Put simply, you must create a comprehensive financial plan so that you can best support yourself today and best support your loved ones when you have passed on. Follow along to find out how to make a financial plan that is in your best interest and how a proficient certified public accountant (CPA) or consultant, who is experienced in accounting and integrated services, at Werdann Devito LLC can help you in making these preparations.
How do I approach making a comprehensive financial plan?
For one, it may be helpful to conduct a comprehensive financial inventory at least once a year. More specifically, a financial inventory is a means of sorting out what money and other assets you own and what money and other assets you owe. Without further ado, you should follow the below steps when carrying out your annual financial inventory:
- Compile a list of all of your finances. This may include, but may not be limited to, your income sources, your bank accounts, your stock options, etc.
- Create a list of all your debts and liabilities. This may include, but may not be limited to, your credit card debt, your remaining mortgage balance, your insurance policy dues, etc.
- Assemble a list of all your important contacts. This may include, but may not be limited to, your CPA, your doctors, your insurance agents, your attorneys, etc. Additionally, this may include their names and phone numbers if a financial issue arises.
How do I approach making a comprehensive estate plan?
While it is important to make your financial plan every year, it is equally important to make your financial plan for the years that you will no longer be around to support your loved ones. And though this is a sad thought, it is smart to take an initiative before it is too late.
First, you should draft a will. Your will is likely the most important estate planning document that you can establish. This is because this document allows you to name the beneficiaries of your particular assets upon your passing. You can also designate who you wish to be the guardian of your minor children upon your passing or in the unfortunate event that you are no longer able to do so yourself. Notably, many tax-saving strategies are possible by executing a will. This may give your beneficiaries the maximum amount of inheritance possible.
Second, you should draft a powers of attorney. This document allows you to name a trusted individual as your agent. Specifically, this agent will be granted the legal authority to make certain financial decisions on your behalf upon your passing or in the unfortunate event that you are no longer able to do so yourself. This is because your agent will have access to your bank accounts, make financial transactions, and overall manage your finances to your liking.
For assistance with gathering and executing these documents, give us a call today.