Issue 5.17
As investment advisers, we commonly encounter someone that recently loses their spouse or is going through a divorce and they come to us asking for help to understand their investments and finances. Who in your family makes the long term and short term financial plans? In most households we tend to see one spouse take the reins, unintentionally leaving their loved one in the dark. So ask yourself: “do you both feel prepared if something were to happen to one or the other?”
To make sure everyone is prepared and on the same path, we recommend all couples consider the following three financial discussion points.
Review your accounts together: This is the first and most important step. Both of you should know what assets you own. Bank accounts, retirement accounts, annuities and real estate to name a few. Perhaps just as important is to know where to locate the information on those assets. You will likely need to have this information once a year for tax purposes anyway.
Future Planning: Let’s face it, no one likes to think about this step, let alone talk about it. That is possibly why it is so often overlooked. However, when people finally do review wills, power of attorney, trusts and estates, it offers a sense of relief knowing that assets will go where you and your spouse desire.
Financial Literacy: Not only should both of you understand what you have, but you should also determine if your finances are suitable for your current situation. You may have assets that are too risky, or you may need to update your portfolio to provide you with more income. A great way to assess your finances is to meet with a financial professional that understands investments. Schedule an appointment, bring in a summary of your assets, and give them the chance to give you their professional opinion. Some might even do it for FREE.
Mitch is an investment advisor for Heaton Financial, PC. Contact Mitch to schedule a FREE financial risk analysis 435-272-4362.