FINANCIaL
FIELd NOTES
Choosing Between a Springing or Durable Power of Attorney Document
A proper estate plan includes a Financial Power of Attorney (POA) document, that dictates who will manage your finances on your behalf in the event you are unable to do so. While these documents typically come into play toward the end of life when a personal physical and mental capacity diminishes, these are occasionally used in other circumstances like sudden disability or when traveling with limited access to the internet.
However, not all POAs are the same. There are two main types…
What is the Best Way To Save for Your Grandchildren?
I recently had a client tell me that they had been thinking about saving some money for each of their grandchildren but were unsure about the best way to do that. I’ve seen families over the years put off saving because they weren’t sure exactly how to go about that.
Start by asking yourself what you want the money to accomplish. Is it something specific like college or a first home, or is it more general like setting them up for success early in life?
Here are a few different ideas to consider…
A Unique Widow Social Security Claiming Strategy
Are you a widow or do you know someone who is a recent widow? If so, this strategy may be worth considering between the ages of 60 and 70.
Under Social Security, widows are entitled to a widow benefit as early as age 60, two years earlier than the earliest filing option of 62 for most retirees. The unique strategy that can be used here is filing for only widow benefits while allowing your own Social Security benefit to continue growing until the maximum age of 70…
Tax Planning to Maximize Your Legacy
Most individuals have planned through their estate documents to leave all their assets to their spouse and then split them amongst their children or other family members.
And while this is certainly common practice, it does not always align with their personal values for charitable giving. In fact, it’s not uncommon to see someone give 5-10% of their income every year to charity and then give 0% of their estate after they die…
How Much Can I Give Tax-Free Every Year?
Many clients that I work with want to begin gifting to their children and grandchildren. I love helping with this transition because it allows them to see the benefits of their gift instead of waiting to pass on an inheritance until after they are gone. The gifts can also be timed to help during pivotal moments in their lives, such as weddings, down payments, and college costs.
But exactly how much can you give without incurring taxes?
The Math Behind Term vs. Whole Life Insurance
When deciding on life insurance, you have a lot of options to choose from. I am often asked about my opinion between whole life and term insurance. Whole-life policies are designed to last your whole life, while term insurance only lasts for a certain amount of time.
In general, I am an advocate for term insurance but there are some benefits to whole life…