15 Things That Change Once You Get Rich
15 Things That Change Once You Get Rich
1,264,185 views Jun 20, 2017
In this Alux.com video we'll try to answer the following questions:
How does life change when you're rich? How does your life change once you get money?
How much does money impact your life? What to expect when you get rich?
How does you life change when you're a millionaire?
15 Things That Change Once You Get Rich
1,264,185 views Jun 20, 2017
In this Alux.com video we'll try to answer the following questions:
How does life change when you're rich? How does your life change once you get money?
How much does money impact your life? What to expect when you get rich?
How does you life change when you're a millionaire?
What is life like when you have a million dollars? How has your life changed since becoming a millionaire? What is like to be a billionaire
What should you know about money? What are some things that change once you get rich?
Do You Have a Healthy Emotional Relationship With Money?
.Do You Have a Healthy Emotional Relationship With Money?
Gabrielle Olya Fri, September 3, 2021,
GOBankingRates wants to empower women to take control of their finances. According to the latest stats, women hold $72 billion in private wealth — but fewer women than men consider themselves to be in “good” or “excellent” financial shape. Women are less likely to be investing and are more likely to have debt, and women are still being paid less than men overall.
Our “Financially Savvy Female” column will explore the reasons behind these inequities and provide solutions to change them. We believe financial equality begins with financial literacy, so we’re providing tools and tips for women, by women to take control of their money and help them live a richer life.
In today’s column, we chat with Lindsay Bryan-Podvin, LMSW, financial therapist and author of “The Financial Anxiety Solution,” about how to tell if you have a healthy emotional relationship with money — and what to do if you don’t.
What are some signs that a person does have a healthy emotional relationship with money?
Do You Have a Healthy Emotional Relationship With Money?
Gabrielle Olya Fri, September 3, 2021,
GOBankingRates wants to empower women to take control of their finances. According to the latest stats, women hold $72 billion in private wealth — but fewer women than men consider themselves to be in “good” or “excellent” financial shape. Women are less likely to be investing and are more likely to have debt, and women are still being paid less than men overall.
Our “Financially Savvy Female” column will explore the reasons behind these inequities and provide solutions to change them. We believe financial equality begins with financial literacy, so we’re providing tools and tips for women, by women to take control of their money and help them live a richer life.
In today’s column, we chat with Lindsay Bryan-Podvin, LMSW, financial therapist and author of “The Financial Anxiety Solution,” about how to tell if you have a healthy emotional relationship with money — and what to do if you don’t.
What are some signs that a person does have a healthy emotional relationship with money?
A person who has a healthy relationship with money understands the ins and outs of their personal finances and understands that mistakes happen. They are comfortable talking about money and asking questions when they don’t understand something financially related.
What are some signs that a person does not have a healthy emotional relationship with money?
They might avoid looking at money, not negotiate for raises, overspend or spend recklessly.
If someone doesn’t have a healthy relationship with money, what are some steps they can take to improve it?
1) Identify your current relationship with money. If you aren’t sure, I recommend taking note of your thoughts and feelings when interacting with money or financial tasks. Think: seeing your paycheck hit your bank account, handing your credit card over when you get your car repaired or hearing a story about the stock market on the radio. Knowing where you are now can help with where you want to be.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/healthy-emotional-relationship-money-110144434.html
How and When Is Wealth Management Worth It?
.How and When Is Wealth Management Worth It?
Sam Lipscomb, CEPF® Wed, September 1, 2021
Wealth management services are some of the most high-level and comprehensive financial services that exist. While financial planning services can help with individual financial matters, and asset management services typically deal with investments, wealth management can encompass every part of an individual’s finances from taxes to estate planning, to charitable giving and more. But should you pay for wealth management services?
This will depend on your specific financial situation, so it’s important to make sure that it fits in with your overall financial plan and goals. If you decide you want wealth management, SmartAsset’s free matching tool can help you find a financial advisor.
How and When Is Wealth Management Worth It?
