The cobbler’s kids have no shoes is a saying that has been around a long time. What does it mean? It generally describes a situation where a person is so focused on servicing customers or constituents that he or she ignores his or her own affairs.
Why do I bring it up? Because lawyers (present company included, of course) are one reason the saying is still around. We all are so busy with the day-to-day grind that goes along with client service that we forget to take care of our own needs. We talk about protecting assets, having a financial plan, blah, blah, blah. But most of us never follow our own advice.
What can you do about it? Lots. For instance, do you have adequate disability insurance? Are you sure? Have a knowledgable person review your policy. I am willing to bet that most of you have policies that are not “own occupation” or that only have a two-year own occupation coverage period. Under the terms of those policies, what happens if you are involved in an accident that leaves you mentally disabled? After the coverage period expires, you have to go back to work. Assuming you can’t practice law because of the disability, you may be forced into a job that you don’t like very much.
Do you have a will? For those of you that think you are too young or that you don’t have enough assets to need a will, you may be surprised. Especially if you have kids. There are several ways to efficiently transfer your estate if you have an untimely death. Take the time to sit down with an estate planning lawyer and review your personal situation.
Do you have a financial plan? I’ve got news for you. 401(k) participation is not a financial plan. Run the numbers. Unless you started fully funding your 401(k) at age 25, or unless you want to work until you are 80, the chances are that those contributions aren’t going to get you where you think they are. You need a professional to help you find additional ways (e.g., deferred compensation plans, Roth IRAs, etc.) to fund retirement, your children’s education, your beach house, etc.
If you are a sole practitioner or a member of a small firm, do you have a succession plan? What happens when you retire or die? You are spending a large portion of your life building a practice. There may be a way to capitalize on that investment, e.g., through buy-sell provisions funded by key-man life insurance. You can’t know the answers unless you ask the questions.
Over the past several months, I have met with several individuals that can help you navigate these difficult, and sometimes confusing, waters. I would list some of them here, but I have to go. My kids’ feet are cold.