How To Ensure You’re Not a Financial Burden in Your Later Years & Beyond

Gabrielle Olya   Wed, December 15,  2021

For many Americans, the pandemic has brought to light the importance of legacy planning. A recent study conducted by financial services firm Edward Jones found that a third of U.S. adults report that the pandemic sparked conversations with close family members about their end-of-life plans and preferences, and for 18% of Americans, these were first-time discussions.

Although these conversations can be uncomfortable — 18% reported being too uncomfortable to discuss these topics — they’re important to have so that you and your loved ones are on the same page about your plans for your later years and beyond.

A fifth of those surveyed said they have avoided talking about end-of-life plans because they did not want to burden family members with their finances, but it’s not having these conversations that could cause your family members to deal with a large financial burden in the end.

Here’s what should be included in your plans for your later years and end-of-life to ensure your loved ones are financially prepared.

Create an Estate Plan

“There are many different factors to consider when developing an estate plan that best fits your unique needs,” said Alison Carnie, CFP, principal at Edward Jones. “First, work with your financial advisor to make a list of all of your assets including investment and retirement accounts (IRAs, 401(k) [plans], brokerage accounts); cash or checking/savings accounts; real estate; personal property (automobiles, boats, jewelry, artwork); insurance policies and annuity contracts.”

Next, determine what your priorities are. When it comes to the kind of legacy people want to leave to their families, nearly a third (32%) said leaving an inheritance is the most important thing.

One of the easiest ways to make sure your assets go to the people you intend is to list them as beneficiaries,” Carnie said. “Ensure that the correct beneficiaries are named on your accounts and that these designations are consistent with your overall estate plan. Brokerage accounts don’t automatically include beneficiary designations, but you can complete a Transfer on Death agreement to identify the person to whom the assets should go.”

You should review your beneficiaries any time something major happens in your life, such as when you marry, divorce or have a child, Carnie said.

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