who send me inquiries usually ask how to invest in the stock market and in cryptocurrencies. They are more concerned about growing their money in the quickest way possible through some popular investments.

When the community quarantines began, people started losing their jobs and many business owners began struggling. People now realize that financial planning is not only about growing money, but also about negotiating the financial barriers that may arise at every stage of life.

During the quarantine period, I became busy conducting online meetings with people seeking guidance in crafting their financial plans. This time, they were addressing their entire economic well-being and not just their investments.

The importance of reviewing your financial plan is similar to having a dental check-up or scheduling your annual physical examination. Some don’t see its value, thinking it’s already enough to have an investment account or insurance policies.

However, this pandemic led many people to recognize the urgency of revisiting their financial plans, or create one if they have started yet. Many now understand the importance of retirement preparation. If a few months under lockdown financially crippled them, how much more the 20 or 30 years or so of living without an income? That is what retirement means.

The news today references the escalating global death toll from Covid-19. The question now is how many of them died prepared financially.

Many parents find it uncomfortable to involve children in discussions on how to handle their estate once they’re gone. But this pandemic forces them to have a good conversation with their children about all the “what ifs.”

One businessman who consulted me online is so concerned about ensuring his business’s survival. He was dumbfounded when I asked him how confident he is about surviving the pandemic. As expected, he is not entirely sure about his own survival.

Yes, no one knows how or when we are going to leave this world. For that reason, we don’t need Covid-19 for us to sit down and have an extensive discussion with our family. They should know what you have, what you owe, your essential paper, the value of your insurance and the location of your trust or will. No one likes to think of dying, but it’s a good idea to put our finances in order.

If you are tired of trying to minimize your children’s screen time, then maybe it would help to have a mini family retreat from time to time. While staying at home, we are forced to talk to each other. If that is the case, then let’s make this talks more meaningful. Call for a gadget timeout; it would not only help us save on our electric bills, but also save us from a potential family disaster in the future.

If there is one benefit the pandemic can offer, it’s the opportunity to strengthen family relationships. Suppose the family is not used to talk about money. Take the pandemic-prompted opportunity to remove money from your list of taboo topics. After all, a financial matter is a family matter.

This unprecedented time also offers you the opportunity to discuss your retirement plan with your children. Hopefully, from that discussion, they would learn the value of early preparation for the golden years. You can also take this opportunity to teach them the real meaning of inheritance. The intention is not just to inform them of what they would get, but also to prepare them to manage it in the future.

You can even go further and discuss end-of-life issues. How do you want them to take care of you if you need long-term health care? How would you want them to decide if your doctor asks them when they need to pull the plug? Who would make the significant family decisions on your behalf?

We have experienced many calamities in our lives. As a disaster-prone country, this should not be new to us. But this pandemic created a perfect storm that alerted the most conscious of parents to take financial planning seriously. We don’t want to leave them so soon, especially not this time. But when the serious “what if” hits, we want to make this planning as seamless as possible.