5 Estate Planning Steps Literally Everyone Needs To Take

January 04, 2024

You may be thinking that you do not have the need for an estate plan or at least there is no harm in delaying getting started with estate planning. The truth is that anyone with savings, debt, a spouse, children, a home, or a retirement plan needs to at least have the basics in place.

Hopefully, it’s true that you won’t need it for decades to come, but should something happen and you don’t have a plan, it could make a HUGE difference, sometimes even while you’re still alive.

Here are the 5 critical steps – make a plan to check these off the list today.

Step 1: Create or review your will

If you have a current will, congratulations! You have already taken an important step in the estate planning process. Your will controls the distribution of everything you own that doesn’t have a beneficiary designation and can also name a guardian for any minor children. Things that you pass via will include:

Tangible personal property like your home, your car, and all your stuff
Individually held financial accounts such as savings, checking, stocks, bonds, and mutual funds held outside retirement accounts which do not have a beneficiary designation.

Don’t have a will? If you die without a will, your state has laws that determine who gets your money called laws of intestacy. These laws vary from state to state but generally give first priority to your spouse and children. If you have neither, then blood relatives including parents, siblings, and others are your default heirs, under a specified order of priority. If no blood relatives can be found, your money goes to the state Treasury.

Protect your children! Should your minor children lose both parents, your will determines who will raise them and manage your money on their behalf until they reach the age of majority. If you die without a will, the state will name a guardian to take the children – and it may not be who you think is the most appropriate person!

In your will, you can designate a guardian for your children, as well as one or more alternates in the event your first choice is not available. You can name the same person, or a different one, to manage any money left to your children as well.

Step 2: Review your assets and update beneficiary designations

Many people think that once they have made a will, all of their assets will pass according to that document. Actually, a large number of your most valuable assets are not subject to probate, meaning they may NOT pass by will. Use this checklist to keep track of specific exceptions to your will.

Do you…

Own any bank accounts, mutual funds, or brokerage accounts in joint name with someone else?

-If yes, the joint account owner will automatically own the assets upon your death (in most cases). Also, in most states, you can designate an individual account to be “Payable On Death” (POD) or “Transfer On Death”(TOD) to a named beneficiary for the same result and the account will “skip” your will (and probate).

Own real estate with another person?

-If yes, real estate owned as joint ownership with rights of survivorship also does not pass by your will but goes directly to the other joint owner automatically.

Have insurance policies, annuity contracts, employer retirement plans and/or IRA’s?

-If yes, keep your beneficiaries updated. All of these account types require you to name who will receive the account or policy value upon your death. If you fail to name a beneficiary or all beneficiaries have died before you, the account will be payable to your estate.

Have a trust?

-If yes, your trust will determine how the trust property is distributed to beneficiaries, but only if you take the necessary steps to re-title accounts and other assets to the trust. Failure to change the title to the name of your trust will cause them to pass by other means, regardless of what the trust says.

All of these exceptions pass directly to the person named, and not by your will. It is extremely important to keep your beneficiary designations up to date – it is not uncommon for older life insurance policies and previous employer retirement plans to be paid out to ex-spouses or other unintentional parties. Updating your will does not fix these accounts, since they are not subject to your will.

Step 3: Evaluate your insurance coverage

Whether your income stops due to death or disability, the effect on your family is the same. Where will the money come from to replace your paycheck? Insurance may be your best option. Without it, your family may need to sell assets, move to a less expensive home and/or disrupt college and retirement plans.

Life insurance. Use this calculator to get an idea of how much insurance you need to have in place. Once you decide on the right amount for you, be sure to find out what benefits you have through work first. Sometimes, you can get all of the life insurance you need there at the most affordable rates, but if you can’t, look into supplementing with a personal policy.
Disability insurance. This is your paycheck insurance – should something happen that keeps you from being able to work, this insurance kicks in to replace some of that until you’re able to work again. Statistically speaking, this is the insurance you’re more likely to use during your working years. First, confirm any coverage you have through work and find out if you can add to it, if necessary — most group plans are broken into Short-Term and Long-Term and often have lower premiums than individual policies. It’s important to know that most policies only provide 60 – 70% replacement income, so should you become disabled, you’ll still have a drop in income. Use this calculator to see if you need to purchase coverage beyond what you have through work.

