Gifts For Your Honey That Last A Lifetime

January 31, 2023

With Valentine’s day just around the corner, it’s time to remind our partners how much they mean to us.  Some of us may go big with our gifting, others may take a more measured approach. Either way, it’s a perfect opportunity for a lifetime gift- financial security that lasts well beyond Cupid’s special holiday.

Retirement Accounts

Helping your relationship collectively secure retirement truly is the gift that keeps on giving.  Look at how much each of you contributes to your 401(k) at work and consider increasing your contributions by 1%.  Even better, sign up for the automatic contribution rate escalator feature if your plan offers it.  This will gradually up that savings rate automatically every year and really boost those balances in the long run.  You can also contribute to an IRA / Roth IRA.  In fact, if you haven’t made contributions for last year, you can still do that through the tax filing deadline.  And then, you can do the same for this year.  Sweeter than a box of chocolates!

Life Insurance

Making sure your honey is taken care of if something happens to you is a true act of love.  Review your existing policies and fill out a needs worksheet or calculator to determine how much coverage you need.  Add additional coverage if there is a gap between what you have and what you need.  For the best deal, review your insurance options at work and compare those to private insurance options.

Estate Planning

A close relative to life insurance, estate planning is all about making sure your wishes are honored. This puts the people you love most in the best position to carry on financially as easily as possible.  Reviewing or creating a few key documents can help maximize inheritance and minimize the hassle of sorting everything out.

Last Will allows you to make gifts, establish guardianship for minor children, and create a Trust upon your death.

Beneficiary Designations states who receives the money from accounts like your retirement accounts and life insurance policies.  Review those today to ensure they are set up per your wishes.

Transfer on Death / Payable on Death accomplishes the same as your beneficiary designations but applies to bank and non-retirement investment accounts.

Power of Attorney authorizes someone to make financial and healthcare decisions on your behalf should you be incapacitated.

Living Will lets you spell out your wishes regarding critical care decisions like life support, resuscitation, and feeding tubes.  This can be a huge stress relief for your spouse/partner in clearly handling a difficult situation.

We all want to show our special someone how much they mean to us. While gifts are lovely, planning for their future is the gift that keeps giving.  Most employers offer resources to help you with life insurance and estate planning, so it’s not a big chore.  What better way to say “I love you” than making sure they are taken care of for a lifetime?