FINANCIaL
FIELd NOTES
Your Beneficiary Form > Your Will
We’ve discussed the important of a will in determining who gets your assets when you die. However, your 401(k)* or IRA, along with other assets like life insurance and annuities, often have a Beneficiary Form.
This form will take precedence over what your will says - hence the subject line. Because of that, often the beneficiary form is the most crucial document - and with that comes the opportunity for costly mistakes…
Why You (Might) Need a Trust
One of the most common questions I get on the topic of estate planning is “Do I need a trust?”
When I talk about a trust here, I am talking about a standard Revocable Living Trust. I am not talking about the more complicated irrevocable trusts. One of the main purposes of an irrevocable trust is to avoid estate taxes. With the federal exemption currently over $11 million per person, this is not as big a concern as it used to be.
So why might you need a trust?
Why You Need A Will
“I would just love to spend a few hours this evening having hard conversations about what happens if I die.” – No one ever
This is not a fun or enjoyable topic. It involves planning for an event that you hope doesn’t happen prematurely and is a long way off, so it gets booted to the bottom of the to-do list. From experience, improper planning can have dire consequences even for families that seem to have simple family situations.
Three Refinance Strategies for 2021
It seems everywhere you go people are talking about refinancing. Your neighbors, family, friends, Facebook & TV ads, mailers…the list goes on. As we enter 2021, there are a few refinancing strategies to consider, possibly even if you refinanced as recently as last year.
Long-Term Investors Playing Short-Term Games
Last month Elon Musk tweeted two words – “Use Signal.” He was referring to an encrypted messaging app you can get on your phone. Signal is a private company meaning most of us can’t buy the stock. However, there is a company called “Signal Advance,” a completely unrelated biotech company that happens to share the same “Signal” name as the messaging app Elon mentioned.
Is There A Margin Of Safety In Your Financial Plan?
Have you ever gotten onto a overcrowded elevator and stared anxiously at the “Maximum Capacity” sign wondering how close you really are to the limit? The good news is that when engineers design elevators, they include a margin of safety above and beyond the limit suggested for standard operation. The same is true for airplanes, cars, and just about anything else with strict regulation. Your financial plan should have a margin of safety, and you’re the one to regulate it.