Start the new year right by giving your spouse or other loved ones a gift of security. Take stock of your finances. Shore them up with a few simple actions that could make your loved ones’ future more secure.
Maximize retirement resources
Thinking about retiring soon? Contribute up to the maximum amount to your employer’s retirement plan or to an individual retirement account. Also consider postponing your application for Social Security benefits for as long as possible. Each year you delay until age 70 increases your future monthly benefit. This strategy also applies to your spouse’s benefit if they will receive your benefits.
Keep your estate planning strategy up to date
If you created an estate plan several years ago, it may need updating. Your estate planning strategy should at least include a will and a health care directive. Also create a power of attorney (POA). A POA lets you choose someone to handle your finances if you become unable to handle them yourself. Make sure the people you name to handle tough decisions can - and are willing – to make them. Also talk with your estate attorney to see if a trust would benefit you and your family.
Consider long-term care needs
You should also consider the possibility you might need long-term care in the future. Long-term care is costly. Do you have enough assets for your family to cover costs that could run more than $5,000 a month? Long-term care insurance could protect your assets for other family needs. Insurance could cover some or all these potential expenses.
Check beneficiary designations
Do you have named beneficiaries on your accounts? After you die those accounts will pass directly by designation; not by direction of your will. Make sure you’ve named both primary and contingent beneficiaries. Check your designations each year to ensure they are up to date.
Review your life insurance coverage
Schedule an appointment with your financial professional to review your life insurance coverage. Life insurance money can provide your family with money to meet current and future needs. These proceeds could help cover future needs. The money could also better secure your loved ones' future.
Implement these few simple actions to help make your loved ones’ future more secure.
The advice given is for informational purposes only. Contact your financial advisor for additional guidance.