Financial Focus - Bernie Book Case of the Week 1

Obviously, the mood was somber.

Accompanying the wife were her two adult children.

Immediately, I could sense they all shared the same feeling: a common fear of the unknown.

I began by asking her frankly, "Are you worried about how you're going to manage?"

Right away she answered, "Absolutely."

We then discussed briefly some of her many questions, such as how she was going to pay her bills, how she'd do on taxes, and in general, what she would have to do now to support herself.

Even after going through this all this though, I could still see she was concerned as to how she was going to support herself. I then asked her, "Are you still wondering where the money will come from and where it will have to go?

Again, she answered, "Yes."

At this point, I put a Bernie Book on the table. I also put a standard budget sheet on the table. I then advised her and the kids that while I used to use the standard form even in cases like theirs, I now use this book to find out where the money goes.

Then I opened the Bernie Book and began the process, starting with the "housing" page and with how much her mortgage payment was.

We then completed the rest of the book in a remarkable amount of time; under 10 minutes. More over, even with all the stress she had to be feeling, this wife was able to recall almost all these numbers without once referencing her checkbook or looking through her pile of bills.

I then summarized the total and discussed the income.

I told her, without this income, we would have been short each month.

We then discussed the Life Insurance proceeds and the retirement plans. I knew immediately she would have enough income, even if invested at a very conservative rate of return.

I also made some entries for her on the top of the expense page, including her net income and the shortage amount.

Finally, I told her, there would be enough money for years to come.

She wondered how it was possible. Only then did I explain how the proceeds of the Insurance could generate monthly income which would make up the difference.

Immediately, I sensed relief, not only from her but also from her adult children as well.

"Client Comments"
Afterwards, she said to me, "Thank you so much. You don't know how worried I was about all this. The book was so helpful. It was so much easier than the other sheet you showed me. I feel a lot better knowing you can help me with this."