Does Your Financial Plan Address All 13 Wealth Issues
If you were to ask most people, "What issues should you consider when preparing a personal financial plan? many would reply: banking products, investments, 401ks or other retirement planning vehicles; perhaps college funding strategies or long-term insurance. Actually there are 13 basic wealth issues that individuals should keep in mind when developing or reviewing their financial plan. In this article, several of those issues are highlighted--including the impact they can have on an individual's ability to achieve his or her financial goals. It would not come as a surprise to many people that life today is more complicated than ever before, especially family finances. At a time when emerging issues--like the long-term viability of Social Security--have made it necessary for many families to take a more active role in managing their finances, their financial options have also grown more complex. Want to save for your children's college education? Great. But be prepared to wade through dozens of available options designed to help you pay for college expenses, everything from 529s to grants and loans. Preparing for retirement? Fantastic. This is a critical leg of any financial plan. But what's the best way to do it? There are a wealth of tax-advantaged retirement savings options, each with its own eligibility rules, investment limits and payout rules. Added to these important issues are questions about whether family assets are adequately protected against disability, liability, long-term care costs or premature death. And there are decisions to make about inheritance, charitable giving, trust funds and tax implications. In fact, there are 13 wealth issues that people are likely to face over the course of their lives. These issues are: * Investments * Insurance * Liability * Qualified Retirement Plan/IRAs * Stock Options * Business Succession Plans * Durable Power of Attorney * Gifting to Children/Descendents * Charitable Gifting During Life * Titling of Assets * Executor/Trustee Issues * Distribution of Wealth Plan to Spouse/Descendents * Charitable Inclinations at Death And all of these issues are interconnected--decisions about one can affect others in unexpected ways. Here are some examples of the issues and important points to consider about them: Investing. A common mistake that people make is not to prepare a written, long-term investment strategy, one that sets specific goals for them. Benchmarking investments against generic indices is fine, but isn't a substitute for a detailed individual plan that can be used to gauge progress against your goals and objectives. …