Sam Lipscomb, CEPF® Wed, September 1, 2021
Wealth management services are some of the most high-level and comprehensive financial services that exist. While financial planning services can help with individual financial matters, and asset management services typically deal with investments, wealth management can encompass every part of an individual’s finances from taxes to estate planning, to charitable giving and more. But should you pay for wealth management services?
This will depend on your specific financial situation, so it’s important to make sure that it fits in with your overall financial plan and goals. If you decide you want wealth management, SmartAsset’s free matching tool can help you find a financial advisor.
What Is Wealth Management?
Wealth management is a comprehensive financial service that not only offers clients investment advice, but also helps with a wide range of financial and financial-adjacent matters that affect different parts of a client’s financial life.
Wealth managers typically develop complex and holistic financial plans that detail information about investing, taxes, charitable giving, estate planning and any other relevant needs or goals. In turn, they typically manage your investments with an eye towards your long-term goals.
Wealth managers also help set, review and update goals, rebalance investment portfolios and assess whether clients need other services to protect their wealth. This could include managing charitable giving, tax liabilities and business plans.
Because of its comprehensive nature, wealth management is typically reserved for individuals who are at least above the high-net-worth threshold. This is generally seen as someone who has at least $750,000 in investable assets or a $1.5 million net worth.
Who Can Access Wealth Management Services?
Wealth management services aren’t typically available for everyone. Due to the comprehensive nature of them, firms can require high minimums, such as $500,000 or $1 million. In fact, they may even charge additional fees to cover the costs of wealth management services, being that they’re comprehensive.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/wealth-management-worth-000730186.html
How to Rebuild Your Finances After a Natural Disaster
.How to Rebuild Your Finances After a Natural Disaster
THE ASSOCIATED PRESS (NerdWallet staff)
September 1, 2021, 7:23 AM EDT Updated on September 1, 2021
(AP) -- Natural disasters can upend lives in an instant, but unwinding the financial damage can take many months. Still, those affected have many sources of help.
Here’s how you can get help and be strategic with your resources as you begin to rebuild after a disaster.
Deal with immediate needs first.
First things first: Contact the Federal Emergency Management Agency to get help via a disaster recovery center by texting your ZIP code and “DRC” to 43362. Texting “Apple” or “Android” to that same number will give you a download link for a mobile app from FEMA with additional resources, such as shelter locations.
Local and state agencies and nongovernmental groups such as the Red Cross can also help; call 211 from any phone or visit 211.org to get information.
How to Rebuild Your Finances After a Natural Disaster
THE ASSOCIATED PRESS (NerdWallet staff)
September 1, 2021, 7:23 AM EDT Updated on September 1, 2021
(AP) -- Natural disasters can upend lives in an instant, but unwinding the financial damage can take many months. Still, those affected have many sources of help.
Here’s how you can get help and be strategic with your resources as you begin to rebuild after a disaster.
Deal with immediate needs first.
First things first: Contact the Federal Emergency Management Agency to get help via a disaster recovery center by texting your ZIP code and “DRC” to 43362. Texting “Apple” or “Android” to that same number will give you a download link for a mobile app from FEMA with additional resources, such as shelter locations.
Local and state agencies and nongovernmental groups such as the Red Cross can also help; call 211 from any phone or visit 211.org to get information.
Check your credit card or hotel loyalty accounts as well. You might have points or a free night certificate. Most hotel loyalty programs have offered generous expiration date extensions for certificates that have gone unused due to the pandemic. And some general rewards credit cards allow you to use points to book hotels directly through their own travel portals or let you transfer points to a specific hotel loyalty program.
Next, tend to financial issues.
As soon as possible, turn to handling your finances. FEMA offers unemployment assistance, rental assistance, legal services and much more. You have several ways to register, including online at disasterassistance.gov, via the FEMA app, at a disaster recovery center or by phone at 800-621-3362.
Nonprofit credit counseling agency Money Management International has a free program called Project Porchlight that offers disaster victims support for up to a year. The program helps people navigate an unfamiliar process, stay on top of deadlines and address the trauma that makes handling tasks harder.
