Many families think they have a sound “financial plan” because they own investments or have established a saving strategy for retirement. This is a good start but it’s incomplete.
There are many components to ensuring your financial future and getting your “house in order” is the first step.
What do we mean by that? Here are 3 ways you can start to accomplish this.
1. Sign a healthcare directive and living will.
Don’t go to the hospital unprepared! It is important to have a simple healthcare directive and a living will in place and easily accessible. A misconception we frequently encounter is that healthcare directives are only for older adults. We’ve seen clients experience unexpected, lifechanging circumstances at all ages and believe that health care directives should be a priority for everyone.
2. Create or update your will.
Having this document is essential to ensuring your wishes are carried out but it is one of the most frequently postponed documents to be put in writing. Your will protects you and ensures that your future wishes for your estate are carried out. Even though we are not attorneys, we can help you facilitate this by referring you to an attorney, and once complete ensure that your accounts align with your wishes.
3. Review and update beneficiary designations with life changes.
Proceeds from Life Insurance, 401(k) plans, and IRAs are being left to the wrong beneficiaries because the owners never thought to update them. Your financial documents must be regularly reviewed and evaluated as your life evolves, particularly when it comes to your beneficiaries. Marriages, divorces, births, deaths and other major life events can all warrant changes. These documents are too important to leave unattended.
Although we can’t predict the future, it’s important to have a comprehensive plan in place for how your money and other assets should be distributed when needed. Your life stage will determine the needs of your financial life plan. If you’re young and single, your plan may only include a few items, such as a will, beneficiary designations and medical and financial powers of attorney. If you have substantial wealth, you may need one or more trusts to control how your assets are taxed, managed and distributed.
It’s critical to remember that financial planning is not solely based on investment planning or picking the right investments. While this must be done properly, there are many other vital areas that get overlooked or forgotten. Keep your financial house in order by regularly reviewing your plan and ensuring that you have the fundamentals in place.
Are you ready to get your financial house in order? Call Struble and Company at 931-410-3030 to set a complimentary consultation appointment.
While we are familiar with the legal provision of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on legal matters. You should discuss tax or legal matters with the appropriate professional.