When you die, your loved ones get to deal with the IRS on your behalf.  But there are some strategies you can implement while alive to minimize the impact of that tax bill. With any luck, your family will be thanking you from the beyond.

How the estate tax works

This is a bit of an oversimplification, but when you die, your heirs will add up your assets, pay off your debts, and the remaining assets would be subject to an estate tax.

In recent history, Congress has created an “exemption” amount that is not subject to the estate tax. Everything over and above that amount is.  For example, if you died in 2002, your estate could shelter $1M from estate taxes. If you had a $5M estate, $4M of it would be subject to tax.

The estate tax, relatively speaking, is steep:  Assets over the exemption are taxed at a 40% tax rate.  At various points historically, it’s been as high as 50%.

In 2023, the estate tax exemption will be almost $13M for an individual and almost $26M for a married couple.  For the last several years, the vast majority of Americans have not had estates exceeding those amounts, rendering the conversation about estate tax planning short.

But do not overlook that part about the estate tax exemption retroactively going to $5.6M in a few short years, and nothing stops Congress from lowering the exemption to $0.

While the revenue generated from the estate tax comprises only about 1% of the US budget, it’s also one of the easiest to collect.  The federal government will not hesitate to find its share.  Death or inheritance taxes vary from state to state.

The big takeaway:  Estate tax planning still matters!

No, you can’t just give it all away.

People immediately solve this estate tax problem by thinking “I’ll just give it away in my lifetime, so that at death there will be nothing to tax!”  Nice try.

Sorry, you’re not the first person to think that, and Congress got out ahead of you.  The estate and gift tax are often considered together, are subject to the same rate and share the same lifetime exemption amount.

The gift tax applies during transfers made during one’s lifetime and the estate tax applies during transfers made after death.

Working with your estate planning attorney to get the legal pieces handled in conjunction with your estate (financial) planner to get the financial pieces handled is key to making the right transfers at the right time.

Why bother minimizing estate taxes?

You don’t have to minimize estate taxes. You can simply let your heirs deal with it.  You wouldn’t be the first to do so.

Most people who have to plan around estate taxes often find themselves with this one big issue:  There won’t be enough cash in the estate to pay the estate tax bill and something (usually some piece of property) will have to be sold.  For instance:

Family businesses.  Businesses have value. That value gets added to the estate.  If there’s no cash to meet an estate tax obligation, the business might have to be sold or its cash flow hamstrung to pay the estate tax bill.

Properties with sentimental value.  Families often own property in which family memories have been made – maybe a ski lodge or a beach house.  The heirs may be very attached to keeping that property in the family for years to come.  They would be heartbroken to have to sell the property to meet an estate tax obligation.

Property rich and cash poor estates.  Related to both of the above, estates that are real property rich and cash poor are in a particularly difficult position to satisfy an estate tax bill, particularly if the real estate market is in slump.  Not only might heirs have to sell a much-wanted property to meet a tax bill, they may not get enough in the sale to cover the bill, causing them to have to sell even more property.

Possible solutions.

1. Find and work with all exemptions and deductions.  Make sure your tax, legal and financial professionals are anticipating future tax law changes on the federal and state levels to maximize your heirs’ opportunities to minimize taxes.

2. Give gifts during your lifetime – Part 1.  There’s an annual gift tax exclusion that allows anyone to give as many people as they want a certain amount of money without filing a gift tax return or paying a federal gift tax.  In 2023, that amount is $17K.

3. Give gifts during your lifetime – Part 2.  Give assets away now that have a low basis and will likely appreciate highly over time.  Pay a low gift tax now, allow the heirs to receive those highly appreciating assets.  This gets them out of your estate at a lower value.

4. Use life insurance policies.  If you are insurable, you can get a life insurance policy that will pay out a death benefit so that cash will be available to pay the estate taxes.  Consider creating an irrevocable life insurance trust so that the death benefit proceeds are not included in your estate.

5. Use trusts.  The possibilities are seemingly endless in the types of trusts you can create to get assets out of your estate during your lifetime.  The most popular of these is the charitable remainder trust, where a beneficiary can get income during their lifetime but the asset ultimately ends up with a charity of your choosing.

Use professionals

The gift and estates tax code is complicated, particularly as you try to manage taxes for generations to come.  Be sure to employ tax, legal, and financial professionals to give you the greatest control and flexibility with your assets while also reducing taxes.

