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<ul class="summary-list"><li><keyword id="402420" type="ORGANIZATION" weightage="60" keywordseo="Estate-Planning">Estate planning</keyword> is important for everyone, no matter their age or wealth.</li><li>Estate planning avoids taxes and legal tie-ups, and ensures funds are bequeathed as you wish.</li><li>An <keyword id="2373605" type="PERSON" weightage="60" keywordseo="estate-plan">estate plan</keyword> appoints the right people to take care of your kids and even you if you're incapacitated.<a href="https://www.businessinsider.com/?hprecirc-bullet"></a></li></ul><p>When you hear the word "estate," you might think of mansions, huge stock portfolios, art and antiques, and other pricey possessions like cars, yachts, and fine jewelry. The things high-net-worth individuals, especially elderly ones, own and leave behind them after they die.</p><p>But estate planning isn't just for the ultra-wealthy or the very old. Everyone, regardless of financial status or age, can benefit from having an estate plan - assuming you have assets to leave and people to leave them to.</p><h2>What is estate planning?</h2><p>Your estate is essentially everything you own, including your home or other property, car, bank accounts, investments, life insurance, furniture, and personal possessions. </p><p>An estate plan gives you a say in how those things are given to the people or organizations you care about. It arranges your affairs and leaves a written record of your wishes and intentions. It indicates how you want your property, belongings, cash, and financial assets distributed.</p><p>If you don't make these decisions and designations while you're alive and able, state law and probate courts will make them for you after you're gone. And the results might not reflect your desires or suit your family's needs.</p><p>Here are five major reasons why estate planning is important, and how it benefits you and your survivors. </p><h2>1. Estate planning goes beyond a will</h2><p>Many people think of a will and an estate plan as the same thing. They're not. </p><p>Both will and estate plans provide instructions for how your goods and assets should be handled after your death, but estate planning encompasses much more. It can also include:</p><ul><li>Durable powers of attorney to appoint individuals to make medical and/or financial decisions on your behalf you're unable to provide instructions yourself</li><li>Medical directives to outline the kinds of medical treatment you want (or don't want) if you become incapacitated</li><li>Beneficiary designations to explain who should receive money from life insurance policies, annuities, retirement accounts, and other financial accounts</li><li>One or more trusts to facilitate passing property to your heirs and potentially provide tax benefits for both you and your beneficiaries</li></ul><h2>2. Estate planning saves time and money</h2><p>When you die without a will, this means you have died "intestate," and the laws of the state where you live and own property determines what happens to your assets and who gives them away. The probate court will name a representative to distribute your assets. In many cases, the surviving spouse gets the job. If you don't have a surviving spouse and no other close family member is willing or able to do the job, the court will name a public trustee to distribute your assets according to state law.</p><p>While all of this is going on, no one can touch your assets or carry out your directives. They're frozen until the court system combs through every detail of your estate, applies state laws, pays off debts, and makes decisions about how to allocate your assets. </p><p>The probate process involves paperwork and court appearances by lawyers, and the estate pays their fees. It can be time-consuming, taking months and even years, especially in big cities or affluent counties. Given the legal bills, it can end up being quite costly for surviving family members.</p><p>You can significantly reduce the time and expense of dying intestate by estate planning. Specifically:</p><ul><li>Creating a will that names an executor of your estate</li><li>Making sure all your investment accounts (<a href="https://www.businessinsider.com/how-to-open-an-ira-for-retirement" target="_blank" rel="noopener">IRAs</a>, <a href="https://www.businessinsider.com/how-to-invest-in-a-401k-for-retirement" target="_blank" rel="noopener">401(k)s</a>, other brokerage/bank accounts) have correct, living beneficiaries. These designations render bequests in a will unnecessary</li></ul><h2>3. Estate planning avoids big taxes</h2><p>One reason estate planning is often associated with the super-rich: <keyword id="10526341" type="UNKNOWN" weightage="60" keywordseo="estate-taxes">estate taxes</keyword>.</p><p>Admittedly, <strong>federal</strong> estate taxes typically only impact the ultra-wealthy. That's because the estate tax exemption is $11.7 million per person (or $23.4 million for a married couple in 2021, meaning only people who die with assets valued above that sum pay federal estate taxes.</p><p>However, <strong>state</strong> estate and inheritance taxes can be another matter. </p><p>Estate taxes are assessed on and paid by, a deceased person's estate. Inheritance taxes are assessed on and paid by the deceased's heirs and beneficiaries. In some cases, the estate can arrange to pay inheritance taxes on their behalf.</p><p>As of 2020, <a href="https://taxfoundation.org/state-estate-tax-state-inheritance-tax-2020/" target="_blank" rel="noopener">twelve states</a> and the District of Columbia impose an estate tax, and six states impose an inheritance tax - and the thresholds for these can be much lower than those for federal taxes. For example, Massachusetts and Oregon tax estates valued at more than $1 million. In Nebraska, heirs may pay inheritance tax on anything over $10,000 (depending on their relationship to the decedent).</p><p>Also, the current federal estate tax exemption is slated to drop drastically in 2026: to $5.49 million per person, adjusted for inflation. If you have a family business to bequeath, a six-figure <a href="https://www.businessinsider.com/personal-finance/life-insurance-more-information-coverage-rates-policies" target="_blank" rel="noopener">life insurance policy</a>, or property likely to appreciate, your taxable estate could well reach that figure.</p><p>There are ways to ensure your property passes onto your heirs without the state or federal government taking a big slice of it first: You can set up trusts, make <a href="https://www.businessinsider.com/what-is-a-custodial-account" target="_blank" rel="noopener">irrevocable gifts</a>, or establish joint accounts. All these effectively remove assets from your estate. But you need an estate plan to execute these moves.</p><h2>4. Estate planning protects children</h2><p>If you die without a surviving spouse to take care of your children and other dependents, who will get custody of them?</p><p>Without an estate plan, the probate court will appoint a legal guardian/conservator for them - typically, a family member, such as a grandparent, as the guardian. Alternatively, a third party, such as a family friend, can petition the court to be appointed as the guardian. If a minor child has no surviving family members and a third party doesn't step forward, the child could become a ward of the state and enter the foster care system.</p><p>If you want a say in deciding who will care for your child in the event of your death, you need to identify that person in your will. It's also a good idea to name an alternate guardian just in case something happens to your first choice.</p><h2>5. Estate planning takes care of you, too</h2><p>Estate planning doesn't just come in handy once you're dead. </p><p>It can also include a durable power of attorney and healthcare proxy - two important legal documents that ensure your wishes will be carried out if you're temporarily or permanently incapable of handling them.</p><p>A durable power of attorney appoints a trusted relative or friend to manage your legal and financial affairs if you can't manage them independently. A healthcare proxy gives someone permission to make healthcare decisions for you if you can't communicate them yourself.</p><p>Without these directives, also known as a "living will," it could get complicated determining who among your loved ones is in charge and is legally allowed to take action. In the worst-case scenario, someone the court appoints or a hospital staffer unfamiliar with your wishes may wind up making decisions for you. </p><h2>The financial takeaway</h2><p>Estate planning isn't only for the rich, and it doesn't have to be an overly complicated or expensive process. An experienced estate-planning lawyer, also known as a trusts and estates attorney, can work with you to create an estate plan customized to your needs, financial affairs, and family situation. </p> <p> The sooner you get started, the better. But remember that an estate plan is only effective if you keep it current. Review your plan regularly - or after major life changes like marriage, divorce, or a death in the family. Keep an eye on changes in tax laws or other financial legislation too. If your estate plan is out-of-date, your heirs could still encounter some of the problems you tried so hard to avoid.</p><h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://www.businessinsider.com/inherited-ira-rules-options" target="_blank" rel="noopener">Inheriting an IRA? Here are all the options and withdrawal rules beneficiaries should know</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/parents-estate-plan-how-to-talk-about" target="_blank" rel="noopener">How to talk with your parents about their estate plan, even if they don't want to</a></h3><h3><a href="https://www.businessinsider.com/roth-ira-for-kids" target="_blank" rel="noopener">Opening a Roth IRA for your kids offers investment options, tax-free growth, and a great lesson in how to save</a></h3><h3><a href="https://www.businessinsider.com/how-to-nail-your-estate-planning-succession-wealth-management-2020-10" target="_blank" rel="noopener">How to nail your succession planning, and how that will change in the Biden era</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/estate-planning-mistakes-i-see-people-make-as-financial-planner" target="_blank" rel="noopener">I'm a financial planner, and there are 4 estate-planning mistakes I see people make over and over</a></h3>