Step 4: Check your powers of attorney

Remember that your will doesn’t take effect until you actually pass away, but what happens if you have an accident or are otherwise unable to make financial or healthcare decisions for yourself? You can designate someone else to make these decisions for you using the following important documents:

Advanced Directives – There are two types of documents, called advance directives, that can be prepared as part of your estate planning for future medical decisions.

Living Wills – If you have strong feelings about what type of medical care you want (or don’t want!) and you are unable to communicate, a living will can do it for you. This is a document that you can use to state under what circumstances you wish to be kept alive by artificial means. If you do not express your views in writing, all available means of treatment to maintain your life are usually provided, even if family members object. Therefore, if there are conditions where you would not want treatment, it is important that you state your wishes while you are able to do so.
Medical Power of Attorney – While the title and wording of this document may vary from state to state, most states permit a document that enables you to select someone to make medical decisions on your behalf. This power can only be exercised when you are unable to communicate but is not limited to situations where you are terminally ill.

Durable Power of Attorney – There can be a number of situations where you may need someone else to make financial transactions on your behalf. Whether you’re traveling overseas, in a coma, or sequestered in a jury, a document called a durable power of attorney permits the person named as your agent to sign documents, trade securities, and sell property. You do not have to be unable to act for yourself in order for your agent to act on your behalf.

The agent does have to act in good faith, and may not abuse the power of attorney for his/her own advantage. If you sign a power of attorney that is not specifically durable, the power is revoked upon your disability or inability to communicate. With a durable power of attorney, your agent can make the necessary transactions in order to pay your medical bills or make sure your family has the money they need.

Living Trust – Another method is to place your assets in a living trust. Don’t confuse this with the living will described above. Although they sound similar, they are very different. A trust is simply an arrangement that provides for a third party to manage your assets for a beneficiary, upon your death. A living trust allows you to start a similar arrangement while you are still alive. You can be your own trustee, and simply name a successor trustee to take over upon your death or disability. A living trust is a more expensive estate planning tool than a durable power of attorney, but it can also be customized to your specific needs. It is particularly useful for more complicated situations such as second families or people who own property in multiple states.

Step 5: Monitor your estate plan

Things change. That’s why you should review your estate plan whenever a life event occurs for you and your family. Even if it seems like nothing’s changed, you should review your estate plan every few years at a minimum. A good rule of thumb is that you should update your will any time someone enters or leaves your life (aka birth, marriage, divorce, death)

Documents to review

Your will and any trusts
Powers of attorney
Beneficiary designations on employer-sponsored retirement plans (401(k), 403(b), 457, etc), IRAs, life insurance policies, annuities, HSAs

An estate plan, like a financial plan, is always evolving as your life changes. It can be easy to delay making an estate plan because there are several important decisions you must make, but don’t fall victim to analysis paralysis. You can always change your documents as long as you’re still of sound mind, so choose what works for your life today, and then make updates as things change. Also, be sure to check with legal benefits offered by your employer to help with the estate planning process.

How To Choose Between A Will Or Trust

January 01, 2020

1. Is privacy important to you?

A. No, I don’t mind that the distribution of my estate is public record via the Probate Court. (0 points)

B. Yes, I want to keep how much I have and where it goes between me and my heirs. (1 point)

2. Do you or your spouse have children from a previous marriage?

A. No (0 points)

B. Yes but we view our children as part of one big family (0 points)

C. Yes and it’s important that they are cared for along with my spouse (1 point)

3. Do you have a family member that will require help managing their inheritance upon your passing or that qualifies for government assistance?

