10 Most Awesome Things You Can Do for Your Finances

I’m a Financial Advisor: 10 Most Awesome Things You Can Do for Your Finances

Cara Danielle Brown  Wed, April 16, 2025  GOBankingRates

Looking to make the most of your finances, starting today? Some may think that taking financial risks or chasing trends is the key to maximizing potential.

But, according to Michael Fiammetta, financial advisor at 4 Generations Wealth Management, the best thing one can do this year is the same thing he or she can and should be doing every year: master the basics.

Maximize Retirement Contributions

Contributing as much as you can as early as you can to your 401(k) or IRA — within annual limits — “is one of the smartest moves you can make for your future self,” Fiammetta said.

This is because nothing helps grow your retirement savings over time like compound interest. Can’t afford to contribute the maximum amount? That’s okay. Fiammetta argued that boosting contributions by a mere 1% in 2025 will impact your financial future.

Diversify Your Portfolio

If your investments are concentrated in one sector or asset class, consider diversifying stat.

“A diversified portfolio–spanning stocks, bonds, real estate, and more — reduces risk and positions you for long-term success,” said Fiammetta. This way, if one or two investments don’t perform well, others can balance out the loss.

Create an Estate Plan

No one likes to think about it. But what would happen to your money if you meet your untimely demise? In the absence of an estate plan, the state would determine who gets your assets based on unique intestacy laws that establish priority order beginning with closest living relatives.

But what if you wish to dictate particular amounts to specific individuals, or you prefer to pass assets to extended family and charitable organizations? Make sure a trust or will is put in place. Having a say in how your money is divided up ensures your preferences are honored and your legacy is carried on. It could also help loved ones avoid probate.

Review and Update Beneficiaries

TO READ MORE:  https://www.yahoo.com/finance/news/m-financial-advisor-10-most-140127402.html

6 Things You Should Never Put in a Living Trust

6 Things You Should Never Put in a Living Trust

Preston Hartwick Tue, November 12, 2024 GOBankingRates

Estate planning provides for the smooth handling of your assets after death. However, only around 32% of American adults have a will, indicating that most people haven’t taken the appropriate steps to prepare for the management of their estate, according to LegalZoom.

One essential tool for estate planning is a living trust. It allows your assets to bypass the lengthy, costly probate process and maintains your financial privacy.

Since a living trust can be amended or revoked at any point during your lifetime, it also serves as a flexible way to control your assets, avoid family disputes and ultimately provide peace of mind knowing that your estate will be managed according to your wishes.

However, not every type of asset belongs in a living trust. This article will cover the assets you should exclude from your living trust and why.

Things To Leave Out of Your Living Trust

Including certain assets in a living trust can complicate estate management, trigger tax consequences or negatively impact the asset’s value.

While it’s always a good idea to consult an estate planning attorney for legal advice, consider excluding the following assets to maximize the benefits of your living trust:

1. Retirement Accounts

Retirement accounts like 401(k)s and IRAs can trigger tax consequences if you include them in your living will.

Since your living trust is a separate legal entity, any transfers you make from a retirement account count as a withdrawal. This makes transfers taxable and subject to penalties for early withdrawal.

One way to avoid this issue is to name the living trust as a beneficiary on the retirement account. Any funds in the account transfer to the trust upon your death and are distributed to other beneficiaries according to your will.

2. Health Savings Accounts and Medical Savings Accounts

Health savings accounts (HSAs) and medical savings accounts (MSAs) only offer tax-free growth if you use the money for medical expenses. Therefore, transferring an HSA or MSA to a living trust would cause you to lose this tax protection.

By keeping HSAs outside your trust and designating beneficiaries directly, you can continue to enjoy the tax benefits of your HSA or MSA.

3. Active Bank Accounts

You can include checking accounts or other active financial accounts into your living trust, but there are easier ways to transfer funds to your heirs and bypass the probate process.