Estate planning is an important strategy for arranging financial affairs and protecting heirs - here are 5 reasons why everyone needs an estate plan

<p><a href="https://www.businessinsider.com/master-your-money"></a></p><p><div type="image" title="MyM social thumb - plan feature" height="834" width="1667" msid="76428322" hostid="261"></div></p><ul class="summary-list"><li>In these unprecedented times, it is difficult to stay calm about your financial future, especially for millennials, who were just starting to feel confident about the years ahead.</li><li>Although it's important to think about what's to come, practicing financial mindfulness will help you focus on what you can control right now. </li><li>Remember that planning is all about you, and your goals — writing those goals down and working towards them is the only benchmark that really matters. </li><li>Ready to get started? Begin here, with Tanza Loudenback's feature that looks at the elements of a <a href="https://www.businessinsider.com/master-your-money-plan">plan</a>. </li></ul><p>For millennials, many of whom graduated from college into the Great Recession, it might seem like a cruel joke — just when it seemed like the future had a shape and certainty, suddenly there are once again more questions than answers.</p><p>When we launched the <keyword id="9089434" type="UNKNOWN" weightage="100" keywordseo="master-your-money">Master Your Money</keyword> series in February, the world was in a very different place. But the motivations and deliverables for our work here are even more relevant now. It is fitting that we have arrived at <strong>Plan</strong>, the second part of our Master Your Money series, where our stories and conversations are all geared to helping you connect your dreams to real-world outcomes. </p><p>Even in the best of times, "planning" can sound like a chore. But planning is really just financial mindfulness: focusing on what is within your control, with awareness of your actions and decisions about money every day. It also means not judging yourself for past mistakes. Mindfulness now provides the building blocks for the future. </p><p>Mindfulness is particularly important when facing circumstances beyond your control. As BI's Money Council member Eric Roberge, financial planner and founder of Beyond Your Hammock, said, "You need to first identify what is truly within your sphere of influence, and then direct your attention and your energy to those things."</p><p>It can be alarming to see stock market fluctuations impacting 401k valuations and other investments, but experts advise not reacting too quickly to news cycles. "While it may feel natural to panic in situations such as this, it is important to have patience in any decisions on investments," said Kelly Lannan, vice president of young investors at Fidelity Investments.</p><p>For those who aren't yet investing, Lannan said now is a good time to start learning about how it all works. "Take this time, when there is interest in the market, to start getting more educated on it."</p><p>Financial mindfulness also means taking stock of what is truly necessary right now, and what you can do without. "Now more than ever is an important time to revisit your necessary and discretionary expenses," said Joseph Edmondson, Money Council member and financial professional at Equitable Advisors. "If you are uncertain about what your future may hold, now is the time to determine where you might be able to find some savings."</p><p>Your plan gives you the roadmap to make those choices — to see what is essential to reaching your goals, and what you can do without. </p><p>The most important feature of a plan is this, however; it is <strong>yours</strong> — for yourself, your life, your future. The plan does not belong to Wall Street, or your bank, or your financial adviser — it belongs to you, alone. </p><p>So focus on your individual goals, not what the markets are doing or how anyone else measures success. </p><p>"When you have a financial plan, the focus becomes whether you are meeting <em>your</em> goals," said Chuck Cavanaugh, a member of BI's Money Council and head of wealth planning for Citi, "not whether your investments are performing well compared to their benchmark."</p>

Be mindful, stay well — and work on that financial plan

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>General Electric <a href="http://www.businessinsider.com/r-ge-close-to-selling-part-or-all-of-its-real-estate-holdings-wsj-2015-4">announced</a> on Friday that it will shed the bulk of its GE Capital assets.</p><p>The company will sell a majority of $26.5 billion in real estate assets to Blackstone and sell the performing loans from this portfolio to Wells Fargo. GE also said it will retain some of its "vertical" financing units and plans to return a ton of cash to shareholders. <a href="http://www.businessinsider.com/r-ge-close-to-selling-part-or-all-of-its-real-estate-holdings-wsj-2015-4">You can read more about the company's plan here.</a></p><p>But along with this news, GE added another wrinkle: the company wants to shed its designation as a "Systemically Important Financial Institution."</p><p>Here's the relevant part of GE's announcement:</p><p style="padding-left: 60px;">GE has discussed this plan, aspects of which are subject to regulatory review and approval, with its regulators and staff of the Financial Stability Oversight Council (FSOC). GE will work closely with these bodies to take the actions necessary to de-designate GE Capital as a Systemically Important Financial Institution (SIFI). "We have a constructive relationship with our regulators and will continue to work with them as we go through this process," Immelt said.</p><p>This SIFI designation was formed by regulators in the wake of the financial crisis, and companies with this designation are considered by regulators as companies that could trigger a financial crisis if they faced financial distress.</p><p>GE was <a href="http://www.treasury.gov/initiatives/fsoc/designations/Documents/Basis%20of%20Final%20Determination%20Regarding%20General%20Electric%20Capital%20Corporation,%20Inc.pdf">first designated</a> as a SIFI in the summer of 2013. <span style="line-height: 1.5em;">On its own, GE Capital would be the <a href="http://www.wsj.com/articles/ge-weighs-deeper-cuts-to-capital-business-1426101876">7th-largest bank in the US</a>, so it makes some sense that the company would be subject to this</span><span style="line-height: 1.5em;"> additional regulation.</span></p><p><span style="line-height: 1.5em;">But the company has been reshaping itself over the last couple years and doesn't think it's quite as systemically important anymore. </span></p><p><span style="line-height: 1.5em;">Earlier this year, GE spun off its personal finance arm, Synchrony Financial, in an initial public offering and the company said that it plans to totally divest this unit by the end of 2015. And now with the divestment of its real estate operations, and the associated loans,</span><span style="line-height: 1.5em;"> the company said it will shed about $200 billion in ending net investment, or ENI. This brings the company's total ENI to around $90 billion, down from more than $580 in the years leading up to the financial crisis. </span></p><p><span style="line-height: 1.5em;">In a note to clients on Friday, analysts at Goldman Sachs noted that during the financial crisis, GE's real estate business saw net income decline 170%. </span></p><p><span style="line-height: 1.5em;">And now this headache is a step closer to being off the company's books. </span></p><p><span style="line-height: 1.5em;"><div class="KonaFilter image-container display-table"><div><div class="image"></div><p></p></div></div><br /></span></p>

