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Tampa
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Ft. Myers
Toll-Free: (800) 660-7564
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Planning
Today for Today's LifeStyle.
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Is your financial and legal house in
order? Does it have a solid foundation based on sound planning principles?
Remember the old shop-worn, but true saying: Most people do not plan to
fail…they simply fail to make plans. In this article we will survey some
of the financial and legal fundamentals that make up a comprehensive
Financial & Legal Plan. Think about how your own planning measures up
as you read along.
Financial Planning
When it
comes to your investments, first set your goals and determine how much
money it will take to reach them. Then, determine your risk tolerance and
select a diversified portfolio (cash, stocks, bonds, mutual funds, real
estate, etc.) within your tolerance that will most likely provide the
after-tax return necessary to reach your goals. Once your portfolio is in
place, be sure to monitor the performance of your investments and make
changes to the asset mix as needed.
Legal Planning
What legal
plans have you made in the event of your incapacity or death? Whom have
you appointed to see that your financial and legal affairs are managed
according to your wishes? Have you minimized your exposure to federal
estate taxes? Would your financial legacy be protected for and from your
loved ones? Have you remembered your favorite charities in death as in
life? The answers to these key legal questions will help secure your
financial plan.
Incapacity planning is necessary, whatever your
net worth. The law requires everyone over the age of 18 years to make
their own personal, health care and financial decisions. If you become
incapacitated, would you rather your decisions be made by someone you have
appointed through appropriate legal documents or by someone appointed for
you by a court? The choice is yours, but legal planning in advance usually
means less expense, more convenience and greater privacy.
Similarly, upon your death, you can make matters
easier for your loved ones through appropriate legal documents. For
example, you may want to arrange for your assets to avoid the court system
en route to your loved ones. You may even wish to appoint individual
and/or corporate fiduciaries of your own selection to administer your
final affairs without posting a bond and serving under court supervision.
Again, the benefits of legal planning in advance usually outweigh the
alternative by default.
Most people are aware that the highest marginal
income tax rate is 38.6%, but are unaware that the highest marginal
federal estate tax rate is 50%. Not surprisingly, these same people spend
considerable time and money to save every last penny from income taxes
while they are alive…only to lose dollars to federal estate taxes when
they die. Through appropriate legal planning, hundreds of thousands of
hard-earned dollars can be saved for loved ones and charities instead of
lost to the IRS.
Fact: A lifetime of work can disappear in a
season of squandering. No one appreciates the true value of a dollar like
the person who earned and paid taxes on it. Unless you make appropriate
legal plans, the financial legacy you leave to your loved ones may even be
lost to their divorces, lawsuits and bankruptcies.
Conclusion
Only you can ensure that your financial and legal
house is in order. Be sure to seek qualified legal counsel for
assistance.
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