Making A Switch

 By Rob Wrubel, CFP^®

“My roommate got a pet elephant. Then it got lost. It’s in the apartment somewhere” - Steven Wright, comedian.

Readers of this newsletter by now know they should be reviewing and updating their estate plan and putting a strong financial and savings plan in place. If not, head to our website and read some of the past articles posted there or send me a note for more.

Recently, I finished the book, Switch, by Chip and Dan Heath. Switch seeks to put together a simple framework for people, organizations and communities to make change even though those changes may appear difficult or overwhelming. I loved the book and highly recommend it.

Many families find the process of special needs planning overwhelming.

They worry about making sure they work with the best people who have their interests at heart in financial planning and legal work.

They worry about the commitment needed today to make a difference tomorrow for their special needs family member.

They worry about finding the time in their daily calendar to meet with key advisors.

Switch uses a simple metaphor for helping people think through change. They use the image of a rider on an elephant looking to go down the best path.

The rider is the rational, thinking part of you, the part that knows you are supposed to put money away into a retirement or investment account every month.

The elephant, you guessed it, is the emotional and automatic part of yourself. The elephant wants to buy a new pair of shoes, a new cell phone and the biggest bag of peanuts it can find.

Riders are good at making decisions, analyzing options and setting the direction. Elephants are good at whatever they decide to do at whatever moment, and are not easily controlled by the rider if they do not want to be controlled.

The book addresses shaping the path as well—finding a way to direct the elephant without giving it many options.

 

The Rider Sets Direction

As parents, siblings and spouses of people with special needs, you are the rider. You set direction, see the future and imagine the world you want to have for your special needs family member.

Take time, an hour this weekend, to write down the ideal situation for your family member. Write down if you want him to live independently or for her to live with friends. Write down if you think he can work and what type of work he enjoys. Write down activities you want her to be able to enjoy in the future.

Wherever possible, you will want to include your family member as you work through some of these issues. But first, write down what you want.

Your rider might be tired, unable to take this first step. If that is the case, you first need to take care of yourself. You will need to find some respite care, a night away or carve out space each week to nourish the body and soul of your rider. This is the first step in trying to get the elephant to move anywhere.

 

Motivating The Elephant

Another part of you gets in the way even as you clarify your best intentions. The elephant gets what the elephant wants.

The elephant needs motivation and rewards. Strong purpose and a clear vision of the future help keep the elephant moving in the right direction. You can keep the elephant moving down the road step by step if it can see the big bag of peanuts to eat and the pond to jump into. There is a carrot on the end of the stick for a reason.

You will need to understand you are making progress. You will need to commit to the decisions with your heart.

You may want to pay for private education and therapy for many years down the road. Putting aside a small amount today will give you a chance of making that happen. Spending it all today will guarantee it does not. You will have to make the choice and fend off temptations and lures along the way.

 

Shaping The Path

Ideally, you shape the path the elephant walks down. You reduce temptations. Most people starting a diet go through cabinets and throw out cookies, high-fat snacks and other temptations. It’s easier to eat right when the only choices are healthy ones.

The same is true financially. Shape your path by putting savings and investing on autopilot. Most people create assets through two key actions—paying their mortgage every month and having money go into a 401(k) or other retirement plan. These are two methods of paying yourself first—putting money into asset building before it comes into the checking account and gets spent.

Look for opportunities to save money before you spend it. Have automatic deductions go to investment, education and accounts used to fund a trust. Use Quicken or some other tool to track your spending so you have real data to use when looking to save more or reduce debt.  Find more time by automating your bill paying for recurring monthly expenses like utilities and insurance.

Your investment advisor should understand your needs. He or she can help shape the path by communicating monthly, scheduling regular reviews and proactively rebalancing your accounts. 

 

Your rider, elephant and path need to be in line and working together for you to accomplish your goals. Your first key action is to set some clear goals. After that, you can set plans in motion.

You do not need to know every detail and you can rely on friends, family, advisors, educators and others to assist in educating the rider, motivating the elephant and shaping the path.

Families with special needs members have a higher desire than others to create a bright future. Let’s get that elephant excited to get there.