GE doesn't want to be 'important' anymore

<ul class="summary-list"><li>Many people who receive an inheritance don't spend it wisely, according to financial planners.</li><li>It's important to come up with a detailed financial plan when you receive an inheritance.</li></ul><p>Receiving a large amount of money from an <a target="_blank" href="https://www.businessinsider.com/estate-planning-how-to-handle-inheritance-assets-house-401k-ira-2024-10">inheritance</a> can be life-changing — but only if you take the right steps to handle it.</p><p>It can be difficult to make big financial decisions, especially around an emotionally charged subject. According to financial advisors, many inheritors end up spending the money they receive — usually from a deceased parent or grandparent — in just a few years.</p><p>Don't worry, though, if you're expecting or recently received an inheritance. You can prevent this situation by avoiding a few simple mistakes, according to Vimala Snow, head of wealth strategy at Cresset Capital, and Dave Jones, director of estate strategy at Bailard.</p><p>Below are the most common mistakes they see clients make and how to avoid them.</p><h2 id="b00e9626-47f7-4359-b39e-a059e32d0222"><strong>Not having tough conversations early</strong></h2><p>It's definitely not a comfortable conversation, but discussing estate planning early on will save you a lot of headaches later.</p><p>Jones recommends starting small by talking about easier topics, such as the location of important documents.</p><p>"Just the location of documents can be a starting conversation. Sometimes parents don't want to talk about the exact plans yet," he said.</p><p>Asking your parents about their retirement accounts, if they have an estate plan, and what sort of assets they're thinking of passing down are good starting points.</p><p>"Those are just really basic things that can then lead into a larger discussion about the estate plan," Jones added.</p><p>It's much easier to clarify any confusion surrounding assets when the person passing their assets along is still alive, which is why these conversations are important, according to Snow. Inheritors should make sure they understand the values that parents have regarding money, as well as how certain assets should be managed.</p><h2 id="14519a89-2828-4b1a-924f-d01da5b20939"><strong>Not having a long-term plan</strong></h2><p>This is a common mistake when it comes to financial planning in general, but it's especially relevant when a large amount of money is on the line, according to Jones.</p><p>"A lot of inheritors will spend the money, and they'll spend it quickly because they may not have had the best financial habits before the inheritance," Jones said.</p><p>He recommends considering a few basic financial planning questions. Take a look at the type of assets you're inheriting — whether it be brokerage accounts, real estate, or others — and evaluate how these fit into your current financial goals.</p><p>It depends on your personalized financial needs, but Jones recommends considering the following questions: "Do you need to generate income for yourself? Do you have an emergency fund? Do you have debts that you need to pay off?"</p><p>Inheritors who establish concrete financial goals will set themselves up for success. "There's a much higher chance that the inheritance will benefit the inheritor for a long time," Jones said.</p><h2 id="1eee78ff-be04-43de-a777-3edbcdfaf8b3"><strong>Expecting to receive assets immediately</strong></h2><p>When coming up with a financial plan, keep in mind that you won't receive your inheritance immediately, according to Snow.</p><p>Estate administration can be a long legal process. The larger the estate, the longer the wealth transfer process will take, Snow said. It could take several months, or even years, for asset distribution to be completed.</p><p>If estate taxes are due, then the tax return will need to be submitted nine months after the date of death, Snow added.</p><p>The distribution process won't always be smooth. Complications can arise, especially over assets like a house, Jones said. If siblings inherit the family home but can't agree on what to do with the property, it could take a long time to figure out how to pass on the asset in a way that satisfies all the inheritors.</p><h2 id="a6fd722f-adb9-406d-ab55-78010263bfb4"><strong>Not working with an advisor</strong></h2><p>Don't underestimate how complicated estate planning can be. It's often helpful to use the advice of a professional, especially during an emotionally turbulent time.</p><p>It might take a team of legal and financial professionals to ensure the best outcome for your inheritance. Financial advisors, tax specialists, and estate planning attorneys can all offer assistance.</p><p>Experts can help you come up with a long-term strategy for investing an inheritance. In more complicated cases, such as if the person died without a will, you may need to consult a probate lawyer to locate and value the deceased's assets. The laws governing estate taxes can also vary from state to state, so getting an expert opinion can help clarify confusion.</p><p>"Making sure that you're asking lots of questions and relying on your team is a really important part of the process rather than trying to do it yourself because it is pretty complicated," Snow said.</p>

Avoid these 4 mistakes and misconceptions when receiving an inheritance, according to financial planners

<p><div type="image" title="financial planner client call" height="949" width="1899" msid="76738040" hostid="261"></div></p><ul class="summary-list"><li>Professional credentials come first when looking for a <keyword id="135503" type="POSITION" weightage="60" keywordseo="financial-planner">financial planner</keyword>, but millennials should also be looking for someone with a good network, and a succession plan. </li><li>Sandi Bragar, CFP, partner and managing director in planning strategy and research at Aspiriant, found that no matter how diligent millennials are in their research and interview questions, they often forget these three key things.</li><li>These factors will help you get to know your advisor better and set you up for a long lasting professional relationship. </li></ul><p>Over the last two decades, I've been in hundreds of meetings with prospective clients. In recent years, more and more of these meetings have been with millennials who are looking for professional help managing their money to meet expanding financial goals. While some may be prepared with a smart list of interview questions, I've noticed that there are three important areas they often overlook in the due-diligence process.</p><h2><strong>Feeling a connection</strong></h2><p>The relationships people have with their wealth managers can be very special. In fact, the connection I have with my clients is the driving reason why I love my career. I continually have deeply personal discussions with clients about their values, hopes, dreams, and concerns.</p><p>Often, client money conversations range from work to family to community, and I'm humbled to know I'm one of the only people with whom they share these important personal and financial details of their life!</p><h2><strong>Knowing the advisor's succession plan</strong></h2><p>What if something happens (death, career move, retirement) that prevents the advisor from working with you for as long as you hoped? Find out upfront what plans the advisor has in place for clients if they can no longer personally serve you.</p><p>Transitioning to a financial advisor takes a lot of upfront time and effort. You don't want to risk repeating that process again if the advisor's succession plan doesn't fit your needs, or stepping into the chaos that ensues if the advisor failed to put a plan in place.</p><p>A client I now serve came to us in panicked tears when her former advisor, a sole proprietor, died. In addition to her grief about the death, she was angry and disappointed that no one in his family had access to his files and systems which housed her important documents and personal details.</p><h2><strong>Asking about their network</strong></h2><p>Look for an advisor who has a vast network of multi-disciplinary professionals including mortgage lenders, attorneys (estate, family law, etc.), tax preparers, insurance brokers, and more. The advisor should not only know them but have reliable working relationships with these professionals that you can leverage. This will help make your financial life more effective and efficient.</p><p>The most popular referral I make is to a health insurance broker who is an experienced partner in helping clients choose plans that best serve their health needs and financial circumstances.</p><p>Choosing an advisor should be a life-enhancing endeavor. Learning about the advisor's investment philosophy, tech stack, and fees is extremely important. But don't stop there. </p><p>When scoping out an advisor, pay close attention to who's talking more — them or you? Are they really hearing what you're saying? Do they "get you" for who you are, where you're at in your financial life, and where you want to go? Do you feel connection and rapport? Will they be ready to serve you proactively and have your back when you need them? </p><p>If this is a good match, the relationship should serve you well for decades.</p><p><em>The article was contributed by Sandi Bragar, CFP, partner and managing director in planning strategy and research at Aspiriant.</em></p>

