Keeping track of your money can often feel like a separate career. It is easy to go from dedicating a few hours a month paying bills to a longer process, but a Daily Money Manager can help. Daily Money Managers are trusted professionals who handle bill pay service, account reconciliation, organizing tax documents, renewing insurance coverage and other financial tasks – basically anything attached to a dollar sign. How do you know if you could benefit from a Daily Money Manager? If any of these situations apply to you, it could be time to hire a Daily Money Manager.
1. YOU’RE AGING OR YOU HAVE AGING PARENTS
Daily Money Managers are great partners for aging lifecare managers because of their expertise in empowering seniors to safely remain in control of their finances. While it might seem counter-intuitive to suggest that hiring a Daily Money Manager allows someone to stay in control of their finances, that is exactly the intent.
While most of us have only helped our own parents or other loved ones navigate aging, a Daily Money Manager who specializes in elder care has experience with the processes of aging and the logistics of smoothly transitioning from complete independence to living with some assistance. They make sure bills are organized and paid on time and are aware of options for aging in place, in-home care and the rules for paying caregivers that family members might lack. This is especially helpful if adult children live in other states.
Having a Daily Money Manager can also eliminate family conflict. The Daily Money Manager acts as an independent third party, working solely in the best interest of the client, removing children or siblings from the responsibility of feeling that they need to look over their loved one’s shoulder or report to each other about delicate money issues. The Daily Money Manager is a second set of eyes, watching out for scams or unusual spending. They can also help create a budget for people relying on Social Security as their only means of income.
Most people have ideas about how they’d like to age. A Daily Money Manager can help ease the burden by working with caregivers, accountants, lawyers and the family to make sure seniors can age with dignity and financial safety.
2. YOU ARE A BUSY PROFESSIONAL
Several of our clients have busy careers, multiple investments, and sometimes homes in multiple states. Meanwhile, they are also raising families. With so many important things to juggle, many just don’t have time to look at the day-to-day financial details.
A Daily Money Manager will make sure the lights stay on at all the properties, property taxes are paid on time and pertinent receipts are kept for tax preparation. They will ensure credit card statements are reviewed and paid on time. A Daily Money Manager also oversees that insurance policies are reviewed as they renew to make sure all assets are covered appropriately. With a dedicated manager, bills and important correspondence will not be overlooked. In our practice, clients have the option to review each bill before it is paid, or choose which ones they’d like to see based on markers like payee or dollar amount thresholds. Everything is paperless, so the processes can be completed anywhere with an internet connection.
A Daily Money Manager will streamline your financial processes so you’re spending less time looking at details and more time enjoying what you have built.
3. YOU WANT YOUR FAMILY TO RUN LIKE A BUSINESS
Just as your business has a month end close and financial reporting to help you make better decisions, your family can benefit from similar attention.
One of our clients is a serial entrepreneur. He also has children and wants them to learn about financial fitness and responsibility. Alongside his business reporting, he has asked us to create a family Profit and Loss report for them to review monthly – children’s accounts included. With this reporting, he can show his family actual data about income and expenses and create realistic budgets so they all can reach their goals.
We also create a personal financial statement for this family, consisting of a personal balance sheet with assets and liabilities. In addition, we keep track of the family’s investment portfolio, consolidating statements from different brokerages and reporting on them in one place. We also update fair market value of real estate and vehicles and watch for purchases of high value items such as art and jewelry, to make sure the client adds them to their insurance policy.
We’re a second set of eyes, reminding the family to make sure preparations are made for college savings, retirement, and estate planning. We’re standing with the client at the center of a hub of trusted advisors, helping coordinate needed items for their accountant, lawyer, broker, banker, and insurance provider. We’re often the go-to person the client relies on for copies of important documents that we keep in our secure permanent files.
To obtain professional certification, Certified Daily Money Managers have passed an exam, satisfied continuing education credits, have passed background checks every two years, and follow a Code of Ethics. LBMC’s Family Office practice offers a team of Daily Money Manager professionals. Contact us for further information here.
LBMC tax tips are provided as an informational and educational service for clients and friends of the firm. The communication is high-level and should not be considered as legal or tax advice to take any specific action. Individuals should consult with their personal tax or legal advisors before making any tax or legal-related decisions. In addition, the information and data presented are based on sources believed to be reliable, but we do not guarantee their accuracy or completeness. The information is current as of the date indicated and is subject to change without notice.