What Happens If I Die Without a Will?
Dying without a will means you are what the courts consider “intestate,” which means laws of your state determine how your property is distributed. In most cases, your assets would go to your spouse,...
Most people only associate the word "investment" when they hear about financial planning. Financial planning is a whole lot more. Because people only associate the word "investment" with planning, they fail to take advantage of all the opportunities available to them. Financial planning is the overall process of making sure that you and your family have enough money, when you need it in the future. Does having a plan guaranty success? No, it doesn't but having a plan gives you the best chance at success. And isn't that what you want? You want to at least do something to give yourself a chance at a bright future. How many people are financially struggling later in life? I bet if you asked each one, "if you could go back in life and have another chance to make your future life better, would you?" every single person would say yes.
The components of a proper financial plan are as follows:
1. Asset Allocation. Have you diversified your investments? Putting all of your money into one thing is bad. You want diversification that way if one investment goes down, the others can make up the loss. Have you diversified enough to give yourself a chance if the economy goes into a recession?
2. Major Purchases. Are you planning on making some big purchases in the near future? Have you planned on what you will do if you make the purchase and then lose your income?
3. Retirement. Social Security isn't guaranteed in the future. Do you have enough money saved so that you have given yourself a chance to live the life you want when you retire?
4. Estate Planning is the process of transferring ownership of your property in the future and making plans about who will make medical decisions for you if you can't, and who will protect your assets and pay the bills if you are sick. Have you made sure that your children will not blow through their inheritance if you and your spouse are gone? Have you made sure that they won't spend the retirement assets on crazy purchases? Have you made sure that the doctors will follow your wishes?
5. Income Replacement ensures that if you are sick and miss work, or lose an income source, that you have replacement income. Have you given yourself the chance to pay bills if the unexpected happens?
6. Education Funding ensures that your child can have a chance at going to the school they want and not just to the school you can afford. Are you ready for this?
7. Cash Flow covers the money coming into your home. Your home is like a business. You have income and expenses. Have you done everything to maximize your household cash flow?
8. Insurance provides you money if the house is damaged or you get into an accident or you get sick and need a doctor. Have you got enough insurance coverage to protect you if these situations arise.
Having a good financial plan is vital to giving you and your family a chance in the future. Are you willing to do something now to give them a good future? If you don't have an up-to-date estate plan, we can help. If you haven't given yourself enough of a chance in any of the above categories, call or email us and we can connect you with some of the best people and resources around.
Give your family the best chance.