Planning Tips For The New Year
It's impossible to predict what the new year has in store for us, but if you follow some (or all) of these tips 2018 should bring you greater peace of mind.
UPDATE YOUR ESTATE PLAN
I've said it before, but as an estate planning firm dedicated to making sure your plan continues to address your needs and goals, I'll say it again: Don't let your plan become
obsolete. It is vitally important to have me review your plan whenever changes have taken place in your life. Has your financial or medical situation changed since your plan
was created? Have any of your children gotten divorced and remarried, or started families of their own? Do your beneficiary designations continue to reflect your wishes? Are all of
your trusts properly funded? Your estate plan must take all of these issues, and more, into account for it to accomplish your goals. The fact is an outdated or improperly designed
plan is often worse than having no plan at all. This is a great time of year to review your plan and make necessary changes.
Make sure your loved ones know you have a plan. You can have the best estate plan in the world but if nobody knows about it, or can't find it in an emergency, your plan isn't worth
the paper it's printed on. I advise my clients to write a letter to loved ones informing them you have a plan and documenting important information such as:
- The names and contact information of attorneys, wealth managers,
bankers, CPAs, insurance agents, and other key advisors
- The location of your planning documents, particularly your will, powers
of attorney and advance directives
- The location of financial information like bank accounts, pensions,
IRAs, and insurance policies o Medical information including the names of your physicians, your insurance company, the medications you take, and your pharmacy
SHARE YOUR PASSWORDS
Chances are you have so many passwords it's almost impossible for you to keep track of them. Now's the time to make that master list with all your user names, passwords and security
questions in one document, and to let your loved ones know where to find it.
REVIEW YOUR ASSET ALLOCATION
The start of the new year is an excellent time to reassess your investment portfolio to make sure your asset allocation is where it should be to accomplish your investment goals.
Additionally, a stock, mutual fund or other investment that out-performed the market two years ago may not have done as well in 2017. If so, take a long, hard look at it.
MAKE A DETAILED MONTHLY AND ANNUAL BUDGET
One of the greatest fears among retirees and seniors is outliving one's life savings. If you haven't done so already, create a detailed monthly and annual budget. If you already
have a budget, be sure to update it to account for any changes in your income or unforeseen expenses.
TAKE A HOME INVENTORY FOR INSURANCE PURPOSES
What is the precise value of all the "stuff" you've accumulated over the years? If you're not sure, it's time to find out. Photograph your valuable belongings, organize and collect
all the pertinent documentation about them, and have them professionally appraised. Then, be sure to update your property insurance.
START A CONVERSATION
Writing a letter to your loved ones informing them you have a plan is one thing. Talking to them about the details of your plan is another beast entirely. While such a conversation
is infinitely more difficult than writing a letter, the rewards of doing so can be substantial. It is entirely possible that your children would like to know, for example, how you
wish to be cared for in the event of incapacity. Similarly, your children may wonder about your financial situation. Is your house paid for, or are you carrying a mortgage that will
need to be covered if you pass away suddenly? Have you created a will or trust, and if so, do your children stand to inherent any assets? Your children may be hesitant to ask
questions such as these for fear of appearing greedy or insensitive. Yet they may also need this information to do proper estate planning of their own.
I understand how difficult it is to begin conversations of this nature and can help you find the best ways to broach them with your loved ones. Experience tells me that
families who are able to open up in this manner draw closer together and feel a sense of relief afterwards. I welcome the opportunity to discuss this matter with you.
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