“Over the next 25 years, nearly $68 TRILLION dollars could pass to the next generation. Are your heirs ready to take control of those assets?”- Brad Pistole
Estate planning is a sensitive and somewhat controversial topic for many people. One reason for this is the erroneous belief that estate planning is something about which only wealthy people need to be concerned.
The notion that legacy planning is exclusive to millionaires persists despite increased financial literacy and media attention.
People tend to avoid discussing estate planning because their financial advisors are sometimes uncomfortable having this conversation. It’s often the case that advisors prefer helping their clients accumulate assets or prepare assets for retirement instead of dealing with legacy and estate planning.
Still, there is much at stake for you and your heirs, regardless of your financial status. Even if you already have an estate blueprint in place, it’s a good idea to regularly review and update this blueprint to reflect your current values, life events, and changes in your goals and attitudes toward wealth.
Are you worried about money’s impact on your loved ones?
Various emotions surround what happens to a person’s wealth when they die. Many people are wary of opening a Pandora’s Box of anxiety by thinking about their estate plan. Still, as you approach the time when you’ll no longer work, estate planning begins to occupy a larger part of your financial strategy.
If you are within 5-7 years of retirement, it’s not too early to start asking yourself important questions about how you want your wealth to pass to the next generation.
Knowing the answers to these questions will assist you in assisting your financial advisor or estate planner in crafting a systematic approach that will help you achieve your goals, along with greater peace of mind.
Here are some questions to ask:
1. What purpose does my wealth ultimately serve? What does money mean to me?
2. What consequences could arise out of leaving wealth to my loved ones? Will they know how to handle money responsibly? Are there future tax issues for which they will need to plan?
3. Have I shared my ideas about planning my estate with my family? If not, why? Do they understand what needs to happen when I pass?
4. Will my advisor be with me when the time comes to execute my plan? If not, do I have a Plan B?
5. Have I designed my wealth transfer to minimize the potential for family infighting and potential lawsuits?
6. If I am self-employed, have I created an adequate business succession plan?
Improving family dynamics now is a great idea.
Many of us are concerned about how our loved ones will handle the money we leave them. We want might want the family business to continue to operate successfully, without conflicts. That’s why it’s a good idea to take steps now to ensure the transition is a smooth as possible.
Improve communication.
· Holding regular family meetings can assist you in many ways. Meetings should be non-judgmental forums where each family member feels free to discuss their unique values and perspectives on investing, saving, or running the family business. You can also use the time to strengthen bonds between your children and iron out issues that have the potential to unravel relationships in the future. Occasionally, you will want your advisor or advisory team to participate in such meetings.
Meet with your financial guide often.
· Honesty and transparency are essential features of a healthy relationship between you and your trusted income and retirement planner. A competent advisor will provide you with the tools and strategies you need to accomplish your objectives.
Summing it up: Providing a legacy for loved ones is a primary motivation for people to work hard, sacrifice, invest, and save. Knowing your loved ones will not have to struggle when you are no longer there reduces anxiety and helps you achieve satisfaction and greater enjoyment in retirement.
Take the time to partner with an experienced financial planner to design your personal “exit” strategy. Planning now will make it possible for your heirs to make the most out of the money and assets you leave behind. Generations will thank you.
Do you have a question or comment for Brad Pistole? Please visit www.guaranteedsafemoney.com. You can tune into Safe Money Radio, KSGF 104.1 Sat & Sun 7-8 am & 3-4 pm and KWTO 560 am Sat & Sun at 8 am – 9 am for more of Brad’s smart money advice. Register for Brad’s FREE Newsletter at 888-888-998-3463 or click his newsletter link: Brad Pistole Newsletter
