The Financial Investment You May Be Overlooking

(ARA) - You carefully nurture your 401(k). Your will is always current and you have diversified your investments. You're not just sitting on your hands waiting for the recession to end; you're taking steps to financially secure the future for yourself and your loved ones.

But there's one important financial planning matter you may be avoiding, and if you are, you're not alone. Even though 70 percent of Americans say they want to minimize the emotional and financial burden their death may place on their loved ones, just 24 percent have actually done something about it - by preplanning their own funerals.

"More people today are viewing preplanning as a natural continuation of preparing their wills and estates," says funeral director Billy Henry of the Dignity Memorial network of funeral, cremation and cemetery service providers. "Still, there are many more who could benefit from the financial and emotional security preplanning provides."

Perpetuated stereotypes and a deep-seated cultural aversion to talking about death are often at the root of people's failure to preplan. No one wants to think about the loss of a loved one any sooner than they must. But today's economic conditions make it more important than ever to prepare for financial adversities of every kind.

To help you incorporate funeral preplanning into your broader investment strategy, Henry and the experts at Dignity Memorial say it's important to debunk a few myths and misconceptions.

Myth: There's no way to talk about this without everyone getting upset.

Bite the bullet and designate a time to have this vital discussion. A conversation this important doesn't just happen casually, although you may broach the subject informally a time or two beforehand. Opening the conversation by telling a parent or loved one you want to ensure things are done according to their wishes may be helpful. Or, your loved one may respond if you present the discussion as your need to have them help prepare you to deal with the future.

However you decide to approach the topic, do your research beforehand so you can better guide the conversation.

Misconception: There's no use talking about death now when it's so far in the future.

"It makes a big difference if you are having the preplanning conversation with someone for whom death is imminent," Henry says. "Most agree it's a much harder conversation to have at that time." Bringing up the subject with loved ones earlier in life, when they are younger and most likely healthier, makes the topic much easier to talk about.

Myth: Preplanning doesn't really have any benefit for younger people or older folks who are financially secure.

The reasons to preplan are valid for everyone, no matter your age or financial status. Preplanning:

* Ensures your funeral will be conducted according to your wishes;
* Eases the burden on loved ones during an already difficult time;
* Helps loved ones avoid emotional overspending; and
* Locks in today's prices should you choose to fund your prearrangement.

If you decide to prefund your arrangements, be sure you understand your state's regulations around the safety of "preneed" funds, Henry advises. "You'll need to be confident your funds are secure, and you should also be sure your prearrangement is portable should you move to a new town," he says.

To learn more about preplanning, visit www.DignityMemorial.com.

Courtesy of ARAcontent