A. No (0 points)

B. Yes, I have someone I care about that either needs help managing money or whose government benefits would be compromised by inheriting money from me (1 point)

4. Do you own a lot of assets besides your home, retirement accounts and life insurance?

A. No, that’s pretty much it (0 points)

B. Yes, I/we have a notable amount in brokerage accounts and other savings that won’t pass by beneficiary of law (1 point)

5. Do you or your spouse own a business?

A. No (0 points)

B. Yes, one or both of us has a business that would need to be wound down or passed along upon death (1 point)

6. Do you own property in another state such as a vacation or rental property?

A. No (0 points)

B. Yes (1 point)

7. Do you expect to have a taxable estate?

A. No (0 points)

B. Not under current law, but if it changed, I might (1 point)

C. Yes (1 point)

Results

Add up your total points to review what might make the most sense for your situation:

0 points: You will probably be fine with just a Will, which requires you to name an executor and will be processed through the local Probate Court in the county where you live.

1 – 2 points: A Trust probably makes sense for you, although depending on your situation, an Intestate Trust created inside your Will could provide the same benefits of a Living Trust. Consult with an attorney to decide.

2 points or more: Some type of Trust is the best way to ensure that your assets are distributed the way that you wish while also possibly saving on fees, administrative headaches and taxes to your heirs.

The Crucial Estate Planning Step Everyone Needs To Check Every Year

October 17, 2018

When was the last time you checked to make sure that all of your beneficiary designations were set up properly? It’s a good idea to take a look after any big life change such as marriage, divorce, birth or death in your family. However, even if no one important has entered or left your life recently, it’s a best practice to make sure that everything is correct at least once a year. Open enrollment is as good of time as any, since you’re more likely to be poking around your work benefits site anyway.

Why check if nothing’s changed?

Maybe nothing has changed in terms of who you’d want to inherit your assets that pass via beneficiary designation, but perhaps the actual benefit has changed. For example, the HSA provider my company uses was recently acquired by another vendor. Supposedly the beneficiary designation information was transferred along with my account to the new provider, but I was unable to verify that by logging in to my account, so contacted them to confirm.

Other reasons to consider updating beneficiary designations

Marriage, divorce, birth and death are very definitive reasons to prompt a review, but there are other subtler reasons to make updates as well:

Your children are now adults, so you may want to add them as contingent should your primary person (often your spouse) pass first
You’ve become closer to certain family members and/or grown apart from others
You have only certain children who will inherit a significant asset like your house or business, so you use other accounts to equalize with the rest of your family
You want to leave money to a charity — using HSA or traditional retirement accounts is a more tax efficient way to leave money to charity than a bequest in your Will or part of a life insurance policy

What happens if the beneficiary is not set?

One of the benefits of accounts that allow you to assign a beneficiary is that it can help you to avoid probate, which is public and can be costly, while also holding the assets up while the person’s estate is settled. (Here’s a real-life story where that happened)

If you pass away and no beneficiary is named for accounts that have that feature, your estate automatically becomes the beneficiary, which means it will go through probate.

When the beneficiary is set, but it’s the wrong person

Your Will does NOT override beneficiary designations, so for example, if you name your sister as the beneficiary of a life insurance policy, then neglect to change that once you get married, your sister may actually inherit the proceeds, even if you have a more recent Will that says your spouse should receive everything.

Even worse, there are countless cases of people who got divorced, but forgot to change their beneficiary from their ex-spouse. This gives a whole new meaning to the phrase, “over my dead body…”

Use this checklist to make sure ALL accounts are up-to-date

Set some time aside to review any of the below to make sure the beneficiary is who you want it to be, based on your life today.

Pension
401(k)
IRAs
Former retirement accounts
Life insurance through work
Other life insurance
HSA
Employee Stock Purchase Plan
Annuities
Deferred compensation plans
529 and Coverdell Education Savings accounts

How To Handle Estate Planning For A Blended Family

May 31, 2018

Are you in a marriage and have children from a previous relationship? If so, you’re considered a “blended family” and may have some unique estate planning needs. That’s because a standard estate plan that leaves the bulk of your assets to your current spouse could leave your children from a previous relationship cut out of their inheritance if your spouse passes those assets on to their own children and relatives. Here are the pros and cons of some ways to address the problem:

1) Leave the assets to your children in your will and beneficiary designations.