Keep in mind that you need to make sure you have enough money for your own life first and deal with taxes second.  Make sure you understand exactly what you are doing, what the risks are in addition to the benefits.

Remember this is your life and your money.  You get to do with it as you wish.  Go make good, conscious decisions.

If you would like to have a conversion about your estate tax planning, please reach out.

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

By Jessica Lanning, JD, CFP®

July 5, 2022

There’s a line from the 1964 film Zorba the Greek, where Zorba (played by Anthony Quinn) upon asked if he is married, replies, “Am I not a man? And is not a man stupid? I am a man, so I’m married. Wife, children, house – everything. The full catastrophe.” It’s intended as a joke…. Laugh.

If you’re engaged in your own “full catastrophe,” it’s now time to tackle the grown-up checklist that comes with it: financial planning, taxes, estate planning, buying insurance, perhaps running a business.

Sure, you can do it all yourself, most likely to your own peril. Or, hire help.

Who To Hire and When

The following is a list of experts who can assist you with making sure your bases are covered, your affairs are in order, and confirm along the way that things are running smoothly. In most cases, the adage that you get what you pay for is true. Don’t overpay, and certainly hire wisely.

Hazard insurance agent

What this person does: They help you find homeowners’, renters’ or auto insurance. They also insure boats and RVs. They can also help you determine how much of an umbrella policy you need.

When to hire: You probably already have an agent if you’re a licensed driver with a car. Then, add on more policies as life changes and you need them — when you’re buying a home, after your first child is born (or when you become a pet parent/custodian), when you buy that boat or RV, or when you start using your car for business purposes.

Why you want a professional: Advertising suggests that you should choose your insurance agent based on the premiums (price) of the policy. Wrong. What’s more important is hiring an agent/company who is going to be there during the claims process should you have a loss.

Those people are truly worth the price differential. They will lower your anxiety and hold your hand along the way.

Also, if you have most/all your policies with one agent/company, you will get a multi-policy discount, and even more importantly, that agent can identify any gaps in coverage. The last thing you need is to think you’re adequately covered and not be.

Tax Preparer/CPA

What this person does: This person helps you with your taxes, including preparing and filing your tax return. This person should also do tax planning with you to minimize taxes both now and in the future.

When to hire: You can probably do your own taxes if you are simple — that is, you have a salaried job with a bonus, own a home, and have a spouse and kids. Once you get more complex — have stock options, investment property, own a business, etc. — you need to hire help. You will work with this person at least twice a year and probably more often.

Why you want a professional: Being successful financially is about making and saving money but it’s also about not losing money. Taxes are typically the biggest line item in a household spending plan (budget). Preparing taxes is as much of an art as it is a science. Lowering your tax bill means having more money to save or spend on other things. Staying within the good graces of the IRS is a good practice. Having an advocate should the IRS come calling is critical.

Life insurance agent

What this person does: This person helps you choose a life insurance policy and/or annuities that meet your needs

When to hire: When you have people depending on you financially, such as a spouse or child. You may also want to consider buying life insurance if you have significant debt, such as a mortgage or student loans.

Why to hire a professional: When you’re getting started in life, a simple term policy may be all that you need and can afford. You need someone who can determine how much that should be and explain to you other options as your income increases and your life gets more complex.

Permanent life insurance allows you to build an asset that you can use for a variety of reasons in a cost-effective and tax-efficient way that can be of a huge benefit to your family. It’s going to look pricey.  Someone is going to tell you to “buy term and invest the rest.”  Careful.  Do not overlook its opportunities.

Estate planning attorney

What this person does: This person helps you plan for the distribution of your assets should you become incapacitated and after you die. This might include creating a will, living trust, health care directive or powers of attorney. There’s no worse intersection on this planet than death, family, and money. Having the proper documents in place will save your heirs time, money, and anguish. It’s a great act of love to your family to get this done.

When to hire: After you’ve accumulated assets (a house, savings, retirement accounts, investments), gotten married, or if you have minor children. You should also consult with an estate planning attorney if you’re in a second marriage and have children from a previous marriage.

Why you want a professional: Sure, you can do this online or use your company’s legal support benefit. Nothing, however, will replace personalized attention and making sure these documents reflect the most recent laws, conform to your wishes, and actually get completed.