TO READ MORE:  https://finance.yahoo.com/news/6-things-never-put-living-190103941.html

77% of Americans Plan To Use Tax Refunds for Essential Expenses: 5 Tips for Using Yours

77% of Americans Plan To Use Tax Refunds for Essential Expenses: 5 Tips for Using Yours

Dawn Allcot  Tue, April 15, 2025   GOBankingRates

For Americans who usually receive a tax refund, that spring windfall sometimes helps cover a treat, like a family vacation, a pool or new patio furniture. But for a majority of people this year, their tax refund is going toward necessities, according to a study from Talker Research, commissioned by TaxSlayer.

The study found that 77% of Americans will spend their tax refund on necessities this year. What’s on the top of their list? More than half (52%) of those polled said the money will go toward rent or utility bills. Meanwhile, 44% will put the money toward groceries and essential goods. Thirty-seven percent are using the cash to pay down credit card debt, with 56% of that group still paying off holiday bills.

This is common — and nothing to be ashamed of — in today’s financial environment.

“If your refund is going straight to keeping the lights on and food in the fridge, that probably says more about the cost of living than your decision-making,” said Taylor Kovar, CFP, founder and CEO of 11 Financial. “That kind of pressure is real.”

However, there are ways to plan ahead to remove some of that financial sting throughout the rest of 2025. Try spending what you can of your tax refund strategically to try to get ahead.

Look at Your Spending Patterns

If you’re consistently running behind on fixed expenses, like your car loan, rent or utility bills, you should “zoom out and look at the patterns,” Kovar advised. “It’s worth seeing if there’s a monthly expense that’s quietly draining your budget.”

See if you can change due dates on bills so everything doesn’t hit your bank account at the same time too. If you have good credit, consider consolidating some of your credit card debt to a 0% interest credit card that you can aim to pay off within 12 to 18 months.

Sometimes, small tweaks like changing due dates and reducing interest payments can provide the breathing room you need.

Use Your Refund To Build a Small Cushion

If you can, deposit part of your refund into a high-yield savings account to provide a buffer for months when emergency expenses crop up or cash gets tight.

“The goal isn’t perfection,” Kovar said. “It’s just trying to make the months ahead feel a little less like a juggling act.”

Plan for the Holidays

TO READ MORE:   https://finance.yahoo.com/news/77-americans-plan-tax-refunds-170500998.html

What Does A Financial Advisor Do And When Should You Get One?

What Does A Financial Advisor Do And When Should You Get One?

Brian Baker, CFA  Mon, April 14, 2025   Bankrate

Most people are aware of financial advisors and may even hire one at some point in their lives, but what exactly do financial advisors do? Financial advisors provide advice and guidance on a variety of financial issues you’ll encounter over the course of your life such as investments, retirement planning, insurance and even taxes.

Here’s what else you should know about financial advisors, including the advantages and disadvantages of using one and when you should consider hiring one.

Financial Advisors: What They Do And How They Can Help Manage Your Money

A financial advisor is someone who helps you manage various aspects of your financial life. People most often associate financial advisors with planning for retirement, but they can also be involved in general investment management, budgeting, insurance, taxes, estate planning and more.

Financial advisors charge a fee, often expressed as a percentage of your assets, in return for their services. They can assist you with several different aspects of your financial life, but not all advisors or firms provide the same services.

Here are some of the common areas financial advisors provide guidance on:

Goal planning: One of the first things an advisor typically does is ask clients about their short- and long-term financial goals. A financial plan is then built around achieving those goals while taking into account the unique circumstances of each client.

Budgeting: If you’re just starting out in your financial journey or even if you’re more established, advisors can help you construct an overall budget and identify ways to boost your savings, if necessary.

Investments: Financial advisors also provide advice on your investment portfolio and can assess things such as your overall asset allocation. They can also answer questions and recommend investment products such as mutual funds and ETFs.

Retirement planning: Nearly every financial advisor will be able to assist with retirement planning, which is often the biggest long-term financial goal for most people. They can help you navigate your employer’s 401(k) plan and offer guidance on other choices such as a traditional or Roth IRA.

