Insurance and Risk Management with The Happy Hour Crew
Today is the last Friday of the month, and my regular listeners know that on the last Friday of the month, I host the happy hour on the podcast, where I gather great friends with me to drink cheap drinks and talk about money topics. This month, I've focused on risk management, which means thinking about financial products like insurance or trust and estate management. These are pretty much the subjects of financial planning that no one likes to talk about because they involve planning for potentially bad things happening.
After fifteen years of financial planning, the one lesson I have learned is that bad things happen all the time (typically when we're not expecting them), and the best way to weather the storm, so to speak, is planning in advance for it. My friends joined me to talk about how planning for the worst not only helped them financially but also helped them feel confident and secure during those tough times. .
What are we drinking?
Melanie - Raspberry Electrolyte drink
Alicia – Kirkland strawberry lemonade w/ blueberry vodka and blueberries on top
(can be made frozen)
Colin – Cookies and cream martini
Shannon – Bubbles
Podcast Notes
Updates About The Financial Gym
At the top of the episode, Shannon announces that Alicia has officially left her position as COO of The Financial Gym but has kept her seat here at Happy Hour for the last few rounds.
Alicia talks about how it was not easy to decide to leave The Gym. It has been a long journey, and she feels she is being called to use her talents and skills in new ways moving forward.
The Financial Gym has undergone many changes, especially in the last four years. This is just another phase. Shannon is sad Alicia is no longer at The Gym, but she is happy for her time there and to still be friends.
This month's theme on the show has been risk management. It's one of the least 'sexy' parts of financial planning but incredibly important. There are many ways to build risk management into your budget, so we're highlighting personal experiences today.
Why is risk management important?
When the budget is already tight, it can be challenging to find room for insurance or other forms of risk management. It is important to assess your needs and what you can afford and plan accordingly.
Colin tells the whole story in a former episode but has personal experience with an apartment fire. The neighbor's electrical box caught on fire and spread to his unit, and they lost everything. Insurance was able to help in that situation. His parents' homeowner's insurance had a policy because they were cosigners on the apartment.
Alicia tells a story about how she utilized bundles with her insurance company to cover jewelry when she was pregnant. After a baby shower, they were robbed, and many items were taken. She had written a detailed list to write thank you cards, which came in handy when they submitted an insurance claim.
Melanie always gets travel insurance, and it really came in handy during her Peru trip. During the trip, they caught COVID, which caused a lot of changes and delays. The insurance was able to help cover the cost of the extra hotel stays and other flight changes.
When Shannon started The Financial Gym, she got life insurance to ensure Bill and Will would be taken care of if anything ever happened to her. It's an expense that she pays monthly and helps her sleep at night, even though she hopes she never has to use it.
Other Forms of Risk Management
Wills are state-based. When you decide where you want to live, it's a good time to get the will. You can get a basic policy done. Because you don't have children or are legally married, when you have assets, the state will decide where your money goes. Each state has its own order of operations if there isn't a will in place.
Even for people without kids, a will is important. It can declare your healthcare proxies and ensure there is a plan for your assets and responsibilities. If you want any say about where your assets go after you pass away, you must have a will in place.
Check what hospitals and emergency rooms take your insurance ahead of time. This way, you don't have to make calls when you're sick or during an emergency.
Depending on where you live, it's important to have a plan for other emergency scenarios, such as earthquakes, wildfires, tornadoes, or flooding. Create the kits you need to be prepared and run drills with your family.
Final Thoughts
You may think something bad is never going to happen to you, but when crap hits the fan, insurance can be incredibly beneficial. Shannon has seen firsthand what can happen when there is not adequate coverage.
Insurance becomes way more expensive once you actually need it. If you can afford it, add the risk management you need right now to your financial plan.
Schedule financial health days for yourself where you sit down and do all of your financial homework. Ideally, this should be once a quarter, but at least once a year.
Remember to update your beneficiaries or insurance with any life changes.
Renter's insurance is one of the most affordable and covers quite a bit. The Gym highly recommends this for all renters. If you own a home, your bank requires home insurance while paying off the mortgage.
Takeaway: My biggest takeaway is the importance of preparing for the worst. Believe me, as an eternal optimist, I hate having to plan for tough times but I’ve also witnessed the difference between clients who are prepared vs. those that are not and being prepared wins every single time.
Resources Mentioned:
Connect with the Happy Hour Crew
Melanie Lockert: melanielockert.com
Colin Becker: @iwillbecolinyou & colinbecker.com
Shannon McLay: Founder & CEO at The Financial Gym
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com or join the private Martinis and Your Money Facebook Page, and let me know what you want to hear.
As many of you know, other than running this podcast, I’m the founder and CEO of The Financial Gym, and we are celebrating 10 years of this journey. Now more than ever, I see the importance of the work we do every single day. Rising inflation, the return on student loan debt, high-interest rates on loans and mortgages, and volatile stock markets make it a time where, now more than ever, you need a best financial friend to help you make the best choices along the way.
At Financial Gym, you get paired with a Certified Financial Trainer, who we call your BFF. Our team has coached clients through every financial season, whether they were living paycheck to paycheck or headed into Financial Independence and Retirement. As a reminder, we work with individuals, couples, or business owners.
The exciting news of 2024 is that Financial Gym now has a sister company, FG Advisory Services, available for people looking for more traditional financial advisory services like asset management delivered by a team that looks and behaves nothing like a traditional financial advisory services company. We literally have a solution for you, no matter where you’re starting from. So what are you waiting for? Head over to or send friends to financialgym.com to get started today. Our warm-up calls are free of cost and judgment, so you have nothing to lose.