As a wealth manager for over 20 years, I see millennials miss 3 key things when searching for a financial advisor

<p><div type="image" title="MyM Money Council thumb" height="834" width="1668" msid="76734730" hostid="261"></div></p><ul class="summary-list"><li><strong>Business Insider's <keyword id="9419573" type="UNKNOWN" weightage="60" keywordseo="money-council">Money Council</keyword> recently had a roundtable to talk about topics related to financial planning, including the importance of health and disability <keyword id="35450" type="COMPANY" weightage="60" keywordseo="insurance">insurance</keyword>.</strong></li><li><strong>Many employees offer disability insurance, and it's important to know the gap between what it covers and your income in case you get hurt.</strong></li><li><strong>Health savings accounts offer benefits that might not be immediately apparent and should be considered if you have a high-deductible insurance plan.</strong></li></ul><p>Even in ordinary times, planning for healthcare shouldn't be ignored. Just one health setback can create major upheaval.</p><p>"You can make the most beautiful plan in the world," said Eric Roberge, a certified financial planner and founder of Beyond Your Hammock, "and then the 'what if' scenario happens that you weren't expecting and blows the whole thing up."</p><p>In the middle of a global pandemic, that "what if" scenario is clearer than ever.</p><p>Roberge said a "protection plan" is just as important as the financial plan itself — and a cornerstone of that plan is insurance. Often when people start their careers they are not thinking about their employer's benefits packages in terms of personal risk and investment, but it can't afford to be overlooked.</p><h2>Calculate whether your disability insurance from work is enough</h2><p>"I know my personal experience, when I started working way back in the day, I didn't know anything about signing up for disability coverage or the health insurance options," said Joseph Edmondson, a CFP and financial professional at Equitable Advisors. "I was just looking for the cheapest option that was available."</p><p>Edmondson coaches his clients to dig into what benefits are available from through work. <a href="https://www.businessinsider.com/personal-finance/who-needs-disability-insurance">Disability coverage</a> is one employee benefit he says many younger people don't take advantage of or take the time to fully understand.</p><p>It's important to calculate what disability benefits actually cover compared with the income you're earning that might be curtailed if you get hurt. Many employers offer disability insurance, but experts say it's generally not enough coverage in a worst-case scenario. If there's a gap between your income — and the amount you need to live on — and how much your work-provided insurance would cover, you might consider supplementing your employer coverage with private disability insurance.</p><h2>Don't ignore an HSA with a high-deductible healthcare plan</h2><p>When deciding among employer-based health plans, younger employees may be tempted to go for high-deductible plans that cost less out of pocket.</p><p>That decision can make sense, but if you're not taking advantage of a health savings account that goes with those types of plans, you may be risking financial difficulties if you get sick or injured and have no additional resources to tap into.</p><p>Beyond helping to cover unexpected medical bills, HSAs have other benefits that employees should understand thoroughly as they make decisions about financial planning.</p><p>As Money Council member Carrie Schwab-Pomerantz <a href="https://www.businessinsider.com/personal-finance/what-is-a-health-savings-account-hsa-save-money">previously explained in Business Insider</a>, many employers offer HSAs as an option for anyone with a high-deductible healthcare plan above a certain threshold. HSAs are "triple tax-advantaged," because money going into the HSA is taken pre-tax and some HSAs allow you to invest and earn tax-free interest.</p><p>Plus, HSA savings roll over annually, so you don't have to use up the balance at the end of the year. And HSAs received a boost in the coronavirus-related stimulus packages — they can now be used to pay for telehealth visits, over-the-counter medications, and menstrual-care products.</p><h2>Understand your options</h2><p>For younger employees to take full advantage of financial opportunities, they need to take the time to understand the details of healthcare, life insurance, and other benefit plans offered by employers — or private insurance providers, if necessary — and their implications.</p><p>"We're not taught about benefits and things like that when it comes to schooling and education," Edmondson said. "It's so important to not only look at things when it comes to <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword> and building your network, but also to think about those 'what ifs' in life."</p><p>And don't hesitate to ask for help. "It's not smart to ignore that stuff if you don't understand it," Roberge said. "It's very smart to go out and get expert advice to understand what you're doing so that your family is protected."</p>

Disability insurance, health savings accounts are 2 valuable benefits that millennials shouldn't overlook