Taxes: Financial advisors can provide guidance that takes into account current and future tax considerations.

Insurance: Financial advisors can also help you determine whether life insurance or annuity products make sense for you, but be sure to understand whether the advisor will receive a commission on the product they’re selling to you.

Estate planning: Planning for the end of life isn’t easy, but financial advisors may be able to guide you through the estate planning process, which will make it easier on your heirs when that time comes.

Types Of Financial Advisors

TO READ MORE:  https://finance.yahoo.com/news/financial-advisor-215453387.html

What It Really Means To Help Someone — And The Consequences That Can Follow

What It Really Means To Help Someone — And The Consequences That Can Follow

He borrowed $20K from his brother — then crashed the car he bought instead of going to law school

Victoria Vesovski  Moneywise   Sun, April 13, 2025

When a loved one is in need, lending a helping hand can feel like second nature — even with a price tag.

On a recent episode of his new Netflix talk show, Everybody’s Live With John Mulaney, the comedian explores what it really means to help someone — and the consequences that can follow.

He’s joined by actor Michael Keaton and Jessica Roy, a personal finance columnist for the San Francisco Chronicle. Their first caller was Dylan from Montville, New Jersey, who borrowed $20,000 from his brother to attend law school. But instead of cracking open textbooks, Dylan bought a car. Then he crashed it. After selling the wreck for scrap, only $1,200 of the original $20,000 remained.

Now, Dylan finds himself in a bind: no money, no law degree, a totaled car and a $20,000 lie he has to repay.

It’s a cautionary tale and one that might hit closer to home than you’d expect. Whether you’ve loaned money to a loved one or considered asking for help yourself, navigating finances within personal relationships can be tricky.

Being a good friend

When money enters the mix between friends and family, the emotional toll can often outweigh the financial loss. A LendingTree survey found that 31% of Americans are owed money by a loved one — with friends and siblings being the most common borrowers.

The top reason? Covering debt payments and everyday expenses like meals and gas. But personal lending often comes with strings attached: nearly half of the respondents said they regretted lending money to someone close, and one in six admitted it had damaged a relationship.

In the episode, Roy emphasized that lending money to someone you care about requires a mental shift.

“Any money you loan someone you need to be psychologically detached from it,” she explained. “It’s a gift and I’m not going to get it back.”

It’s a mindset that protects more than just your wallet — it safeguards your relationships, too. When lending to friends and family, boundaries are just as valuable as budgets.

Stuck in a tough spot

TO READ MORE: https://www.yahoo.com/finance/news/borrowed-20k-brother-then-crashed-102500592.html

Hoarding Cash and Delaying Purchases

Hoarding Cash and Delaying Purchases: Anxious Retirees React To The Stock Market Selloff

Alicia Adamczyk  Updated Mon, April 7, 2025  Fortune

Though few people are enjoying the tariff-induced market meltdown, it is an especially tough time for retirees and those near retirement, who have been hit with a double financial whammy: Not only are their portfolios losing value at a time when they can least afford it, but they are also often the people least able to absorb higher costs on their fixed incomes.

Though financial advisors generally advise clients to remain calm in the face of market volatility, they say some clients have made a few key moves over the past few days to put themselves in better positions.

"I have been advising my retiree clients for months to build up their cash reserve to about one year's worth of withdrawals from their portfolio, at minimum," says Katrina Soelter, California-based certified financial planner (CPF). This allows retirees the ability to avoid taking disbursements, withdrawals from a retirement account, at a loss. "If retirees don't have that cash reserve right now, then building that up strategically over the next several months would be key."

For many, a key consideration is distinguishing between money needed now and money needed later, says Brenna Baucum, an Oregon-based CFP.

"One client who reached out this week was understandably anxious, but we were able to revisit a decision we made in January to move this year's required minimum distribution into cash," says Baucum. "Knowing they won't need to sell anything from their investment portfolio again until, at the latest, December 2026 gave them real peace of mind."