You do have several tasks to handle:
Contact insurers as soon as possible.
Act quickly so you can get the most out of your home insurance, renters coverage or auto insurance.
Review your policies for types of damage covered, coverage limits and deductibles. Home and renters policies typically do not cover flood damage, so check for flood insurance as well. Flood and wind damage to your car are covered as long as you have comprehensive insurance on your auto policy.
Report damage to your agent or insurance company as soon as possible, said Mark Friedlander, director of corporate communications for the Insurance Information Institute, in an email. Insurers will face a glut of claims, so the sooner you file, the better.
To continue reading, please go to the original article here:
Questions You Should Ask Any Financial Advisor You Might Hire
.Questions You Should Ask Any Financial Advisor You Might Hire
Aug. 26, 2021 Lindsay Goldwert
One surprising question you should ask any financial advisor you might hire — their answer could be a huge red flag. They often manage your life savings. Be smart about who you hire. Asking the right questions can help you get a financial planner who meets your needs.
Planning your financial life can sometimes be a lot to handle on your own. If you’re paying off your debt, how much should you invest into your Roth IRA? Should you buy a house or keep renting while you build up some liquidity? While not everyone needs a certified financial planner, they can help you get organized and formulate a plan for your money. But how do you know who to trust and whether they’ll be right for what you want to accomplish?
Questions You Should Ask Any Financial Advisor You Might Hire
Aug. 26, 2021 Lindsay Goldwert
One surprising question you should ask any financial advisor you might hire — their answer could be a huge red flag. They often manage your life savings. Be smart about who you hire. Asking the right questions can help you get a financial planner who meets your needs.
Planning your financial life can sometimes be a lot to handle on your own. If you’re paying off your debt, how much should you invest into your Roth IRA? Should you buy a house or keep renting while you build up some liquidity? While not everyone needs a certified financial planner, they can help you get organized and formulate a plan for your money. But how do you know who to trust and whether they’ll be right for what you want to accomplish?
When you meet with a certified financial planner, here are the 15 questions you should ask them to make sure they are trustworthy, experienced and have your best interests at heart.
1. “‘What’s your definition of a financial planner?”
The definition of a financial planner is very broad and can encompass everything the planner helping with everything from investing and retirement, to insurance and taxes. You want to make sure that the financial planner you go with defines their job in a way that aligns with what you will need them to do. Some may only want to deal with your investments, others may take a holistic approach and even get into the nitty gritty with your budget — make sure the planner you hire can do exactly what you need. Use this tool to get matched with a planner who meets your needs.
2. “What are your qualifications?”
When it comes to planning your financial universe, you likely want a certified financial planner (CFP) or, if you want help with taxes, a certified public accountant (CPA). Just because someone says they’re a financial planner doesn’t mean they’ve taken the exams that qualify them to be a certified financial planner or CFP. They may have other licenses, such as the Series 7, that allow them to sell financial products, but that’s not the same.
“Know the difference between an actual qualification designation and what is a list of tests that a person took in order to sell stocks and bonds,” explains Katie Brewer, a Dallas-based certified financial planner and founder of Your Richest Life.
To become a certified financial planner, you must take financial planning educational courses, pass an exam with a historic pass rate of around 60%, adhere to ethical requirements, have 6,000 hours of professional financial planning experience or 4,000 hours of apprenticeship experience and keep up with continuing education. Becoming a CFA also requires rigorous education, exams and more.
“Don’t be shy about asking your financial planner when they received their CFP® mark and how long they’ve been in the business,” explains Brewer. “Trust me, we’re used to it.” You should also double check a CFP’s credentials at CFP.net.
You should also ask other questions like how long they’ve been practicing, what their typical client looks like, and their personal philosophy around financial planning.