<ul class="summary-list"><li><keyword id="402420" type="ORGANIZATION" weightage="60" keywordseo="Estate-Planning">Estate planning</keyword> directs how your assets get distributed if you die or are incapacitated.</li><li>An <keyword id="2373605" type="PERSON" weightage="60" keywordseo="estate-plan">estate plan</keyword> checklist includes a will, powers of attorney, and account <keyword id="6383600" type="DEFINITION" weightage="60" keywordseo="Beneficiary">beneficiary</keyword> designations.</li><li>Using an estate planning lawyer ensures your plan meets all legal requirements and stays updated.</li></ul><p>It's easy to see why estate planning is so often neglected - even by people who are financially savvy in other ways. Thinking about life after your death can be uncomfortable. However, it's one of the most important things you can do.</p><p>Estate planning isn't just for the ultra-wealthy, either. If you have property, investments, anything of value, you need an estate plan. If you have family or dependents of any kind, you need an estate plan.</p><p>Yet, only <a href="https://www.caring.com/caregivers/estate-planning/wills-survey">32% of American adults have a will</a> or other estate planning documents, according to Caring.com's 2020 Estate Planning and <keyword id="62647" type="COMPANY" weightage="60" keywordseo="Wills">Wills</keyword> Study, because they simply haven't gotten around to it or believe they don't have enough assets. That hesitation can cause problems down the road.</p><p>No matter how much or how little you have, estate planning determines the future of your belongings, your money, and your family after you die. It can also ensure you have a say in who makes decisions about your health and finances while you're still alive.</p><p>Here are the estate planning basics you need to know.</p><h2>What is estate planning?</h2><p>"Estate" is simply a fancy word for your stuff. So an estate plan inventories everything you have, from car to home, from bank accounts to life insurance policies. And then it outlines in writing what you want done with them. It becomes your voice beyond the grave, letting you direct who handles your affairs and inherits your assets.</p><p>The major elements of an estate plan state, clearly and definitively: </p><ul><li>Who gets what when you die</li><li>Who should execute your wishes</li><li>Who will handle your affairs if you become incapacitated</li></ul><h2>Why is estate planning important?</h2><p>Suppose you pass away without a will, the most basic (and some would say, most important) estate-planning document. In that case, your assets can get tied up in probate, a time consuming and potentially costly legal process in which the court ensures your final debts are paid, and assets are distributed according to state law. It can also cause disagreements among your heirs as they fight over who gets what.</p><p>Then there are federal and state estate and inheritance taxes. Although they often target ultra-high-net-worth individuals, they can impact six-figure estates too, especially on the state level. There are ways to avoid these "death taxes," ensuring your property passes onto your heirs without the government taking a big slice of it first. But you need an estate plan to execute these moves well in advance of your demise.</p><h2>What are the basic documents for estate planning?</h2><p>Many people think estate planning is essentially drafting a will. It's a good start, but it is just one aspect of a comprehensive estate plan. Here's an overview of the basic documents you need.</p><ul><li><strong>Last will and testament</strong>. A will details where you want your assets to go after your death and names an executor who will ensure they get to the right people or charities. I can also specify whom you want to serve as guardian of your minor children.</li><li><strong>Durable power of attorney</strong>. A durable power of attorney designated someone to act on your behalf, legally and financially, if you're unable to handle your own legal and financial matters. If you don't have a durable power of attorney, your family members may not have the authority to sign checks, file tax returns, collect your government benefits, manage your investments and handle other financial transactions if you become incapacitated. They'll have to ask a judge to appoint someone to manage these tasks, which can be time consuming and expensive.</li><li><strong>Health care power of attorney</strong>. A health care power of attorney appoints someone to make medical decisions on your behalf if you become incapacitated. This can include choosing which doctors treat you, deciding which tests to run, whether you should have surgery or certain medications or therapies.</li><li><strong>Living will</strong>. A living will provides instructions on the medical treatment you do and don't want if you can't communicate these decisions on your own. It relieves your family members from having to make difficult decisions about your care if you are terminally ill, in the late stages of dementia, seriously injured, in a coma, or near the end of your life. It can address things like the lengths medical professionals should go through to keep you alive, pain management, and organ donation.</li><li><strong>Beneficiary designations</strong>. When you purchase a life insurance policy or open a retirement account, you're typically asked to complete a beneficiary designation form. This form names the person or persons who will inherit the proceeds when you die. Beneficiary designations override any instructions for these accounts set out in your will, so it's important to review and update them regularly to ensure they're distribution upon your death matches your intent.</li></ul><h2>Other important documents for an estate plan</h2><p>Some other estate planning documents can come in handy, depending on your circumstances.</p><ul><li><strong>Living trust</strong>. A living trust can work as a tool for avoiding the probate process - that is, filing a will. You set up the trust, and place the assets you want to bequeath inside it. When you die, the trust distributes the assets as per your wishes. If you have a lot of assets, a trust can help you and your heirs avoid estate and inheritance taxes. </li><li><strong>Digital asset protection trust</strong>. What happens to your e-mail accounts, text messages, cloud-based storage accounts, websites, and social media accounts when you die? You can't give them away in your will because these digital assets may not be solely owned by you but by a tech company. A digital asset protection trust can help you legally transfer domain names, social media accounts and other digital assets to your heirs upon your death.</li><li><strong>Letter of intent</strong>. You may want to leave information or instructions that don't belong in a will for your heirs. This is where a letter of intent comes in handy. You can leave funeral and burial instructions, details about financial accounts, contact information for your attorney and financial advisors, where your executor can find titles, deeds, tax returns, birth certificates, and other important records. A letter of intent doesn't carry the legal weight of a will, but it can be helpful to your loved ones.</li></ul><h2>What are the main steps in estate planning?</h2><p>OK, you have a sense of what an estate plan entails, paperwork-wise. How do you go about creating those documents, and going about estate planning in general? Here are the three fundamental steps to get you started creating an estate plan that addresses your needs and wishes.</p><h3>1. Get help from an estate planning attorney</h3><p>Creating an estate plan may seem like a daunting task, but you don't have to handle it all on your own. In fact, estate planning should never be a DIY project.</p><p>But if you want it done properly, you need to call in a pro.</p><p>While you can find a lot of information and fill-in-the-blank estate planning forms online, trying to save a few hundred dollars in up-front costs can end up costing your heirs thousands later on. That's because most states have very specific requirements that must be met for your will and other estate planning documents to be valid. If these requirements aren't met, if the language isn't correct or the wording is imprecise, your instructions could be thrown out and your affairs handled according to state law.</p><p>That's why it's important to work with a qualified attorney or financial planner to create your estate plan. If you don't already have someone to help you, ask friends, family members, or other financial professionals you work with for a referral.</p><p>An estate planning attorney, also known as a trust and estates lawyer, also stays up to date with changes in tax laws and other legislation that could affect your assets and how you dispose of them. Working with other professionals, like accountants and money managers, they can help you develop <a href="https://www.businessinsider.com/estate-planning-strategies">estate-planning strategies</a>. And also ensure your plan is reviewed regularly.</p><h3>2. Identify guardians for minor children</h3><p>If you have minor children, part of the estate planning process involves selecting one or more guardians for those children. If you don't name a guardian, the court will decide who will raise your children, and you can't assume the judge will automatically appoint the person you think would be the best choice.</p><p>When selecting guardians, many people get hung up on timing. For example, a grandparent might be a good guardian for their toddler right now but might not be the best option a decade later, when the child is a teenager. However, your guardian selection isn't set in stone. Think about who would be the best person if something happens to you in the next two to three years. You can select new guardians at any time as circumstances change.</p><h3>3. Take inventory of what you own and owe</h3><p>Make a list of your assets and debts, including your financial institutions' names, account numbers, and names of contacts there. Keep this list, along with copies of your will and other important estate planning documents in a secure location. You might also want to give a copy to the executor named in your will or make sure they know where to find them in case anything happens to you.</p><p><strong>Quick tip:</strong> Although you can keep and distribute multiple digital or scanned copies of a will, bear in mind that your executor and/or attorney can only submit the original, actual document for probate after you die. Probate courts demand the real paper thing, with what's known in legalese as the "wet signature" on it - no substitutions allowed, even if they've been duly signed and witnessed.</p><h2> </h2><h2>The financial takeaway</h2><p>Estate planning is an important step in ensuring your legal and financial affairs will be handled when you die. It also makes life easier for your loved ones by drastically reducing the stress, expense, and red tape involved in handling your estate.</p><p>Drafting a will is just one component of an estate plan. If properly done, a comprehensive plan includes plenty of others, including powers of attorney, health directives, and beneficiary designations for your bank and brokerage accounts.</p><p>It might feel overwhelming to handle all of these tasks. You don't have to handle estate planning on your own - in fact, you shouldn't. With the help of a qualified estate planning lawyer, and other financial professionals, the process can be a lot more manageable. </p><p>It probably won't be the most pleasant project. Contemplating your own mortality never is. But a comprehensive estate plan can at least provide peace of mind.</p><h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://www.businessinsider.com/inherited-ira-rules-options" target="_blank" rel="noopener">Inheriting an IRA? Here are all the options and withdrawal rules beneficiaries should know</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/parents-estate-plan-how-to-talk-about" target="_blank" rel="noopener">How to talk with your parents about their estate plan, even if they don't want to</a></h3><h3><a href="https://www.businessinsider.com/why-is-estate-planning-important" target="_blank" rel="noopener">Estate planning is an important strategy for arranging financial affairs and protecting heirs - here are 5 reasons why everyone needs an estate plan</a></h3><h3><a href="https://www.businessinsider.com/how-to-nail-your-estate-planning-succession-wealth-management-2020-10" target="_blank" rel="noopener">How to nail your succession planning, and how that will change in the Biden era</a></h3><h3><a href="https://www.businessinsider.com/personal-finance/estate-planning-mistakes-i-see-people-make-as-financial-planner" target="_blank" rel="noopener">I'm a financial planner, and there are 4 estate-planning mistakes I see people make over and over</a></h3>

What is estate planning? A strategy to safeguard your family and your finances, and ensure your plans for them get carried out as you wish

