You know an annual physical is important for staying healthy. However, do you also get an annual financial and estate planning checkup? A recent article from Forbes, “Time For Your Annual Wellness Checkup…Your Financial Wellness,” offers a step-by-step guide.
What You Can and Can’t Control. Planning for the future is more realistic with a clear understanding of controllable and uncontrollable factors. Add to this a healthy dose of imagination for unexpected events.
Here’s what you can control: investment decisions, asset allocations, liquidity and estate planning strategies. However, try as you might, there’s nothing you can do about market volatility, inflation rates, economic downturns and regulatory changes.
What Can You Do about the Uncontrollable Factors? Most importantly, steer clear of emotional reactions to market volatility. Conduct periodic reviews and be open to changing strategies. However, be sure changes are based on data and not emotions. You can be better protected against market fluctuations by maintaining enough liquid assets. Let the professionals on your team—financial advisors, CPAs, estate planning attorneys—use their knowledge to help you.
Review Investment Strategy and Longevity Plan. Take the long view with your investments, both for your own lifetime and the next generation, if passing wealth to the next generation is part of your estate plan. Are contributions consistent, and are accounts performing as anticipated?
Make sure that beneficiary designations are current. Unintended asset distribution occurs all too often, leading to family disputes and the wrong people receiving the fruits of your labor.
Review Estate Planning and Legacy Strategies. Probate is notoriously slow, expensive and frustrating to those who are left waiting for courts to act. With a well-drafted estate plan, you have an opportunity to avoid most or all your assets going through probate and having assets pass directly to beneficiaries. Assets going right to beneficiaries typically include life insurance policies, retirement accounts and payable on death (POD) or transfer on death (TOD) accounts.
Review all estate planning and trust documents and consider the people named as primary and successor trustees. Are they still the people who you want to be in charge of the trusts? You may want to name new people in these important roles if they have died or moved away.
An annual financial and estate planning checkup is good for your finances, your heirs and your peace of mind. If your estate plan hasn’t been updated in the last three to five years, make an appointment with your estate planning attorney to make sure it still works to achieve your long-term and short-term goals.
Reference: Forbes (April 10, 2025) “Time For Your Annual Wellness Checkup…Your Financial Wellness”