Other clients are postponing large or nonessential discretionary purchases in order to keep some liquid breathing room in their budget. That said, it can also make sense for pre-retirees and retirees on fixed incomes to speed up some spending. At a time when headlines are warning of potential $2,300 iPhones, consumers need to think through how their spending could be impacted.

"With new tariffs on the horizon, it's worth being intentional about spending," says Baucum. "If you were already planning to buy goods from soon-to-be-tariffed countries…it may make sense to accelerate those purchases. That's not market timing, it’s thoughtful consumption."

It's important to be proactive and track expenses closely, says New York CFP Melissa Caro.

"Retirees may need to adjust spending or consider inflation hedges like TIPS or a refreshed asset allocation to stay on track," says Caro, referring to Treasury Inflation-Protected Securities, which are bonds whose principal and interest rate payments increase with inflation.

Shifting investment strategies

TO READ MORE:

https://www.yahoo.com/finance/news/hoarding-cash-delaying-purchases-anxious-131537855.html

These Are the 6 Most Common Money Questions

I’m a Financial Influencer: These Are the 6 Most Common Money Questions I’m Asked

Nicole Spector  Tue, July 30, 2024   GOBankingRates

With general financial literacy and better financial planning exploding on social media, millions of folks are turning to financial influencers to get their money questions answered without breaking the bank.

What are people the most curious or confused about? What are they reaching out to financial influencers to find out about? And how do financial influencers answer their queries or point them in the right direction?

GOBankingRates spoke with Jeff Sekinger, a financial innovator and entrepreneur, and the CEO and founder of Nurp LLC. Sekinger courts a following of 1.1 million on Instagram.

These are the six most common money questions he’s asked — along with how he answers them.

Retirement Planning: Whether you're planning for retirement, dealing with a significant life event or simply looking to make smarter financial decisions, a financial advisor can offer the expertise and guidance you need. Here are some compelling reasons why you should consider a financial advisor -- even if you're not wealthy.

‘How Might a Trump Presidency Impact the Economy?’

Sekinger is constantly spammed with burning questions about money. A common one recently revolves around Trump. Specifically, if Trump is re-elected, how would his presidency impact the economy? More specifically, which markets, sectors and companies could benefit?

“A Trump presidency could have significant implications for the economy and markets,” Sekinger said. “Some investors are optimistic that Trump’s policies, like tax cuts and deregulation, could boost the economy and markets. Others are more cautious, citing concerns about Trump’s trade policies and potential geopolitical instability.”

According to Sekinger, companies that could benefit from a Trump presidency are the energy, financial and defense sectors.

“On the other hand, companies in sectors like healthcare and technology might face headwinds,” Sekinger said.

‘What Do I Need To Know To Be A Successful Young Investor?’

Everyone on the path to financial freedom needs to be investing. Investing can be complex, and naturally, people have questions. Commonly Sekinger is asked what you need to know to become a successful young investor.

“As a young investor, time is on your side,” Sekinger said. “Take advantage of compound interest by investing as early as possible, even if it’s just a small amount each month. Consider contributing to a Roth IRA or your employer’s 401(k) plan. Also, educate yourself about investing and avoid getting caught up in get-rich-quick schemes.”

‘How Can I Build Wealth While Managing Student Loan Debt?’

To Read More:  https://news.yahoo.com/news/finance/news/m-financial-influencer-6-most-140125604.html    

Do I Have to Worry About Gift Tax?

Do I Have to Worry About Gift Tax?

If I Give My Child $30,000 Towards Their Wedding, Do I Have to Worry About Gift Tax?

Mark Henricks  Sat, July 27, 2024   SmartAsset

Imagine your child is getting married and you want to help pay for their wedding. You’ve been saving for years and now have $30,000 set aside for their big day, which you plan to hand over in the form of a check.

However, before you pass along that much cash, it’s important to understand the potential tax implications of making a $30,000 gift. A gift that size could require you to pay the federal gift tax, which can reach up to 40%. The good news is you may avoid paying gift taxes altogether, but there are reporting requirements and other limitations to keep in mind. Consult a financial advisor to minimize your gift tax obligations.