To continue reading, please go to the original article here:
The Difference Between Wills And Trusts—What Parents Need to Know
.The Difference Between Wills And Trusts—What Parents Need to Know
Hiranmayi Srinivasan Tue, August 24, 2021
Estate planning is a crucial part of mapping out your family's future. While there are many different components of an estate plan, wills and trusts are an important part of assuring how your assets will be distributed after your death—and to whom. "When someone dies without a will, their assets belong to their estate until the probate process is complete," says Carolyn Yun, CPA and CFP at Hollow Brook Wealth Management LLC in New York. "To ensure that a person's final wishes are met, it's important to get a will drafted," she says.
A will basically directs what will happen to your property after you die. "Most wills will appoint an executor, which is the person that handles the administrative duties of settling your estate," says Emily Cisek, co-founder and CEO of The Postage, a full-service digital estate planning platform. "A trust, on the other hand, is a legal entity that is set up to hold assets for someone's benefit," says Cisek.
The Difference Between Wills And Trusts—What Parents Need to Know
Hiranmayi Srinivasan Tue, August 24, 2021
Estate planning is a crucial part of mapping out your family's future. While there are many different components of an estate plan, wills and trusts are an important part of assuring how your assets will be distributed after your death—and to whom. "When someone dies without a will, their assets belong to their estate until the probate process is complete," says Carolyn Yun, CPA and CFP at Hollow Brook Wealth Management LLC in New York. "To ensure that a person's final wishes are met, it's important to get a will drafted," she says.
A will basically directs what will happen to your property after you die. "Most wills will appoint an executor, which is the person that handles the administrative duties of settling your estate," says Emily Cisek, co-founder and CEO of The Postage, a full-service digital estate planning platform. "A trust, on the other hand, is a legal entity that is set up to hold assets for someone's benefit," says Cisek.
It's a good idea to have both. "People should definitely have both documents—in addition to a power of attorney and advanced healthcare directives," says Jala Eaton, a licensed attorney in California and a certified trust and financial advisor. But there are points where the two differ, that are important to be aware of. Here are the main differences between trusts and wills—so you can be better informed while making your plan for the future.
Everyone should have a will—it's a basic estate planning document that is effective after your death.
No matter what, you should have a will. Again, a will is where you can name your beneficiaries (who gets your assets) and is the only document where you can appoint legal guardians for any minor children you have.
While there are different types of wills, a simple will is a list of your assets and possessions and what you want to happen to them. "These are the easiest types of wills to create," says Cisek. Other types of wills include: a testamentary will, where the beneficiaries receive assets after they meet a certain condition, like age or marriage; a joint will for married couples; and living wills, which dictate what you want to happen in your last days, such as with medical care.
While wills are effective after someone's life, a trust can be used during their lifetime. A living or revocable trust allows the trustor to make changes to it, as they are usually the trustee as well. "A revocable trust provides maximum control over assets," says Cisek. "However, those funds must be reported as income," she adds. The income in an irrevocable trust, on the other hand, can't be taxed—but you also cannot make any changes to it once it's set.
To continue reading, please go to the original article here:
https://www.yahoo.com/lifestyle/difference-between-wills-trusts-parents-164059212.html
The Twelve Biggest Personal Finance Mistakes People Make Over and Over Again
.The Twelve Biggest Personal Finance Mistakes People Make Over and Over Again
Trent Hamm Founder & Columnist Last Updated: August 13, 2020
As I’ve mentioned before, I get tons of email from people describing the personal finance problems in their lives, commenting critically on things I’ve written, and offering up their own stories of success. Not only that, as The Simple Dollar has become more and more popular, I’ve had more and more opportunities to talk about personal finance with people face to face.
What amazes me is that I see most of the same problems pop up time and time again. Sure, the specifics of the story change, as do the severity of the situation, but these same twelve items come up in almost every story I hear about financial problems. Even worse, quite often multiple items from this list appear in the same tale of woe.
The Twelve Biggest Personal Finance Mistakes People Make Over and Over Again
Trent Hamm Founder & Columnist Last Updated: August 13, 2020
As I’ve mentioned before, I get tons of email from people describing the personal finance problems in their lives, commenting critically on things I’ve written, and offering up their own stories of success. Not only that, as The Simple Dollar has become more and more popular, I’ve had more and more opportunities to talk about personal finance with people face to face.
