Right now, Doug is having annual reviews with his clients, discussing personal finances and investing ideas. This season leads us to consider how we can help you and our clients with personal finances and overall financial health.
Here are a few reminders for you, as you consider your personal finances:
- Beneficiaries – You need to look at these from time to time and make sure that these are up-to-date and correct for your life now. Particularly if you’ve had a loss or other change in your life, this is an important step.
- Trustees – If you have $100,000 or more in net worth, you must have a revocable living trust, in our opinion. Instructions to the courts, the IRS, your financial advisers and others are critical for if something should happen to you. You need to look at who those trustees are and if that is still appropriate.
- Spousal support – If you have a pension or something similar, and your spouse does not, you need to look into how to care for your spouse should something happen to you and your pension go away.
- Assets inventory – Know where you own property, what those assets are doing for you and why you own them. Many people have personal affects that are worth a great deal and you need to know what you own and what your debt and assets are.
- Strong financial team – A financial adviser, CPA, realtor, family, friends, business partners and others can all be part of your team, and the quality of those individuals are key to your success in personal finances.
- Capital preservation/exit strategies – You need to have an exit strategy for your investments and be aware of your risk tolerance and how to preserve your capital. Risk is always a factor in investing, but we believe that more volatility may be on the way.
If you have questions about these ideas or you need more information about these reminders, please email Doug at askdoug(at)dougfabian(dot)com.