Federal Gift Tax at a Glance

The federal gift tax applies when you transfer money or property to someone else without receiving something of equal value in return. Gift tax rates range from 18% to 40% based on the size of the gift.

However, not all gifts trigger this federal tax. The IRS allows you to give away up to $17,000 ($34,000 for married couples) per year to each individual without owing any taxes on the gift. This is called the annual exclusion, and in 2024 it will increase to $18,000 per person.

However, gifts that exceed this annual exclusion aren’t necessarily taxed either. Instead, they reduce the amount of money or property you can give away tax-free over the course of your lifetime. This lifetime limit is known as the basic exclusion amount or lifetime exemption and it’s adjusted each year for inflation.

The gift tax only applies when you exhaust your lifetime exemption. In 2023, a person can give away up to $12.92 million over the course of their lifetime without triggering the gift tax (this will increase to $13.61 million in 2024). For example, if someone were to give away $13 million, they would pay gift taxes on only $80,000. And if you need additional help planning for major gifts, consider matching with a financial advisor.

How the Gift Tax Could Affect a $30,000 Wedding Gift

If you want to give a child $30,000 to help pay for a wedding, there are a few different ways it could be structured.

As a gift solely from you to your child, a $30,000 wedding gift would avoid most tax liability on its own. The gift only exceeds the $17,000 annual exclusion for 2023 by $13,000, so that’s all that could potentially be taxable if you’re single.

If this is your first time exceeding the annual exclusion, there’s more good news. In that case, the $13,000 excess would simply reduce your $12.92 million lifetime exclusion by that amount. You would not actually have to pay any gift tax unless you exceed your remaining lifetime exclusion, though you still have to fill out Form 709.

Alternatively, you could gift both your child and their future spouse $15,000 each and avoid the annual exclusion threshold (remember, you can gift up to the annual exclusion amount per year per person).

To make sure you structure your gifts in your best interest, talk it over with a financial advisor.

How to Avoid Gift Tax on a $30,000 Wedding Gift

TO READ MORE: https://www.yahoo.com/finance/news/worry-gift-tax-pay-30-122213443.html

3 ‘Horrible’ Pieces of Tax Advice, According to The Money Guy Show

3 ‘Horrible’ Pieces of Tax Advice, According to The Money Guy Show

Catherine Collins  Tue, April 1, 2025  GOBankingRates

The financial advisors behind the podcast ‘The Money Guy Show‘ recently reviewed popular TikTok tax hacks that are actually terrible money advice. In addition to being financial advisors, hosts Brian Preston and Bo Hansen are also accountants, so listeners can benefit from hearing their advice about what is and isn’t allowed when you file your taxes.

While the hosts aren’t against tax planning, many of the TikTok tax strategies they reviewed are less about planning and more about being misleading or even committing fraud. Many people turn to ‘The Money Guy Show’ for financial lessons that aren’t boring. So, if someone is interested in lowering their tax bill, this is a show to follow.

What’s important to remember is that if people need to get tax advice, they should follow the advice of an accountant. Not everything you see on TikTok is true, but sometimes people get excited about ways they can save money. Unfortunately, not all ways are valid.

Here are a few examples of bad Tik Tok tax advice, according to the pros at ‘The Money Guy Show.’ Also, learn how to avoid bad financial advice on social media.

Lease a Range Rover and Write It Off

The Money Guys reviewed a video where Grant Cardone told viewers they could write off a $150,000 Range Rover “100%” so long as they use it for business.

The IRS does have rules about using a car for business purposes, but how you can only deduct the business portion of how you use it.

The Money Guys explained you have to carefully track your mileage to write off a car as a business expense — you can’t write off any driving for personal use. Preston also pointed out, “‘Deductible’ is not ‘free.’ … You’re still paying 60 cents on the dollar.”

TO READ MORE:  https://finance.yahoo.com/news/3-horrible-pieces-tax-advice-130313620.html    

How Much Should You Add to Your Emergency Savings To Keep Up With Inflation?

