Adulting can be tough. When you’re bogged down with the daily grind and paying bills on time, the last thing you want to do is add more boring adult tasks to your to-do list.
However, putting off certain things can come back to bite you if you aren’t careful. Therefore, you should probably make time for these adult necessities as soon as possible.
1. Retirement Savings Accounts
Retirement seems so far away when you’re in your 20s or early 30s. However, no one wants to work forever. This is why retirement savings exists — it lets you set aside money in a way that gains interest so you’ll have more money when you retire.
Although there are several retirement accounts, starting with a 401K or IRA offered by your employer is easiest. In many cases, your employer will even offer a “match,” meaning they also contribute the amount towards your retirement as you’re putting in.
2. Will & Testament
A will is a legally binding document that outlines all of the wishes you want family members to fulfill after your death. Even if you’re perfectly healthy, you should get a will drawn up soon. Without a will, your assets could be seized by the government and distributed to someone in your family based on state or local laws.
3. Life Insurance
As the name implies, life insurance is a policy that pays out funds when you die. This money can cover everything from final medical expenses and funeral costs to debt settlement or any other lingering payments in your estate.
Of course, many young people wonder, “Is term life insurance worth it?” The answer is always “yes,” even if you live a long time. In fact, life insurance can be especially important for married couples or anyone with young children since it ensures that these family members will be financially taken care of after you are gone.
4. Advance Directive
An advance directive, or living will, outlines your wishes for medical care if you are incapacitated and cannot speak for yourself. This document can be incredibly helpful in emergencies because it gives your loved ones and treatment team clear ideas of what measures you do or do not want them to take to keep you alive. You can also specify that you do not want extraordinary measures taken or sign a DNR if that’s your preference.
With these documents, it’s always better to be safe than sorry, so you should get an advance directive drawn up as soon as possible.
5. Durable Power of Attorney
Like an advance directive, a durable power of attorney helps others make decisions on your behalf if you cannot do so. The designated person, or proxy, can handle decisions related to your finances, medical treatment, and other important life decisions.
Durable POAs are especially helpful because they let people take over the moment you become incapacitated. This could mean you are in a coma, or it could mean you are dealing with dementia. Either way, the durable POA ensures the selected loved one gets to call the shots until you can again.
No one in their 20s or 30s wants to think about the serious stuff like what happens when you die. However, it’s always better to have these essential documents and insurance in place and not need them than the other way around. Luckily, there are plenty of ways to obtain these documents, and estate planners can help you.
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GOOD Very informative i will use these 5 adult things