What amazes me is that I see most of the same problems pop up time and time again. Sure, the specifics of the story change, as do the severity of the situation, but these same twelve items come up in almost every story I hear about financial problems. Even worse, quite often multiple items from this list appear in the same tale of woe.
I’m not immune to them, either. At the time of my own financial meltdown, I was guilty of the majority of these things. It was only due to a commitment to fixing my financial situation that I was able to overcome these mistakes and set them right.
Here they are, the twelve biggest mistakes I witness and hear about time and time again.
Concern rarely extends beyond the next paycheck or two.
These are the people who live from paycheck to paycheck. Their next paycheck or two will cover the immediate bills. If there happens to be some money left over, it’s spent on frivolous things. These are the people who are constantly hitting the ATM to check their debit card balance so they know how much they have to spend or the people who juggle credit cards that are maxed out. The only thing that matters is the next paycheck and the brief breathing room that it provides.
What’s the solution? The best way for people in this situation to begin to escape is to set up an automatic savings plan of some sort. The automatic savings plan would scrape a small amount of money out of that checking account each week and put it somewhere safe. The point isn’t so much to build up savings (although that’s very useful and valuable), but to slowly wean yourself from spending everything that you bring in.
Only one person in the family knows where the money goes.
Most families have one person that’s largely in control of managing the money – and that’s fine. It can be very useful to have a family “accountant” – a person that manages the checkbook, makes sure the bills are paid, and so on. This can actually be a very good thing, particularly if one person in a family is particularly detail-oriented.
The problem occurs when this leads to financial atrophy in the family, where no one but the person running the checkbook knows where the money goes or is involved in the decision-making process. While it can be very easy to just let that person run things, it can be very dangerous, too. That person might not be saving appropriately for family goals, might be leveraging credit card use in order to allow everyone to keep spending as they are, and so on.
What’s the solution?
To continue reading, please go to the original article here:
5 Strategies To Protect Your Wallet From A Federal Debt Ceiling Disaster
.5 Strategies To Protect Your Wallet From A Federal Debt Ceiling Disaster
Sigrid Forberg Fri, August 27, 2021, 5:30 PM
The clock is ticking for Congress to reach a deal on the national debt ceiling — and if it can’t, the impact on Americans' pocketbooks could be disastrous.
Lawmakers have until Sept. 30 to either raise or suspend the country's debt limit. If the two political parties can't get their act together — and it's rare for them to unite on anything these days — the government won't have the legal ability to borrow more money and could default on its financial obligations.
Even just the possibility of a default can toss the country into chaos. A debt ceiling impasse in 2011 caused Standard & Poor's (S&P) to downgrade the country’s credit rating by a notch to AA+, which led to significant market volatility that year.
5 Strategies To Protect Your Wallet From A Federal Debt Ceiling Disaster
Sigrid Forberg Fri, August 27, 2021, 5:30 PM
The clock is ticking for Congress to reach a deal on the national debt ceiling — and if it can’t, the impact on Americans' pocketbooks could be disastrous.
Lawmakers have until Sept. 30 to either raise or suspend the country's debt limit. If the two political parties can't get their act together — and it's rare for them to unite on anything these days — the government won't have the legal ability to borrow more money and could default on its financial obligations.
Even just the possibility of a default can toss the country into chaos. A debt ceiling impasse in 2011 caused Standard & Poor's (S&P) to downgrade the country’s credit rating by a notch to AA+, which led to significant market volatility that year.
A debt limit debacle could rock your finances, by making the cost of a mortgage refinance and many other things more expensive. Here are five ways to protect yourself.
1. Shore up your emergency savings
If the debt ceiling isn’t raised, the U.S. could run out of cash to pay Social Security, Medicare and Medicaid, public service salaries and even tax refunds.
One big lesson we've learned from the COVID crisis is to be prepared for the unexpected.
