Keep It Simple
KISS, an acronym for “keep it simple stupid” was coined by Kelly Johnson, an engineer for Lockheed Skunk Works, a division of the company that worked on aircraft design. Mr. Johnson headed projects such as the SR-71 Blackbird spy plane, which was created in the 1960's and is still the world's fastest aircraft. The SR-71 Blackbird flew thousands of spy missions from 1966-1998. Mr. Johnson explained that the basic premise of KISS is that if things are not kept simple and easy to understand, they would ultimately become obsolete in combat conditions and ultimately worthless. He felt that simplicity should be a key goal in design and unnecessary complexity should be avoided.
The KISS principle can (and probably should) be applied to many aspects of our lives. I recently watched comedian Jim Gaffigan. In one of his segments, he talked about traveling with his wife and five kids around the world. When they went to China, they got to ride in a rickshaw, see the terracotta warriors, the Great Wall, and the Forbidden City. When he asked his 5-year-old son what his favorite part of the trip was, he responded that it was when they saw the pigs in the truck. At one point during the trip, they were stuck in traffic at an intersection and there was a large truck carrying a bunch of pigs in cages. I found that part of his show to be hilarious and so true when it comes to comparing an adult and a child’s experience and their takeaways from an event. It shows that sometimes you don’t need to spend a lot of money on things for them to be enjoyable and memorable.
When it comes to managing your finances and investing, the KISS principle can also be a good guide. For the majority of us, when it comes to estate planning, you will need the following documents:
- Will - Having a will allows you to decide how your assets are distributed after you die vs. having the court system decide. Other benefits of having a will include helping to minimize estate taxes, and it gives you the ability to create a testamentary trust, which is necessary if you have minor children. You can choose to disinherit family members who would otherwise stand to inherit your estate if you died without a will. You can also choose to give money to your favorite charity or religious organization.
- Power of Attorney – Financial and Health Care - A Power of Attorney gives another party the ability to make decisions on your behalf if you become incapacitated or unable to make your own decisions.
- Health Care Directive/Living Will - A healthcare directive is a written document that outlines your healthcare wishes if you become unable to make your own decisions. You are also able to name another person to make those decisions for you and for them to follow your wishes outlined in the directive.
- Digital Assets Inventory – This involves giving instructions for a trusted contact to access your digital assets such as email, social media accounts, physical devices such as phones, computers, etc. Be sure to have a list of online login accounts with user names, passwords and security question answers needed to get into each digital account.
By having these essential estate documents, keeping them up to date and easy to locate, not only will your wishes be carried out after you pass, but you will simplify the entire process for your loved ones.
I hope you enjoyed the newsletter. Please email me at cindy@fairtrustfinancial.com with any questions you have regarding planning for your future.