Business attorney

What this person does: This person helps you with the legal aspects of running a business, such as incorporation, contracts, and leases, preparing a business for sale, and keeping employment and legal issues to a minimum. These people typically work with lots of other business, and the “cross-pollination” of advice from one to the others is invaluable. They can keep you out of trouble and in a creative, profitable trajectory.

When to hire: When you’re starting a business. If this person cannot scale with you as you grow, you’ll need to hire another one who can handle more complex issues as the business gets bigger.

Why you want a professional: Again, you can do business formations yourself, but you will learn little from the process that will need to be repeated, the cost to set up a business is not that high, and you want to build the ally. Business owners tend to see their attorney as a partner in their success. Don’t deny yourself that support.

Financial planner

What this person does: This person helps you plan for your financial future, which might include saving for retirement, investing, buying insurance or paying down debt.

When to hire: When you have specific financial goals you want to achieve, such as saving for retirement or college, or when your finances get so complex that you need the additional set of eyes and brain cells.

You might also want to consult with a financial planner if you receive a windfall (inheritance, bonus, etc.), or experience a major life change.

Why you want a professional: Unless you want to spend your free time becoming a financial planner so you can do everything yourself, get someone in your corner to help. A financial planner can also be your “general contractor” to hire all these other experts as “sub-contractors.” Financial planners are excellent at identifying who you need to hire and when. As your assets grow, that person can be making mid-flight corrections with you and increase the chances of your financial success.

Social Security and Medicare specialist

What this person does: This person helps you understand how Social Security and Medicare work, and how to make the most of these government programs.

When to hire: If you become disabled, when you’re 60 years old and probably again at 64 years old. and want to know how to maximize your benefits under both programs that makes sense for your particular situation.

Why you want a professional: The rules for Social Security and Medicare are Byzantine, ever-changing, and there are lots of ways to “game” the system. You want someone who knows how to do that so you don’t have to and can get the most out of these programs. This is particularly true if you are married.

Elder care/long-term care specialist

What this person does: This person helps you plan for the care of your or an elderly family member, which might include in-home care, assisted living or a nursing home.

When to hire: When you have an elderly family member who needs assistance with activities of daily living, such as bathing, dressing, eating or using the bathroom. You should seek a consultation about long-term care options when you become seriously ill or when you turn 60, whichever comes first.

Why you want a professional: Making long-term care decisions is difficult and rife with pitfalls that you cannot see because you don’t do this every day. You want to make the most conscious decisions you can about your care when you have the cognitive and financial ability to do so. When those abilities go away, someone starts making those decisions for you.

Surround Yourself With Good People

When hiring any of these professionals, do your research and your due diligence. Ask friends and family for referrals. Ask good questions. Do not be afraid to have multiple meetings before you engage in a contract. This is your life and your money. These people should be helping you make good, conscious decisions about both. If not, move on.

As Zorba reminds us, being an adult comes with a lot of responsibility. But it doesn’t have to be all doom and gloom. By assembling a team of experts to help you with the various financial aspects of your life, you can take some of the stress out of being an adult. And, who knows, maybe even laugh along the way.

If you need a referral to any of the above professionals, please reach out.

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

To review, you should start giving your children an allowance as soon as they can count money, usually at four or five years old. Your sole purpose in providing an allowance is to give your children an opportunity to build money skills. Allowance should not be tied to chores. They get an allowance because they’re part of the household; they do chores because they’re part of the household. When it comes to allowance, you get to make the rules and enforce them. You may have values about money that you want your kids to learn. I’ll share what has worked in my house for years.

My son and daughter get an allowance every week, like a paycheck. They receive a dollar for every year of their age — at age 7 they get $7, at age 9 they get $9, and so on. This may seem like a lot of money. Keep reading.

From that amount, my kids are required to give 10%  to charity and put 20% in long-term savings. They get to spend the remaining 70% pretty much as they wish. They have individual places to put this money. For years, we used a divided piggy bank. Coffee cans work just as well. Now we use storage containers. Every week they get an envelope with all their money with the denominations available to make the allocations. You’ll need to help them when they’re young to count and sort the money — it’s a great coin identification and math exercise.

