Dear Loved Ones,
There are many questions you have asked me over the years. Despite the fact I cannot give specific advice without knowing one’s full situation, many of your questions required one simple step.
I never know if you did them or not. I care and am concerned that you are in good hands financially. I prefer you avoid a financial situation that could be fixed with a bit of pre-planning, rather than scrambling after the fact.
I seldom hear the follow up. I care. And because we are friends first, I am not the professional you work with, I do not ask.
Today I am wondering if:
Your Retirement Beneficiaries are Correct:
Longtime partners told me, “Oh yeah, we never changed those from family members. But our families know who to give it to.” By law, the money goes to immediate legal family. If they chose to then pass it on to a partner, there are potential taxes that may diminish those funds. I hope you have designated your partner by now.
Life Insurance Beneficiaries Updated:
A young recently married couple told me, “We were so busy with our wedding planning and honeymoon, we never updated our life insurance and company benefits. This will go to our spouse automatically now that we are married, right?” No, no, no. You need to make the changes on your policies and with your company. Easy enough to do today. Get on it.
You Have an Estate Plan to Match Your Current Life:
Our lives constantly change: we move, we have children, our assets grow, we have grandchildren, we marry. Too people many make major shifts and leave their former will in place. They often forget or do not understand that you need a recent Power of Attorney for your finances and Health Care Proxy. I do hope after you made the move out of state, you followed up with a new estate plan in your state of residence.
You Have Assigned A Guardian for Your Children:
This is designated in your estate plan. Otherwise, their guardian many be your next of kin or appointed by the court. A legal guardian is responsible for the health and financial care of a child until “legal majority” in the state of residence. Be Kind to your children. Create a will with your wishes and a lawyer to carry them out.
You have Left a Paper Trail. Or Digital Trail:
Being in good financial shape with an estate plan and well organized records is great. If no one can find them when you fall ill or pass on, then they are of little use to the people who need them most. I hope by now you have told someone how to find your paper trail, making it easier on your loved ones at a dire time.
Leave behind a legacy of love.
This CFP Wishes for My Loved Ones
My Valentine:
1. Have a Well Done Estate Plan, Have Peace of Mind
2. Have Cash to Offset Stress of Life Events
3. Review Your Investments Every year.
Life changes. Have that balance of stocks, bonds, growth and value investments. Create an estate plan. Keep a cash account. Then you can weather any movements in life or the stock market