3 Things 5-18-26

 Thing One

A Binder To Keep Your Loved Ones Out Of A Bind

If you died tomorrow, would your spouse, partner, or family know where your bank accounts are? How to access your crypto? Where your important documents are stored? Who your financial advisor or lawyer is?

Putting your loved ones in a position where they can’t answer those questions easily creates massive stress and confusion at the worst possible time.

The solution is simpler than you think. Create a “When I Die” binder — a single, secure place that tells your loved ones exactly what they need to know.

When someone passes away, families are grieving and overwhelmed. The last thing they need is to hunt through drawers, guess passwords, or call dozens of companies trying to figure out what you owned and where it is.

A well-organized “Death Binder” (or “Legacy Binder”) removes that chaos. It protects your loved ones and gives them clarity during an incredibly difficult time.

As far as what should go in it, here’s a clear structure you can follow:

1. Personal Details. Include your full legal name, date of birth, Social Security number, driver’s license number, passport number, marriage date, employer name, and contact information.

2. Professional Advisors. List the names, companies, emails, and phone numbers for:

• Your accountant/CPA

• Lawyer/estate attorney

• Financial advisor

3. Legal Documents. Note the location of:

• Will and estate planning documents (trusts, power of attorney, etc.)

• Recent tax returns

• Passport and citizenship papers

• Marriage certificate

• Property deeds and vehicle titles

• Burial or funeral instructions

4. Insurance Policies. For each policy (life, health, disability, homeowner’s, auto, umbrella, etc.), include:

• Policy number

• Insurance company and agent contact

• Policy owner and insured names

5. Assets. List all accounts with institution names and account numbers:

• Bank accounts (checking, savings, CDs, money market)

• Retirement accounts (401(k), IRAs, etc.)

• Brokerage and investment accounts

• Pensions and annuities

• Real estate

• Cryptocurrency (plus clear access instructions)

6. Liabilities. Include details for:

• Credit cards

• Mortgage

• Auto loans

• Student loans

• Any other debts

7. Recurring Bills and Utilities. List monthly subscriptions (Netflix, Amazon, etc.), due dates, autopay status, and which card they’re on. Also include utilities (electric, water, gas) with account numbers and provider contacts.

8. Essential Passwords and Access. You don’t need to list every financial password (those can usually be accessed with a death certificate). At minimum, include:

• Computer login password

• Phone PIN or passcode

• (Optional) Instructions for social media accounts

Keep the binder in a secure but accessible location.

Common options:

• A fireproof safe at home

• A safety deposit box

• A password-protected digital folder on Google Drive or similar (with 2FA enabled)

Make sure at least one trusted person knows where it is and how to access it.

Only a small percentage of people ever create something like this — yet it’s one of the most loving things you can do for your family.

Start simple. Open a document or grab a physical binder and begin filling in the sections above. Update it once a year. Somebody will be glad you did.

Thing Two  

To Pay It Off Or Not To Pay It Off (Early)?

A recent survey revealed that most homeowners don’t realize that extra payments toward their mortgages don’t just reduce their balances — they dramatically reduce time to pay-off.

On a typical 30-year mortgage:

• No extra payments = 30 years

• 1 extra payment each year = 25 years

• 2 extra payments each year = 21 years

• 3 extra payments each year = 18 years

• 6 extra payments each year = 13 years

• 12 extra payments each year = 8 years

That’s the power of attacking principal early.

Most people think mortgages are “front-loaded” with interest because banks are trying to take advantage of them by keeping them from paying down principal in the early years. That’s not really what’s happening.  It’s just math.

In the early years of a mortgage, your balance is at its highest. Since interest is calculated on the remaining principal balance, a larger portion of each payment goes toward interest in the beginning.  Over time, as the balance shrinks, more of your payment starts going toward principal. That means extra payments early in the loan have an outsized impact because they reduce the balance before years of future interest can accumulate.

One extra payment doesn’t just save that month’s interest. It prevents interest from being charged on that amount for decades.  That’s where the real acceleration happens. But paying off a mortgage early is not always the right move for everyone.

The strategy depends heavily on your interest rate, cash flow, age, retirement timeline, investment opportunities, and overall financial goals.

If someone has a mortgage at 6%, 7%, or higher, paying extra toward the loan can create a guaranteed return equal to the mortgage rate itself. Paying down a 7% mortgage is essentially the same as earning a risk-free 7% return after taxes — something that’s difficult to consistently match elsewhere.

In higher rate environments, accelerating mortgage payoff can dramatically reduce total interest costs, improve future cash flow, and create more financial flexibility approaching retirement. For many people, the emotional benefit matters too. Owning your home outright changes how people think, spend, and prepare for the future.

But the conversation changes when someone has a mortgage locked in at 2.5% or 3%.

In those situations, aggressively paying down the mortgage may not always be the best mathematical use of capital because that money may potentially earn more elsewhere over long periods through retirement accounts, investment portfolios, business growth, or other opportunities.

A low fixed-rate mortgage can actually become a valuable financial tool when inflation and long-term investment returns outpace borrowing costs.  That’s why blanket financial advice rarely works.

Extra principal payments often make the most sense for people approaching retirement, those wanting lower monthly obligations, families seeking greater certainty, or individuals who simply value peace of mind over maximizing every dollar of potential return.

Others may benefit more from prioritizing investing first while allowing low-interest debt to work in their favor.  Neither approach is automatically right or wrong.

The real goal isn’t simply paying off a house faster.  The goal is creating flexibility, freedom, and options later in life.  Because financial success is rarely about finding one perfect strategy.  It’s about making intentional decisions that align your money with the life you actually want to live.

Thing Three

Just A Thought  

"There is nothing noble in being superior to your fellow man. True nobility is in being superior to your former self." - Ernest Hemingway