An important note: Make sure they physically handle the money, especially when they’re young, and make them count money when they pay you back for something you bought for them at the store. You want them to have a real life experience of receiving money and watching it leave their hands. We handle actual money so rarely in our society these days. For the longest time, my kids thought that if you needed cash you just went to the ATM and got some. They had no idea that you had to put money in to get money out. So make this reality of having money come into their possession and leave it a part or your kids’ early lives, so they can transfer that experience to the non-cash-oriented world when they’re older.

With all that cash burning a hole in their pockets, sooner or later your children will want to go shopping. Take them, allowing for a significant amount of time to shop, especially early on. You want to make sure they have time to walk all the aisles, pick a variety of things, put them back, choose something else, etc. But leave their money at home. Pay for their purchase yourself, then have them pay you back when you get home. This avoids a lost money crisis and allows for experiences with sales tax, how credit cards work, paying someone back, making change, etc.

Here’s the real trick:  Do NOT judge what they buy. You can set rules and constraints, but after that, hands off. For instance, I didn’t allow my kids to buy toy guns or candy. Sometimes I will put the kibosh on yet another oversized stuffed animal. After that, they can pretty much get whatever they want. This will take much discipline on your part, but I promise it will be worth it.

This plan has incredible beauty that I never saw coming. More on that next time. In the meantime, get your envelopes ready!

The financial planner in this story goes on to explain to his fellow passenger that it’s not the money you need to pass down, but the skills and values that have helped you build wealth. Money can disappear overnight, especially in the hands of those who have no skills to manage it. The old adage applies: Give people a fish and they will eat for a day. Teach them to fish, and they’re fed for life.

I’m a huge advocate of giving children an allowance for this very reason. As a general parenting philosophy, I believe it’s important to let kids have age-appropriate opportunities to screw up when the stakes are low. Direct experience and its consequences are the best teachers. I’d rather my daughter learn that it’s not such a great idea to put the heaviest block on the top of the tower when she’s three years old than wait until she’s 15, when I need her to stack the dishes in the cupboard. It’s the same with money: You want your kids to learn early.

Here’s another belief of mine: We don’t know what’s “sticking” in our children’s brains. Think about it. Memory is such a subjective and selective thing. Almost everyone has a lesson they learned about money that stuck with them. Most of us heard a parent or influential adult say something about money that influenced our beliefs about it, like “money doesn’t grow on trees.” The best thing you can do for your kid(s) is to let them have lots of opportunities to form their own beliefs about money — for example, not spending more than you have, avoiding deficit spending, delaying gratification — so they can form good money habits early. These are crucial life skills, and they don’t get built through our lectures.

I don’t claim to be an expert in this area. Most of my training has come from financial counselor Kathryn Amenta and from my son and daughter, who have been receiving an allowance since the oldest turned five. I encourage all my clients to give their kids an allowance, even if they are much older than that. Better to learn hard money lessons as late as college than when they get their first real paycheck.

How to make it work? Stay tuned.

Pick a date!

You can’t predict the future, but you need to start somewhere. Retiring at 65 is no longer the default. Your target age should stem from your values, so revisit or define them.

Ten years out

This is a time to get a reality check on your financial life and start to envision what retirement will be like.

• Time to take a basic retirement planning class. Look to your local community college, retirement system pension planners, or professional organizations. You’re not trying to become an expert or nail down your plan. But you are trying to figure out what you need to know and what you need to think about.
• How much money have you saved in a 401(k), 403(b) or other retirement account?  Do you need to save more?  Will you need to work longer?  Do you need to adjust your allocations to make them more aggressive or (more likely) conservative
• Will you get a pension? When will you reach the vesting requirements?  How much will you receive? How will it be paid out? In a lump sum, monthly, etc.?)
• Do you have a copy of your Social Security statement? How much can you expect to receive?
• What other assets and investments can contribute to your retirement? Are there any potential drains on your income?
• Start having conversations with your close friends and family members about your vision for your “retirement.”  How do you want to spend your time?  What skills might you want to keep using in part-time or volunteer work?

 Five years out

• Revisit the questions from 10 years out.
• This is a good time to start a journal. Take some of those daydreams you put away and make them more specific. For example, rather than “spend time with grandkids,” you might write “spend two dinners a week with grandchildren.”

 Two years out (or less)

Time to get serious.