Pro: This ensures that your children will get what you want to leave them.

Con: You may want to leave more of those assets to provide for your current spouse. Your children from a previous marriage may not get anything you do leave to your current spouse.

2) Draft a trust to provide income from your assets to your current spouse with the remainder passing on to your children after their death.

Pro: Your current spouse can benefit from the income from your assets while your children can inherit what you want to leave them. The trust can also avoid the time and cost of probate and can even be structured to minimize estate taxes.

Con: Drafting a trust can be expensive, although you might be able to reduce the cost if your employer has a prepaid legal plan that includes estate planning. You may also want your spouse to have access to more than just the income from your investments.

3) Leave the assets to your current spouse with the mutual understanding of how those assets will be passed on after their death.

Pro: This provides the most flexibility and avoids the cost of drafting a trust.

Con: It may be too flexible in that your wishes are not legally binding and may not be carried out.

4) Buy a permanent life insurance policy for your kids from your first marriage.

Pro: Allows you to leave everything else to your spouse, without worrying whether he/she will leave anything to your kids that you don’t share.

Con: This only works if you are healthy and able to obtain the insurance as well as pay the premiums for the rest of your life.

Some people use a trust to own the life insurance as an additional layer of ensuring the proceeds of the insurance are used for the best interest of their kids — consult an estate planning attorney to see if that added layer makes sense in your situation.

The bottom line

There’s no one right answer here. As with most estate planning, the important thing is that you give your wishes some thought, ideally in conjunction with your spouse, and get them in writing. Whatever you do, don’t wait too long. By the time you need estate planning, it will be too late.

7 Steps To Your Financial Independence Day

July 04, 2017

Happy 4th of July! To honor the theme of independence, I’d like to share an oldie but goodie, written by my colleague, Greg Ward, updated for 2017. Enjoy and have a safe celebration.

To honor our nation’s birthday, why not declare your own personal “Financial” Independence Day? To me, financial independence equates to not having to worry about money, so if you are worried about your finances, take these seven steps to economic freedom:

Step 1 – Establish an emergency fund

Failing to set aside money for an economic emergency or a rainy day is a sure way to get you in trouble if and when the rain comes. Arm yourself against such things by putting aside six to twelve months of expenses in a safe, liquid account such as a savings account or a money market fund. You won’t make a lot, but you’ll have something to help you weather the storm. A well-funded emergency fund is the first step to a worry-free financial life.

Step 2 – Pay off high-interest debt

Borrowing money at a high interest rate is a form of voluntary slavery. Emancipate yourself by committing extra payments to the debt with the highest interest rate. Once that’s paid off, use the newly freed money to make an even bigger payment on the debt with the next highest rate, and continue this process until all high-interest debt has been wiped away. If you are truly averse to debt, you can continue the process until your low-interest debt, such as your mortgage, is paid off too. Not owing ANYONE money may be the ultimate form of economic freedom. See how a little extra payment can go a long way toward paying off debt with our DebtBlaster calculator.

Step 3 – Save more for retirement

According to our research, over 90% of employees are saving for retirement, but less than 30% are confident in their ability to achieve their retirement goals. Take the worry out of retirement by running a retirement projection, and applying any recommended changes. For many, it’s simply a matter of socking away more. For others, it may mean working a few more years, or investing a little more aggressively. Whatever you do, don’t rely solely on your employer or the government. Financial independence comes from self reliance.

Step 4 – Manage your income taxes

Don’t let fear of the tax man cause you undue worry. In the spirit of the Boston Tea Party, say no to higher taxes by contributing to tax-deferred accounts like a traditional 401(k), IRA or even your HSA. You can avoid income taxes in the future by contributing to a Roth retirement account today, or save for specific expenses completely tax free by contributing to a flexible spending account or health savings account. There’s nothing wrong with paying your fair share, but that doesn’t mean you have to give Uncle Sam an interest-free loan every year, which is exactly what you are doing if you receive a large tax refund every year. Take back what’s yours by adjusting your tax withholding so that you pay what you owe while keeping what you deserve. Knowing you WON’T owe the IRS money is another step toward financial freedom. The IRS has a nifty withholding calculator you can use to estimate the appropriate number of allowances to claim on your W-4 tax withholding form.