An emergency fund will offer you peace of mind that whatever happens, you’ll have enough cash to float your family for a few months or up to a year. And if you don’t need the money, it’ll be there for the next crisis.
But don't just stash your reserve in a standard checking or savings account that might pay abysmal interest of 0.01%. Look around for a high-yield savings account that will offer better returns.
2. Refinance your mortgage now
If it merely appears that the country might default on its debt, lenders may be less keen to take on risks. That would mean higher borrowing costs for everyone, even if a free peek at your credit score shows that yours is looking pretty good.
A debt ceiling disaster could lift mortgage rates, which have been at historic lows throughout the pandemic. If you're a homeowner and haven't refinanced yet, you probably shouldn't put it off much longer.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/5-strategies-protect-wallet-federal-213000311.html
How to Keep Your Emergency Fund Safe
.How to Keep Your Emergency Fund Safe, Accessible and Away From Temptation
Georgina Tzanetos Fri, August 27, 2021,
Keeping extra money around in cash is always a good idea — but it depends on where you keep it. The old under-the-mattress strategy is never a good idea and with the ease of modern-day banking, a traditional savings account might not be as well.
Banking apps can see your hard-earned savings transferred into an active checking account with a few swipes, and the money used for things other than you intended. A traditional savings account can be useful for things like saving for a home, travel or college savings, all of which can ebb and flow with changing goals and circumstances.
How to Keep Your Emergency Fund Safe, Accessible and Away From Temptation
Georgina Tzanetos Fri, August 27, 2021,
Keeping extra money around in cash is always a good idea — but it depends on where you keep it. The old under-the-mattress strategy is never a good idea and with the ease of modern-day banking, a traditional savings account might not be as well.
Banking apps can see your hard-earned savings transferred into an active checking account with a few swipes, and the money used for things other than you intended. A traditional savings account can be useful for things like saving for a home, travel or college savings, all of which can ebb and flow with changing goals and circumstances.
One thing that should never be touched though is a true emergency fund, the kind of money you will need if, let’s say, a global pandemic all of a sudden upends world order as you know it and you need sustained cash.
A good answer is a high-yield savings account. Its biggest benefit — a higher interest rate than a traditional savings account — is not the only reason opening one up is a good idea. High-yield savings accounts are the only accounts of their kind where money is almost as liquid as a regular savings account, but more restricted.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/keep-emergency-fund-safe-accessible-114211592.html
Is Having Multiple Bank Accounts a Good Idea?
.Is Having Multiple Bank Accounts a Good Idea?
100-Level (Novice) | Everyday Money Updated August 23, 2021
When it comes to bank accounts, is too much of a good thing too much? Should you have more than one or two bank accounts? And should they be at different banks? The more bank accounts you have, the more time it takes to track and manage them. But there are advantages to having multiple accounts. Read on to decide if having more than one bank account can be useful for you.
How many bank accounts should I have?
It’s an excellent idea for most people to have at least two bank accounts: a checking and savings account. And when you link your savings account to your checking account, transfers are a piece of cake. To keep things simple, you might want checking and savings accounts at the same bank.
Is Having Multiple Bank Accounts a Good Idea?
100-Level (Novice) | Everyday Money Updated August 23, 2021
When it comes to bank accounts, is too much of a good thing too much? Should you have more than one or two bank accounts? And should they be at different banks? The more bank accounts you have, the more time it takes to track and manage them. But there are advantages to having multiple accounts. Read on to decide if having more than one bank account can be useful for you.
How many bank accounts should I have?
It’s an excellent idea for most people to have at least two bank accounts: a checking and savings account. And when you link your savings account to your checking account, transfers are a piece of cake. To keep things simple, you might want checking and savings accounts at the same bank.
Linked accounts with one routing number make managing your money easier. And some banks offer overdraft protection and cover a checking shortage with funds from your connected savings account. Yet, there are some reasons you might want multiple accounts (perhaps at different institutions).
Below are a few of those reasons:
You want a checking or savings account separate from the joint account with your partner.
