The Two Shortest Days of Your Life

The Two Shortest Days of Your Life

Every day has 24 hours, 1,440 minutes, or 86,400 seconds… or does it?

Unless you were born when the clock struck midnight, your shortest day on earth was your first. Then, your next shortest day will be your last. In your lifetime, you will only have 2 short days. The day you entered this life, and the day you leave it.

How you manage your estate in your lifetime will have a tremendous impact on those who survive you.

Questions to consider

As we consider our mortality through the lens of financial planning, retirement planning, and estate planning, many questions arise.

• How will my passing affect those who survive me? Am I leaving a blessing, or a mess?
• Do I have a complete, current Estate Plan?
• Have I created an estate plan naming the executor and trustee of my estate?
• Do I have a durable (financial) POA for someone to assist in the event of incapacitation?
• Do I have a current Advanced Care Plan on file naming my healthcare POA?
• When was the last time I reviewed my beneficiaries on all accounts?
• How much money would each of my beneficiaries receive if I passed away tomorrow?
  • Do I know the value of my estate?

Planning For Your Lifetime… and Beyond

When we speak with retirement planning clients, our primary goal is to solve the retirement math. This maximizes the lifetime potential of their assets (during our client’s lifetime). But that is where most advisors stop. Many advisors and planners fail to recognize that it is equally valuable to maximize the potential of the assets over the lifetime of the asset! (through the lens of estate planning and how beneficiaries will be affected by inheriting and distributing accounts).

There are dozens of factors that must be considered to maximize lifetime asset values, both in your lifetime and beyond. Many clients have heard of the step up in basis on all assets held outside of retirement accounts. But it is less common to be aware of the requirement and impact of the law. IRA’s must be emptied within 10 years of the account owner’s passing for most beneficiaries. How you manage your assets throughout your lifetime will have a significant impact on the net value of your estate by tens, and even hundreds of dollars when considering the lifetime value of the assets, rather than just the value of the asset over your lifetime.

Taking a perspective on estate planning that considers the assets from a broader view will materially change how we manage our assets.

Have you created a plan for maximizing everything you have worked so hard for beyond your next shortest day? Or is it time to start working with a planning team who provides truly comprehensive financial planning?

This article is educational only and is not intended to be investment, legal, or tax advice or recommendations, whether direct or incidental. Again, this is not investment advice. Consult your financial, tax, and legal professionals for specific advice related to your specific situation. Never take investment advice from someone who doesn’t know you and your specific situation. All opinions expressed in this article are those of the people expressing them. Any performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be directly invested in.