5 Reasons HR Directors Should Include Financial Planning in Benefits Packages


They forgot a necessary one.

“Truth is confirmed by inspection and delay; falsehood by haste and uncertainty.”

If you’re in human resources, you have two primary jobs:

  1. Find and acquire the best talent possible for what you can spend, and
  2. Retain the best-performing talent for what you can spend.

It was one of the challenges that I faced in my last company. We tried to make working with us fun for the developers. We

BTW, if you’re a developer who is good with big data and search, they’re hiring!

One of the mistakes that I made in determining a benefits package was assuming that if we paid our team members well and gave them good health benefits, they’d be well set up for taking care of themselves financially.

It’s a common mentality. Employers, who want their employees to be happy and taken care of, assume that there’s a fine line between work and private life and money issues are beyond that line. Pay them, but the employer doesn’t really have any business dealing with what happens once the paychecks are issued.

In a sense, that’s the correct approach. As an employer, you don’t want to tell your employees whether or not they can go out to that restaurant on Friday because it may or may not be in the budget.

Yet, employers feel that any financial decision that an employee makes is outside of the realm of what they should be concerned with, and this is the wrong approach.

If employees make poor decisions with their money, then they are going to have financial issues. Those financial issues will cause stress, and sometimes have other unwanted (from the point of view of an employer) repercussions, and will affect the at-work performance of those employees.

If you provide a 401k plan as an employer, you may think that those one hour per year “employee education” sessions fit the bill.

They don’t.

Educating your employees on asset allocation doesn’t do a thing for them if they don’t know how much they should be putting against their debts, how much they should be setting aside for college for their kids, and how much they need in insurance to take care of their families if something happens to them.

It scratches the wrong itch.

Why HR Should Push to Include Financial Planning in Benefits Packages

The Surprising Suggestion for Who Should Receive Your Estate If You Have No Children

Last Will And Testament

That John Doe is a popular fellow.

“Inheritance taxes are so high that the happiest mourner at a rich man’s funeral is usually Uncle Sam.”
–Olin Miller

My wife and I have no children. Not only does this create additional planning issues for us regarding care when we are older, but eventually, when we depart this earth and discover what’s on the other side, someone, somewhere, will have to deal with our assets.

I think because we have no children, I wind up getting what seems to me to be a disproportionate share of clients who also have no children – hey, I’m not complaining, as I’m always honored when people hire me to be a planner, regardless of their situation! One of the questions that I ask them – actually, I ask all of my clients this question, but it’s a harder question for my childless clients – is where they want their assets to go when they slip the surly bonds of earth.

This is an important question to ask because it is possible, although unlikely, depending on state laws, for the state that they live in to receive their estate. When someone dies without a will, it is called dying intestate. State laws then govern the hierarchy of who gets the estate. It’s usually kids, then parents, then siblings, then more distant relatives like aunts, uncles, nieces, nephews, cousins, and the like. In Texas, you have to go through a lot of potential relatives before you exhaust the list. After those are exhausted, then the estate could go to the state, a process called an escheat.

But, really, do you want to give money to your state? If you did, you’d volunteer to pay more in taxes each year, merrily sending a little extra check when filing your tax returns.

I realize that this outcome is highly unlikely. A more likely outcome is that long lost cousin Vern appears out of the woodwork after living 50 years as the good-for-nothing decrepit leech on society, not lifting a finger to do a day of work in his life, and voila! He wins the jackpot of life as the closest living relative who can lay claim to your estate. His life of depravity is rewarded by him receiving the bounty of a lifetime of hard work on your part.

A lot of people who have no children don’t face their mortality and make a will. They figure it will all work out when they’re gone. They run the risk of a distant and undeserving family member winning the jackpot.

There are better ways to do it.

Potential Recipients of Your Estate

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Thanks for Saving More Money!

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