Long term financial planning is important. After all, there are lots of variables you have to consider; and that is why it is important to plan your financial future carefully. Of course, there are also lots of different ways to plan for the future concerning your finances.
ESTATE PLANNING: THE BASICS
The Rothenberg Group estate planning involves looking at various pre-prepared tasks that will help you better examine the outlook of your assets in the future. In fact, estate planning can even ensure that the wealth accrued in your life—regardless of its size—is managed appropriately, even after your death. Estate planning helps you to map out a path of benefits for your investments, financial accounts, and other assets at various places in the future. This, of course, includes the bequeathing of assets to heirs or other third parties, such as charities or associated organization.
ESTATE PLANNING: A CLOSER LOOK
Breaking down the process of estate planning, it might help you to know that when people talk about their “last will and testament,” this is actually what they mean. That’ll give you a better idea what goes into estate planning. OF course, the actual “will” is only a small part of this process. More specifically, estate planning involves:
- creating a will
- establishing annual gifting that can be used to help reduce estate taxes
- establishing an executor of your funeral arrangements
- establishing a guardian for any living dependents
- establishing power of attorney to help manage your account(s) and to direct other assets and additional investments
- establishing trust accounts—in the name of one or more beneficiaries—to help you limit estate taxes
- make a database of your dependents as well as other beneficiaries of investments, as well as life insurance
- Pre-arrange your funeral or set up a fund for funeral arrangements
ESTATE PLANNING: WHY IT IS IMPORTANT FOR YOU
Fundamentally, estate planning acts similarly to life insurance. It is not entirely fascinating, as a topic and, unfortunately, you don’t really get to enjoy the benefits of it (because only those who are left behind after you pass will receive the payouts). In the same way that you need medical insurance just in case you get sick and you need auto insurance just in case you get into an accident, you need life insurance for the inevitable event of your passing.