Step 5 – Invest in and out of the U.S.

America may be the land of the free and the home of the brave, but it only represents about half of the world’s economy, so make sure to diversify your investment portfolio so that it includes both foreign and domestic holdings. Complement your U.S. stocks and bonds with international stocks and bonds, and don’t overlook investing in emerging markets (as long as you have the tolerance for the volatility, that is). Round out your portfolio with a decent level of exposure to real assets such as commodities and real estate. That way, when you read about the economic problems in Europe and the U.S., or about the possibility of higher interest rates or rising inflation, you can take comfort in knowing you have exposure to assets that may actually perform well in these types of environments.

Step 6 – Have adequate insurance

No one ever expects to get into a car accident, become disabled, end up in a long-term care facility, or die young, but the reality is that such things will happen, and being without adequate insurance is a sure way of putting you and your loved ones in a financial mess. Maintain your financial independence by insuring against such risks. A well developed insurance plan offers peace of mind, so review your coverage periodically to ensure you are prepared for whatever life throws your way. A good insurance agent can help you understand the risks, and make sure you are adequately protected.

Step 7 – Have an estate plan

You’re working hard to achieve the American Dream, don’t lose it for lack of planning. Learn how to maximize wealth transfers by utilizing tax credits and exemptions. You can also minimize estate taxes and probate fees through proper asset titling and the use of trusts. Your estate plan should include a will, a financial and healthcare power of attorney, and a healthcare directive (also called a living will). Without an estate plan, you may have to rely on the government to decide who gets your stuff when you pass on. A good estate plan allows you to control your assets “beyond the grave,” thus preserving your financial independence. There are a number of websites that provide access to inexpensive estate planning documents, including www.nolo.com and www.legalzoom.com.

Our country was founded on the principles of life, liberty, and the pursuit of happiness. I don’t know about you, but for me, happiness comes from knowing I’ve done all I can to protect me and my family from financial hardship. If you wish to live financially independent as I do now, take these steps, and choose to live financially free! There’s nothing more patriotic than that.

Build Your Own Financial Olympic Team

August 19, 2016

As I write this, Michael Phelps is about to hop into the pool in search of his last Olympic gold medal. He has one race left in this Olympics and has been as dominant in this Olympiad as he was 8 years ago. Throw in Katie Ledecky who has been smoking the field in her races, Chase Kalisz and Jack Conger (other Maryland Olympians who have medaled) and my home state has more Olympic medals than every country except the USA right now.

If Maryland were a country, we’d be #3 in the world in Olympic gold medals. That’s astounding that so much talent is concentrated in one area. I hardly think it’s coincidence. Kids here grew up wanting to be Anita Nall or Beth Botsford or Whitney Phelps or Michael Phelps, hometown kids who made the Olympic team and came home and encouraged others to work hard and follow their dreams, and some dedicated kids and parents put in the work required to continue the tradition.

Lots of talent, all in one place, performing at a high level – that sounds a lot like the team I’m a part of at Financial Finesse and the team I try to help people build in their personal financial lives. One person can’t know everything about the world of personal finances, so as I work with people to improve their financial lives, I want them to view the people in their “financial family” as Olympic-level advisors. If they can’t imagine the people around them as high-level performers, then maybe it’s time to find a new financial team! Here are some of the positions you should have on your high-performing financial team:

Primary care physician: I can hear the “What??? A doctor isn’t a part of a financial team!” thoughts going through your head. But if you’ve talked to as many people as I’ve talked to who are in financial distress because of serious medical bills, you might see your physician as a key to preventing financial disaster down the road. As a guy, I am not always the best at getting myself into the doctor’s office on as regular a schedule as I perhaps should. So I have people in my life who periodically remind me to take care of myself. Focusing on your health and having a relationship with your physician where you can ask questions, challenge “conventional wisdom” and manage your health in a way that works for you is a key step, and the physician is a critical part of your financial team.