How Much Should You Add to Your Emergency Savings To Keep Up With Inflation?

Kerra Bolton  Mon, March 31, 2025 GOBankingRates

Saving three to six months of emergency savings is a must, especially during times of economic uncertainty. However, rising inflation means that a $10,000 safety net might not be able to buy as much tomorrow as it does today.

GOBankingRates talked to financial experts to find out how much you should add to your emergency savings to keep up with inflation.

3% to 4%

Carson McLean, founder of Altruist Wealth Management, said individuals should aim to increase their emergency fund by 3% to 4% annually, assuming average inflation.

“For example, if your emergency fund is $30,000, aim to add an extra $900 to $1,200 each year, just to maintain its purchasing power,” McLean said.

Individuals can find the inflation rate by using the annual Consumer Price Index for All Urban Consumers published by the U.S. Bureau of Labor Statistics.

“Set an annual recurring calendar reminder to review the prior year’s inflation data and top up your fund,” McLean said. “Alternatively, set up an automatic savings transfer. For example, add $100 per month to your emergency account, which covers most inflation adjustments without much thought.”

The Exact Annual Inflation Rate

William Bergmark, a personal finance expert at Credwise, recommended that individuals use the annual inflation rate to calculate how much they should add to their emergency savings.

“For example, if you’ve saved $20,000 and inflation is 5%, you’ll have to put in at least $1,000 that year,” Bergmark said. “Inflation gradually erodes the purchasing power of your money — just letting it sit in the bank. So, it is a must to continuously build your emergency fund.”

TO READ MORE: https://finance.yahoo.com/news/much-add-emergency-savings-keep-150033188.html

Protecting Yourself From Both Scams And Tax Penalties

Protecting Yourself From Both Scams And Tax Penalties

Joe Cortez    Moneywise

California man loses life savings, owes more than $30K in taxes after falling prey to sophisticated scam

On top of losing his life savings to scammers, Chester Frilich of Concord, California is facing a tax bill of over $30,000 which could end in him losing his home.

As reported by ABC7 News, his problems began when he received a call from somebody claiming to be from Xfinity, who claimed his account was used to upload pornographic videos. An hour later, he heard from “Jason Brown” with the Federal Trade Commission, listing all of his credit cards and telling him he was under investigation for wire fraud.

In order to clear the issues, the scammers posing as the FTC said they would help him move his money to a “secure account,” which involved him sending thousands of dollars of gold and cash through couriers and UPS. He tapped into multiple accounts, including Certificate of Deposit (CD) and IRA accounts, to send over $200,000 in funds before the police informed him that it was all a scam.

*************************************

By using those accounts to send money, Frilich amassed a tax burden of around $30,000, which will end in the IRS putting a lien on his home if he can’t pay the bill or work out an arrangement with the agency.

While losing money in a scam is awful, getting penalized on top of it makes it even worse. How can you guard yourself from tax problems as you try to avoid fraud?

Why Early Withdrawal Penalties Matter

While most bank and investing accounts are designed to hold “liquid” assets — defined as cash or assets that can be converted to cash quickly and easily — some accounts are structured to effectively “lock down” money to pay interest and dividends over an extended period of time and are not considered “liquid.” Examples include the two types of accounts Frilich pulled money from: Certificate of Deposit (CD) accounts and Individual Retirement Accounts (IRAs).

Both are designed to keep money locked for an extended period of time, but in different ways. A CD is offered by banks or credit unions as a savings option, where consumers agree to deposit their money for a specific period of time before they can make a withdrawal.

CD terms can range anywhere from one month all the way to five years. IRAs are investment accounts designed to help you save money for your retirement. The earliest one can withdraw money from an IRA without issue is when the account holder turns 59½.

Anyone withdrawing money from either of those accounts before they mature will face penalties. Under federal law, banks are allowed to charge penalties for early withdrawal of CDs.

While the minimum penalty is seven days of simple interest if the withdrawal is done within six days of deposit, a larger penalty can apply for early withdrawal at any other time during the term.