<p><a href="https://www.businessinsider.com/category/women-of-means"></a></p><div type="image" title="Women of Means series, How to find a woman financial planner: Magnify glass on women's hand holding a stack of coins" height="835" width="1667" msid="90083386" hostid="261"></div><ul class="summary-list"><li><keyword id="12368569" type="UNKNOWN" weightage="60" keywordseo="financial-planning" source="Orion">Financial planning</keyword> is particularly important for women, who live longer and earn less than men.</li><li>Many women prefer women financial advisors, who can relate to the unique challenges they face.</li><li>If you want to work with a woman <keyword id="13337498" type="UNKNOWN" weightage="60" keywordseo="financial-planner" source="Orion">financial planner</keyword>, there are resources to help you find one.</li></ul><p>Women face unique financial challenges. They typically earn less than their male counterparts, take more time away from work because of child-rearing and family obligations, and, thanks to longer average life spans, require more retirement savings as well.</p><p>For these reasons, a financial planner can be an incredibly valuable partner for women, ensuring their investments, savings efforts, and spending patterns align with their long-term goals for wealth and security. </p><p>Are you looking for help setting and achieving your financial goals? Here's how a financial planner can help — and where to find the right one.</p><h2><strong>The importance of financial planning </strong></h2><p><a href="https://www.businessinsider.com/cfp" target="_blank" rel="noopener">Financial planners</a> are professionals who can assist with many aspects of your personal finances. They can help you set and reach savings goals, plan for retirement, choose investments, devise a tax strategy, and even make insurance decisions.</p><p>"A financial professional can answer questions and give advice based on your goals and unique situation," said <a href="https://lifehappens.org/board/faisa-stafford/" target="_blank" rel="noopener">Faisa Stafford</a>, president of the financial nonprofit, <a href="https://lifehappens.org/" target="_blank" rel="noopener">Life Happens</a>. "Rather than just adopting a cookie-cutter financial plan, they will build you a plan from scratch to address your individual needs and aspirations. They account for your life stage, where you are in your career, the age of your kids, if you have a mortgage, own a business, etc., to make a plan that works for you now, but also five, 10, 15 years down the line." </p><p>While anyone can benefit from a financial planner's help, it's particularly helpful for women, who tend to live longer (by about five years), <a href="https://www.pewresearch.org/fact-tank/2021/05/25/gender-pay-gap-facts/" target="_blank" rel="noopener">make less money</a>, and <a href="https://www.dol.gov/sites/dolgov/files/OASP/evaluation/pdf/WHD_FMLAGenderShortPaper_January2021.pdf" target="_blank" rel="noopener">take more career breaks</a> than men.</p><p>According to Stafford, the pandemic has also made financial planning incredibly important for women.</p><p>"The pandemic has revealed the disproportionate burden women face in caring for their families, leading millions to leave the workforce," Stafford says. "With more women leaving jobs and coming home, they are losing not only their income but the benefits that were afforded to them by an employer, like the life and disability insurance and retirement plans many employers provide. It's a misconception that stay-at-home parents don't need these benefits or a financial plan. They are contributing to the household, and their unpaid contributions to the family are invaluable."</p><p><strong>Quick tip: </strong>If you're interested in working with a financial planner, a good place to start is <a href="https://www.letsmakeaplan.org/" target="_blank" rel="noopener">LetsMakeAPlan.org</a> — the official directory of Certified Financial Planners.</p><h2><strong>How to find a woman financial planner </strong></h2><p>Some women may prefer to use a financial planner of the same gender, as it can help to have an advisor who understands their unique challenges and goals. </p><p>"A meaningful component of a successful relationship between client and advisor is trust, and trust is built through connection," Emily Bentley, a managing director at wealth-management company <a href="http://www.homrichberg.com/">Homrich Berg</a>, said. "Shared experiences are an organic way to connect, and women choosing women as financial advisors broadens the opportunity set to connect."</p><p>Women financial planners may also be easier to feel comfortable with. </p><p>"Women relate to women in a way that men can't," Maggie Gomez, a certified public accountant and founder of <a href="https://moneywithmaggie.com/" target="_blank" rel="noopener">Money With Maggie</a>, said. "It's always nice to be completely heard and understood. This comes much more naturally for women from what I've seen."</p><p>While there is no specific directory for women financial advisors, there are resources that can point you in the right direction. These include:</p><h3>1. <a href="https://www.letsmakeaplan.org/" target="_blank" rel="noopener">LetsMakeAPlan.org</a></h3><p>This is the CFP board's official directory. You can search by location and service, and while there isn't a way to filter by gender, each entry does include a name and often a photo. There are also details on planners' services, minimum asset requirements, and languages spoken. </p><h3>2. <a href="https://www.forbes.com/best-in-state-women-advisors/#635163496b20" target="_blank" rel="noopener">America's Top Women Wealth Advisors</a></h3><p>In partnership with Shook Research, Forbes publishes a list of the top women financial advisors annually. These are broken down by state and feature a small blurb about their background, investment philosophy, and more.</p><h3>3. <a href="https://www.xyplanningnetwork.com/" target="_blank" rel="noopener">XY Planning Network</a></h3><p>While XY's search tools don't let you filter by the planner's gender, you can choose from a number of "gender/identity focus" specialties. Choose from planners who focus on women business owners, entrepreneurs, and doctors, single women, divorced women, and more.</p><h3>4. <a href="https://www.napfa.org/" target="_blank" rel="noopener">National Association of Personal Financial Advisors</a></h3><p>NAPFA is an organization for <a href="https://www.businessinsider.com/personal-finance/fee-only-financial-advisor" target="_blank" rel="noopener">fee-only financial planners</a> — those that do not charge a commission for any of their services. Its search tool allows you to find planners and planning firms in your area, though you cannot filter by gender.</p><p><strong>Quick tip: </strong>You can also get personal recommendations. Ask your friends, family members, and colleagues which professionals they've worked with and if they found value in their services. </p><h2><strong>How to find a CFP professional that specializes in LGBTQ communities </strong></h2><p>Members of the LGBTQ community may prefer a financial planner who is also LGBTQ, an ally, or who specializes in their unique needs. </p><p>"People want to work with financial professionals who understand what they are going through and what they will go through," Stafford says. "This leads many to look for someone who understands their background and can relate to them culturally. Trust is also a big factor, so it's more likely for a person who has a similar background to get you and what you want out of your finances."</p><p>Personal recommendations are a good option for finding a planner who specializes in the LGBTQ community. You can also use <a href="https://www.xyplanningnetwork.com/" target="_blank" rel="noopener">XY Planning Network</a> or <a href="https://directory.garrettplanningnetwork.com/search-member-profiles" target="_blank" rel="noopener">Garrett Planning Network</a> and filter by a variety of LGBTQ-related financial service providers. </p><h2>Finding the right fit</h2><p>In the end, it's important to find a financial planner you feel comfortable with, regardless of gender. Sometimes, this may take some time. Don't be afraid to interview several options before deciding.</p><p>"While it can seem like a daunting task, I like to remind people that you don't have to pick someone based on their online profile or right away," Stafford says. "Meet with people until you make a connection. It may be the first person you speak to or the third. Take the time to have an introductory call — there is no commitment in doing this, and it's free."</p><ul class="read-more-links"><li>Read more from <keyword id="13329282" type="UNKNOWN" weightage="60" keywordseo="women-of-means" source="Orion">Women of Means</keyword>:</li><li><a href="https://www.businessinsider.com/personal-finance/trans-woman-saving-money-gender-affirming-care-2022-3" target="_blank" rel="noopener">I'm a trans woman saving money for gender-affirming care, and I'm using 4 strategies to do it</a></li><li><a href="https://www.businessinsider.com/personal-finance/pink-tax" target="_blank" rel="noopener">The influence of 'the pink tax' is about more than just higher prices. Here's how it works and how it affects women's finances.</a></li><li><a href="https://www.businessinsider.com/personal-finance/vietnamese-american-woman-supporting-relatives-2022-3" target="_blank" rel="noopener">As a single Vietnamese American woman, I'm expected to help aging relatives. My 4-part savings strategy makes it possible.</a></li><li><a href="https://www.businessinsider.com/personal-finance/system-automate-grow-money-profits-first-2022-3" target="_blank" rel="noopener">A Nashville entrepreneur breaks down the 5-step 'profits-first' system she uses to keep her money automated, unemotional, and growing</a></li></ul>

