The six P’s Chapter 26

Prior Planning Prevents Piss Poor Performance (6 P’s). I am sure you've heard this before, but why do we fail to actually do this?

When I joined the Army, we learned about EE Savings Bonds while in Basic Training. I knew nothing about investing or what bonds were, but I signed up. $50.00 per month and I was sure I was going to be rich by retirement. When I was 20 and married for the first time, I figured I would be responsible and cashed them out and bought what was needed for the home. Yes, some were full value at $100, but others I only received partial full payment. I was an E-3, man of the house, and getting shit done.

To make things “better,” I signed up for whole life insurance from one of the great insurance companies located outside every military base. I went to the briefing, got my free gifts and signed the bank allotment forms.  Once again, I was taking care of my family like the man of the house.  To put things into perspective as an E-3, I made $6,500 for the year. Money was tight, but they told me I could cash out in 30 years and be rich.

Six months later, I was separated and in Korea, but if I died, the soon-to-be ex-wife would be the one the one to cash out.  When I returned stateside to Fort Lewis, I was somehow able to cancel my whole life insurance policy and be free.

But let’s take a quick trip back to the Army in the 80/90’s. Enlisted Soldiers did not get formal financial training and were left to the Sharks and willing friends. Of course there was no internet to learn from either. As a result, the mistakes I made were quite common.

Fast forward about 8 years. I was now married to Laura and stationed at Ft. Hood. We decided to go to a briefing from one of “those” companies, only to be told that I didn't make enough money for them to invest with as an E-5. I let them know they were making a mistake because I had no intention of staying an E-5, and I didn’t.

Years later while at Ft. Leonard Wood, we found a company who sat down with us and discussed retirement planning which included Term Life Insurance. Finally I had some answers and could develop a plan. At the ripe old age of 34 or so, I Started Term Life Insurance, invested in the Thrift Savings Plan (TSP - the government worker equivalent to a 401k plan). Laura and I both got Term Life and we were now free from all of the financial mistakes I made in the past. We were finally working the 6 P’s the right way.

Now, I am not saying all “insurance” companies are bad. In truth, most want you to have a good life plan, but there are definitely some sharks in the water and you need to know where to swim.

I tell you this because growing up, my parents did not teach me about money, investing or retirement planning. Heck, I can’t even talk to my mom now about money, wills, or other “personal” business. My mom is 91 and she believes you don't discuss these things with your kids.

Fortunately the Army has classes these days. There is the internet and other resources for kids to learn what they need to, but even with all of that, they still do not practice the 6 P’s for life.

When I was diagnosed with ALS, I thanked God that I had started my financial planning when I did. Had I started the right way in my 20’s, though, I would have far more assets. Time is the greatest factor in financial planning. The earlier you start, the better off you will be, but it’s never to late to start.

Health insurance is key, but once again, our younger workers frequently opt out. I’ll keep this short and to the point. My recent 10 day stay in the hospital was $66,000. Without health insurance I would be in deep poopoo. This was just a 10 day stay, but the average annual cost for ALS patients is $250,000. If I wasn't insured, I'm not sure what would kill me first - the bills or ALS.

Recently, a fellow Veteran ALS patient (VALS) sent me a planning checklist that brings up other great points that everyone should consider whether you are 20 years old and feel like Superman, or 55 with ALS.

First we should all have our Wills. Generally speaking, a will is a legal document that coordinates the distribution of your assets after death and can appoint guardians for minor children. A Will is important to have, as it allows you to communicate your wishes clearly and precisely.

To my surprise, though, if you research the percentages of the population with a will in please, it’s less than 50 percent. What are we waiting for and why don’t we get one done? Is it superstitious, a feeling of invincibility, or general not caring? If you have loved ones, do you really want to put additional stress on them after your death? Where do you want your property to go? How do you want to be buried? Who gets the pet? A Will can be simple or very complex based on your own needs. For example, there are some items I want to gift to individuals, and they may not get it without thise desires being noted in a Will. I want my ashes to be turned into four diamonds; one given to each child. Some people want to be a tree. No Will and I might be out in a hole somewhere. You have the right to tell the family exactly what your wishes are. So, if 50% of the population does not have a Will, then it is fair to say half of you don’t either. What are you waiting for?  Time is not on your side.

For Life and Health Insurance and investing, the younger you get in, the better off you will be. That being said, I want to briefly talk about planning after an ALS diagnosis for Veterans and how the 6 P’s can make you life transition a little better for you and your caregiver.

The very first thing you should do after a diagnosis is to contact Paralyzed Veteran’s of America (PVA) for Veterans or The ALS Association for civilians. They are key in getting started with the benefits and programs available for you. Chapter 1, ”I Have ALS Now What,” has a comprehensive checklist breaking down what is needed and when for Veterans. Although we cannot plan ahead for our needs prior to a diagnosis, this list will help you with planning for the future.

There are several programs that will take some time to work through depending on your needs at the moment. First, you will need equipment such as wheelchairs, ADA ramps, hospital beds, etc. You may be thinking, "I am walking just fine," but trust me, you'll want the equipment ready for the day you need it.  My electric wheelchair and van took 2 months to deliver, so it's worth getting the process started.

The VA also offers over $100k in grants for ADA housing construction. It took us 9 months to start our ADA bathroom project currently in progress.

I am currently using a ventilator 24/7 and a home generator is needed. The battery in the ventilator can last up to 15 hours. Without a generator you will be taking a trip to the ER. Generators in my area start at 15k and can take a few months to get. Without planning or the other P's, these and other benefits will make it very difficult for VALS to get the proper care and equipment needed.

I know this week may not be the most exciting post and there are no pictures of my sexy self. However, whether you have a life-ending disability or are young and healthy, following the 6 P’s is every area of life will ensure you are ready when needed.

In the end, I am glad I found a company and friend I could trust to teach me how to prepare financially. I was able to efficiently prepare my will and other documents needed to give me peace. I know my family will be taken care of.