TO READ MORE: https://www.yahoo.com/finance/news/california-man-loses-life-savings-120300738.html

You Might Not Make Enough Money To Get Musk’s Potential DOGE Dividend Check

You Might Not Make Enough Money To Get Musk’s Potential DOGE Dividend Check: Here’s the Salary Cutoff

G. Brian Davis  Mon, March 31, 2025  GOBankingRates

James Fishback, an investment manager who briefly worked with Vivek Ramaswamy in the earliest days of the Department of Government Efficiency (DOGE), says the idea of “DOGE dividend” payments came to him in a dream.

Fishback first tweeted about it on X in February: “American taxpayers deserve a ‘DOGE Dividend’: 20% of the money that DOGE saves should be sent back to hard-working Americans as a tax refund check. It was their money in the first place!” Since then, both Elon Musk and President Donald Trump have both aired it as a possibility.

Trump is certainly no stranger to economic stimulus payments. But that doesn’t mean the DOGE dividend would work just like his COVID-19 stimulus checks.

Who Would Be Eligible?

The tax rebate would only go out to American households who pay net-positive taxes.

Low- and moderate-income households often collect more in tax credits than they pay in taxes. The Tax Foundation points out that the bottom 50% of earners in the U.S. pay roughly 3% of the total individual income taxes collected by the IRS.

A analysis by the Pew Research Center found taxpayers earning below $40,000 generally collect more back in tax credits than they pay in taxes. So, these taxpayers would not be eligible for a DOGE dividend check.

While DOGE dividend is a redistribution of wealth, as a tax rebate it would exclude lower earners.

TO READ MORE:  https://finance.yahoo.com/news/might-not-enough-money-musk-120113915.html

Settling A Loved One's Estate Can Take Up To '900 Hours Of Effort

Settling A Loved One's Estate Can Take Up To '900 Hours Of Effort

Sara Belcher · Podcast Writer  Updated Mon, March 24, 2025  Yahoo Finance

After a loved one dies, those left in charge of settling the estate can spend months tying up loose ends.

"No matter how well you did your planning, there is a house, cars, financial accounts," Hugh Tamassia, co-founder of the estate settlement company Alix, said on the Financial Freestyle podcast (see video above or listen below). "There are subscriptions. There's insurance policies. There's utilities. There's the newspaper that lands on the front door that has to be canceled. There's all these things that have to be dealt with by the next generation. And these things can take up to 900 hours of effort for the children of someone who's passed away."

Tamassia, who spent years working at financial institutions like JPMorgan Chase & Co., American International Group, and Acorns, pointed out that every American will face estate settlement, though they will likely only need to deal with it once in their lifetime.

The Silent Generation and baby boomers are expected to pass up to $84.4 trillion to their children through 2045. But without the proper handling of estates, it'll be difficult for the receiving generations to maintain and build on that inherited wealth.

"It doesn't matter whether you're poor or rich, everyone is going to have this problem," Tamassia said.

However, he noted that estate planning tends to fall more on women and underserved communities. Over 60% of the time, it's the eldest daughter who is expected to wrap up the estates of baby boomer parents, Tamassia said.

"The most common mistake is underestimating what's really ahead of you," he explained. "There's actually an enormous amount of work in shutting down someone's life beyond just what we would immediately think are the small things that need to be done. And the problem is most people don't learn this until they get halfway into it and it's too late."

So what can be done to make this process easier on family members? Tamassia recommended starting by creating a will and establishing a trust.

"But that doesn't handle everything," Tamassia said. He noted that a will and trust don't handle subscriptions, credit card payments, and other smaller financial matters that must be dealt with after a person's death. And the lawyer executing the will isn't likely to advise the deceased's loved ones on these steps either.

"The best plans begin to go stale the moment you leave the lawyer's office," Tamassia said. "If you don't refresh those plans constantly, there's always some assets out there."

TO READ MORE:  https://finance.yahoo.com/news/settling-a-loved-ones-estate-can-take-up-to-900-hours-of-effort-expert-says-181341207.html