1. Make sure your partner/spouse is involved, if you have one and they aren’t already. Communicate and negotiate with them about how you expect to spend your days and money.
2. Hire a financial planner if you haven’t already done so. You want a fiduciary. The Financial Planning Association is a great place to find one.
3. Create a realistic budget. Figure out if you’ll need to work for income or where you may need to cut back on expenses.
4. Figure out when you’ll take Social Security, whether and when you will sign up for Medicare, etc.
5. Turn that “stake in the ground” into a real retirement date. Put a date in the calendar to retire, whether you share this with your employer or not.
6. Get more specific about how you’ll spend your newly found time.

 I often say it’s not about the plan, it’s about planNING. Life happens. Mid-flight corrections are necessary, and you can’t schedule those.  But following this schedule will help minimize the changes and the surprises.

Take the pressure off!

You do not have to have all of the answers now, so start by separating the financial part from the how-to-pass-the-time part. I often tell clients who are “stuck” on how to begin planning for retirement to focus on the first three years and then on the last three years. This takes the stress out of a big question like, “What the heck am I going to do for 20-30 years?!”

For the first three years, write down the collection of projects you want to get done. This often leads to a very satisfying feeling of purpose and direction. It’s like you’re still working, but you’re working on the stuff you want to work on and have been putting off. I’ve had clients travel for a year, remodel homes and take care of grandchildren, to name a few.

Then write down your ideal last three years, which are also usually easy to envision. These are typically slower, easier, quieter. This part also comes with specifics, such as:

• where you’ll live,
• who you’ll rely on for companionship and support,
• how you’ll want to manage your physical slow-down,
• how you want to be cared for and who will take care of you, and
• how you’ll feel at the end of each day

This process helps you figure out how much money or assets you need to set aside to meet these criteria, which will help build the financial part of your retirement plan.

Now for the years in between. I recommend making a list of the skills you want to keep using. This will likely have far fewer specifics than the first or last three years. That’s fine. For instance,

• I’ve had teachers that want to continuing teaching, so they consider tutoring.
• Those leaving executive positions find there are all kinds of nonprofit boards looking for expertise in leadership, development and managing a budget without having to manage employees.
• Some people enjoy mentoring others and find places to create those relationships.
• Talk to others who have retired. Keep your networks going with people who are or are not in the workforce. You don’t need to know exactly what you want to do, but it’s helpful to identify those skills of which you are most proud, most willing to “give away,” and most likely to energize and satisfy you.

In my experience, most people take two to three years to settle into a “retirement groove.” They tackle all of their projects early on, then they hit the end of that list and it takes a while to figure out how to spend their days. Even those who have done a “whole lotta nothin’” in the first year of retirement realize they want to make a change in how they spend their time. This is typical and normal. I also find it takes two to three years for the budget to work itself out. Rest assured, both how to spend time and how to spend money do work out. And both begin with figuring out how to spend the first three years and how to spend the last three years.

You can have confidence managing your 401(k)

When I meet my clients with 401(k)s for the first time, most of them have no idea why they chose the funds they did, have no idea whether they’re in the right funds, and have no idea what to do next. So they have done nothing for years and are continuing to do nothing. This does not have to be you. Here’s a game plan for you:

•   Get out your last statement.  Since it’s not been so scary to open it lately, you might actually know where it is.  

•   Check out:  http://lanning.mutualfundmarketalert.com/. It’s the best tool I’ve seen so far to make managing a 401(k) easy.  It’s an educational tool. That’s all. But it might help.  

•   When I tell clients to talk to their 401(k) administrator about their plan, I get either a blank stare or the somewhat rhetorical questions, “yeah, who is that?”  Your company does have a 401(k) administrator somewhere.  Find that person.  

•   Ask the administrator these questions: 
     o   May I please have the list of funds in which I can invest?
     o   How often can I change my allocation?
     o   How do I change my allocation?
     o   Are there any penalties for changing allocations?  

•   Implement the Mutual Fund Analyzer tool. Follow the signal. Make your adjustments. 
 

This is simply an educational tool that might allow you to catch the upsides of more of the markets. You won’t catch the highs and you won’t necessarily miss the lows.  But that’s better than blowing with the volatile wind of this bear market.  And, if you can make some money in the meantime, all the better.

Plan first, tools second, revisit often.

