Have you ever heard of DABDA? Maybe, maybe not

What has financial planning got to do with DABDA? A great deal as it happens, but let me explain what it is first.

DABDA is the five stages of dealing with your impending demise and was first described by Elisabeth Kübler-Ross in her book, “On Death and Dying,” published in 1969.

DABDA stands for the five stages that many people go through when having to face up to the reality of dying, if they are forewarned that it is going to happen. The stages are as follows: –

  • Denial
  • Anger
  • Bargaining
  • Depression
  • Acceptance

The five stages are a classic description of the emotional reactions that many people experience when faced with a life-shortening condition. The five reactions are not just restricted to dying, but may also occur in someone who experiences a significant life-changing event, such as a divorce or loss of a job.

Typically, upon hearing the news, a person may be in denial of the fact of what is happening and simply carry on their lives as if nothing was happening, if they able to do so.

However, this often gives way to anger. Such as “How can this happen to me? It’s just not fair”.

The third stage can lead to the person trying to bargain their way out of the position. Such as a change in lifestyle or even resorting to alternative remedies to try and find a cure.

When all else fails, depression and despair can occur. Life itself can seem hopeless and pointless, leading to wondering what it’s all been about.

Out of depression eventually comes acceptance, if you like, a preparation to “meet thy maker” mindset.

Understanding the mechanics of dealing with huge life issues, may just help us prepare for what in end comes to all of us.

What does seem to be very interesting is that the way a person has dealt with these big challenges in the past, often affects how a diagnosis of a terminal illness is handled. For example, a person who has lead a fortunate life and avoided adversity, may find dealing with a terminal illness extremely difficult to deal with emotionally.

Similarly, another person who has faced a lifetime of adversity may be far more able to cope in such a dire situation.

So, what has all this got to do with financial Planning?

Understanding and accepting that this may happen to us eventually, can help us prepare for what I call a “good death” if there can be such a thing. To help us in advance of anything like this happening, we should perhaps consider what Financial Planning we need to do and make sure we have all our “ducks lined up” in advance.

So, what should we be doing?

Here’s my check list of the top 10 financial planning tips I think we need to have sorted out.

  1. Make sure we have a valid Will in place and that it does what you want it to do
  2. Include in your Will, any special requests, such as your funeral wishes
  3. Be certain that all your private documents are all in order and can be located easily
  4. Consider putting a Lasting Power of Attorney in place
  5. Make sure you have adequate life insurance
  6. Make sure it is written in Trust for your chosen beneficiaries
  7. Make sure you have the correct death benefit nomination in place for your pensions
  8. Have a personal asset statement that is up to date
  9. Have a record of any debts and liabilities you may have
  10. If death is impending, go see your financial adviser

A good financial adviser can help you with many of the above.

As morbid as the subject is, it is far better to be prepared for the eventuality, than having to try and arrange any or all of the above if you have limited time left.

Action call: Financial planning

If you would like to talk to about financial planning, please get in touch for a no-obligation meeting. Go to our website www.miadvice.co.uk and contact us via our “Get in touch” form on our home page or Contact Martin Dodd on 01902 742221.

Email us at financialplanning@miadvice.co.uk

It is advisable to take advice from a professional financial adviser when making major financial planning decisions.

Check out our other recent articles here

This article has been prepared in good faith and based on Midlands Investment Agency’s understanding of the law and interpretation thereof at the time of creation. The contents should not be regarded as specific advice and we always recommend that specific advice is sort from a qualified professional. No responsibility can be accepted by Martin Dodd or Midlands Investment Agency Ltd., for any loss that may occur by a person acting or refraining from acting on the basis of this article.


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