Kansas and Missouri Estate Planning

What are the Biggest Estate Planning Challenges Right Now?

Estate planning requires navigating a number of challenges.

Estate planning may seem simple enough.

You set up a will.

You name a few agents to take care of things if you can no longer do so yourself.

Poof.

You are done.

According to a recent Insurance News Net article titled “Family Conflict Reigns As Greatest Threat To Estate Planning, Survey Finds,” it is not so simple.

Your life does not take place in a bubble.

Neither does your estate plan.

There are a number of common life challenges to be considered when it comes to your estate plan.

What are there?

The first is family conflict.

According to a recent survey by TD Wealth, 46 percent of participants found this to be the greatest issue in estate planning.

Why so high?

The prominence of blended families is one issue.

Providing for your loved ones without tearing apart a family is challenging—especially when all are not related by blood.

And, if they are all related by blood, well, that is just creepy.

As you plan, you must be open with everyone.

If everyone understands the “why” behind your choices, the likelihood of conflicts will be reduced.

Another challenge to estate planning is market volatility.

When it comes to planning for retirement and what you leave behind, the fluctuating market can be frightening in its unpredictability.

Working with a financial advisor with a long-term investment plan can help you better plan for and reach your estate planning goals with a balanced portfolio.

Another major concern in estate planning is taxes.

Tax laws seems to change constantly.

Working with an experienced estate planning attorney will help you to establish the most tax-efficient plan for your state and your current circumstances.

Fortunately, here in Kansas and in Missouri we have no state estate tax and no inheritance tax.

Review your estate plan periodically with your attorney to ensure your plan continues to satisfy your goals.

While it is true estate planning requires that you consider many potential challenges, an experienced estate planning attorney can help you navigate them safely.

Reference: Insurance News Net (March 13, 2019) “Family Conflict Reigns As Greatest Threat To Estate Planning, Survey Finds”

What are Some Prudent Pre-Retirement Steps?

A rewarding retirement does not just happen without planning.

No one wants to struggle in retirement.

You probably want to be financially secure.

You probably also want to have enriching and enjoyable experiences.

According to a recent The Street article titled “8 Essential Steps to Achieve Retirement Success,” there are steps you should take now to set yourself up for a good retirement.

What are they?

Know your budget.

You are envisioning a certain retirement lifestyle.

Perhaps this includes hobbies, travel, and family.

Whatever you plan, you should create a budget and give it a test run to see if it is sufficient for your goals and desired lifestyle.

Once you know this, you will be better able to adjust either your expectations or financial needs for retirement.

Pay off debt and downsize.

Do not go into retirement with debt.

You should pay off debt before you stop working.

Another way to save money in retirement is to downsize.

The money you spend on maintenance and utilities can be significantly decreased.

This will help with expenses in retirement as well as helping you to pay off your current debt.

Review your portfolio.

When you are young, your portfolio should be aggressive to help your money grow for retirement.

As you near retirement age, you should have a far more conservative approach.

There is no need to swing for the fence.

In retirement, your money should keep up with inflation and your financial needs.

Period.

Understand social security.

There are ways to maximize your Social Security benefits.

This is largely based on when you begin taking those distributions.

If you need help determining when you and your spouse should each file for your benefits, you may want to get a professional opinion.

Update your estate plan.

Life changes in retirement.

In turn, these changes could influence your estate planning.

Work with an experienced estate planning attorney to ensure your bases are covered with your wills, trusts, and powers of attorney.

While you are at it, make sure your estate plan and your assets titles and beneficiary designations are in alignment.

Communicate with your family.

Do you have adult children who still depend on you financially?

If so, you will need to cut them lose.

Talk with them about the need to become more independent as you prepare for retirement.

Remove emotion from your decisions.

You and your spouse should discuss your expectations for retirement.

This should include lifestyle expectations and budget changes.

Practical logic is important in making decisions.

Work with professionals.

It is not weak to admit what you do not understand.

You should seek wisdom and advice from professional financial planners and estate planning attorneys.

These individuals can help you create a plan to reach your goals.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: The Street (April 12, 2018) “8 Essential Steps to Achieve Retirement Success”

What Common Financial Planning Mistakes Should I Avoid?

Failing to plan is a terrible mistake, every time it is tried.

Do you have a financial plan?

If yes, you are acting wisely.

If no, you can still make things right.

According to a recent Forbes article titled “3 Common Mistakes to Avoid When Making A Financial Plan,” you need to be intentional in your financial planning.

What does this mean?

You need to start by creating a plan.

This plan should be comprehensive.

What does a "comprehensive" plan include?

It takes all aspects of your life into consideration.

It involves things like risk management, taxes, long-term care, and insurance.

Choosing to limit your focus on just an investment portfolio is not beneficial.

Another issue is not revisiting your portfolio.

You have a balanced portfolio now.

Life changes.

Businesses change.

Priorities change.

You should adjust for how the market ebbs and flows.

You will also need to vary the amount of risk you take depending on your stage of life.

Act on your plan.

It is one thing to make a plan.

It is quite another thing to execute it.

Turn your talk into action.

If you do not know where to start, work with an experienced financial advisor.

He or she will be able to help you create a plan with the big picture in mind.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Forbes (April 6, 2018) “3 Common Mistakes To Avoid When Making A Financial Plan”