Turning Point Financial

Preparing Your Finances For Volunteer Service

Volunteer with high school students in Tanzania

So you’re at a point in your life where you’re ready to quit the daily grind and start following your true passion.  For many people today, this means doing some kind of humanitarian work, missionary work or other volunteer activities.  It’s the time in your life when your days are just as busy as ever, buy your only pay is the heart-warming satisfaction that comes from giving back.  It’s a time when most people find that in serving others, they grow more than they ever thought they could.

Preparation For Service

Whether you’re planning to serve in another state, or in a foreign country, there are a lot of things you need to prepare for prior to leaving.  In addition to making arrangements for your house, car, & utility payments, there are a lot of financial things to think about.

Power of Attorney

A power of attorney gives someone else the power or authority to act in your behalf in legal or business matters.  This obviously needs to be someone you trust very much, like a family member or trusted advisor.  This person can sign binding documents in your behalf and do pretty much anything you could do for yourself (with the exception of changing a will).  If you are serving somewhere in Africa you will not very easily be able to sign a tax return, or endorse a check that needs to be cashed.

Online Account Access

These days you have to be pretty darn remote to not have online access to your financial accounts.  But there are STILL a lot of places you could go where your only source of power would be from a currant bush.  Just in case you do have an opportunity to get on the web at some point during your mission trip, you’ll most likely want to check in on your bank & brokerage account balances.  Here, you can usually also get copies of tax forms too which can be very helpful.  Make sure that wherever possible, you are set up for online account activity.

Insurance Coverage

You may be going to a place where you’ll have healthcare provided to you as part of the project.  But in the event that you’re on your own for health care, you need to make sure that you have adequate health insurance.  You can buy foreign travel health insurance if you need to, but you’ll want to do your homework on it.  If you’re serving stateside and you don’t yet qualify for Medicare, you’ll want to make sure you have a good health insurance plan with a nationwide network of doctors.  If you need to get some health insurance quotes, go to www.TurningPointBenefits.com.

Investment Management

Your investments are one thing you definitely want to have someone keeping an eye on for you while you’re gone.  This could help you avoid a terrible financial disaster, and help you to relax and focus on what you’re there for.  Choosing a good money manager who will put your best interests first is a critical to making this work.  Hiring a Certified Financial Planner will help ensure that your advisor is looking out for only you.  See my previous post called Why Work With A CFP? for more information as well.  Asking a family member to take care of this might save you a little money in the short run, but could cost you royally in the long run.  An experienced & trustworthy financial planner will be worth their weight in gold.  You will always be able to communicate by email and get your statements and trade confirmations online as long if you have internet access.  Also, most banks and financial firms can forward your paper account statements to overseas addresses as well.

Now Go To Work!

Once you’ve taken care of these critical financial issues, you can focus on your volunteer service whole heartedly.  Now it’s time to get your VISA and get to work!  Good luck!

If you would like to talk with us about helping you with any of the financial matters listed above, CLICK HERE.