Insurance advisors: This doesn’t have to be an insurance salesperson but someone (or someones) who understands the importance of insurance coverage. Auto insurance – what coverage matters? How high can a deductible be and still be effective? What factors drive pricing?

Life insurance – for your life, is term or permanent better? Why? How much should you have?

Health insurance – which plan is appropriate for you and should you have a health savings account compatible plan? Long term care – is it appropriate, and what factors drive pricing? This is just a small sampling of the types of questions your insurance advisors should be able to guide you toward answering.

Investment coaches: This can be a financial advisor who manages your money, a financial planner you hire on an hourly basis, or a friend or family member who knows their stuff and will put your interests first. While most people who discuss investments want to talk about which stocks are going to be amazing, that is not the most important investment conversation to have. The big driver of your overall investment picture is the very boring question: What percentage of your portfolio is in stocks vs. bonds vs. cash?

For those who were all cash in 2008, they earned a positive return of around 1% when those who were 100% invested in stocks lost about 40%. Top line asset allocation matters! If you can work with your investment coach, whoever that is, to be sure that your asset allocation is in line with your goals (here’s a quick risk profile for you), you will be better off than most of the individuals I meet who have no clue what their overall asset allocation is.

Estate planning attorney: For your estate plan, I’m a big fan of working with an attorney who specializes in trusts and estates. Even if you don’t have a large estate, it still makes sense. In fact, I recently wrote a blog post about why I left my estate planning to a professional, so I’ll let you read that rather than restating the case here.

If you put together your Olympic financial team and work with them on a regular basis, I’d give you greater odds of becoming and/or staying financially secure for the rest of your life than if you opt for a 100% do-it-yourself model. After all, few of us are Olympians in all areas of our financial lives. As I get older, I’m learning that sometimes it’s not just okay but preferable to ask for some help in an area where you don’t feel like your knowledge level is where it should be.

Can a Computer Replace Your Financial Advisor?

June 30, 2016

If driverless cars can replace your Uber driver, should a computer replace your financial advisor too? This isn’t just speculation. Automated investing services called “robo-advisors” are becoming more popular and even your 401(k) plan may offer an online investment advice program. Let’s start by taking a look at some areas that computers do well when it comes to personal finances:

Expense tracking. Many people use computer programs like Mint and Yodlee MoneyCenter to track their expenses. This can be very helpful if you don’t have the time or inclination to do it yourself.

Insurance needs. Since there can be a lot of variables, a computer program can be very helpful calculating how much insurance you need, especially with life insurance.

Debt payoff. Computers programs can also calculate how long it would take to pay off your debt and the effect of making additional payments.

Credit analysis and monitoring. Online programs like CreditKarma, Credit Sesame, and Quizzle can provide you with a free credit score, advice on improving it, and free credit monitoring.

Retirement and education funding projections. As long as the inputs and assumptions used in the calculation are reasonable, a computer program can do an excellent job here too. In fact, any human financial planner will probably NEED a computer program to calculate whether you’re saving enough for retirement or education expenses. Of course, there are a lot of unknowns but a good program can help you determine if you’re in the ballpark and allow you to measure your progress over time.

Asset allocation. Deciding how to optimize your investment mix is another task that financial planners typically use a computer for. It’s also the quintessential service provided by robo-advisors. The ability to customize your investments around not only your time frame but also your personal risk tolerance and possibly even to minimize your taxes and complement your other investments is one of the advantages of a robo-advisor over a more simple asset allocation fund.

Investment management. A robo-advisor can also add value to a portfolio by automatically rebalancing it periodically. Some robo-advisors even sell losing investments in a taxable account so you can use the losses to offset other taxes.