How to find a woman financial planner

<ul class="summary-list"><li>Americans think $1.9 million is <keyword id="6383453" type="UNKNOWN" weightage="60" keywordseo="wealth">wealth</keyword> - $700,000 less than what they said pre-pandemic, per a <a href="https://www.aboutschwab.com/modern-wealth-survey-2021">new Charles Schwab report</a>.</li><li>They also lowered the bar for the net worth they believe is needed for financial happiness.</li><li>The changes are a result of Americans reprioritizing their values during the <keyword id="43587" type="ORGANIZATION" weightage="60" keywordseo="pandemic">pandemic</keyword>.</li></ul><p>The bar for being rich isn't as high as it used to be.</p><p>Americans have shifted their definition of <keyword id="6450691" type="UNKNOWN" weightage="60" keywordseo="wealthy">wealthy</keyword> in the wake of the pandemic, according to <a href="https://www.aboutschwab.com/modern-wealth-survey-2021">Charles Schwab's 2021 Modern Wealth Survey</a>, which polled 1,000 Americans. Respondents said they believe it takes an average $1.9 million net worth to be considered wealthy - $700,000 less than the $2.6 million that signified wealthy in 2020's pre-pandemic version of the survey.</p><p>They also dropped the benchmark for the amount of wealth needed to achieve financial happiness and financial comfort. In their eyes, it now takes an average net worth of $1.1 million to be considered financially happy, compared to $1.75 million a year ago. For comfort, expectations dropped from $934,000 to $624,000.</p><p>These changes are part of a larger reevaluation among Americans caused by the pandemic, the survey found.The majority (68%) have reprioritized their values, and 69% feel mental health is more important than before, followed by 57% who are placing new emphasis on relationships. Financial health comes in third on the list, at 54%.</p><p>Rob Williams, vice president of financial planning at <keyword id="149621" type="COMPANY" weightage="60" keywordseo="Charles-Schwab">Charles Schwab</keyword>, said in the report that while the pandemic caused Americans to place more emphasis on health, the recession also taught many the importance of financial planning.</p><p>"The pandemic and the significant impact it had on the <keyword id="34412" type="ORGANIZATION" weightage="100" keywordseo="economy">economy</keyword> and stock market also taught us a valuable, and in many cases difficult, lesson about the importance of financial health and preparedness, including the importance of having a plan and emergency <keyword id="25450" type="ORGANIZATION" weightage="60" keywordseo="savings">savings</keyword>," he said.</p><p>Another recent survey which examined wealth perceptions in the US, by Boston Private, found that <a href="https://www.businessinsider.com/pandemic-changed-how-rich-millennials-view-wealth-affluent-2021-5">affluent millennials were the likeliest wealthy cohort</a> to say the pandemic altered the way they define wealth. More than three-quarters felt this way, compared to less than a quarter of high-net-worth baby boomers and silent generation members.</p><p>As the economy shut down, those fortunate not to experience job loss were able to tuck away discretionary savings or invest in a rebounding stock market. Saving has been up across the board during the pandemic, as the <a href="https://www.bloomberg.com/news/articles/2021-03-11/u-s-household-net-worth-surged-in-closing-months-of-2020?sref=BLKWHazc">US household net worth hit a record</a> high in the fourth quarter, up 5.6% from the third quarter. Americans were sitting on <a href="https://markets.businessinsider.com/news/stocks/us-excess-savings-coronavirus-pandemic-power-economy-recovery-moodys-2021-4-1030318905">$2.6 trillion</a> in excess savings as of mid-April, per Moody's Analytics.</p><p>The rich have gotten richer as the coronavirus recession <a href="https://www.businessinsider.com/k-shaped-recovery-recession-worse-for-bottom-better-for-top-2020-11">took on a K-shaped recovery</a> in which the wealthy were doing just fine and the poor continued to struggle. As wealth inequality grows, wealth seems to mean less to some Americans than it previously did.</p><p>Perhaps, in a pandemic, people have realized that money can't buy everything.</p>

The pandemic reshaped Americans' definition of wealthy

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body><p class="p1"><em><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>This post is sponsored by <a href="http://www.businessinsider.com/life-plan" target="_blank">Lincoln Financial Group</a>. </em></p>
<p class="p1">For most adults, taking care of your parents as they get older is an inevitable part of life. But nearly half of Americans in their 40s and 50s are now forced to juggle supporting their aging parents <em>and</em> their adult children. People in this situation are now known as the "sandwich generation."</p>
<p class="p2">According to a 2013 <a href="http://www.pewsocialtrends.org/2013/01/30/the-sandwich-generation/" target="_blank">Pew Research Center survey,</a> 21% of adults in their 40s and 50s provided some form of financial support to a parent age 65 or older, while a sluggish economy has forced nearly half of those adults to provide some form of financial support to a child 18 or older.</p>
<p class="p2">This added financial strain can wreak havoc on those trying to save for their retirement. While it may be tempting to dip into your savings or empty out your 401(k) to help support your family, it's important to maintain your own financial security. Here are a few things to keep in mind for those who want to balance their financial needs with those of their aging parents and financially dependent children. </p>
<h3 class="p4"><strong>1) Get your<em> </em>finances in order.</strong> </h3>
<p class="p4">In the case of an emergency, airlines always advise passengers to put on their oxygen masks before assisting others. Well, the same can be said for your personal finances. It's best to secure your financial situation prior to supporting other generations, or else you may risk jeopardizing your entire financial future. It's not fair, nor is it wise, to go into debt supporting your parents or adult children if you haven't even figured out your own retirement plans.</p>
<h3 class="p4"><strong>2) Create a plan. </strong></h3>
<p class="p4">Before you're in a situation in which you're fully supporting your parents, you should sit down and create a plan for them. Review any life insurance plans they may have as well as legal documents like power of attorney, healthcare proxy, and living wills. Also, be sure to discuss their plans for what do to if they fall ill, and most importantly, how much you can contribute without spreading yourself thin. </p>
<h3 class="p4"><strong>3) Look into getting long-term-care insurance. </strong></h3>
<p class="p4">Healthcare costs for aging parents, like in-home health assistance and stays in a nursing home, can add up quickly. If your parents haven't already planned for long-term care, it's a good idea to get started by researching insurance options. </p>
<h3 class="p4"><strong>4)</strong> <strong>Ask for support.</strong> </h3>
<p class="p4">Caring for an aging or ailing parent puts not just a financial strain on your life, but also an emotional one.<strong> </strong>If you have siblings, you shouldn't be the only one taking on the challenge. Have a candid conversation with your family about how to share the costs and time of supporting your parents. </p>
<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div></p>
<h3><strong>5) Set limits with your children.</strong></h3>
<p class="p4">Dealing with an unemployed or underemployed adult son or daughter? While it's natural to want to nurture and protect your kids, at this age it's important to talk with them about how much you are willing and capable of supporting them. Don't spread yourself thin if you can't afford it. If they plan on moving back in (or never moved out), let them know they're responsible for contributing - whether that's paying rent or the electrical bill, doing housework, or picking up groceries. Any little bit helps. </p>
<h3 class="p4"><strong>6) Seek tax breaks.</strong> </h3>
<p>Got a college kid living at home with you? There's a tax break for that. Parents can claim children up to the age of 24 as long as the child has lived with them for more than half the year and the parents have provided at least 50% of their financial support. Dependents - including your parents - can save you up to $3,700 on your taxes. If you pay, again, more than half of your parents' living expenses, you can file them as dependents, even if they don't live with you. </p>
<h3 class="p4"><strong>7) Review your life insurance. </strong></h3>
<p class="p4">If you find yourself the sole financial provider for both your parents and adult children, then you need to plan for what they would do if something unexpected happened to you. It's a good idea to review and even increase your life insurance during this time to ensure your loved ones are covered, no matter the circumstances. </p>
<p class="p4"><strong>Learn more about life planning on the <a href="https://www.lfg.com/LincolnPageServer?LFGPage=/lfg/lfgclient/ltrs/lifeopp/index.html" target="_blank">Lincoln Financial Group's website</a>. </strong></p>
<p class="p4">Find out <a href="http://www.businessinsider.com/category/sponsor-post">more about Sponsored Content</a>.</p></body></html>

