Estate planning is one of the most overlooked and procrastinated upon areas of financial planning.
Video recap: https://youtu.be/NB2S1FWWH2s
While your legacy is important, it doesn’t generally take the front seat of your thoughts or your financial plan. There’s more to legacy planning than just having a will, but how much more depends on which stage of life you’re in. Find out what you should be doing to plan your legacy whether you’re in your 30s, 40s, 50s, or 60s by listening to this episode of Financial Symmetry.
When you’re in your 20s and 30s legacy planning starts with creating a will. A will gives you a good foundation and will get you thinking about electing your beneficiaries. You’ll also want to select your beneficiaries on your investment accounts.
Once you get married and start having children, then it’s important to keep your plans updated. It’s also a good time to get term life insurance. Make sure to revisit your will and the beneficiaries on your investment accounts periodically or with major life changes like a move or a new baby.
When you’re in your 40s you probably have more accounts and higher balances than you did in your 30s. Have you kept up with all of your retirement accounts from previous employers? The key to staying on the right track is to stay organized. Make sure to check in on your beneficiaries and estate documents from time to time.
If you are in your 50s and 60s you may be in the sandwich generation. This means you may have elderly parents and your own kids embarking on adulthood. This is an age when many really start thinking about their own legacy. It’s a good time to start thinking of Roth conversions. You can start tax planning not just for yourself but for your entire family. Think about how you can pass on your assets with the most after-tax value.
If you receive an inheritance there are different things to consider depending on your age and financial situation. You may want to consider paying off loans, buying a house, or even taking a mini-retirement. Having a financial plan in place can give you the confidence to do exactly what you want with those funds.
Estate planning is usually the last item on your financial planning list of things to do and it often takes another person to spur you on. A professional like an attorney or a financial planner often help guide you through this process. Let us know if you would like some help getting your estate planning in order. Plan today to make the most out of your retirement.
We know the COVID-19 global pandemic has affected everyone in unique ways. Today we want to discuss how this health crisis has affected women, specifically financially.
Video recap: https://youtu.be/beT8B1DSKZY
As working mothers, we have felt the impact of these daily changes acutely. According to Goldman Sachs “single parents, parents with young children and parents who can’t work from home are the groups most at risk to stop working entirely because they have no child care.”
Pre-pandemic the US labor force was split roughly 50/50 between men and women. However, women’s participation rate has always been directly tied to accessible childcare and pandemic-related job losses have disproportionately impacted women. With most schools resorting to distance learning and many childcare options off the table, families are struggling. Many solutions include working mothers putting their careers on hold. According to a study by the US Census Bureau, women are 3 times more likely than men to have left their job due to child care issues during the pandemic. This has negative implications for both the economic recovery and women’s future financial health.
We already know women face unique financial challenges due to three main issues:
In the current health crisis, these disparities have had more severe implications for women of color and millennial women. Sadly, these financial differences compound over time and can have devastating effects. As women grow older, they are also more likely to face poverty. According to the Social Security Administration 17.3% of nonmarried elderly women are living in poverty today. The figure below illustrates the higher poverty rates women over 65 experience in almost every category:
An article in the New York Times posited that this “Pandemic Could Scar a Generation of Working Mothers.” If that happens it also has the potential to increase the pre-existing retirement challenges women face later in life. While these trends are discouraging, the stakes are higher than ever for women to take control of their financial futures. The current situation also presents new opportunities as companies are more open to hiring a diverse workforce outside their local network. This is one silver lining of the pandemic: companies now have an expanded talent pool to choose from. If your current employer does not allow the necessary flexibility, you may be able to find a better fit. We recommend the following checklist to help you stay sane, maintain your earning power, and safeguard your finances:
We recognize there are no easy answers right now when it comes to meeting increased care giving demands while balancing career aspirations and financial stress. If you have questions about the best way to balance these changing demands with your long term financial goals, please contact us to speak with one of our financial advisors. We have four female advisors who are passionate about these issues and would love to help you position yourself for financial success.