Banks and Bankers

The one silver lining to this entire experience is the fact that Sarah and I both had plenty of life insurance for exactly this situation.  I knew that as a pilot, there would be no way that I would be able to provide for (at the time) 3 kids as a single dad.  Because of the life insurance policy, what would have been financially disastrous is actually an opportunity.

Anytime a person receives a large windfall, there are many pressures and temptations for what to do with the money.  I have been an avid fan of Dave Ramsey and have heard him counsel many widows to do nothing for the first six months.  For the most part, that is what I have done.  Once the will was probated, and the insurance benefit was deposited, I suddenly had more money than I had ever seen in my life.  But I know that I have to make this money last for several years.I did indulge myself by trading in my old Suburban on a brand new model.  A few other smaller items like replacing the broken recliner, and a scuba rig for myself have been my only large purchases. 

Thankfully the process to probate a will in Texas is fairly straight forward process, and in Sarah's case didn't cost us too much in legal fees.   I also had to assemble documentation to apply for Social Security benefits for the children.  Despite my history of dealing with the federal government, this was remarkably painless. 

Sarah and I had been working with a financial advisor that we met when she was in residency.  I recently met with him and he recommended a very conservative set of annuities that would pay out enough to live on, but would not grow and would have no way to withdrawal the principle if I wanted to make a change.  I listened to his advice but decided that I wanted to pursue a more aggressive and flexible strategy.  He was really reluctant to work with me so we parted ways.

I am currently interviewing a new set of financial advisors who have assembled a strategy that is a lot more in line with what I was expecting, and will meet our needs for the future.  The best practice for dealing with the double wammy of personal grief and financial windfall is to go slow, take your time, and keep your budget in check.