Category Archives: Financial Team

Letter of Final Wishes (LFW)

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Dear Mr. Market:

This entire personal finance blog is about “letters” being written to you (Mr. Market), the fictitious character that exhibits all sorts of emotions due to the gyrations of the stock market. What letter, however, is the most important one YOU could ever write?

A Letter to My Family

It’s called a “Letter of Final Wishes” (LFW), or as we’ve described it to our clients at My Portfolio Guide, LLC, a “Letter to My Family: Things you should know“. On page 6 of the Spring edition newsletter of “the Guide” (click here if you have not seen it yet), we touch on this very important gesture that you can do for your family. Aside from the legalities of estate planning, this exercise is perhaps the single most loving and considerate document you can create for your family that they will forever be grateful for.

Our template (which we share below) is not a legal document and should never replace your will or living trust along with all the other ancillary documents such as a health care proxy or power of attorney.

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Don’t belittle your IRA Beneficiaries

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Dear Mr. Market:

download“In this world nothing can be said to be certain, except death and taxes.” – Ben Franklin

“When it comes to divide an estate, the politest men quarrel.” – Ralph Waldo Emerson

As Mr. Franklin notes, none of us will live forever. And if you have ever been part of a contentious division of estate assets, you surely know Mr. Emerson’s quote to be true. You can’t avoid death, but with some careful planning on your retirement accounts, your heirs can avoid (needlessly large) taxes and the quarreling. The key is setting up beneficiaries, and setting them up correctly. Continue reading →

Making Financial Decisions After the Loss of a Spouse

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Man's Hand Resting On HeadstoneDear Mr. Market:

Our letters to you typically center around the stock market, the economy, and related investment topics. At the end of the day, however, what is wealth (the accumulation, growth, and preservation of it) all really for? That answer is different for everyone but from our experience in meeting with thousands of investors ….it means nothing without family. Losing a loved one is always painful but when it’s your spouse there are also several financial issues that arise and knowing how to navigate is critical.

The following article is written by a guest contributor, Lucille Rosetti (see credits at the end):  Continue reading →

WILL VS. TRUST – WHAT’S THE DIFFERENCE?

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Catching

Dear Mr. Market:

The stock market has been rather nasty as of late so let us switch gears and touch on a topic that most investors avoid yet need to pay more attention to. After all, what exactly happens to your investments when you’re gone? Do you actually need a living trust or would a will suffice? We reached out to Mindy Baldwin, an estate planner in Rancho Santa Margarita for expertise on this topic:

The terms “will” and “trust” come up often when doing estate planning. Many people assume that these terms mean the same thing and use them interchangeably. However, wills and trusts are different documents that are used in different circumstances.   Continue reading →

Building Your Financial Team – The Road to Success

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Teamwork arrowDear Mr. Market:

How ‘fit’ is your financial team? Putting together a financial team to help you meet your financial goals is like building a winning sports team. Each member of your financial team needs to know what their responsibility is and what they are contributing to your financial success.   With tax-season behind us and the equity and fixed income markets experiencing volatility, now is a great time to assess your team and see if it is truly making the grade!

There is no single approach to building your team or a guide on how to assemble one. The key is the team needs to work for you, they need to give you a sense of comfort and they need to work together. Whether you work with individuals or utilize software solutions it is important that an assessment takes place so that you don’t suddenly find yourself in a hole that you need to dig out of.

In this article we will discuss how to build your “Team of Trust”. We will look at three key areas that every investor should consider: Estate Planning, Tax Planning and Financial Advice. We will discuss some key elements with each member of the team: Why? Who? What? How Much? Continue reading →