Simple tax preparation. Programs like TurboTax, TaxAct, and TaxCut are widely used for tax preparation. However, I would suggest using a professional tax preparer if you have a rental property or a business since there’s some judgment involved in knowing which category to classify various incomes and expenses.

Basic estate planning. If you just need basic estate planning documents like a simple will, a durable power of attorney, and an advance health care directive, you can use a computer to draft these documents and even store them online at little or no cost. If you have a more complex family or estate situation, you may want to hire an attorney to draft a trust though.

Account aggregation. Finally, if your financial life involves a lot of the above, you might want to use an account aggregation program to compile all the info in one place.

So what are computers NOT good at?

Getting you to use them in the first place. For example, our research shows that 76% of employees who are not on track for retirement haven’t even run a retirement calculator at all. The fanciest workout equipment won’t do you any good if you don’t actually use them. A financial planner can be like the personal trainer that gets you to go to the gym.

Motivating you to take action after the calculation. Many people run a retirement calculator but then never actually increase their savings enough to get on track. Some programs use a gamification model that can turn action steps into a game, but they aren’t always effective. A good financial planner can both get you to the gym and make sure you actually do the workouts.

Stopping you from sabotaging yourself. How many of us are tempted to overspend on something we don’t need, to make a risky bet with money we can’t afford to lose, or to bail out of our investments during a temporary downturn in the market? Just like a personal trainer can keep us from breaking our diet or over-training to the point of injury, stopping you from making costly mistakes is one of the most important functions of a financial planner. Even the most sophisticated investors can benefit from at least having a second opinion to bounce ideas off of.

This doesn’t necessarily mean that everyone needs a financial planner. You do need to be honest with yourself though. How disciplined and motivated are you when it comes to your personal finances? If you just need the right information to make decisions, a computer can certainly provide that. If you need more, you might need an actual human being.

One Step to Prevent Elder Abuse

January 12, 2016

When I was a financial advisor in private practice, my favorite clients were the elderly. They are so much fun to talk to and I learn so much from their life experience. My favorite group is the “World War II” generation. There is something special about the “generation that saved” the world. However, as they grow older, I realize that it is our turn to save them. Continue reading “One Step to Prevent Elder Abuse”

Financial Rules of Thumb: How Much Life Insurance Do You Need?

November 18, 2015

One of the less fun areas of financial planning is also one of the most important parts: protecting yourself against financial disasters with insurance. Life insurance is even more of a downer to consider because in order to have it pay off, someone has to actually die. Ugh.

Continue reading “Financial Rules of Thumb: How Much Life Insurance Do You Need?”

Lessons From the 405

April 01, 2015

On a recent trip to Los Angeles, I was the passenger in a van that was traveling down the 405 late at night. Now if you are at all familiar with LA traffic then you probably can understand that most of the road construction the California DOT does in the LA area is done well…late at night. On this particular occasion, they were doing work on the left shoulder, which is coincidentally next to the car pool lane—the lane in which we were traveling (at a pretty good pace, I might add). Continue reading “Lessons From the 405”

The WWII Generation Has More to Pass On Than Just Assets

March 03, 2015

A new buzz word in the financial service industry is “holistic wealth management.” This is an approach to managing wealth that looks at all of the areas of someone’s finances – not only their investments but taxes, insurance and even legal needs. One of the areas I feel gets the least attention is an approach to passing on the legacy of wisdom from one generation to the next. Continue reading “The WWII Generation Has More to Pass On Than Just Assets”

Making the Most of Family Gatherings

January 20, 2015

Family gatherings are a great time to catch up on the latest happenings of family. I love seeing how much taller my nieces and nephews have grown. I especially love watching the new parents, with a look that is a combination of wonder and terror mixed with love as they look at their newborn babies. Continue reading “Making the Most of Family Gatherings”

Lessons From a Five-Hour Flight

January 14, 2015

On a recent flight from Charlotte to Los Angeles, I sat next to a gentleman who has had quite a rough year. Without going into a lot of detail, he spoke with me about the recent passing of his father. For many, the thought of losing a parent would be rather hard, but for my traveling companion, he spoke of his father’s passing as somewhat of a relief. You see, his father began to suffer from cognitive impairment earlier in the year so much that he was eventually confined to a nursing home. His health deteriorated quite rapidly, and he was only in the nursing home for about three months when he passed. Continue reading “Lessons From a Five-Hour Flight”

