Financial Planning Actions to Take Before the New Year

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September 12, 2018
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Before the year’s end, in the midst of the holiday events, travel, and overall busyness, the last thing you want to think about is tackling your finances. But considering how finance-related resolutions are the third most popular New Year’s resolution, why don’t you give yourself a head start on next year’s financial goals by finishing this year strong? Here are ten critical financial actions you’ll be glad you took when the ball drops on New Year’s Eve!

  1. Amp Up Your Retirement Savings

If possible, max out your contributions to your 401(k) by the end of the year to make the most of your retirement savings. For 2018, you can contribute as much as $18,500 (or $24,500 if you are age 50 or older). You might also consider contributing to a Roth IRA. For 2018, you can contribute as much as $5,500 (or $6,500 if you are age 50 or older). Keep in mind that if your income is over $199,000 and you’re married filing jointly, you won’t be eligible to contribute to a Roth IRA.

  1. Use Your Medical And Dental Benefits

Did you have good intentions of taking care of some dental work, blood tests, or other medical procedures? Now’s the time to take advantage of all your healthcare needs before your deductible resets. Dental plans in particular often have a maximum coverage amount. If you haven’t used up the full amount and anticipate any treatments, make an appointment before December 31st.

  1. Verify Expiring Sick And Vacation Time

Depending on your company, your sick or vacation time might expire at the end of the year. Check with your HR department to learn about any expiration dates. If your sick or vacation time does expire, fit in a last-minute vacation, a staycation, or trips to the doctor to use up these benefits.

  1. Use Your Flexible Spending Account

Like your health insurance benefits, you’ll want to use up your FSA (Flexible Spending Account) dollars by the end of the year. Your benefits won’t carry over and you’ll lose any unspent money in your account. Check the restrictions for your account to see what the money can and cannot be used for.

  1. Double-Check RMDs

If you’re retired, review your retirement accounts’ required minimum distributions (RMDs). An RMD is the annual payout savers must take from their retirement accounts, including 401(k)s, SIMPLE IRAs, SEP IRAs, and traditional IRAs, when they turn 70½. If you don’t, you may face the steep penalty of 50% of the distribution you should have taken. To calculate your RMD, use one of the IRS worksheets.

  1. Stay On Top Of Charitable Contributions

If you made a charitable contribution in 2018, you might be able to lower your total tax bill when you file early next year. It can be especially advantageous if you donated appreciated securities to avoid paying taxes on the gains. Along with your other tax documents, find and organize any receipts you have from your donations to charities, whether it was a cash, securities contribution, or another type of gift.

  1. Review Your Insurance Coverages

A lot can happen in a year. As you experience life changes, from the birth of a child to marriage to a new career, it’s important to regularly review your insurance coverages and your designated beneficiaries. Now is the ideal time to review your current insurance policies and make sure they are up to date. You might also want to evaluate your need for other types of insurance you may not currently have, such as long-term care insurance.

  1. Prepare For A Market Correction

We are currently in the longest bull market in history2 and the stock market just keeps hitting record highs3. But we know that what comes up must eventually come down. Prepare yourself and your money by sticking to a long-term strategy, rebalancing your portfolio, and keeping your emotions in check. As long as you are following sound investment principles, only investing long-term money, and keeping your assets within your risk tolerance, you should have no reason to panic when we experience a market downturn.

  1. Talk To Your Kids About Money

The holidays are usually a time for families to get together and reconnect. Use this time intentionally by talking with your kids about money. No matter how old they are, you can give them sound wisdom that will set them up for success. Make sure they understand the importance of saving for retirement and having the proper amount of insurance coverage. Another way to help your kids financially is to create an estate plan to make sure you leave a legacy and avoid passing down a significant tax burden or legal headaches to your kids. If you’ve already taken the time and energy to create an estate plan, you’ll want to check in periodically to ensure all the documents are up to date and no major details have changed.