Are You Part Of The 'Sandwich Generation'? Here Are 7 Tips To Managing Your Situation

<p><div class="KonaFilter image-container float_right"><div class="image on-image"><p class="source"><span>REUTERS/Christinne Muschi</span></p></div><p></p></div><em><strong>FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.</strong></em></p>
<p><strong><span style="line-height: 1.5em;"><a href="http://blog.alliancebernstein.com/index.php/2014/07/11/ten-reasons-to-stay-active-in-equities/">Ten Reasons Why You Should Stay Active In Stocks</a> (The AllianceBernstein Blog)</span></strong></p>
<p><span style="line-height: 1.5em;"><span><span><span>On the AllianceBernstein Blog, Sharon Fay wrote about the importance of staying active in equities, rather than passive investing. "</span></span></span></span><span style="line-height: 1.5em;">We understand the appeal of passive investing. It offers lower fees and simplicity. And many investors are skeptical about the ability of active managers to consistently beat a benchmark. Often, a passive portfolio can be a good complementary component to an active allocation, especially in large-cap developed markets," she said. "<span>Yet there's also a lot of evidence supporting the benefits of an active approach. Today, we see many risks that are hard to avoid by hugging a benchmark-and opportunities that simply cannot be captured by going passive."</span></span></p>
<p><span style="line-height: 1.5em;"><span>The ten reasons for staying active in stocks are (verbatim):</span></span></p>
<p><span style="line-height: 1.5em;"><span>1. To steer clear of expensive areas<br />2. To manage a rising rate environment<br />3. To navigate political risk<br />4. To deal with disintermediation<br />5. To avoid bubbles<br />6. To capture technological innovation<br />7. To adjust to economic recovery<br />8. To find higher revenue growth<br />9. To benefit beyond the benchmark<br />10. To exploit less intensively researched universes</span></span></p>
<p><strong><a href="http://wealthmanagement.com/careers/it-it-too-early-create-succession-plan">The Time To Create A Succession Plan Might Be Earlier Than You Think</a> (Wealth Management)</strong></p>
<p><span>Older advisors aren't the only ones who need to create a succession plan. Instead of waiting until near retirement, Anita Venkiteswaran, vice president at Focus Financial Partners, has three suggestions to keep in mind when planning for your business' future. </span></p>
<p><span>1. "Right fit. The most critical aspect of external succession planning is finding the right firm match. The best match happens when two firms not only share similar values and principles, but also understand each other's client niche, service model and investment philosophy. There is likely no identical firm to yours, but think through criteria that are important to you in a firm that would serve your clients in your absence. Make a list and prioritize them."</span></p>
<p><span>2. "Right time. Many people struggle with the question - 'When is the right time to start putting together a viable succession plan?' The answer is <em>NOW</em>. Whether you are a $500 million dollar firm or a $25 million dollar firm, whether you are 35 years old or 60 years old, your clients are important to you and you should be thinking about them and their future in your absence."</span></p>
<p><span>3. "Right value. ...Do not get hung up on the revenue multiples being thrown out in the industry. Instead think about how to build a business that can bring some value to the partner you identified. Only then can you ensure that your family gets some equity value out of the business that you have put your blood and sweat into building."</span></p>
<p><strong><a href="http://www.financial-planning.com/30days-30ways/how-to-bring-in-clients-held-away-assets-2689773-1.html">How To Become Your Clients' One Advisor For All Their Assets</a> (Financial Planning)</strong></p>
<p>Often clients will try to spread their assets among several advisors in order to lower their risk. However, that leaves the advisor with "<span>a jumble of assets that don't complement each other and lack diversification," writes Bruce Fraser in Financial Planning. To bring in all of a client's outside assets, advisors should take a systematic approach, sit down with their clients, and go over a financial plan and goals.</span></p>
<p>"Once advisors have mapped out a financial plan, as part of a quarterly meeting cycle or a comprehensive annual review, they can point out the benefits of consolidating assets under one advisor, and the difficulty to monitor a financial plan if the assets are spread in multiple directions," Fraser said. "<span style="line-height: 1.5em;">Technology is also playing a bigger role. Some advisors are taking a holistic approach and using account aggregation tools."</span></p>
<p><strong><span style="line-height: 1.5em;"><a href="http://www.investmentnews.com/article/20140710/FREE/140719991">Experienced Advisors Are Staying In Their Current Positions Because of Economic Improvement</a> (InvestmentNews)</span></strong></p>
<p><span style="line-height: 1.5em;">According to InvestmentNews' Advisers on the Move database, only 58 veteran advisor teams switched firms in the second quarter, down from 97 teams a year ago. This is also lower than the 101 teams that moved in Q1. Recruiters and executives have attributed this slowdown to market highs and a strong economy.</span></p>
<p><span style="line-height: 1.5em;"><span>"There is an overall slowdown, not just for the quarter but if you look at the year in aggregate the pie of advisers changing firms has shrunk," Tash Elwyn, president of Raymond James &amp; Associates, Inc, told InvestmentNews. "The market at new highs certainly can lead to higher satisfaction levels by clients, which then leads in turn to higher satisfaction levels by advisers."</span></span></p>
<p><strong><a href="http://online.wsj.com/articles/voices-paul-hynes-on-protecting-elderly-clients-from-financial-abuse-1405088627">How To Recognize And Stop Financial Abuse of Elderly Clients</a> (Wall Street Journal)</strong></p>
<p>Financial abuse is an important problem especially among the elderly, and advisors are in an advantageous position to recognize and stop the issue. In a WSJ column, Paul Hynes at HearthStone Private Wealth Management writes about tactics to spot financial abuse.</p>
<p><span>"Financial elder abuse encompasses anything from the unauthorized use of bank accounts to wire scams to deceiving or even coercing someone to change their power of attorney," he said. "<span>Maybe the best way to prevent the financial abuse of an elderly client is simply to keep in touch with them and inquire about their lives. Checking in over the phone is helpful, but advisers should really make an effort to see clients face-to-face."</span></span></p>
<p><span><span>"<span>Potential red flags include a change in living conditions, like the addition of a full-time caregiver, for example. In-home caregivers may have access to information about the elder person's assets and accounts, and may be in a position to exercise significant influence or control over the elderly person," Hynes said.</span></span></span></p>

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