FINANCIaL
FIELd NOTES
Should You Name Your Adult Child Co-Trustee?
A critical aspect of proper estate planning is the Financial Power of Attorney document. However, if you have created a revocable living trust, assets that are titled in the name of the trust are managed by the named trustee, not your power of attorney. Because of this, one common question that arises is whether to name an adult child as a co-trustee.
Naming a child co-trustee is different from listing them as a successor trustee where the primary trustee must step down or be unable to serve for a successor to serve. I have seen some clients consider this change to naming a co-trustee after one spouse has passed away and the surviving spouse is considering their financial future…
Planning for Irregular Expenses in Retirement
Most pre-retirees I meet with for the first time have a fairly good estimate of the regular monthly expenses. However, the area that is hard to predict and plan for is the unexpected costs. One exercise that I like to do that brings clarity to this is to review actual expenses for the past few years. We often find that irregular expenses are the culprits – helping a daughter with her car, an HVAC replacement, or a dental procedure.
It can be tempting to assume that these expenses will mostly vanish in retirement, but they don’t. These one-off financial obligations can put a significant dent in your retirement savings if you're not well-prepared. While there can be a lot of surprise expenses, I found that they typically fall into four key areas…
Should Investors Consider Adding Private Debt to Their Portfolio?
A good investment portfolio needs diversification that also balances risk and reward. Investors often include a mix of stocks, bonds, and other asset classes in their portfolios to achieve their financial goals.
However, in recent years, there has been growing interest in private debt, an emerging asset class amongst the investing public…
Steps to Protect Your Late Spouse From Identity Theft
Losing a spouse is a deeply emotional and challenging experience, and dealing with the aftermath can be overwhelming. Amid the grieving process and the myriad administrative tasks that follow, it's crucial not to overlook the potential risk of identity theft.
Sadly, scammers target deceased individuals because there is often no one tracking their finances. In doing so, they target their surviving spouses, who are left cleaning up the mess…
The Tax-Efficient Way to Consolidate Accounts
As pre-retirees prepare for retirement and the eventual withdrawal from retirement accounts, there may be some confusion about how to optimize their withdrawal strategy. Two of the most common questions I hear are “Which account should I take from?” and “What investment should I sell first?” One of the likely reasons for this confusion is that they have accounts in various places, making it difficult to organize.
One of the first steps in getting organized is to take inventory of all your accounts and then choose a primary custodian to consolidate accounts to. However, there can be significant challenges to doing so…
5 Ways to Reduce Your Required Minimum Distributions
Managing the tax impact of your Required Minimum Distributions (RMDs) is a critical aspect of your retirement plan. RMDs are mandatory withdrawals from retirement accounts that kick in once you reach a certain age, typically 73 (for those born in 1951 or later).
These distributions can lead to significant tax liabilities. However, there are strategies to minimize their impact and make the most of your retirement savings…