  1. Give Without Gift Tax Consequences

It’s never too early to start planning for the legacy you want to leave your loved ones without sharing a good portion of it with Uncle Sam. You may want to consider gifting. Each year you can gift up to $14,000 to as many people as you wish without those gifts counting against your lifetime exemption of $5 million. If you’ve yet to gift this year or haven’t reached $14,000, consider gifting to your children or grandchildren by December 31st.

  1. http://www.statisticbrain.com/new-years-resolution-statistics/
  2. https://www.cnbc.com/2018/08/22/longest-bull-market-since-world-war-ii-likely-to-go-on-because-us-is-best-game-in-town.html
  3. https://www.usatoday.com/story/money/2018/08/21/stocks-hit-record-highs/922315002/

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By Trilogy Financial
July 17, 2024

Estate planning consultants for high net worth families know that ensuring your financial assets are managed according to your wishes is crucial. At Trilogy Financial, we understand the importance of creating a comprehensive estate plan that addresses your unique needs and goals. Here are the critical elements of an effective estate plan to help you secure your financial future.

 

1. Will

 

A will is the cornerstone of any estate plan. This legal document outlines how you want your assets distributed and names an executor to oversee the process. A will can also designate guardians for minor children, ensuring their care and well-being. Without a will, your estate may undergo a lengthy and costly probate process, and your wishes may not be honored.

 

2. Letter of Intent

 

A letter of intent is a personal document that complements your will. While it is not legally binding, it can provide clarity and guidance to your executor and loved ones about your wishes. This letter can include details about asset distribution, heirlooms, and even funeral arrangements. Updating your letter of intent regularly ensures that it reflects your current wishes.

 

3. Power of Attorney

 

A power of attorney document allows you to appoint someone you trust to handle your financial and legal affairs if you become incapacitated. This person, often a family member or close friend, can manage your assets, pay bills, and make important decisions on your behalf. Understanding your state’s specific regulations can help you make informed decisions about this designation.

 

4. Health Care Directives

 

Health care directives are essential for addressing your medical needs in emergencies. Key documents include:

  • Living Will: Specifies your medical care preferences if you become incapacitated.
  • Durable Medical Power of Attorney: Authorizes someone to make medical decisions on your behalf.
  • HIPAA Release Clause: Allows medical professionals to share your health information with your designated proxy.

 

5. Estate Planning for Second and Third Marriages

 

Subsequent marriages add complexity to estate planning. Consider the following:

  • Prenuptial Agreements: Protect assets and provide clarity on ownership.
  • Updated Legal Documents: Ensure your estate plan reflects your new family structure.
  • Beneficiary Considerations: Update beneficiaries to include your new spouse, if desired.

 

6. Guardianship Designations

 

If you have minor children, naming guardians in your estate plan is vital. This ensures that someone you trust will care for your children if you are unable to do so. Consider naming a backup guardian as an additional safeguard.

 

7. Trusts

 

Trusts offer a flexible and private way to manage and distribute your assets. Benefits of trusts include:

  • Avoiding probate
  • Maintaining privacy
  • Providing effective asset management
  • Offering control over beneficiary distributions

 

8. Multi-Generational Wealth Planning

 

Multi-generational wealth planning is essential for ensuring that your financial legacy benefits future generations. This involves creating strategies that protect and grow your assets while considering the needs of your children and grandchildren.

 

9. Trust Fund Manager

 

trust fund manager plays a critical role in managing and distributing your assets according to your wishes. This professional ensures that the trust operates smoothly and that beneficiaries receive their designated assets without delays or legal complications.

 

10. Advanced Estate Planning Strategies

 

Advanced estate planning strategies are designed to address the unique needs of high-net-worth individuals. These strategies may include setting up complex trusts, charitable giving, and tax optimization techniques to preserve and grow your wealth.

 

11. Philanthropic Financial Planning

 

Philanthropic financial planning allows you to support causes you care about while benefiting from potential tax advantages. Discovering philanthropic financial planning opportunities can help you make a positive impact while strategically managing your estate.

