Estate Planning
Anyone who has assets to pass on to their heirs or beneficiaries will need an estate plan drawn up to avoid unnecessary expenses, like death taxes and probate costs, and to ensure assets are going to the correct beneficiary. A skilled financial planner will ask sensitive but important questions like, “Is an heir financially immature?” “Are they in a bad marriage?” “Does a disabled child have extraordinary expenses?” and “Is there a longtime friend or partner deserving of something?” These questions will help the client to perhaps for the first time really address the legacy they want to leave behind.
Estate planning can also address business continuity and succession plans when a business owner dies. Decisions will need to be made to ensure income is still generated from the business to maintain surviving family members’ lifestyles, or perhaps the business will be sold and the owner has already identified potential buyers.
Life Insurance
Most people require life insurance, but your own unique family situation will determine what insurance you require in the event of death or critical illness in the family. A well-drawn-up wealth plan should always address insurance needs and have the appropriate products in place to help a client reach their long term financial goals. Here’s a look at some typical scenarios and what their insurance needs may be:
- A young, unmarried person with no dependents may require term insurance only.
- A middle-aged professional with a family may want a whole life policy to build investment.
- An empty-nester approaching retirement may have a large retirement plan but may need long-term care coverage.
- A family might want a policy that will protect them from debt such as a mortgage or funds to cover expenses like post-secondary education or medical expenses for disabled children
- Long-term disability may be needed to cover living expenses when a breadwinner is ill and cannot work
Retirement Planning
A qualified planner will work with you to determine steps you need to implement to meet your financial retirement goals. They can explain the different types of retirement plans, for example the traditional IRA, the Roth IRA and 401(k) plans. They will determine your risk tolerance and offer advice on allocation of your investments dependent on this. An advisor will help to choose the financial instruments to invest in and the periodic amounts to invest to ensure you can meet your retirement goals. Remember that your retirement plan is a living document and will need to be reviewed on a regular basis with your advisor, as life events may impact investment decisions.
Conclusion
Retirement planning and wealth management may seem overwhelming but it doesn’t have to be when a professional advisor is on your side. Invest the time to educate yourself and consult with someone. Contact one of our offices in Kansas or Missouri for your personal financial services. It’s well worth the effort to have a wonderful life in retirement without financial worries!