BY SUZANNE HAZLETT, MBA, CIMA®, CFP®
Along with those familiar New Year’s resolutions about diet and exercise, how about focusing on your financial well-being?
Create flexible access to cash.
The right liquidity strategy will differ for every investor and could incorporate cash reserves, cash alternatives, highly liquid securities, lines of credit, or security-based loans.
Examine your designated beneficiaries.
Confirm your beneficiary elections on wills, life insurance, annuities, IRAs, and retirement plans still reflect your intentions. If you’ve named a trust or corporate entity, have any relevant tax laws changed? What is your contingent plan if your primary beneficiary dies before you? Does your plan address the simultaneous death of you and your spouse? An estate attorney can help walk you through these various scenarios.
Review your account titling.
Many unwittingly own their assets in ways that undermine the estate plan established in their will and trusts. With your legal, tax and financial advisors, review your assets and how they’re held.
Evaluate your investment progress.
Be mindful of what types of securities you hold, your expected cash flows, your contingency plans, your assumed rate of return, inflation rates, and your timeline.
Develop a charitable strategy.
Giving comes from the heart, but you can also do well when doing good. Consider donating low-basis stocks instead of cash or learn about establishing a donor-advised fund to take an upfront deduction for contributions made over the next several years. Those age 70.5 and older can gift qualified charitable contributions from their IRAs tax-free.
Keep it in the family.
Sustaining family wealth for generations is possible with a mutual understanding among family members. Consider creating a mission statement that outlines the shared vision for your wealth and legacy.
Suzanne Hazlett, MBA, CIMA®, CFP®, is a Certified Investment Management Analyst® and CERTIFIED FINANCIAL PLANNERTM professional. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC. HAZLETT WEALTH MANAGEMENT, LLC is independent of Raymond James and is not a registered broker/dealer. 675 Sun Valley Road, Suite J1 + J2, Ketchum, Idaho, 83340 208.726.0605 HazlettWealthManagement.com