This adage applies to life insurance probably more than any other tool in your financial planning toolbox.  In most cases, you bought it with the intention of keeping it for 20 years or more.  A lot of life happens in five to 10 years, let alone 20.  One of the biggest changes during that time is your own maturity – your thoughts and values change, your needs change, and your desire for security changes.  What made perfect sense and what got your attention 5, 10, or 20 years ago is probably quite different than what you would notice and pay attention to today.  And while you’re going about your life, the insurance industry has probably introduced new products and stopped selling others.

Remember to go back to your plan and then look at the tools (products) you’re using to make those plans happen.  Evaluate whether a particular financial tool is still a viable part of that plan or no longer serving you.  A life insurance review would be valuable.  Most life insurance agents will do these for “free” as a way to sell you something else.  Find an ethical one who will give you an honest answer, even if it means losing a commission.  For life insurance, consider these questions:

• What might I need life insurance for?
• Do I have people who are financial dependent on me?  For how much longer?
• Does the policy I have any cash value?
• How is my health?
• How much do I need?
• How might I use life insurance to meet multiple financial planning needs?  (long-term care, cash reserves, retirement income supplementation, college education funding, etc.)
• How might I use pre-tax dollars to meet those premiums?
• What is the value of my estate and how much might my heirs have to pay in estate taxes?

Once you’ve explored some of these questions in present time, your answers from years ago may have changed.  If so, time to choose a new tool.

Remember that taxes do good things and you do have choices

First, breathe.  Lighten up.  We’ve all been there in one year or another.  Find gratitude.  The taxes you pay do good things – libraries, schools, roads, people to fix the roads, street lights, police, courts, and the list goes on.  These things may not be perfect, but for the most part, they’re functional.

Second, remember that you have choices.  Here’s something else a bunch of you did this tax season:  You funded your qualified retirement plans.  When you looked at the difference in your tax bill based on whether you funded that plan or not, it felt like a no-brainer to fund it.  You thought, “Look at all the money I saved in taxes!”  You probably thought with pride, “I put money away for retirement just like I’m supposed to and look at how much I put away!”

If you had these thoughts, I want you to contemplate these thoughts:  (1) If you believe taxes are going to remain the same or go down for you in retirement, it makes sense to fund qualified plans.  But if you believe taxes are going up, you’ve just “kicked the can down the road,” when taxes in retirement will likely be much higher.  Did you really save money?  Frankly, taxes are on sale right now.  (2) You may have been better off funding a tax-free retirement with after-tax dollars, rather than a qualified plan, so that when you go to retire, you’ll have fewer taxes to pay, less fear about tax deadlines, and a simplified tax return.  Starts to make retirement look even better, doesn’t it?  Remember that you have choices about how you earn, invest, and spend your money.

What to eliminate from 31 ideas and what to add

There’s an older article that refers to 31 ideas. I see no reason to replicate it.  Check it out.  There are some great suggestions.

 
Here’s what I would not do (or at least be wary of):

• Make an extra mortgage payment.  This is only worthwhile if you’ve sat down with your financial planner and decided this is actually in your best interests.  It likely isn’t.

• Increase your student loan payment.  Again, only worthwhile if you’ve considered the interest rate, whether you can deduct the interest, and whether it makes sense in your overall financial plan.  Remember, paying off debts is not the same as accumulating assets.

• Seeking a lower interest credit card.  Initiating new credit can bring down your credit score, so if you’re planning to buy a house, this could be a bad idea.  Otherwise, it’s a great idea.

• Be careful about shopping for new home and auto policies.  Make sure that you’re not losing “seniority” at your insurer that you would be giving up should you change companies.

 
Here’s what I applaud and highly recommend:

• Set an automated payment toward your debt.  In this, I’m thinking about the minimum monthly payments.  Make sure those are paid automatically.  Now, you might always pay more or pay them off, but I can’t tell you how many clients thought they were paying ABC Bank for their mortgage but sent the payment to the credit card division and didn’t catch the mistake until they were 30 days late.  Yikes.

• Check your credit report.

• Reread your estate planning documents. Make sure you still agree with them.

• Walk a loved one through your affairs. 

 
Here’s what I would add:

• Call your mortgage broker and see if you can do better on your residential loans.

• See the comment near “Investments and Retirement” about checking out your medical report file from the nationwide consumer reporting agencies.  Like checking your credit report, you may discover mistakes that are causing you money.

• Consider buying long-term care insurance.

 
If we can help you with any of these items or with a referral, please call.