You’re self-employed and need a business account separate from your personal funds.
You want to take advantage of the perks offered by different banks.
You don’t want to have all your money in one bank.
The Pros and Cons of Owning More Banking Accounts
Let’s look at the pros and cons of having multiple accounts, so you can decide if it’s right for you.
Pros: Why have a number of bank accounts
To track different savings goals. You might want to use multiple bank accounts for targeted savings goals. Keeping each savings goal separate makes it easier to manage and stay motivated.
To continue reading, please go to the original article here:
Avoiding Common Mistakes in Estate Planning
.Avoiding Common Mistakes in Estate Planning [Tips & Checklist to Help You Avoid Them]
200-Level (Intermediate) | Estate Planning | Relationships & Money August 23, 2021
We all make mistakes, some big, some small. The good news is we can learn and recover from most if not all of them before it’s too late. When it comes to family, finances, and medical care in terms of estate planning, people make several frequent errors.
These often made blunders include not having an advance health care directive or powers of attorney, failing to name a guardian for minor children, not titling real estate correctly, and forgetting to name or update a beneficiary on a life insurance policy, retirement plans, or other financial accounts after major life events.
Below you’ll find an excerpt from our new book Estate Planning 101, with 20+ common estate planning mistakes and tips to avoid them (plus an estate planning checklist to keep you on track). Being aware of these often made missteps or omissions will help you do proper planning, and steer clear of them-or identify any you’ve already made. If you can raise your hand for any, it’s time for corrective actions.
Avoiding Common Mistakes in Estate Planning [Tips & Checklist to Help You Avoid Them]
200-Level (Intermediate) | Estate Planning | Relationships & Money August 23, 2021
We all make mistakes, some big, some small. The good news is we can learn and recover from most if not all of them before it’s too late. When it comes to family, finances, and medical care in terms of estate planning, people make several frequent errors.
These often made blunders include not having an advance health care directive or powers of attorney, failing to name a guardian for minor children, not titling real estate correctly, and forgetting to name or update a beneficiary on a life insurance policy, retirement plans, or other financial accounts after major life events.
Below you’ll find an excerpt from our new book Estate Planning 101, with 20+ common estate planning mistakes and tips to avoid them (plus an estate planning checklist to keep you on track). Being aware of these often made missteps or omissions will help you do proper planning, and steer clear of them-or identify any you’ve already made. If you can raise your hand for any, it’s time for corrective actions.
Whether you’re 18 or 118, you need at least some basic estate planning documents. Prioritize the essentials of an estate plan as a part of your overall life plan.
Learn from others’ errors, so you don’t make any yourself. Or at least have time to fix any already incurred. Before it becomes too late.
Tips for Getting It Right the First Time
An estate plan that’s full of mistakes might cause more harm than good. Make sure you read all legal documents thoroughly and correct any errors you find before signing them.
Misspelled names or incorrect addresses, accidentally omitting an heir, or gifting the wrong asset to a beneficiary can happen. While you can easily fix those types of mistakes when caught, they may cause lots of grief when they’re not.
Common Mistakes in Estate Planning
Here is a list of frequent estate planning mistakes people make, followed by a checklist to use when doing yours. While neither is an exhaustive list, they can help you avoid errors and track necessary steps as you strategize and put your plan into play.
• Not planning at all! You’re headed in the right direction by reading this book. Now you need to put in the work.
• Planning but not implementing. Without a will, power of attorney, and advance directives, your state determines who manages your affairs and how your property’s distributed. To have your final wishes known and followed, create those legal forms at a minimum.
• Not doing any other financial planning. Estate planning is just one part of a more extensive financial planning process. Not putting time and effort into other areas could put your finances at risk.
• Focusing too narrowly on individual assets. Because specific items in your estate vary over time, consider leaving heirs a percentage of your estate’s value instead of giving them assets individually. This eliminates the need to revise your will every time significant investments change.
To continue reading, please go to the original article here:
https://womenwhomoney.com/avoiding-common-mistakes-in-estate-planning/