Estate Planning After Your Will is Drafted

August 29, 2014

I talk with a lot of people who have absolutely nothing done in their estate planning efforts.No will, no medical directives, nothing. So, I spend a lot of time talking about what would make up the standard “Estate Planning 101” package that they could have an attorney draft. The basic documents that nearly everyone should have in place are a will, powers of attorney for financial and medical decisions, and advance medical directives. With these basic documents in place, most people could check “estate planning” off of their to do list. But, to dig a layer deeper, what are some things that you can do after you’ve signed your basic documents, never to look at them again? Continue reading “Estate Planning After Your Will is Drafted”

Lessons From a Tragedy

August 28, 2014

If you’re like me, you were shocked and horrified when you found out about Robin Williams’ death. I can’t tell you how many interviews I listened to and movie clips I watched of him in the days after the horrible news. Buried in all that media coverage, I also saw this article pointing out that unlike so many other celebrities with untimely ends, at least Williams spared his family additional stress and grief by taking care of his estate planning with a revocable trust. Continue reading “Lessons From a Tragedy”

Do You Have An Advance Directive?

April 16, 2014

As a husband and father of four children, it is important to me to make sure my family is taken care of in the event of an emergency. I have done a few things such as create an emergency fund, draft a will, and purchase life insurance, but there are a number of things I still have left to do. One of the more important items I still have left on my to-do list is an advance health care directive. Continue reading “Do You Have An Advance Directive?”

Charitable Intentions With Potentially Uncharitable Results

October 29, 2013

My husband was ecstatic last weekend as the winning bidder of four Ravens tickets at a silent auction. The silent auction was part of a fundraiser for my friend’s niece, Melissa, who has been suffering from a rare illness that left her paralyzed from the waist down. Her story captured the attention of the local newspaper, then went viral when she was the featured recipient of Chive Charities for Hope for a Home. When I made the check out to pay for the Ravens tickets, I was told to make it payable for $350 to Melissa, but my check was miniscule compared to the over $388k raised altogether. I was so happy that Melissa’s fundraiser had been such an amazing success, but I was also concerned about the consequences these donations might have on her since I was writing the check directly to her. Continue reading “Charitable Intentions With Potentially Uncharitable Results”

Your Last Wish

September 24, 2013

Do you have a last wish? I hadn’t given it much thought until last weekend, when I sadly had to attend a memorial of a friend who died unexpectedly at the early age of 48. Tom left behind a wife, a grown son, and his childhood best friend John, who he’d stayed close with for over 40 years of their lives. Continue reading “Your Last Wish”

A Simple Estate Planning Checklist For a Challenging Topic

June 17, 2013

What does your current estate plan look like? If you said you don’t have an estate plan, you’re probably wrong because the state you live in actually has a plan for your estate if you die without a will, trust, or other crucial documents. If your line of thinking is “what estate…I’m overwhelmed by debt” or “I’m single with no kids” or “I’m young and just getting started in my career,” understand that everyone has an estate and needs an estate plan to make sure your individual, family, and financial goals are met once you die. Continue reading “A Simple Estate Planning Checklist For a Challenging Topic”

Five Step Check List for Your Estate Plan

October 08, 2012

What did Heath Ledger and former Supreme Court Justice Warren Burger have in common? Their career choices couldn’t have been more different but in their estate planning, they made similar mistakes — ones that could have been easily avoided. Heath Ledger made the mistake of not updating his will when his daughter was born and even though Warren Burger was a Supreme Court Justice, well versed in the law, he made the mistake of doing it himself and ended up leaving out some key provisions. In both cases, the family paid the price. If a Supreme Court Justice can make a mistake, anyone can. Continue reading “Five Step Check List for Your Estate Plan”