Trending Topics
This Month’s Trending Topics
Estate planning
One of the important aspects of a financial plan which many tend to neglect is having an estate plan and ensuring it is kept up to date. This means updating whenever an important life event occurs (death, birth, marriage, etc.) as well as just periodically checking over things to ensure it is accurate and current. If you were to die today, are all of your assets set to go to who you want and will they avoid probate?
Put yourself in your family’s shoes. Would they know where to find your estate documents? Would they know where your assets are located? Would they know who the important people are to contact and how to contact them?
We recommend a summary or financial map to provide your heirs with direction. This can be as simple as a one-page summary detailing all important information that your heirs would need to know or completing a detailed survivors guide which we are happy to provide. For anyone to whom we provided a survivor’s guide in the past, please be sure all information is kept current. For anyone looking for a Survivor’s Guide, please reach out and we will be happy to provide you with one.
Some important details to include are the following.
- Contact list: Provide a list of all-important contacts and how to get in touch with them. This should include your attorney, insurance agent, accountant and financial advisor.
- Balance sheet: Your beneficiary designations, trust or will may spell out who will inherit your assets, but it may not state where those assets are located. Provide a list of all your financial accounts and liabilities so your heirs are able to easily track down accounts to which they are entitled and any debts which must be paid off. Be sure to also provide details of any under the radar assets such as a safe deposit box or money hidden under a mattress.
- Subscription services: Make a list of any subscription services you are using such as Netflix, cell phone, cable, newspaper and so on. Make it easy for your heirs to update or cancel any services that need changed upon your death.
- Passwords: Most of us have many online accounts with many different passwords. Consider using a password manager or storing passwords in a safe, ensuring someone is able to access any pertinent accounts at your passing.
- Personal Letter: You may want to consider writing a letter to articulate any last wishes you have or any special message you want your heirs to know.
Pets
One area of the estate planning process that often gets neglected is what will happen to our beloved pets. Most states consider pets personal property, so you can’t leave money directly to them. While we may think our pets will be cared for after our passing, naming a guardian or setting up a pet trust is one way to better ensure this happens. A pet trust allows you to designate a guardian for your pets and a trustee who will ensure money is passed to this guardian for care of your pets. While not perfect as you are still putting faith in someone to care for your pet, its better than having nothing in place and allowing the pet to go through the probate process as any other piece of property.
While not everyone or every situation requires the cost and time required to setup a pet trust, at least be sure you have put in place measures to ensure your pet is cared for at your passing. Many assume that a family member will care for the pet, but many of these animals end up in shelters. If you don’t have anyone to care for your pets after you pass, there are some rescue organizations that you can designate. You can even specify a portion of your assets to be left to the organization to be used for our pet’s care.
While estate planning is not an enjoyable task and not as exciting to talk about as the market or the election, it is an important one. Remember that your heirs will be going through a terrible situation and a little preparation will go a long way in making things more manageable for them. Also, remember all the love you have for your pets and don’t assume what may or may not happen to them if you pass.
Markets
Market volatility continues to increase as late July to early August saw a pullback of almost 10 percent, followed by a quick recovery, then another sharp pullback to start September. As we mentioned before, August and September are historically the worst months for the market and volatility tends to move higher before an election. Don’t be surprised to see bigger market swings to both the downside and upside as we move closer to the election and the Federal Reserve shifts their interest rate policy.
Higher interest rates are starting to show their impact as economic data has been declining which could start showing up more in next quarter’s corporate earnings reports. As always, do your best to avoid this day to day noise and stay focused on the bigger picture.
Enjoy what’s left of summer! Get outside while it’s still warm and away from those television financial networks and online doom and gloom websites. As many of you may remember from one of our event speakers – “turn off CNBC and turn on the Disney channel”.
This material is meant for general illustration and/or informational purposes only. Views expressed in this newsletter may not reflect the views of Osaic Wealth, Inc. It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no financial advisor can accurately predict all of the changes that may occur in the market. This material should not be relied upon as investment advice. Investors should note that there are risks inherent in all investments, such as fluctuations in investment principal. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. This article contains forward looking statements and projections. Past performance is no guarantee of future results. Neither Osaic Wealth, Inc. nor its representatives provide tax or legal advice. If you don’t wish to receive marketing emails from this sender, please reply to this email with the word REMOVE in the subject line.