Insights
As part of your estate plan, you should also include a letter of instruction to provide guidance to your heirs when you die or become incapacitated. A letter of instruction provides the information that does not necessarily fit into a Will, Trust or other components of an estate plan.
As we plan for our clients and for the ultimate distribution their estates, it may be beneficial for us to share some of the common issues that we encounter in an effort to help you identify issues that may need to be addressed:
Estate planning is perhaps the most difficult piece of the financial planning process for most of our clients. While there is an aversion to discussing death and disability, it is still critical that you have a well thought out plan to pass on what you have accumulated. The process can be complex so here are some basics to consider.
Welcome to uncharted territory. That sounds exciting if you are planning a summer vacation or wanting to go somewhere on your bucket list but is potentially unsettling when it comes to your life savings. Unemployment numbers have multiplied rapidly, and COVID-19 has shutdown vast sections of the world economy – and we do not yet know how deep or how long the effects of this virus will last. All we can do is look at other shocks to our economy and make educated guesses as to how this one might compare. Half of the fourteen (14) bear markets in the S&P 500 since 1929 have experienced peak losses of 30% or less. The peak loss (so far) in this downturn is 34%. It has been quick and sharp. It is worth noting that the previous two bear markets were considerably greater than the average.
As my children grow older, I want to provide them with a firm financial foundation. I have been blessed to be able to absorb many important lessons through books I have read, clients that I have been able to observe, and having very frugal parents. I would like to share a few of the basic lessons that I plan to share with my family and think would benefit those that you love and are able to influence. Creating and maintaining wealth starts with these very basic ideas.
At Southern Capital, we are not just concerned with helping you achieve your goals, but also with helping you reach those goals in a way that is appropriate for you. One of the ways we accomplish this is by ensuring that your portfolio risk is adequate to meet your personal goals while not exceeding your capacity and tolerance for risk. To assist us with this process, we utilize Nitrogen, an award-winning risk alignment software. Nitrogen generates a personal risk number to pinpoint how much risk you want, how much risk you need to take to reach your goals, and how much risk you have in your portfolio.
