Securing Your Future: Understanding the 4 Pillars of Estate Planning

October 19, 2023

Estate planning might not always be top of mind, but its significance cannot be overstated. It's about safeguarding your legacy, ensuring your loved ones are cared for, and making certain your assets are distributed according to your wishes. While consulting an estate attorney is pivotal, I've noticed some common oversights impacting finances among clients and wanted to share guidance to help navigate this crucial aspect of your financial well-being.


1. Beneficiary Designations and Updates



Keeping your beneficiaries current on your financial accounts is key. From brokerage accounts to life insurance policies, updating these designations ensures your assets go to the intended recipients. Consult your attorney about Transfer on Death (TOD) strategies, potentially enabling assets to bypass probate. Aligning beneficiaries across accounts helps avoid confusion and ensures your assets are distributed as intended. Should you require assistance with updating or designating beneficiaries, please reach out to us.


2. Financial Power of Attorney


Planning for incapacity is prudent. A durable financial power of attorney appoints someone to manage your affairs should you become unable to do so. Confirm this critical plan is in place through consultation with your attorney.


3. Taking Inventory of Your Assets


Conducting an inventory of your assets, both tangible and intangible, is a valuable exercise. This includes physical possessions, investments, accounts, and more. Assigning values, whether through research or professional appraisal, helps ensure accurate distribution and provides peace of mind.


Organize and secure all relevant documents such as insurance policies, wills, deeds, and account information. Proper organization is vital in facilitating a smooth estate transition.


4. Consult with an Attorney


Regardless of estate size, seeking guidance from an estate attorney or tax professional is highly recommended. Whether discussing wills, trusts, business succession, or other legal aspects, professional counsel can provide clarity and ensure your plans align with your circumstances.


Remember, it's never too early or too late to establish these crucial financial safeguards.

Should you need assistance with beneficiary updates or clarifications regarding accounts, please don't hesitate to contact us. This message serves as information and not legal advice.


As always, I'm here to assist whenever you need.

Optimizing Your Employer-Sponsored Retirement Plan: Best Practices

By Doug Kronk • June 26, 2024
As a small business owner, offering a comprehensive 401(k) plan is a key strategy to attract and retain top talent while promoting long-term financial health for your employees. Here are five best practices to ensure your plan is effective and beneficial for everyone involved: 1. Automatic Enrollment Automatic enrollment is a powerful tool that can significantly boost participation rates in your 401(k) plan. By making it the default option, employees are automatically enrolled unless they opt-out. This approach has been proven to be effective: 84% of employees with auto-enrollment participate in their 401(k), compared to just 37% without it. 2. Matching Contributions Offering matching contributions not only incentivizes employees to save more for retirement but also helps attract and retain top talent. On average, employers match 4.5% of their employees' contributions, according to a 2021 report from Vanguard. This can significantly enhance the retirement savings of your employees and demonstrate your commitment to their financial well-being. 3. Financial Education and Guidance Providing financial education and guidance can empower your employees to make informed decisions about their retirement savings. This can include educational materials, seminars, and complimentary one-on-one consultations with a financial advisor. By equipping your employees with the right knowledge, you help them maximize the benefits of their 401(k) plan and improve their overall financial health. 4. ESG Options Incorporating socially responsible investment options, also known as ESG (Environmental, Social, and Governance) funds, can appeal to employees who prioritize ethical investing. ESG options are particularly popular among younger workers, with 52% of Millennials investing in these funds, compared to 32% of Gen X and just 14% of Boomers. Offering these options can enhance employee satisfaction and engagement with the retirement plan. 5. Low Fees High fees can erode retirement savings over time, so it's crucial to offer a 401(k) plan with low fees. Evaluating and comparing the fees of different plans can help ensure that your employees retain more of their hard-earned money. This not only benefits them but also reinforces your role as a responsible and caring employer. The Importance of Benchmarking Your Plan Benchmarking your 401(k) plan is essential to ensure it remains competitive and effective. We recommend benchmarking your plan annually, but no less often than biennially. This process involves comparing your plan’s features, fees, and performance against industry standards and other similar plans. Regular benchmarking helps identify areas for improvement, ensures compliance with regulations, and keeps your plan attractive to current and potential employees. Encouraging plan sponsors to routinely have their plans benchmarked by outside professionals, such as ourselves, ensures that they are staying in good graces regarding their ERISA responsibilities. This external review can provide valuable insights and help maintain the highest standards for your retirement plan. If you have any questions about these 401(k) best practices or would like to discuss how to improve your current plan, please don’t hesitate to reach out. We are here to help you navigate the world of retirement planning and ensure your plan meets the needs of both you and your employees. Schedule a Consultation/Meeting with us today to learn more about optimizing your employer-sponsored retirement plan.

How “Higher for Longer” Interest Rates Can Impact Your Investments

May 2, 2024
The stock market has had a rough ride this past month. The S&P 500 index closed out April at 5035.69, down over 200 points (-4.2%) since the close of March. Investors have become pessimistic and frustrated, and it’s largely because the deep interest-rate cuts that the market expected early in the year just aren’t materializing. The “good news” coming out of the Fed’s May 1 meeting was that Chairman Powell didn’t see any new rate INCREASES on the horizon. While there will certainly be opportunities to make money in a high interest rate stock market, investors would be well-served to evaluate their holdings and potentially make some changes.