Financial planning is a step-by-step approach to meet one’s life goals. A financial plan acts as a guide as you go through life’s journey. Essentially, it helps you be in control of your income, expenses, investments, taxes, protection, wealth building and preserving wealth such that you can manage your money and achieve your goals.

Financial Professionals provide a broad range of financial services and offer and educate clients on a variety of money topics from life insurance to the various diversified wealth building strategies and solutions. They recommend products and services, and may assist with opening or managing accounts.

That is estate planning – planning in advance, naming the people or organizations you want to receive the things you own after you die, and taking steps now to make carrying out your plan as easy as possible later. However, good estate planning is much more than that. It should also do the following:

• Include instructions for your care and financial affairs if you become incapacitated before you die.

• Include arrangements for disability income insurance to replace your income if you cannot work due to illness or injury, long-term care insurance to help pay for your care in case of an extended illness or injury, and life insurance to provide for your family at your death.

• Provide for loved ones who might be irresponsible with money or who may need protection from creditors or in the event of divorce.

• Provide for the transfer of your business at your retirement, disability, incapacity, or death.

• Name a guardian for your minor children’s care and inheritance.

• Provide for family members with special needs without disqualifying them from government benefits.

• Minimize taxes, court costs, and unnecessary legal fees, which may include funding assets into a living trust, completing or updating beneficiary designations, or otherwise aligning your assets with your estate plan.

• Importantly, estate planning is also an ongoing process, not a one-time event. You should review and update your plan as your family and financial circumstances change over your lifetime.

Besides making sure your assets get to the people you choose, planning can help minimize income, gift and estate taxes, too. Without an estate plan, and specifically a will, the laws in your state will determine what happens to your possessions, and the courts will decide who gets custody of your children.

If You Do Not Have a Plan, Your State Has One For You. But You Might Not Like It.

A Will or Testament is a legal document that expresses a person’s (testator) wishes as to how their property (estate) is to be distributed after their death and as to which person (executor) is to manage the property until its final distribution 

A living trust is an alternative to probate. This document places all of the assets that you own during your lifetime into a revocable trust. A living trust can be changed, amended or terminated in whole or in part by the individual at any time, provided he or she is of sound mind. Under a living trust, you can be named as your own trustee for your own property. Upon your disability during your lifetime, you can name a successor trustee to manage your assets and pay your debts. Upon your death, you can name a successor trustee to ensure that your assets are distributed as you so designate in your living trust.

• Take Inventory of Your Estate. First, narrow down what belongs to you.
• Set a Will in Place.
• Form a Trust.
• Consider Your Healthcare Options.
• Opt for Life Insurance.
• Store All Important Documents in One Place.

Protection planning typically involves utilizing various forms of insurance to help safeguard your family and the assets you’ve worked so hard to accumulate. Without these plans in place, an untimely accident, illness or death could have a significant impact on your financial and family future.