 

The Takeaway –

 

Creating a comprehensive estate plan involves careful consideration of various legal documents and strategies. At Trilogy Financial, we specialize in estate planning for high net worth families and individuals, providing tailored solutions to meet your unique needs.

Our team of estate planning lawyers for high net worth families and high net worth estate planning attorneys are here to guide you through every step of the process. If you have questions or need assistance, please reach out to us. We are here to help.

 

Ready to Amplify Your Wealth today?

If you're ready to elevate your financial planning with our professional team, we invite you to schedule a meeting with us. At Trilogy Financial Services, our advisors in Corona are dedicated to crafting personalized financial strategies that align with your unique goals. Don't wait to start your journey towards financial success:

  • Schedule a Meeting: Reach out to us to arrange a one-on-one consultation with our financial professionals.
  • Give Us a Call: Prefer a quick conversation? Feel free to give us a call to discuss your financial needs and how we can assist. Call Us To Get Started. (844) 356-4934

Schedule a No-Strings-Attached Portfolio Review today and embark on a path to financial success guided by professional advisors. For more information and to schedule your consultation, visit www.trilogyfs.com/yourmoneyamplified. With the right knowledge and professional guidance, the journey of investing becomes an exciting venture towards achieving financial security and growth. This way, you're not just dreaming of an ideal retirement but actively working towards making it a reality.

By
Mike Loo, MBA
April 16, 2018

Have you ever noticed when you turn on the news, the media is either panicked because the markets are down or celebratory because the markets are up? This may make for fun entertainment, but it can also impact people’s emotions, which are dangerous when they affect investment choices and financial decisions.

While you shouldn’t hide your head in the sand when it comes to the news, there’s a fine balance between staying up-to-date and obsessively following every market change.

The Problem with the News

Many people think watching the news will help them decide what financial or investment decisions to make. The problem with this is that the news is late, especially in terms of investing.

Capital markets efficiently price in all widely known information. As soon as news is available to the public, it becomes reflected in share prices. Therefore, looking at the same things as everyone else doesn’t give you a leg-up on other investors.

Additionally, we know that most news stations have a bias or slant. Many major networks tend to lean either right or left, and this can actually impact the type of actions they suggest in terms of financial decisions. Furthermore, when their guest is the head of a bank or works for a credit card company, you’ll want to be aware that their advice may be biased.

The Information to Turn to Instead

One of the best solutions is to ignore the pundits and spend more time sticking to your personal financial strategies and investment plan. It may sound crazy for me to suggest this, but I’ve found that it helps my clients feel less stressed and less likely to make emotionally driven decisions.

It takes training to tune out the media noise levels and focus on your long term plan. It is tough to do, but with a little coaching, you can feel less stress from media influence and more focused on your plan.

Let Your Advisor Do the Heavy Lifting

While working with a financial advisor is a collaborative approach, requiring work on both ends, it can be helpful to rely on your advisor for staying up-to-date on financial news and investment trends. Part of an advisor’s job is to stay current with financial news and changes in the markets. Your advisor will then suggest changes, if needed, based on your personal goals and needs.

Stick to Financial Wellness Tips

While listening to the news and recommendations of pundits can lead to emotional decision-making, reading general articles and blogs about financial health and wellness can be beneficial, and even motivating. There are hundreds, if not thousands, of blogs out there that share tips on sticking to a budget, savvy ways to save money at the grocery store, and how to find the best credit card rates. These sources of information can help you maintain a healthy outlook regarding money and keep you motivated to stick to your financial goals.

How I Can Help

As an independent advisor, my personal goal is to provide my clients with guidance that can help them understand and better define their financial goals. I stay up-to-date with the latest financial news, trends, and market shifts so my clients don’t have to. I hope to allow them the time to focus on their passions in life knowing I am here proactively monitoring their investments and financial strategies.

To learn more about how I can help you focus less on media noise and more on your passions in life, contact me for a no-strings-attached meeting. We can discuss your goals what strategies can help you pursue them. Call my office at (949) 221-8105 x 2128, or email me at michael.loo@lpl.com.

Get Started on Your Financial Life Plan Today